Government Contract Compliance

Peter Witts, CPA PC works with Government
Contractors in the following ways:

Please use the links below to learn more about how
Peter Witts, CPA PC and his Senior Management team can help you:

Peter Witts, CPA

Mike Gitlen

• Accounting Systems Design
  
  
• Audit Support
  
  
• Incurred Cost Submissions
  
  
• Forward Pricing Rates and Proposals
  
  
• Controllership Services

Accounting Systems Designs

Peter Witts, CPA PC provides a turn-key accounting service that ensures the very highest level of cost recovery and timely payment.  Team members work hard to offer FAR and CAS compliant Accounting Systems as well as Policy and Procedure development for our clients.

Implementation of FAR and CAS Compliant Accounting Systems:

Federal Government contractors’ accounting systems must comply with the requirements of the Federal Acquisition Regulation (FAR) for US Government prime contracts and subcontracts and in some instances may need to comply with the Cost Accounting Standards (CAS). We will assist in reviewing, designing, developing and implementing accounting systems that comply with the requirements of the FAR and CAS. The accounting system will provide for the accumulation of direct and indirect costs as well as the allocation of indirect costs. The accounting systems that we develop for our clients are designed to provide meaningful financial reports for the management of individual contracts and the company as a whole. Our goal is to provide an accounting system that meets the requirements of FAR and CAS as well as the internal needs of company managers.

Policy and Procedure Development:

Proper internal controls are critical to the operation of your business in the Federal Government contracting industry. The development of formal policies and procedures will set your company¹s objectives and provide guidance to your employees for their responsibilities to the company. We will assist in the development of policies and procedures for cost accounting, estimating and other related government contracting activities. The policies and procedures will be developed to comply with the requirements of the Federal Acquisition Regulation (FAR) and other regulatory requirements as well as the objectives of company management.

Audit Support

Team members at Peter Witts, CPA PC have over 15 years experience working with the Defense Contract Audit Agency (DCAA).  Our highly trained government contract compliance accountants know what the government needs to see, how to get you the maximum reimbursement on your government contract, all while keeping within compliance with the regulations of the FAR and CAS.  We offer DCAA Audit Support as well as Review of DCAA Audit Positions. 

DCAA Audit Support:

Federal Government contractors are subject to oversight by several audit agencies throughout the term of their contracts. The very word "audit" causes apprehension in company employees and management. We understand the DCAA audit process, their audit objectives as well as their audit mission. We will provide support to DCAA during their scheduled audits at your company. This support will reduce the need for the use of your company resources as well as provide professional support to the DCAA auditor.

Review of DCAA Audit Positions:

DCAA issues thousands of audit reports with questioned costs or internal control issues. Audit reports are sometimes difficult to understand to the average person without a government contract accounting background. We will review DCAA audit reports for the validity of questioned costs and provide a rebuttal position on those costs.

Incurred Cost Submissions

Preparation and Negotiation of Indirect Rate Cost Submissions

Federal Government contractors with cost-reimbursable contracts must annually prepare a Final Indirect Rate Cost Submission.  We will prepare your cost submission electronically for submission to DCAA or other audit agencies.  Our services include the computation of year-end allowable indirect rates and all required supporting schedules.  By request, we will review your accounts for unallowable costs not excluded by current internal controls.

Forward Pricing Rates and Proposals

Proposal Preparation Assistance

Federal Government contractors must prepare proposals that are current, accurate and complete.  We assist in developing a complete proposal package with all required supporting schedules.  The proposal package will contain cross-referencing and support or rationale for costs proposed.  The proposal package will be geared to assist the client in reviewing the proposal submission in a timely manner. 

Preparation of Provisional Billing and Forward Pricing Rates

Federal Government contractors are required to prepare provisional billing rates and forward pricing rates for proposals.  Provisional billing rates are established for the reimbursement of incurred indirect costs during the performance of the contract.  Forward pricing rates are used to bid indirect costs on future contracts.  We can assist you in developing these critical rates.

Controllership Services

Is your business without a controller or a financial professional knowledgeable in government contracting? The controller is the single most important financial resource to your company and operating without a controller can hinder the financial success of your company. Our Firm can provide quality controllership services to help improve financial condition. Our controllership services start with the initial setup of your accounting system. Setup of the accounting system is a separate one-time charge. Our controllership services include the following monthly services and annual filings:

• Vendor Invoice Processing and Payment
• Payroll Processing and Payroll Tax Filings
• Preparation of Labor Distribution and Payroll Reports
• Customer Invoicing and Progress Payments
• Bank Reconciliations
• Adjusting Journal Entries
• Required Government Financial Reports
• Preparation of Forward Pricing Rates and Billing Rates
• Preparation of the Annual Incurred Cost Submission
• DCAA Audit Support
• Preparation of Annual Corporate Filings and Income Tax Preparation
• Preparation of Annual Compiled Financial Statements
  
  
  

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