Attachment 21- Accounting System Questionnaire.pdf

Accounting System Questionnaire

Page | 1

Company Name:

CAGE Code:

Address:

Point of Contact:

Title:

Phone Number:

E-mail:

Directions: This questionnaire will enable the Government to determine the adequacy of your Organization’s Accounting System. If DCAA or other Government entity previously determined that the Accounting System is acceptable for award of prospective contracts, please submit a copy of a prior audit report or accounting system approval letter with your proposal. You will not be required to submit this Questionnaire. If a previous determination has not been made, please submit this Questionnaire with your proposal.

Please fully respond to each question by checking the yes/no box AND providing an explanatory narrative, either validating your “yes” answer, or explaining your “no” answer and describing how your organization will handle the requirement. Please provide sufficient detail to describe the process, (including account numbers, process flow, etc.) for each individual question. Narratives referring to previous questions (“Please see question 3 above”) will not be an acceptable response.

1. Is your organization currently performing on Cost-Type Contracts/Task Orders?

☐ YES

☐ NO

Please enter explanatory narrative below:

2. If the answer to question 1 above is “YES,” did DCAA or other Government entity previously determine that the Accounting System is acceptable for award of prospective contracts?

☐ YES – If Yes, please provide a copy of a prior audit report or accounting system approval letter with your proposal. You are NOT required to answer the remaining questions on this form.

☐ NO – If No, answer the remaining questions on this questionnaire and include this questionnaire with your proposal

Page | 2

3. Does the Accounting System comply with Generally Accepted Accounting Principles (“GAAP”)? For example, Accrual basis of accounting where both revenues and expenses are recorded when earned/incurred, and not when the cash is received/paid; general ledger is used to post costs to; ability to generate basic financial reports.

☐ YES

4. If the answer to question 3 above is “YES,” please provide the name and date of the Accountant or Accounting

Firm that reviewed the Accounting System and determined compliance:

5. Is the Accounting System currently in full operation? (i.e. the organization has designed its system and purchased or implemented the accounting software package)

☐ YES

Name: _______________________________________________________________________________

Date of Review: ________________________________________________________________________

Page | 3

6. Are the proposed loaded hourly labor rates consistent with your established estimating and accounting principles and procedures, as well as Government cost reasonableness principles?

☐ YES

7. Does the Accounting System provide for proper segregation of direct costs from indirect costs? Please describe any procedures designed to prevent direct charging of indirect expenses, and indirect charging of direct contract costs.

☐ YES

8. Does the Accounting System provide for identification and accumulation of direct costs by contract? (e.g. the system is designed to produce a job cost ledger that accumulates costs by contract or job)

Page | 4

9. Does the Accounting System have a logical and consistent method for allocation of indirect costs to intermediate and final cost objectives? In the explanatory narrative, please describe the organization’s indirect rate methodology, including the pools and allocation bases used to calculate all indirect rates used.

☐ YES

10. Does the Accounting System provide for accumulation of costs under general ledger control? (e.g. the job cost ledger report or its equivalent can be reconciled and routinely posted to the general ledger control accounts to determine totals for direct labor, direct materials, subcontracts, and other direct costs)

☐ YES – IF YES, PLEASE PROVIDE A COPY OF THE CHART OF ACCOUNTS

11. Does the Accounting System have a timekeeping system that identifies employees’ labor by intermediate or final cost objectives? (e.g. Labor is charged to a job or contract based on paper or electronic time cards used by employees and approved by the employees’ supervisors)

Page | 5

12. Does the Accounting System provide for a labor distribution system that charges Direct and Indirect labor to the appropriate cost objectives (e.g. Can labor costs distribution records be reconciled to payroll records)?

☐ YES

☐ NO

Please enter explanatory narrative

13. Is the Accounting System able to exclude costs charged to Government contracts that are not reasonable and/or not compliant with other contract provisions? (e.g. the Chart of Accounts includes separate account numbers to record any expenses that would not be reimbursable under a Government contract/agreement and the related account balances are excluded from proposals and billings submitted to the Government)

☐ YES

Page | 6

14. Can the Accounting System identify costs by contract line item and/or units, as if each unit or line item were a separate contract, if necessary?

☐ YES

15. Please provide any additional information you deem pertinent to the Accounting System.