Mock Audits

Contractor Procurement System Review (CPSR)
Evaluate the compliance, internal controls, and good business judgment of the purchasing function. Procurement encompasses small-dollar Maintenance, Repairs, and Operations through major subcontracts. Adequate documentation for ?Source Justification and Price Justification, each a separate requirement, are critical to the review. Other review points include a vendor signature on each award document, indicators of splitting a large purchase into multiple, smaller purchases (in order to avoid requirements for high-dollar awards), plus ambiguous terms and conditions (or missing flow-down clauses that are required). Subsequent staff training, tailored to review results, may be added.

Materials Management and Accounting System (MMAS)
Evaluate the compliance, internal controls, and good business judgment of the operational links between the two systems or functions. Materials management encompasses creation of Bills of Materials, scheduling, material transfers/write-offs, count tolerances, and vendor problems. Accounting for materials, especially methodologies used, is also analyzed. Subsequent staff training, tailored to review results, may be added.

Defective Pricing / Post-award Review / Truth in Negotiations Act (TINA)
Assess the validity of the Truth In Negotiations (TINA) certification signed at the conclusion of negotiations. The certification claims that all information, which might impact negotiations, was presented - not merely made available - to the USG. For a TINA non-compliance, the USG need only show that management should have known (not had actual knowledge) of the non-compliance. Generally, certification is only required for sole-source, fixed price awards. Each negotiation stands on its own; a competitive and/or flexibly priced award might have a sole-source, Fixed Price modification. A mock audit of TINA awards explores knowledge throughout the company on the date of certification. This includes issued purchase orders, historical costs, and contracts with fringe benefit administrators. The certifier and management minimize unhappy surprises with performance of a mock audit, followed by staff training tailored to findings.

Preparation for Other DCAA Audits
Prepare a contractor, subcontractor, or grantee and minimize surprises. From approval of an accounting system to audit of a cost proposal, the foreknowledge offered by a mock review brings peace of mind. In addition, customer recommendations can be eliminated by implementing corrective action before the customer review/audit. Findings can be reduced through training, which also demonstrates steps to correct systemic findings.