I recently attended a workshop that was so spot-on I’ll even mention the speaker and his company: Kevin Grimes of CFO Leasing. I never met Kevin prior to that workshop but was very impressed with how clearly and succinctly he conveys the pitfalls and nuances of becoming DCAA compliant.
Getting a notice that you are going to be audited by DCAA should not be frightening, but should be a joyful notice. The fact that your company has gotten the attention of DCAA means that you are about to be awarded a large contract or your business has grown so successfully that you are a larger federal contractor; both reasons to be happy, not frightened. However, at this point, you need to understand that:
- The fact that you have never been subject to an audit does not mean you did not have to comply with FAR (more on this later) if you have been doing contracts
- Your IRS/GAAP accountant who has served you so well in the past may not have the capability to assist you with this specialized DCAA audit
This complexity frequently causes smaller businesses to ignore the rules in these books. And for a short while, not a single person complains or asks you any questions about how and what you do to create quotes, invoice the government or how you arrive as your costs. But then the DCAA audit letter (actually an email) arrives, and it is very friendly (“Please contact us with any questions”) and descriptive of what they want (an onsite visit for a Financial Capability Risk Assessment and a Pre-Award Accounting Survey). Sounds innocuous enough, right?
STEVE HAMMETT | Director of Sales
Steve graduated from University of Maryland, Baltimore, with a Bachelor of Science (B.S.), in Economics and a few years later, a Master of Science (M.S.), in Information Technology. He has helped organizations for over fifteen years to solve business problems using technology. He is well informed with all Microsoft Business Solutions and is a Solutions Certified Sales Representative. For fun he looks to the outdoors, whether water, where he is a sailor (Coast Guard certified in Costal Piloting and Navigation), a PADI certified scuba diver, and a certified Red Cross Water Safety Instructor, or land, where he is a skier, hiker and mountain biker.