The primary objective of DCAA Accounting Services is to ensure that the taxpayer dollars are spent wisely and judiciously on those contracts that are fair and priced reasonably. This is not an easy task as there are millions and millions of dollars involved and a plethora of companies under the legal contract with the government departments. That is why the Defense Contract Audit Agency is so important and significant to the government being the financial audit wing. The primary responsibility of this agency is to look into the accounts and accounting procedure followed by these government contractors. They find out whether the government grants and projects are well resourced and allocated for the benefit of the tax payers.
The Service Provided By DCAA
To ensure DCAA compliance in the accounts of the government contractors the DCAA provides with some specific services that are aimed towards the benefits of the taxpayers. Pre-award audit is one such service that involves before any contract is awarded. Such an audit will include a scrutiny of the proposal, the pricing and cost, forward of the pricing rates and even a complete and comprehensive survey of the accounting system. This will ensure that the contract has been awarded to the right person who will be capable to meet with the requirements of the project to ensure it is completed within the specified time frame.
Post Award Audit
The post award audit is the most crucial part of dcaa audit as this is when the chances of misappropriation of funds are very high. It is done after a contract is awarded and includes different aspects of the accounting system. It includes an audit of costs incurred under and for the contract, allocation of funds, compliance with Truth in Negotiations Act or TINA, compliance with Cost Accounting Standards or CAS and also the financial capability of the company. It will also include any claims that are made against the company by other contractors. The primary objective of post award audit is to find out whether or not the negotiated price of the contract was escalated by a significant amount.