Looking for a new ERP that can run your government contracting business? Read about the 10 keys to evaluating DCAA compliant accounting software.

1. 10 Keys to Evaluating DCAA
Compliant Accounting Software
Dan Murphy,
President
Barbara McElnea
Director,
Solution
Management
• 6900 East Camelback Rd.
Suite 805
Scottsdale, Arizona
85251
• Phone: 480-922-1700
• Email:
info@dassian.com

2. Agenda
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DCAA Charter and Interests
DCAA Compliance Requirements
10 Keys for DCAA
How Can Government Contractors Meet the
DCAA Compliance Challenge?
• Review of SAP + Dassian Enterprise Solution
for Government Compliance
• Summary
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3. Defense Contract Audit Agency
• DCAA was established as a separate agency of
the Department of Defense in July 1965.
• Operates under the control of the Under
Secretary of Defense.
• Charter is to perform DoD contract audits and
provides accounting and financial advisory
services to other Government agencies as
appropriate.
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4. DCAA General Audit Interests
• DCAA is concerned with identifying and
evaluating all activities that contribute or have
an impact on proposed or incurred costs of
Government contracts.
• DCAA evaluates contractors’ financial policies,
procedures, and internal controls.
• DCAA performs audits which identify
opportunities for contractors to reduce costs.
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5. DCAA Major Areas of Emphasis
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Internal Control Systems
Management Policies
Accuracy and Reasonableness of Cost Representations
Adequacy and Reliability of Records and Accounting
Systems
• Financial Capability
• Contractor Compliance with Contractual Provisions
having Accounting Significance such as Cost Principles
CFR (FAR, Part 31), Cost Accounting Standards CAS
(FAR, 52.230-2), and Truth in Negotiations Act TINA
(FAR 52.215-10, 11, 12, 13).
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6. DCAA Pre-award Survey
• Pre-award survey is an evaluation of prospective
contractor’s ability to perform a proposed
contract including accounting system survey.
• May cover technical, production, quality
assurance, financial capability, accounting system
and other considerations.
• Two Categories of Information
– Contractor’s financial capability to perform the
contract
– Adequacy of accounting system to accumulate the
type of cost required by the contract
• Pre-award Survey Form SF1408
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©Copyright 2013 Dassian Inc.
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7. DCAA Post Award Audits
• Major objective of post award audits is to
determine if the contractor’s accounting
system is adequate for accumulating and
billing costs on Government contracts.
• Performed at the request of a contracting
officer when (1) a follow-up pre-award survey
is recommended or (2) a pre-award survey
was not conducted prior to contract award
and the contracting officer determines that an
audit is required to support contract
requirements.
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©Copyright 2013 Dassian Inc.
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8. Key DCAA Compliance Areas
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Accounting system is under general ledger control
Costs are in accordance with Generally Accepted Accounting Principles (GAAP)
Adequate timekeeping system
Accumulates direct costs by contract (job costing)
Proper segregation and consistency of direct and indirect costs
Ability of labor system to charge direct and indirect labor to the appropriate cost
objectives
Labor system functions according to CAS standards for actual cost labor
distribution and total time accounting
Ability to define and segregate allowable and unallowable costs. Contracts costs
exclude unallowables.
Logical and consistent allocation methods of indirect cost pools to intermediate
and final cost objectives
Ability to record contract terms and flow down required contract clauses to
subcontractors such as CAS clauses, prime contract Number, DPAS rating
Segregation of preproduction costs from post production costs
All costs are reasonable, allocable to contracts, in accordance with generally
accepted accounting principles (GAAP) and Cost Accounting Standards (CAS), and
not prohibited by the contract or Government regulation
Accounting system can support interim and final indirect rates
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©Copyright 2013 Dassian Inc.
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9. 10 Keys for DCAA
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Time Entry per DCAA regulations
Expense Entry per DCAA/gov requirements – JTAR etc.
Segregating Direct from Indirect Costs
Segregating Allowable vs Unallowable Costs and not
including Unallowable Costs on Government Contracts
Cost Pools and Allocation for Provisional versus Actual
Indirect Rates
Accurate Billing and Billing formats for All Contract Types
Billing Cost Backup Showing Original General Ledger
Postings
CAS compliance including Actual Labor Costing and Total
Time Accounting where applicable
Contract Flow Down to Subcontractors
Retroactive Application of Rates for Billing and Costing
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©Copyright 2013 Dassian Inc.
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10. Who is Dassian?
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Software Product Company since 2000
Headquarters: Scottsdale AZ
400+ Customers – most of which are GovCons
Provides a Leading GOVCON Enterprise Solution
based on SAP’s world-class ERP platform
– Meets Major Government Compliancy
– Quickstart, Low-Cost, Pre-Configured, Fast
Implementation and Training
• Offers Consulting and Implementation Services
• SAP Channel Partner
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11. Dassian’s GOVCON Value
• Enables Government Compliance
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Job Costing
Cost Accounting Standards / Indirect Costing
Labor Accumulation
TimeKeeping
Billing
Contract Flow Down to Suppliers
Earned Value Management
Incurred Cost Reporting
• Supports All Major End-to-End Business Processes
• Can run both commerical and government business
processes in one environment
• Transparency and Profitability at the Lowest Levels of your
business (project level)
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12. Dassian Value Drivers
• Extends SAP Footprint for Government
Compliant Processes
- Same code base
- Same look and feel
- Same configuration capability
Value : Lower cost of ownership, shorter
learning curve, same terminology company wide
© 2013 All rights reserved
Wednesday, January 22, 2014

13. Where does Dassian fit in SAP Ecosystem?
DCAA Compliant Solutions
Project Planning and Earned Value
Composite (PPC)
Incurred Cost Reporting
Aftermarket
Partner
Support
Managemen
t
Supply
Engagemen
Chain
t
Fulfillment
Managemen
t
Program
Program
& Project
& Project
Mgmt.
Mgmt.
SAP
Industry
Enhancements
ManufacKnowledg
turing
e&
Models
Resource
Lifecycle
© 2013 All rights reserved
MS Project / SAP ERP Integration (MSIS)
Product
Lifecycle
Product Lifecycle
Data
Data
Mgmt.
Mgmt.
CAS Compliant Costing
Actual Labor Costing (ALC)
Marketing &
Business
Customer
Acquisition
Relationship
Management
Government Contracts and Billing
Workforce Authorization
Supply
Chain
IT Service
Planning &
Delivery
Support
Contract Flowdown
Wednesday, January 22, 2014

14. Dassian Industry Focused Solution
Rapidly Implement CAS & Contract Compliance for Government Contracting
Pre-Defined CAS
Accounting, and
Disclosure Statement
Cost Plus, T&M,
FFP Contracts &
Automated Billing
SF1034 &
SF1035
Invoice
Forms
Contract
Flow Down
Incurred Cost
Submission,
CPR Reports
Training, Testing, and
Process
Documentation
Timekeeping &
Payroll
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©Copyright 2013 Dassian Inc.
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15. Dassian Product Roadmap
Create
Proposal
Create/Manage Time & Expense
Payroll
Contract
Capture
Processing
2
1
3
4
Job
Costing
5
Burden
Application
7
6
CLIN
Setup
DP002.3
Contract
Mods
DP046
9
8
SAP ERP + Dassian Add-on
Contract Management
Forward
Pricing
Payment Compliance &
Processing
Reporting
Invoicing
Contract
Flowdown
Fees &
Witholds
ACRN
Mgmt
DP004
Funding
Control
Forms &
Vouchers
DP046
Financial Management
Proposal
WBS
Contract
WBS
Charge
Codes
Workforce
Payroll
Auth
DP014
Actual
Labor
Costing
Non
Labor
Costing
DP011
Actual
Burden
Applied
Burden
Profitability
Reporting
DP011
Project
Cash
Flow
Incurred
Cost
Sub.
DP032
Project Management
Task
Planning
Program
Baseline
Resource
Mgmt
Schedule
Integration
DP051
© 2013 All rights reserved
Project
Status
EV
Mgmt
ETC
Gen.
DP010
Wednesday, January 22, 2014
EAC
Gen.
CPR
CFSR

16. Summary Points
• Finally!….a turn-key GOVCON solution exists:
Meets major DCAA government compliancy
– Rapid to implement
– Low cost
– Run both commerical and government business
processes in one environment
– Scalable to grow with your organization
- Dassian’s GOVCON Enterprise Solution Built
for Government Contractors and enabled by
SAP’s world-class ERP solution.
1/22/2014
©Copyright 2013 Dassian Inc.
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17. Thank You!
Dassian & SAP Webcast ― https://www.youtube.com/dassianinc
Transparency Needed for Today’s Government Contractors
Join our LinkedIn Group:
SAP Dassian for Government
Contracting
Slideshare.net/Dassian – product slides
LinkedIn http://linkd.in/145eL3I
YouTube.com/Dassianinc – product
videos
Barbara McElnea
Dassian Director,
Solution Mgmt
• 6900 East Camelback
Rd.
Suite 805
Scottsdale, Arizona
85251
• Phone: 480-922-1700
• Email:
info@dassian.com
FB – facebook.com/dassianinc
Twitter - @dassianinc
www.dassian.com - product brochures
Join our newsletter at www.dassian.com
1/22/2014
©Copyright 2013 Dassian Inc.
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18. Notices
1/22/2014
©Copyright 2013 Dassian Inc.
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