J.5_Accounting_System_Evaluation.pdf

RFP: 14-233-SOL-00119

J.5 Accounting System Evaluation

Accounting System Evaluation

INSTRUCTIONS:

The HHS Acquisition Policy Memorandum 2011-01 specifies that Contracting Officers' (CO) have a pre-award and a post-award responsibility for assessing the adequacy of a contractor's accounting system whenever cost-type, time and materials, and/or labor-hour contracts are contemplated. (The policy states the CO must ensure that the contractor has an adequate accounting system in place prior to entering into such contract.)

Please fill out the attached accounting system evaluation form to assist the CO in assuring the adequacy of your accounting system.

Prospective Contractor’s Name:

Address:

Telephone:

Location of Accounting Records:

Type of Company:

Corporation

Division

Subsidiary

Partnership

Proprietorship

Other (Specify)

Year Established:

Officers of Company:

MARK AN "X" IN THE APPROPRIATE COLUMN (Explain any deficiencies in

Narrative Section below.)

YES NO N/A

1. IS THE ACCOUNTING SYSTEM IN ACCORDANCE WITH GENERALLY

ACCEPTED ACCOUNTING PRINCIPLES APPLICABLE IN THE

CIRCUMSTANCES?

2. ACCOUNTING PROVIDES FOR:

a. Proper segregation of direct costs from indirect costs (explain).

b. Identification and accumulation of direct costs by contracts.

c. A logical and consistent method for the allocation of indirect costs to final cost objectives.

d. Accumulation of costs under general ledger control.

e. A timekeeping system that identifies employee's labor by cost objective.

f. A labor distribution system that charges direct and indirect labor to the appropriate cost objective.

g. Interim (at least monthly) determination of costs charged to a contract through routine posting of books of accounts.

h. Exclusion from costs charged to government contracts of amounts which are not allowable in terms of FAR 31, Contract Cost Principles and Procedures, or other contract provisions.

i. Identification of costs by contract line item and by units (as if each unit or line item were a separate contract) if required by the proposed contract.

j. Segregation of preproduction costs from production costs.

3. ACCOUNTING SYSTEM PROVIDES FINANCIAL INFORMATION:

a. Required by contract clauses concerning limitation of cost (FAR

52.232-20 and 21) or limitation on payments (FAR 52.216-16).

b. Required to support progress payments.

4. IS THE ACCOUNTING SYSTEM DESIGNED, AND ARE THE RECORDS

MAINTAINED IN SUCH A MANNER THAT ADEQUATE, RELIABLE

DATA ARE DEVELOPED FOR USE IN PRICING FOLLOW-ON

ACQUISITIONS?

5. IS THE ACCOUNTING SYSTEM CURRENTLY IN FULL OPERATION? (If no, describe in narrative below which portions are (1) in operation; (2) set up, but not yet in operation; (3) anticipated; or (4) nonexistent.)

6. HAS THE ACCOUNTING SYSTEM BEEN REVIEWED BY AN AGENCY

OF THE FEDERAL GOVERNMENT? (If yes, provide name of agency, point of contact, and a copy of the report/review.)

7. HAS THE ACCOUNTING SYSTEM BEEN REVIEWED BY AN

INDEPENDENT AUDIT AGENCY OR CPA? (If yes, provide name of agency, point of contact, and a copy of the report/review.)

8. INCLUDE WITH THIS FORM YOUR CHART OF

ACCOUNTS/ACCOUNTING MANUAL.

NARRATIVE SECTION

Signature of Certifying Official:

Title: Date: