The DCAA is the Defence Contract
Audit Agency that is responsible for the supervision and recommendations about
the contractor companies approaching the DoD. These contractor companies are
responsible for fulfilling various defense contracts that are issued by the
DoD.
Every year millions of dollars are
spent on these contracts which is why a close supervision and careful
assessment of the companies is essential.
Compliance
Compliance is the key to the work
between the DoD and the contractor companies. this is the part supervised by
the DCAA.
There are set guidelines and a list
of rules and regulations that will have to be followed by any company
interested in being a part of the defense contract system.
Their companies hence need to be
checked and approved by the DCAA as complaint with the system. It may be noted
here that the DCAA does not issue any approval or certification for compliance
but is an audit department for the DoD.
Accounting
System
There are specific DCAA accounting system requirement under
the guidelines of the DCAA and the DoD.
It may be noted here that the DCAA is
a government agency and does not conduct checks specify any preapproved
software for acceptable accounting system.
There are audit companies however that can be
of professional assistance to a contractor company seeking DCAA approval. Many
of these companies working in this sphere for years are well aware of the
regulations and the compliant system for accounting.
Submission
Of Compliance
The submission of the SF
1408 which stands for Standard Form 1408 needs to be completed by a
contractor company along with any sub-contractor company if any.
This form is a declaration of the
customer’s understanding (in this case the DoD) about the complaint accounting
system of the contractor company along with that of its sub-contractor.
The compliance of their accounting
system is in keeping with the regulations of the Federal Department.
