CFO-Level Advisory for Government-Funded Businesses
Strategic Financial Leadership Grounded in Federal Compliance
Bridge the Gap Between Accounting Execution and Executive Strategy
For organizations funded by federal contracts or grants, growth introduces more than new projects—it introduces complex compliance risk, funding constraints, and rate volatility. Yet most small and mid-sized contractors can’t justify a full-time CFO with deep government contracting experience.
We deliver CFO-level financial leadership designed specifically for government contractors, R&D firms, and grant-funded organizations. Our advisory services combine executive insight with regulatory precision—helping you forecast intelligently, maintain DCAA compliance, and make strategic decisions with confidence.
Why Government-Funded Businesses Need Specialized CFO Support
Traditional CFOs excel at corporate finance but rarely navigate FAR, CAS, DFARS, and Uniform Guidance (2 CFR 200). For federally funded entities, every strategic decision—pricing, staffing, or capital investment—must also satisfy compliance rules on cost allowability, indirect rates, and cash management.
A government-focused CFO ensures:
- Financial strategies align with FAR Part 31 cost principles and DCAA audit expectations.
- Indirect rate modeling supports both competitiveness and long-term profitability.
- Cash flow forecasts reflect billing cycle timing, incremental funding, and provisional rate impacts.
- System adequacy and internal controls meet DFARS 252.242-7006 requirements.
- Grant accounting follows Uniform Guidance Subpart E and withstands federal review.
- Our advisory service blends executive foresight with technical compliance, ensuring growth and governance move in lockstep.
Fractional CFO Advisory Services
We operate as an extension of your leadership team, providing ongoing or project-based financial oversight that includes:
- Strategic Financial Planning: Long-range forecasting that integrates indirect rate projections, provisional billing rates (FAR 42.704), and capital investment timing.
- Regulatory Compliance Oversight: Continuous monitoring of FAR/CAS adherence, indirect pool composition, and cost allowability (FAR 31.201-2/-4).
- Budgeting and Scenario Modeling: Multi-year rate sensitivity analyses for proposal strategy and growth planning.
- Audit Readiness Leadership: Coordination across accounting, HR, and contracts to maintain DCAA audit-ready systems.
- Board-Level Reporting: GAAP financials with government-specific performance indicators—burn rates, funding utilization, backlog, and rate variance.
Each engagement includes a written
CFO Service Plan outlining objectives, metrics, and communication cadence so accountability stays visible.
Grant and Cooperative Agreement Advisory
For organizations funded through NIH, DOE, or NSF mechanisms, we deliver CFO-level guidance that aligns fiscal strategy with Uniform Guidance §200.302 (b) internal control requirements:
- Budget formulation and PMS drawdown forecasting.
- Documentation of cost share, subawards, and participant support costs.
- Review of indirect cost rate proposals (NICRA/F&A).
- Audit preparation for Single Audits (2 CFR 200 Subpart F).
We ensure your scientific and financial objectives stay aligned—and your funding stays secure.
Indirect Rate Strategy Integration
Your CFO advisor links executive planning to the mechanics of rate management:
- Designs rate structures compliant with CAS 401/402 and FAR 31.201-2 / -4.
- Oversees Forward Pricing Rate Proposals (FPRPs) and NICRA negotiations.
- Evaluates Facilities Capital Cost of Money (CAS 414/417) to support competitive bids.
- Monitors provisional-to-actual variances to prevent retroactive adjustments.
This integrated oversight prevents financial surprises and ensures consistent treatment across proposals, billings, and incurred cost submissions.
Capital Planning and Cash Flow Optimization
Government-funded entities often face tight working-capital cycles. We help you model and manage:
- Cash flow timing based on funding increments, invoice approvals, and payment lags.
- Debt and credit facilities structured around contract receivables.
- Capital investments and depreciation planning consistent with FAR 31.205-11 (Depreciation) and CAS 404 asset capitalization rules.
- Indirect cost impact of new hires, facilities, and subcontracting strategies.
The result: liquidity stability and informed growth decisions even under constrained funding schedules.
M&A and Due Diligence for Government Contractors
Whether you’re acquiring, merging, or preparing for sale, government contract accounting demands specialized due-diligence procedures:
- Evaluate target compliance posture (FAR, DFARS, DCAA audits, NICRAs).
- Assess rate structure sustainability and pending ICE exposure.
- Quantify unallowable-cost exposure and backlog revenue risk.
- Model post-transaction rate and cash-flow implications.
Our CFO advisors provide both the compliance lens and the valuation insight needed for informed decisions in government-heavy portfolios.
We empower our clients to grow with confidence by delivering high-quality, customized financial services that meet the exacting standards of the DCAA, NIH, DOE, and other federal agencies.
Frequently Asked Questions
What is “government contract accounting,” and how is it different from regular accounting?
Government contract accounting involves following specific federal rules, standards, and compliance requirements (e.g. cost allowability, audit readiness, indirect rates, DCAA standards). Unlike general accounting, your financial systems need to withstand audits, cost proposals, and strict oversight. We structure your accounting and reporting so you stay compliant and reduce risk.Do I need to worry about DCAA audit compliance?
If you hold or are bidding on U.S. federal contracts (especially cost-reimbursable, time & materials, or fixed price with cost elements), the Defense Contract Audit Agency (DCAA) may audit your accounting systems. We can help you build or review systems so you pass audits when they arrive.Can you help with indirect cost rates, cost proposals, and incurred cost submissions?
Yes — we support designing indirect cost rate structures, preparing cost proposals, and submitting incurred cost reports. These are critical tasks in government contracting, and we ensure your supporting records align with regulatory expectations.How much experience do you have in the federal contracting space?
Peter Witts CPA PC has over 36 years of experience in government contract accounting, including first-hand DCAA knowledge. We’ve worked with clients across DoD, NIH, DOE, and other agencies, helping them navigate the compliance landscape.What kind of businesses or projects do you work with?
We work primarily with companies engaged in federal contracts or grants (especially research, development, support services). If your business isn’t in that space, we’ll help you determine whether our services are the right fit or recommend alternatives.How do I get started with you?
You can schedule a free consultation via our website. During that call we’ll explore your current standing, challenges, and needs, and map out how we might support you. (Then we’ll formalize scope, pricing, and next steps.)What should I provide for an initial assessment?
Financial statements, accounting policies, prior audits (if any), contracts and grant agreements, cost accounting structure, payroll records, indirect cost allocations, and any compliance documents. We’ll review what you have, identify gaps, and propose next steps.How often will we interact / how do you deliver services?
That depends on the scope. For outsourced accounting, we could work on a monthly or quarterly basis. For compliance or audits, we may engage more intensively. We'll agree up front on communication frequency, deliverables, and review cycles.What are your fees or how is billing handled?
Our fees are fixed monthly fees and depend on the complexity and scope of your work — number of contracts, volume of accounting entries, compliance risk, etc. We’ll provide a proposal after our initial assessment. We only work on an hourly basis for audit support services for audits relating to government contracts or grants conducted by government agencies or outside CPA firms.What if my business is outside of your specialization—can you still help?
At Peter Witts CPA PC, we focus exclusively on our core strength: federal contract and grant compliance. We serve businesses operating within the government contracts and grants space, offering specialized outsourced accounting and tax services tailored to the unique requirements of this industry. This is our sole focus — we don’t try to be everything to everyone. Our expertise is deep, not broad, and it’s dedicated to helping government contractors navigate complex compliance and maximize their opportunities.What happens if there's a federal audit or examination?
We support audit responses, documentation requests, and work with your team to ensure you respond properly. Because we build systems with compliance in mind, we aim to minimize surprises and help you maintain defensible records.How do you keep up with changing federal regulations and compliance standards?
We continuously monitor federal regulatory updates (DCAA rules, OMB circulars, FAR/DFARS, audit guidelines) so our clients’ accounting systems remain in alignment with best practices and compliance requirements.
