3 points to consider with DCAA audits in mind…
Welcome to Risk Reconnaissance. I’m Brian Smith with the Insurance Office of America. Today I’m joined by Heather Stroud, senior Cost Point Consultant with Redstone Government Consulting in Huntsville, Alabama. In this segment, Heather discusses the cost point interaction with the Defense Contract Audit Agency (DCAA).
Talk to me about DCAA audits, what are some of the punch points that you would want to talk about?
The biggest thing you have to have is a set of policies and procedures. It’s one of the first things they’re going to ask for.
Like we did with Costpoint?
Exactly. That is your company policies and procedures. So, that goes all the way to your HR department and outside of your accounting system. But then they’re going to want to see your trial balance.
Do your subledgers tie to your trial balance?
They’re going to want to see your time sheets and see that the employee’s signature is the name on the time sheet.
They’re going to start asking just for that basic information that you should be doing monthly.
So your project status reports, your financial statements, where are your bank reconciliations? Just show that if you’re doing this, it’s very easy when they come in, to hand them that information they’re requesting.