An Overview About DCAA Accounting Compliance

The DCAA is the Defense Contract Audit Agency. It was established as a separate agency of the Department of Defense in July 1965 and 0perates under the control of the Under Secretary of Defense.

The DCAA will do pre or post prize opinions to look at the contractor's ability to carry out against a legal contract. DCAA is concerned with determining and analyzing all actions that play a role or have an impact on suggested or suffered expenses of Govt agreements.

DCAA accounting requirements are a must have in today's government acquiring marketplace to not only ensure government compliance but, to increase operating efficiencies by allowing visibility to the cheapest levels of your company.   Business procedure automated provides for lower running costs, increased margins and consistency in organization functions.  

When the DCAAaccounting compliance  works an audit or a pre-award study of a government specialist, they are analysing the contractor's conformity with the Federal Acquisition Regulations (FAR). The FAR is the major algorithm in the Federal Acquisition Regulation System. This technique comprises of sets of regulations released by agencies of the Govt to manage what is called the "acquisition procedure," the procedure through which the government purchases ("acquires") products or services.

Common actions for DCAA are accounting system reviews  (to ensure that that the organization can meet requirements of federal acquiring rules), pre-award opinions, economical abilities reviews  (to ensure that that the specialist has the economic strength and support to carry out on a contract), floor assessments (timesheet audits performed in person by a DCAA auditor) and suffered expenses audits (where companies have presented details of their actual oblique rates for a financial year compared.)

It is remembered that your accounting software is only one tool and must be enhanced with policies and procedures which adhere to FAR and CAM.