Introduction

The Cybersecurity Maturity Model Certification (CMMC) program was developed by the Department of Defense (DoD) as a program to clearly define standards for cyber protections for companies in the defense industrial base (DIB). It is meant to enable DIB companies to meet evolving threats and to safeguard information supporting DoD projects and persons.

On November 4, 2021, CMMC 2.0 was released. It includes many important structural changes to the CMMC framework. The changes are intended to simplify and alleviate complexity and implementation costs, especially for small and medium-sized businesses relative to the original CMMC 1.0 framework. In addition, other significant changes were made to refine both the content and the process for implementing CMMC 2.0.

This article will cover the areas described above and will also include how these changes may affect our clients, and the timeline for implementing CMMC requirements.

What is CMMC 2.0?

On November 30, 2020, “Defense Federal Acquisition Regulation Supplement: Assessing Contractor Implementation of Cybersecurity Requirements (DFARS Case 2019-D041)” went into effect. This interim DFARS rule introduced CMMC 1.0 requirements for DoD contractors and subcontractors.

In March 2021, the DoD started an internal assessment of the CMMC program’s implementation to refine the policy and program implementation. This review resulted in “CMMC 2.0” which updates the requirements and program structure and to improve and streamline implementation of the program.

Results from this review process

• Changes in the framework will follow the rulemaking process in accordance with title 32, and title 48 of the Code of Federal Regulations (CFR). The rules include both a public comment period and congressional review. Following the rulemaking process is estimated to require between nine (9) and 24 months to complete.
• In CMMC 2.0, the framework has been reduced from five levels to three levels.

Graphic of CMMC Model 1.0 & CMMC Model 2.0 Comparison (OUSD A&S - Cybersecurity Maturity Model Certification (CMMC) (osd.mil))

• Allowing CMMC Level 1 (Foundational) to be achieved through annual self-assessments and annual affirmation by DIB company (C-level) leadership.
• Bifurcating Level 2 (Advanced, formerly Level 3) to identify prioritized/weighted acquisition requirements that will require triennial independent assessments. Non-prioritized acquisitions will require annual self-assessment, along with annual company affirmation.

From CMMC Accreditation Body (CMMCAB) "CMMC 2.0 Discussion Town Hall"

• CMMC Level 3 (Expert) will be assessed triennially by government officials
• The new process will allow DIB companies the use of time-bound (potentially 180 days) Plans of Action & Milestones (POA&M)
  • This means that all non-prioritized CMMC requirements do not initially need to be met in order to be awarded a contract. Shortcomings would need to be addressed by the POA&M within a strict time frame.
  • POA&Ms will not be allowed for highest weighted requirements
• Additionally, waivers will be allowed on a very limited basis and will require senior DoD approval to minimize potential misuse of waivers

Why were these changes to the CMMC framework made?

• Simplify CMMC and provide greater clarity on cybersecurity regulatory, policy, and contracting requirements
  • Simplifying the model from five levels to three
  • Allowing self-attestation and company-level self-affirmation for Level 1 compliance
  • For non-prioritized acquisition, allowing self-attestation and company-level self-affirmation for Level 2 compliance
  • CMMC requirements now align with existing governmental guidance provided by NIST 800-171 and NIST 800‑172 standards and other recognized security guidelines
  • Eliminating CMMC-specific requirements that had been included in CMMC 1.0
• Focusing third-party assessment requirements on companies involved in the highest priority programs
  • This is done largely by implementing the self-attestation and self-affirmation processes described above
• Increasing Department oversight of professional and ethical standards in the assessment ecosystem
  • In March 2021, a Memorandum of Understanding (MOU) between the Office of the Under Secretary of Defense for Acquisition and Sustainment, and the CMMC Accreditation Body (CMMC-AB) was signed.
    Included in this agreement, the CMMC-AB is to:
    • Achieve and maintain ISO /IEC 17020 certification.
    • Achieve and maintain the ISO / IEC 17011 certification
    • Require CMMC Level 3 certification for all internal systems and networks
    • Conform to DoD standards for personnel and outsourced and other managed services

CMMC rollout and contractual requirements and timeline

The interim DFARS rule for CMMC (1.0), effective November 30, 2020, had a five-year phase-in period. During that time CMMC compliance is only required in select contracts. The DoD isn’t planning to include CMMC requirements in any contract prior to the CMMC 2.0 completion of the rulemaking process (https://www.acq.osd.mil/cmmc/about-us.html). After completion of the rulemaking process the CMMC framework will be implemented according to regulatory requirements.

The rulemaking process is estimated to have a 9-to-24-month timeline.

How will these changes affect PROCAS clients that are DoD contractors?

A large percentage of our clients who are DoD contractors will benefit significantly from these changes in CMMC 2.0. The costs for meeting CMMC 2.0 requirements for Level 1, and many companies requiring (non-prioritized) Level 2 certification are projected to be significantly lower. This is largely due to the removal of the requirement to be assessed by a CMMC-AB certified assessor/assessor organization.

This is not to say that there will be no costs or other concerns in this process. Due to the specialized knowledge required to understand the cybersecurity requirements encompassed by CMMC, many companies may find it useful to utilize the services of consultants or other advisors who are familiar with NIST 800-171 and/or NIST 800-172 to assist them in the self-assessment process.

Also, it is important to be aware that the self-assessment, and self-affirmation (by C-level executives) is also accompanied by the DoD seeking to more rigorously enforce oversite and penalties for entities that do not meet the standards that they affirm to be in compliance with. This makes a strong case for getting expert advice on how to move forward in meeting the requirements for CMMC 2.0.

PROCAS’s Software as a Service (SaaS) is audited at least annually against the American Institute of Certified Public Accountants’ (AICPA) Service Organization Controls (SOC) reporting framework for Security & Availability by independent third-party auditors. Our audit is expanded to also include CMMC requirements as published at the time of the audit so that we will be more prepared once the rule making process is complete, the framework is finalized, and companies can be CMMC certified by third parties.

The blog post been guest written by our colleagues over at Edwards Performance Solutions. As CMMC Training Program Manager, Joy Beland oversees the curriculum development and live instructor training for CMMC-AB approved certification courses at Edwards. Her contact information is below the post.

CMMC - What is it?

The Department of Defense (DoD) estimates that at least 350,000 U.S. businesses in the Defense Industrial Base (DIB) who contract with the DoD must undergo a cybersecurity assessment and certification to participate in upcoming contracts. This program, referred to as the Cybersecurity Maturity Model Certification or CMMC, is being rolled out in phases from 2021-2025, and already showing up as a requirement for award in some “pilot” contracts. Each year, more contracts will begin to include CMMC requirements. Organizations Seeking Certification (or OSCs), as well as their subcontractors and 3^rd party service providers, may be required to achieve an assessment certification at either CMMC Level 1 or CMMC Level 3, depending on the type of information they handle as part of servicing DoD contracts to continue working with the DoD.

CMMC 12 Month OSC Timeline

This is not new information, but it is the first time OSCs will be required to prove their cybersecurity maturity level before being awarded a contract. Many small businesses who hold long-standing DoD contracts are concerned about the resources (both staff and funding) needed to meet these requirements. After all, cybersecurity is all we hear about these days, and most small businesses who receive proposals to get their cyber controls in order are overwhelmed and under-funded. It’s difficult to break the problem into digestible pieces and make progress. So, below is my breakdown for CMMC fitness – monthly goals to aim for CMMC preparedness in a year.

  Understand the type of information (FCI or CUI) you maintain and how it flows throughout your company.

This is demonstrated best in a data flow diagram, which is different from an infrastructure diagram. A data flow diagram will include information systems, business units, connections, and permissions.  Ask yourself – where does FCI or CUI enter our business? Trace it through each application, user, device, business unit, and storage.

  From your data flow diagram, create the infrastructure diagram and complete an inventory of all systems, users, devices, and services.

  Clearly identify the systems, users, devices, and services that interact with the FCI or CUI data. This is the initial scope. 

Can that be reduced as a footprint? Is there remote access capability to store the data on the prime contractor site without storing it on your network? Is there a way to limit access to fewer people? How about having only one location handle the data instead of multiple sites? And, do you have the ability to set up an “enclave” that only certain people have access to, both digitally and physically?

  Identify risks and vulnerabilities on the network with a full security assessment.

  Conduct an 800-171 assessment along with the CMMC Delta20 assessment, and generate a Plan of Action and Milestones (POA&M).

  Take the POA&M and determine how to best clear priority items (items that have the most impact by checking off multiple boxes) and assign resources (funding and staff) over a five month period.

You are at the six month mark – use this time to align resources, secure leadership support, and plan for success using project management skills.

  Tackle the biggest POA&M items over months seven through ten.

Be sure to schedule weekly meetings to monitor progress and keep your goals in the forefront.

  Review the Information Security policies to see how they match up with the CMMC domains.

If you want to achieve Maturity Level 3 certification or higher, each domain and practice must align with a policy.

  Work with the team to create procedures for each practice as it is confirmed or implemented according to the POA&M.

Make sure the procedures map back to at least one policy.

  Work with the business unit leader responsible for each policy (or even at the procedure level) to understand future resourcing needs.

Develop a resourcing plan to prove commitment to each practice. The plans can be one-to-many for the practices, as it makes sense.

  Send at least one team-member to a Certified CMMC Professional (CCP) course for training.

The target audience for this course is internal IT, IT consultants, and assessors themselves. This foundational level course covers the CMMC assessment process end to end, so your team will know exactly what to expect in the formal assessment (and is well worth the one-time cost). That individual (or multiple team members) might also consider participating in a formal assessment with a C3PAO as a 1099 contractor, to gain experience in an actual assessment. Network with C3PAOs to determine if this makes sense for your business.

  Bring in an RPO or C3PAO to confirm your readiness for the CMMC assessment.

Your on-staff CCP will help reduce the work involved in this, saving you money.

Depending on the size of your business and the level of certification you seek, this 12-month plan might be unrealistic. However, the general flow and steps remain the same for most OSCs, whether the timeframe is shorter or longer. Some OSCs bring in an RPO or C3PAO to help with the 800-171 and CMMC Delta 20 assessment early on; but if your internal team is robust, you may not need this. There will be caveats for every business as no two businesses are the same, especially when it comes to cybersecurity. Nevertheless, having a roadmap to follow and setting goals for each milestone will help immensely.

Edwards Performance Solutions

Be sure to communicate with the stakeholders in every step. And, if you need assistance, reach out – at Edwards Performance Solutions, we are here to shepherd this process, because we’re all in this together.

Joy Beland, CISM | SSAP | CMMC-AB RP, PA & PI

CMMC Program Training Manager

310.590.9288

jbeland@edwps.com

The following two blog posts have been guest written by our great partners over at OPSPro, LLC. Cathy Goin, Tricia Santos, and their team have been instrumental in helping us develop the ability to connect PROCAS data to Business Intelligence systems via an API. Part 1 describes the relationship between API and BI, and Part 2 discusses how you can leverage your PROCAS data using this resource.

API and BI – Where acronyms meet

Data analytics and business intelligence used to only be available to large corporations. These large enterprises had massive amounts of data to consume that Business intelligence had to become ingrained in their reporting tools. The goal of these tools was always an easy interpretation of vast and sometimes unstructured data.

In recent years, these tools have evolved to where a small business is no longer left behind. Whether your company is big or small, or you are the CEO or an employee, the tools available have progressed so you can access and make use of the same interactive reports. You no longer need large databases and dedicated analysis to retrieve your information in a meaningful way. These tools let users consume data in tailor-fit solutions that provide them with up-to-date information with a modern look and immersive feel.  

Right now, you may have processes in place where you pull and export data from Procas into excel. Each time the data is pulled you or an employee may have to waste time updating formulas, reselecting chart areas, filtering and removing columns, but now there is a new way. 

Microsoft defines Power BI (Business Intelligence) as a “collection of software services, apps, and connectors that work together to turn your unrelated sources of data into coherent, visually immersive, and interactive insights. Your data may be an Excel spreadsheet, or a collection of cloud-based and on-premises hybrid data warehouses. Power BI lets you easily connect to your data sources, visualize and discover what's important, and share that with anyone or everyone you want.”

An API, Application Program Interface, is a set of programming instructions.  These instructions enable computer programs to communicate with each other. These programs allow a software-to-software interface which allows the programs to communicate with each other without any user intervention. The API lets Microsoft’s Power BI Application communicate and exchange details with the Procas server. The API provides us with the data and the Power BI Application gives us the tools to export, transform, and refresh the data without repeating or reconfiguring steps or formulas.

What do you need to visualize and discover? What’s important to you?

Our clients look at a vast array of items from their project profitably, their resource management, to employee timesheets, and income statement details. These and more could be at your fingertips.

Follow along in the series to see detailed examples of how OPSPro and Procas used each powerful application to help create an easy-to-consume report. 

Source:

What is Power BI? - Power BI | Microsoft Docs, 9/23/2020, website

The blog post been guest written by our great partners over at OPSPro, LLC. Cathy Goin, Tricia Santos, and their team have been instrumental in helping us develop the ability to connect PROCAS data to Business Intelligence systems via an API. To learn more about the relationship between API and BI, click here for Part 1.

Download - OPSPro Demo of PROCAS Data Using PowerBI.pdf (1.19 mb)

Connect and Transform PROCAS Data - Power Query in Excel

Once you have Procas API access setup, there are a few things you will need to do. You will need to connect using Power Query in Excel or connect to Power BI. Power Query in Excel is a lighter version of the Power BI desktop application. 

With Power Query, you can: 

• Connect to the data  
• Merge with other data sources  
• Transform pivot or unpivot  
• Remove or add columns  
• Apply custom formula’s 
• And so much more 

With the shaped data, it can be loaded into your excel file as a table. This method will provide you with an introduction to many of the data mining methods used in Power BI but in a format, you might be more familiar with. 

Reasons to Explore the Power Query in Excel:  

• Provides a great way to validate data in a macro table view. You can apply custom cell formatting to make data that does not validate correctly appear in bright red. 
• Gets you out of the cell method and into the column method. Rather than focusing on the formula of a single cell and then replicating either across or down. Power Query is all Column-based logic. 
• Using Power Query's column-based logic it can be easier for you to check your math and reduce formula errors.  
• You can refresh the data when you open the file. It will keep all your steps and transformations. 
• You can apply Pivots and charts. 
• Combine and merge data from other sources such as; SharePoint, Excel, and hundreds more.

Some limitations:

• Not all connectors are available. 
• The data must be refreshed manually. 
• Changes made to any cells inside a table loaded from Power Query will be reset to reflect what is in the data source on refresh. 

Upgrading your Reports

Power BI Desktop application and Power BI Service are the true powerhouses behind this self-service reporting tool. Not only does it provide a way to format and clean your data, but it also delivers these engaging, interactive visualizations to tell a story or highlight critical decision-making information.

In addition to all the Power Query features in Excel, there are additional connectors and additional methods to handling formulas:

• Using DAX formulas to create calculated columns, measures, and dynamic formatting.  
• Bookmarks and interactive buttons 
• Customizable visuals and a visual marketplace 
• Custom slicers and hierarchies  
• Custom report pages and dashboards 
• Change the interaction between visuals. 
• Schedule refresh with the Power BI service. 
• Restrict access using Row-level security or RLS.

Tips and Tricks: 

• You can copy your query steps between both systems naturally because they all use the M Query language.  
• Many Excel formulas have equivalent formulas in DAX.  
• Have a goal or question you want answered before beginning a report or data set. Start off narrow and simple and build the report up in pieces. 

Leveraging PROCAS Data via the API

Data mining and cleaning your data can be daunting. OPSPro can help. OPSPro has experience connecting and combining many different types of data sources including SharePoint lists, SharePoint Files, OneDrive files, Office 365 Admin Centers, Trello, Jira, Excel, and many more.

OPSPro can also design custom export solutions using Microsoft Flows and SharePoint. OPSPro received some of the earliest access to the Procas API so we are ready to help you navigate. Our services range from consulting to full outsourcing services.

Contact OPSPro, LLC to schedule a demo today!

Download - OPSPro Demo of PROCAS Data Using PowerBI.pdf (1.19 mb)

Resources

Getting started - Power BI Microsoft Docs

Introduction to DAX - Power BI Microsoft Docs

Power Query M Reference - PowerQuery M | Microsoft Docs

Power Query - Overview and Learning

As government contractors, it can be difficult to map your employee pay periods to the required billing cycles for invoicing your contracts. The most common pay periods tend to be semi-monthly or bi-weekly, which are easy for employees to understand. However, what happens when your client demands that you bill them every week? Or every 10 days? Or every full moon?

Based on your feedback, we created a feature to address off-cycle billing regiments. This new feature, importing partial timesheet periods, allows you to process labor distribution for specific contracts & projects, or full timesheets up to a certain point in time. By following the process below, you will be able to bill for any time period that is different from your pay cycle.

Accrued Salaries Setup

To start using the partial import process, you must first complete two steps:

1. Create an Accrued Salaries account in the Chart of Accounts
2. Establish this new Accrued Salaries account as the Default Account for the process

1) Create an Accrued Salaries account in the Chart of Accounts

For most PROCAS clients, an Accrued Salaries account must be created in the Chart of Accounts to accurately track the recording and reversing of the partial labor journals created. This should be separate from your typical 2200 - Salaries and Wages Payable account, so that your payroll information is not affected.

We recommend using 2205 - Accrues Salaries - Partial Timesheets if available, with the following fields completed in the Chart of Accounts:

Accounting --> Setup --> Chart of Accounts

Code --> 2205

Description --> Accrued Salaries - Partial Timesheets

Account Class --> 23 - Accrued Expenses

Financial Statement Line Item --> 212 - Accrued Compensation

Cash Flow Line Item --> 115 - Increase (Decrease) in Accrued Expenses

Cost Element --> 22 - Salaries Payable

Chargeable and Active --> Checked

All other Chart of Accounts columns can be left blank. Save the new account when finished inputting the data.

2) Establish this new Accrued Salaries account as the Default Account for the process

Now that our Accrued Salaries account has been created, let's specify for the system to use it when creating partial labor journals via the Default Accounts form.

Accounting --> Setup --> Default Accounts

On this screen, fill in the account created under the Accrued Salaries section and save the screen. At this point, all of the setup has been completed to begin using the process.

Partial Timesheet Import Process

To begin the partial import process, let's navigate to T&E Admin --> Export Timesheet Data. On this screen, we will be given the option of which timesheet period we would like to partially export.

In this example, we are going to export timesheet data tied specifically to charge codes that roll up to Invoice Task 10003.000.00.000. My timesheet periods are built semi-monthly for payroll, however my contracting officer requires that I invoice on the 7th and 22nd of each month.

By selecting, Export Partial we will be taken to a selection screen to specifically filter the timesheet data we are looking for:

Work Date From - Read-Only field, which represents the start date of the timesheet period

Work Date To - Editable field, which is overwritten to specify the last date you would like to export timesheet data through

Invoice Task(s) - Drop down list of available invoice tasks to choose from

• Selecting ALL will export all timesheet data through the Work Date To field
• Selecting a Specific Invoice Task will limit the data through the Work Date To field

Select Export to send the data over to the next step of the process, Process Timesheets.

Process Timesheets

After navigating to Accounting --> Labor --> Process Timesheets, you will notice that your specific selection has populated for labor distribution.

In the below example, 5 employees populated with their hours input through the 7th of August. At this point in time, we can review to make sure these hours are correct.

The biggest field to note in this process is the newly added Base Period Hours field, which allows for an accurate effective rate calculation to take place for Cost Plus Contracts. This field will populate with the default hours listed for the pay frequency of the timesheet period, but can be manually modified if needed. If you are billing Time & Materials, you do not need to worry as much about changing this field. It is used as the base for the hours imported for salaried employees, which is important for billing at cost.

Select Next followed by Create to process your labor distribution.

Labor Journals

Processing labor distribution has created 2 journal entries for each employee:

1) The 1st Journal is the cost breakdown for the partial period on the date recorded in the "Work Date To" field.

Debit - Direct Labor for Task 10003.001.00.105 which can now be billed as of August 7th.

Credit - Accrued Salaries - Partial Timesheets

2) The 2nd Journal is the reversal of the first entry on the following day.

Credit - Reversal of Direct Labor on August 8th

Debit - Reversal of Accrued Salaries on August 8th

The partial timesheet import process was built this way for the following reasons:

• You have all your cost information to invoice your client at the day required for billing.
  • However, this is reversed the next day so that your financials are not duplicated when you import your full period later in the month.
  • Your Direct Cost Report will tie directly to the period being invoiced, which can be used as support for your invoice.
• Accrued Salaries is separated from Salaries and Wages Payable so that your accounting records aren't muddied up as you reconcile payroll.

For additional help, you can select the Help Icon in the upper right-hand corner of each screen to receive detailed explanations for each step of the process. You can also reach our consulting team at consulting@procas.com.

Tracking employees' paid time off, vacation, and sick leave balances can be one of the most headache-inducing functions of being an accountant. For government contractors, recording accurate PTO/vacation and sick leave accruals is crucial to calculate correct indirect rates each accounting period and stay in accordance with GAAP.

At PROCAS, we've tried to simplify the process by automating as much as possible. To help our clients, we've created 2 videos breaking down the standard PTO process using PROCAS:

1. PTO Setup 
2. The PTO Accrual Process

PTO Setup

PTO Setup is the backbone of the PTO Accrual Process. It needs to be completed before you can begin tracking employee's PTO/vacation and sick leave balances in the system.

1. Intro                                                                          (0:00 - 1:17)

2. PTO Setup                                                               (1:18 - 4:17)

• Completed - During initial implementation of PTO tracking
• Modified - Only if there is substantial change to PTO policies or the chart of accounts
  • We recommend contacting your consultant before making modifications

3. PTO Accrual by Person                                         (4:18 - 5:45)    

• Completed - As you onboard employees
• Modified - When employees' default hours need to change

4. PTO Project/Task Creation                                  (5:46 - 9:23)

• Completed - Every calendar year
• Modified - Original 3 WBS levels never modified after being recorded in the general ledger
  • Can add 4th and 5th levels if needed

5. Work Authorization by Task                                 (9:24 - 11:37)

• Completed - Every calendar year
• Modified - When employees are on-boarded or terminated
• Updated - Automatically with each accrual entry as seen in next video

The PTO Accrual Process

The PTO Accrual process is the automated process you will use each timesheet period to calculate and track employees' PTO/vacation and sick leave hours. This process starts with the selection of employees, followed by the addition of newly accrued hours and updating of balances, ending with the automatic adjustment(s) made to financial statements to account for these changes.

All steps of this process are completed each timesheet period and modified routinely.

1. Intro                                                                            (0:00 - 0:43)

2. Process PTO Hours Accrual                                  (0:44 - 3:13)

3. PTO Hours Accrual Journal                                   (3:14 - 8:16)

    a. Updated Work Authorization by Task               (8:17 - 10:07)

4. PTO Accrual Report                                                (10:08 - 13:31)

5. Accrual Entry in General Journal                          (13:32 - 14:21)

For additional help, you can select the Help Icon in the upper right-hand corner of each screen. This will give you specific instructions for completing each step as well as additional definitions for what is being presented.

1. Intro Sessions                                                                     (0:00 - 1:09)

2. Accounts Receivable Report                                            (1:10 - 2:56)

3. Record Client Payments                                                    (2:57 - 6:23)    

4. Finalizing Cash Receipt Journal Entries                         (6:24 - 8:34)

Entering client receipts has been made easier than ever with our new Record Client Payments process. This process starts with a selection screen of what bills are outstanding, followed by the generation of a cash receipts journal transaction to record the amount of cash received in your bank account.

If you have experience paying vendor invoices using PROCAS, you should be familiar with the touch and feel of the new receipt forms. If not, follow along with the detailed breakdown below.

Recording Client Payments

To access Record Client Payments, go to Accounting --> Accounts Receivable --> Record Client Payments.

If you are using our integrated invoicing process for billing, or are recording revenue transactions manually, this screen will show you what bills need to be collected.

By default, the populated lines will only show outstanding amounts recorded against receivable accounts. If a receivable has already been collected and recorded, it will not appear.

This detailed information will update when you select the "Search" button and can be filtered by Receivable Account, Client, and Task.

Because there is only so much space here for a screenshot, I spliced the above image into the two key sections:

1) Descriptive Journal Information

Most columns in the first half of each row are read-only and provide descriptions for the Client, Payment Method, Account, Task (WBS), Transaction, Transaction Date, Invoice Number, and Invoice Date for each entry recorded in the system.

Select the checkboxes on the furthest left column to process the payments you have received from your client(s).

Tip 1 - You can filter or sort by each column to help find the receivable you are looking to process.

Tip 2 - You can "select all" or "deselect all" checkboxes simultaneously using the checkbox in the header.

2) Payment Amounts

Once you've selected the entries to relieve, it's time to determine how you would like to apply the cash received from your client(s). These columns on the right side of the form are more interactive and are broken down as follows:

Invoice Amt - The original invoiced amount recorded on the sales journal. (Read Only)

Open Amt - The remaining balance open to be received (Read Only).

• This amount is original invoice amount less any payments already received.

Payment Amt - The amount of cash received (Editable).

• Defaults to the Open Amt.
• Should be overwritten if a different amount of cash was received from your client.

Remaining - The remaining balance of the Open Amt less the Payment Amt entered today (Read Only).

• This amount will most often be $0.00.
• If this amount is not $0.00,
  • Do nothing, this balance will remain in your AR for your client.
  • Proceed to one of the following checkboxes: Write-Off or Reclass.

Write-Off - If selected, the Remaining Amt will be written off to your default write off account.

• Example 1 - If you do not expect to collect the remaining amount, write it off to 9803000U - Bad Debt
• Example 2 - If you collected slightly more than expected, and your client does not expect you to record the difference to unearned revenue, write it off to 49000000 - Other Revenue (Immaterial)

Reclass - If selected, the Remaining Amt will be reclassed to your default reclass account.

• Example 1 - If you received too much cash from your client, reclass to unearned revenue account 2600 - Advances from Customers on Contracts
• Example 2 - If you do not expect to collect the remaining receivable for an unknown amount of time, reclass to 1240 - Accounts Receivable - Doubtful Accounts

Once the Payment Amts have been determined for each payment being received, proceed to the "Next" button in the bottom right-hand corner of the screen.

Processing Receipts

Once you've selected the receivable entries to be relieved, the next step is to process these receipts.

Payment Date will default to today's date. The Cash, Write-off, and Reclass accounts will auto-fill with your Default Accounts established under Setup --> Account Structure --> Default Accounts. These default accounts should be established before processing receipts.

You may overwrite any of these defaults if needed, and add a Cash Receipt Transaction Description if you'd like a header description to be added to the final journal entry transaction(s).

You also have the option to create one journal entry transaction for the receipts received, or multiple broken out by client, task, or invoice. We recommend creating a receipts journal transaction for each deposit recorded by the bank.

• Example 1 - If checks are received by multiple clients and recorded on one bank deposit slip, then one cash receipts journal transaction should be recorded.
• Example 2 - If payments are received by separate EFT or ACH deposits, then multiple cash receipts transactions should be recorded.

Recording one transaction per bank deposit will simplify the Bank Reconciliation process. Select the "Next" button to proceed to the Transaction Preview screen.

Cash Receipt Journal Preview

The final step in the receipt process is the preview screen to create your entry. This screen displays your total Cash Balance as well as Total Payment Received per bank deposit. You can add descriptions by line item if preferred, or select "Back" if any information looks incorrect.

If everything appears in order, select "Create" to create your Cash Receipts Journal Transaction(s).

Cash Receipts Journal Transaction(s)

Congrats, your cash receipt journal entries have been created in PROCAS! To access them, go to Accounting --> Accounts Receivable --> Cash Receipts Journal. If you need to modify your entries in any way, they can be edited on this screen.

For further assistance using Record Client Payments, you can reach out to us at consulting@procas.com.

When purchasing new software, people always want to make sure they are making the right decision for their business. Naturally, comparative search terms are commonplace when researching what's available.

Phrases such as PROCAS vs Deltek, DCAA Compliant Quickbooks, PROCAS vs Unanet, Top DCAA Approved Accounting Systems, Unanet vs Deltek, Quickbooks vs Costpoint, etc. will generate mixed results, many of which can be outdated or inaccurate.

At PROCAS, we do not feel it is our place to rank or attack competing software packages. Rather, we would prefer to stand proud in what sets us apart as a premiere government contract accounting solution.

Therefore, this post's focus will be expanding upon the Top 10 Reasons Why to Choose PROCAS, and what makes us different. These reasons are broken down in detail below:

1) No long-term contracts or license purchases and consistent and transparent pricing for all clients

PROCAS is a subscription-based software that can be implemented or discontinued at any time. We do not require any long-term contracts or license purchases, meaning you are not stuck if there are future changes to your staff or business. Our clients are billed monthly, based on current levels of employee access.

In addition to no long-term contracts, our monthly SaaS pricing model is the same for all clients. We want our clients to know exactly what to expect to be billed, with no hidden costs. This includes software support and maintenance, which are factored into the base price.

Therefore, you do not have to worry about the added pressure of bargaining with a member of our sales team when exploring software options. The price is the price.

2) No cost upgrades and standard system improvements

We routinely perform updates to the software which include new features, menus, reports, interfaces, etc. There are no added costs for these standard system improvements because we genuinely believe in improving the lives of our clients and do not want to hinder this.

For example, we are currently going through the process of migrating our longstanding clients from an older version of our software to our most up-to-date version at no added cost. We do not believe in the idea of raising the maintenance costs for an older version of our product to drive clients to a newer one.

3) Ability to scale users and modules up/down as needed so the pricing scales with your needs

In accordance with no license purchases, if your company adds or terminates staff due to workflow, you can easily scale up or down the level of employee access you need in the software. By activating or deactivating personnel records, our monthly billing process will automatically pick up the changes and adjust your invoice to align with the new employee counts. This same logic applies for changing employees' levels of modular access in the system.

4) PROCAS Quick Start offers the most efficient implementation process, saving you up to 80% of implementation costs charged by competing software companies

One of the most daunting parts of purchasing new software is the implementation process. Typical implementations can range from five to even six figure costs and can take months, if not years, to complete.

With over 20+ years of government contract accounting experience, we believe we have built the most efficient and cost-effective implementation experience for our clients. On average, you should not have to spend more than 24 cumulative hours with a PROCAS consultant, which would cost you less than $5,000 to complete. 

You may be wondering, how have we accomplished this?

Rather than relying on implementation as a revenue stream, we have simplified the process to benefit the client. Our PROCAS Quick Start program has many out-of-the-box standards and procedures that are easy to implement and customize for your organization.

The common idea of building your company's system from the ground up is outdated in today's tech landscape, which only still exists to get more money out of the paying customer.

5) Our consulting team is focused on creating positive experiences and establishing confidence in using PROCAS, rather than meeting a billable hour quota

In accordance with having the best implementation process, our consulting team's motivation is not to draw out client work to meet a billable quota, but to help our clients out in the most efficient and effective ways possible. It is not in our business interest to nickel and dime our clients for work performed.

Our goal is to properly train and inspire our clients to be well versed in our software.

6) Implementation staff, sales, and software support team members are all degreed accountants and employees of PROCAS

Founded by a CPA in 1997, PROCAS has always emphasized the importance of having proper accounting knowledge in positions of providing expertise. All client facing roles, from consulting, to support, to sales, have the education needed to decipher your issues and truly understand the concepts being discussed. We believe that our strong knowledge in the accounting field is a competitive advantage of our organization. 

If you are calling into our support phone lines, you are guaranteed to reach an employee of PROCAS, with a background in accounting, located in the United States.

7) Implementation staff is experienced in government contract accounting and DCAA Compliance

Our implementation consultants have on average over 10+ years of experience working with government contractors. Our software is built around the concept of being DCAA compliant, which our team heavily emphasizes during the implementation process and ongoing engagements. Our tested knowledge of the FAR, Cost Principles, GAAP, and DCAA's requirements assures our clients that they are in the right hands.

8) Software support staff are trained specifically to work with government contractors

As mentioned previously, our software support staff are all degreed accountants trained to work with government contractors. Our team works hand-in-hand with our consulting staff, often assisting in projects that require additional help. Through these training exercises, our support staff learns what's important to government contractors by helping solve real world issues.

That being said, our support team does not claim to be experts in all areas of government contracting. In situations that require more expertise, our support staff is trained to get you in touch with the right person for the job.

9) Clear communication between our Operations, Development, and Infrastructure departments

While most of this post has addressed the client facing side of the company, we also hold our development and infrastructure departments to a very high standard. Constantly building new features, fixing system bugs, and improving the overall client experience, our development and IT teams play a major role in the success of our organization.

Most importantly, we are extremely proud of the open communication between these departments internally. Our turnaround time from a client reporting an issue, to our consultants conveying that issue, to our DEV team fixing the issue, and finally the consultant relaying that fix back to the client, is streamlined in the most efficient way possible to better the client experience.

10) SOC 2 Type 2 infrastructure equipment is owned by PROCAS and supported by experienced PROCAS IT professionals

Our infrastructure is audited each year by an independent third party, which is known as a SOC audit. We have passed Types 1 and 2 for calendar year 2019, with ongoing engagements planned for 2020 and beyond.

Because our infrastructure is owned by us and not an outside vendor, we are able to make sure the proper security measures are taken to ensure our clients' systems are in accordance with government contracting standards.

Decision Process

As you make your decision to purchase DCAA compliant accounting software, remember to keep these 10 items in mind.

Search results from Deltek vs PROCAS, DCAA Compliant QuickBooks, Unanet vs PROCAS, Top DCAA Compliant Accounting Systems, Alternates to Deltek, Unanet vs CostPoint, Deltek vs. JAMIS Software, Deltek vs Unanet, QuickBooks vs Deltek... will often only focus on the system specs, and not the company that supports them.

System requirements are very important, however the business practices supporting them will always factor into the overall client experience.

For more information, see how PROCAS addresses the requirements of the SF1408 and the products we offer!

What is an Incurred Cost Submission?

Incurred cost electronic submissions are compilations of various schedules of your costs, presented in a specific way, submitted to the DCAA for their review and audit. The submitted ICE model is a true up of your actual indirect costs incurred over the prior fiscal year to what was provisionally billed.

Why are incurred cost submissions important?

The federal government requires ICE submissions to help verify that the prices paid for cost reimbursable services are both fair and reasonable. A completed ICE submission typically results in an adjustment to amounts billed in the previous year (either under-billed or over-billed). DCAA will review these submissions in a process known as Incurred Cost Audits.

If this is a confusing idea, think of it like a tax return for your billed indirect costs. You always want to be prepared if the IRS shows up at your door. Likewise, it would be smart to treat this process very seriously in the case that DCAA audits your ICE submission(s).

How do I know if I have to complete an incurred cost submission?

ICE submissions are required if any of your contracts are subject to FAR 52.216-7 "Allowable Cost and Payment." This typically includes most if not all cost reimbursable contracts and some time & materials contracts.

When do I have to complete an incurred cost submission?

ICE submissions are due 6 months after the close of your fiscal year. For most contractors, this deadline is June 30^th of each year (calendar fiscal year). However, it could be a different date if your company runs on a different fiscal year.

Any additional tips?

For more information, the above stated ICE model can be found here. DCAA provides instructions for completing the ICE schedules as well as a sample submission.

Completing the ICE Model using PROCAS

If you select the above link and download the ICE model as per the DCAA’s instructions, you will notice that completing the model is no easy feat. (You know you’re in for a long day when an Excel file comes with its own User’s Manual!)

The ICE_Model spreadsheet contains a little more than 25 tabs, all of which require major brain power. To help with this, we’ve built reports for specific schedules that are separated on each tab.

Our reports can be found by going to Indirect Rates --> Incurred Cost Submission Support within the Accounting menu.

Once each report is printed, they can be downloaded as Excel or CSV files using the downloads option to easily copy and paste your company's numbers into the ICE model.

The remainder of this post will be broken down into the following sections:

1. Calculating Indirect Rates
2. Indirect Rate Support
3. Schedule H
4. Schedule I
5. Schedule K
6. Schedule L

Note: These reports will only give accurate numbers if…

• Invoices are being billed out of the system
• Costs are recorded correctly
• Rate Calculation Setup has been completed for the fiscal year being submitted
• Indirect Rates have been calculated and applied for the fiscal year being submitted (process covered in the next section)

Calculating Indirect Rates

Before we begin gathering any data from the system, we need to calculate and apply our indirect rates for the prior year being reported. This can be done by following the below process:

1.Navigate to Indirect Rates --> Calculate Indirect Rates within the Accounting menu.

2. Scroll back to the prior year using the page up button on your keyboard, or the back arrow  at the bottom of the screen.

3.  Select the "Calculate" button to the right of the screen.

1. On the pop-up menu, make sure actual rates are selected for the correct date range, then select "Calculate."
2. This will update the numbers on your indirect rates screen, timestamped for the moment they were calculated.

4. Select the "Apply Rates" button in the upper right-hand corner.

1. Again, verify the date range is correct, then confirm by selecting "Apply Rates."
2. This will give you a notification that indirect rates have been applied.

5. Navigate to the "Rate Support" button in the right hand corner.

1. Continue along to the supporting detail breakdown of your incurred indirect costs.

Indirect Rate Support

Now that rates have been calculated, let's start printing information to start completing our incurred cost submissions. Perhaps the most important, indirect rate support reports contain the details of costs within each pool and base for the rate calculation most recently performed.

The ClaimedIndirectRateSupport.rdl report should be used in completing ICE Model Schedules A, B, C, D, and E and can be downloaded in PDF format as supporting documentation. This report will take into account your indirect rate structure as originally defined under Accounting --> Setup --> Cost Application Rates --> Rate Calculation Setup, and will present data in accordance with this structure.

• On the Indirect Rate Support Report, navigate to the correct fiscal year using the back arrow .
• Print ClaimedIndirectRateSupport.rdl using the print icon .
• There are multiple pages to this report –1 for each of the following indirect rate types: 
  1. Fringe – Page 1
  2. Facilities – Page 2
  3. Overhead – Page 3
  4. General & Administrative – Page 4
  5. Material Handling & Subcontract Admin – Either combined in one of the previous four pages or split out depending on your rate structure.
  6. B&P and IR&D – Either combined in one of the first four pages or split out depending on your rate structure.
  7. Indirect Rate Setup – Final page of the document breaks down your indirect rate structure. This page is a great explanation of what is going on if you are struggling with understanding the numbers!!!
• Export the report to Excel or CSV using the download icon .

You should begin your ICE Model by inserting a new tab in the workbook, which will be used to copy your trial balance information. You should then link information within the various schedules in the ICE Model to the trial balance tab where appropriate. This will leave less room for discrepancies between information in the ICE Model compared to information in your general ledger.

Note: If general ledger adjustments are needed after you have begun the ICE Model, you will only need to update the trial balance information on the trial balance tab.

Schedule H

The ICE Model Schedule H is the “Schedule of Direct Costs by Contract/Subcontract and Indirect Expense Applied at Claimed Rates.” The standard Schedule H report accommodates a consolidated overhead rate structure and a two worksite overhead rate structure.

• Indirect Rates --> Incurred Cost Submission Support --> Schedule H
• Indirect rates must be calculated and applied before printing (shortcut located on menu).
• For the report to group the contracts by element of cost class, an Incurred Cost Class code must be established on the project records, invoice task records, and/or the revenue task records.
• The report is available in six roll up levels: Invoice Task, Project, and WBS Levels 2-5.
• The report can be filtered by Department, Division, Location, Site.

Schedule I

The ICE Model Schedule I is a “Schedule of Cumulative Direct and Indirect Costs Claimed and Billed by Contract and Subcontract.” The automated billing process records billed detail information in Billing History which maintains the inception-to-date billed hours and amounts on contracts. By default, this report will display prior years settled total costs, prior year costs, and cumulative billed amounts, by contract, grouped by incurred cost class for the date range selected. The report displays the contract billed information in cost class order.

• Indirect Rates --> Incurred Cost Submission Support --> Schedule I
  
• The Schedule I support report requires that the automated billing process is used to create invoices within the accounting system.
• The Schedule I support report in the system requires billing history.
• The report is available in six roll up levels: Invoice Task, Project, and WBS Levels 2-5.
• Select "Search" to populate the applicable task selection screen.
• The report can include or exclude specific tasks by using the checkboxes in the selection screen.

Schedule K

The ICE Model Schedule K is a “Summary of Hours and Amounts on Time and Material/Labor Hour Contracts.” The automated billing process records billed detail information in Billing History which maintains the inception-to-date billed hours and amounts on contracts. By default, this report will display the cumulative hours and amounts billed for the date range selected, regardless of the cost class. The report displays the contract billed information in cost class order. You can filter on a cost class code or a range of cost class codes to isolate the information needed.

• Indirect Rates --> Incurred Cost Submission Support --> Schedule K
  
• The Schedule K support report requires that the automated billing process is used to create invoices within the accounting system.
• The Schedule K support report in the system requires billing history.
• The report is available in six roll up levels: Invoice Task, Project, and WBS Levels 2-5.
• Select "Search" to populate the applicable task selection screen.
• The report can include or exclude specific tasks by using the checkboxes in the selection screen.

Schedule L

The ICE Model Schedule L is a “Reconciliation of Total Payroll per IRS form 941 to Total Labor Costs Distributions.” It is a reconciliation of the accrual basis labor cost per your general ledger to a cash basis labor cost per the IRS Form 941s. The Schedule L report will display the labor costs recorded in the general ledger, grouped by cost pool.

• Indirect Rates --> Incurred Cost Submission Support --> Schedule L
  
• Performing a labor reconciliation separately before beginning the ICE Model will help to ensure the information in your general ledger is accurate.

Additional Help

If you’ve made it this far, I applaud your stamina! These reports can seem intense, however they lend a helping hand in completing the associated tabs of the ICE model. For additional help getting the information you need to complete your incurred cost submissions, you can reach us at consulting@procas.com.

Related Tags - ICES, ICP, ICS, Incurred Cost Proposal, Indirect Cost Rate Submission, Final Indirect Rate Proposal

PROCAS has recently released a new mobile friendly timekeeping system! Whether you’re Team iPhone or Team Android, all users will get to utilize the new timekeeping system with the same mobile friendly end user experience.

To clarify, this is NOT a mobile application, but rather a mobile friendly web application.

• When you access it via your smart phone or tablet, the system will be aware of the device and adjust accordingly.
• Because this is not a natively installed mobile application, you will always have the most up-to-date version of our software and will not have to worry about routinely updating your timekeeping application or operating system on your mobile device.

For instructions on how to login to your PROCAS timesheet on a desktop or laptop computer, please click here.

Otherwise, follow along to engage in our new mobile timekeeping process in 2 parts:

• Part 1 - Login and Setup (Below)
  
  • Logging into PROCAS Mobile Time
  • Creating a Web Shortcut or Bookmark
  • Additional Login Notes

• Part 2 - Anatomy of a PROCAS Mobile Timesheet
  
  • PROCAS Mobile Time Overview
  • Entering Time
  • Other PROCAS Mobile Time Options

Logging into PROCAS Mobile Time

The link for our mobile timekeeping web application can be found here.

The link for the login screen is the same as the link for the desktop version of the timekeeping system. You will be automatically redirected to the mobile optimized version of the timekeeping system, which should appear as follows:

We highly recommend bookmarking this login screen to your phone's web browser or setting it as a web shortcut for easy access. Help for creating a web shortcut is broken out by device type:

Web Shortcut - Apple Devices (iOS)

The steps for creating a web shortcut on Apple devices are as follows:

1. On PROCAS Mobile Time, select the "More Options" icon
   1. iPhone - Bottom of screen
   2. iPad - Upper right-hand corner of screen
2. Scroll to the right and select "Add to Home Screen"
3. Name shortcut and hit "Add"
4. Shortcut now available on "Home Screen"

Tip - Leverage iOS' security features such as facial recognition, fingerprint, and/or pin code to store your PROCAS username and password for easier future use of the shortcut.

Web Shortcut - Android Devices (Google Chrome)

To create a web shortcut through Google Chrome on Android Devices, follow this step by step process:

1. On PROCAS Mobile Time, select the "More Options" kebab menu icon
2. From the listed options, select "Add to Home screen"
3. Name shortcut and hit "Add"
4. Touch and hold to place manually or hit "Add automatically"
5. Shortcut now available on "Home Screen"

Web Shortcut - Android Devices (Samsung Internet)

To create a web shortcut through Samsung Internet on Android Devices, follow this step by step process:

1. On PROCAS Mobile Time, select the "More Options" hamburger menu icon
2. In the upper right-hand corner of the options, select "Add Page To"
3. Add the current webpage to "Home Screen"
4. Name shortcut and hit "Add"
5. Shortcut now available on "Home Screen"

Additional Login Notes

Once your shortcut is saved, go ahead and proceed to login with your assigned username and password.

Note 1 - If you have access to multiple companies, you will first need to select which company you are attempting to log into before accessing your timesheet.

Note 2 - If you do not know your username or password, please refer to this prior post with steps related to obtaining that information, or reach out to your system administrator. However, you can always reset your password from this screen if you know the email assigned to your account. 

Note 3 - If you prefer to operate in the desktop version of the timekeeping system, please select the link "Switch to Desktop" (red arrow) under the hamburger menu (orange arrow) when logged into the system.

Once logged in, you should proceed to a screen that looks similar to the screenshot of a timesheet in the next section - PROCAS Mobile Time Overview.

To Continue to Part 2, please click here -->