VBP OutSourcing Cautions Firms to Expect New, Tougher DCAA Audit Standards

Glen Burnie, MD (PressExposure) March 08, 2011 -- Testimony by the head of the Defense Contract Audit Agency (DCAA) and a GAO report on government inefficiencies will mean closer scrutiny for government contractors, according to Veronica Eyenga, president and CEO of VBP OutSourcing, Inc.

Eyenga, whose firm specializes in accounting and marketing for firms doing business with the federal government, sees DCAA audit standards tightening in 2011. "DCAA Director Patrick Fitzgerald is highlighting the 'tightened net' that he says has already saved the taxpayers $3 billion, and DCAA has hired 500 new auditors in the last two years to increase their contract oversight. In addition, a Government Accounting Office (GAO) report released a few days criticized spending on duplicate projects by federal agencies. The DCAA audits contracts for DoD agencies and several other federal agencies.

"The handwriting is clear: government contractors, and companies thinking about competing for government contracts, must ensure that their accounting systems will pass a DCAA audit. The scrutiny is going to be tighter than ever. In past years, DCAA has been criticized for being too close and friendly with the contractors it audited. All of the signs point to the pendulum swinging the other way."

Not all of the news is grim, Eyenga noted: "The DoD is pushing for an increase in its budget for 2011, which could mean more money for contractors. But winning, fulfilling and being in compliance with those contracts is going to be more difficult."

Eyenga recommends, at a minimum, that firms have their accounting systems mock audited by an outside expert to find issues likely to be flagged by a DCAA auditor. "DCAA audits are pass-fail," she said. "Even a minor deficiency finding can mean reduced or delayed payments on a government contract. In fact, because DCAA can audit a company before a contract is even signed, a non-compliant accounting system can mean the contract is given to someone else. You want to find and correct any deficiencies before a DCAA auditor does.

"Properly setting up, maintaining and documenting your accounting system now can proactively avoid a lot of problems later, whether you do it in-house or outsource it."

For more information, visit http://www.vbpoutsourcing.com.

About VBP OutSourcing

VBP OutSourcing is a Maryland-based, professional accounting and marketing firm servicing the growing needs of DoD federal contractors. Whether you have a need for DCAA government cost accounting solutions via QuickBooks and Peachtree software or you need to strengthen the links between your company's brand and the federal government with a strong capability statement, website or brochure, our professional team is ready to assist. We've been helping government contractors gain more federal business and also meet their DCAA compliance requirements for over 13 years. For more information call 410-590-5000 or visit http://www.vbpoutsourcing.com.

Press Release Source: http://PressExposure.com/PR/VBP_OutSourcing.html

Press Release Submitted On: March 08, 2011 at 9:05 am
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