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DCAA Compliance with Tenrox Cost Accounting Software


The Defense Contract Audit Agency reviews US Department of Defense (DoD) contracts with “cost-plus” or other cost reimbursement provisions. The DCAA audits the contractor's project accounting systems and their compliance with cost accounting standards and guidelines. At any time, the DCAA can audit the contractor's internal control systems, including timekeeping and cost reporting. DCAA compliance guidelines are also used as the standard for monitoring and auditing all government contracts and service providers.

Download a White Paper on Cost Accounting and Tenrox DCAA Compliance

Streamlining DCAA Compliance with Tenrox

Contractors with the right tools, policies and procedures can substantially simplify DCAA compliance. Tenrox Project Workforce Management helps contractors:

  • Implement comprehensive time and expense tracking controls
  • Allocate indirect costs appropriately to multiple contracts
  • Respond to auditors' requests quickly
  • Eliminate manual processes and gain efficient, consistent tracking of time and expenses
  • Maximize revenue by minimizing disallowed or disputed charges
  • Demonstrate robust administration and reporting (which DCAA considers a key deliverable of every DoD contract)
DCAA Requirements:

Project Workforce Management Solution:

DCAA Compliance: General
Access to data must be controlled

Windows NT authentication and role-based security that complies with DCAA requirements for format, history, aging, and lockout after multiple failed login attempts

To substantiate costs, sufficient records must be retained three years after the final contract billing

All data is stored in a central and secure database. Internal auditors can generate real-time reports on all government contracts and overhead costs

Time and expense process includes a verifiable audit process for all changes and transaction entries

Audit of all approvals, changes, entry deletions/creations; audit reports

DCAA Compliance: Time
Every employee must record their own time charges

Users login using NT authentication or secure passwords.

Time charges must be recorded daily

Timesheets can be locked for previous days; system requires a note entered by the user to change any past entries

Changes to time entries require an explanation by the employee and management's approval

Any change creates an audit event. Users and managers can be required to provide explanations for any modifications or corrections

If the resource is shared, the resource time charges should be split across multiple projects Split billing

DCAA Compliance: Costs

Identify direct project costs versus overhead costs

Define types of expenses; and identify which ones are billable expenses. With appropriate controls/note enforcements, allow billable flag override on a per entry basis

A verifiable process for identifying why an incurred expense is a direct cost

Approval process for expense reporting and money charge entries

Download a White Paper on Cost Accounting and Tenrox DCAA Compliance

 
 

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