Government Contractors, ARE you Audit Compliant?
Contractual Compliance is there to ensure you fulfill the requirements outlined in your Contract Agreement. Each contract has schedules, deliverables, and detailed requirements to meet the obligations of the contract. The type of contract dictates the laws and regulations you must follow. The Federal Acquisitions Regulations (FAR), and the appropriate agency supplements establish the various requirements. Revolutionary Solutions can help you navigate through these complex regulations.
Proposals are mostly audited for compliance to Section L, Instructions to bidders. When reviewing proposals, they are not only evaluating Section L, they are audited for compliance. The structure must be complaint and the content must be responsive.
When an evaluator reviews your proposal, certain information must be contained in a format that is easy to read and discover. If one of the required pieces are missing, you have a deficient proposal.
Evaluations may be conducted using any rating method or combination of methods, including color or adjectival ratings, numerical weights, and ordinal rankings. Each Proposal is evaluation for strength, weaknesses, and deficiencies. Revolutionary Solutions will ensure you are capturing all requirements and submitting a compliant proposal.
Generally Accepted Accounting Principles (GAAP) are general rules used by businesses. Organizations follow established principles to guide their accounting system and avoid mistakes. An organization’s accounting system is the primary source for an estimating cost system. Your managers should be familiar with basic cost accounting principles. To make sound business decisions, management should understand the organization’s accounting structure. Compliance is not just based on systems; it is based on processes and procedures. For Government Contracts, the following FAR clauses are provided for reference:
FAR 31.201-2 (d) Requires Audit Requirements contractors to maintain records and supporting documentation to demonstrate allowability and allocability of costs.
FAR 31.205 requires specific documentation to demonstrate the allowability of certain cost elements.
Please contact Revolutionary Solutions for all of your compliance needs.