Preparation for DCAA-approved Accounting System

Four Closely-held Small Businesses
Evaluated current internal controls, supporting documents, and procedures to determine operational changes required to attain DCAA approval of the shared accounting system (DCAA Accounting System). Drafted two dozen policies and procedures covering both for-profit (FAR 32.2) and non-profit (OMB A-122) compliance. Restructured the Chart of Accounts to include specifically unallowable costs. Extracted unallowable costs from vendor bills, including travel reimbursement requests, marking step-by-step calculations to segregate unallowable and unreasonable costs. Based on expectations for a DCAA Accounting System, suggested specific examples of supporting documents – some with sample wording – to decrease the likelihood of questioned costs. Drafted new forms and accounts payable guidelines.

Small Defense Contractor
Drafted all policies and procedures for a half-dozen small service businesses with federal government subcontracts. Created a new Chart of Accounts and established job cost accounting in QuickBooks™. Corrected employee/payroll setup for taxes and vacation accruals. Set up employees as vendors for non-payroll payments, to avoid overpayment of payroll taxes. To facilitate the new DCAA Accounting Systems, drafted Desk Guides of detailed instructions for company-specific, day-to-day recording of direct, indirect, and calculated unallowable costs in the new job cost accounting general ledger.

Small Non-profit
For a service business with a multi-million dollar federal government cooperative agreement, restructured the accounting system. Created a job-cost based general ledger; wrote (OMB Circular A-122) compliant policies and procedures, which established adequate audit trails; and presented staff-seminar and (recorded) Intranet training to help implement new procedures. Subsequently, new growth options opened, including award of a new Navy contract.