Many government contractors are under the impression that their accounting system must be “certified” by the Defense Contract Audit Agency (DCAA) in order for them to do business with the Federal Government. However, there is not a single ERP software system that has ever been certified by the DCAA or is guaranteed to satisfy their audit requirements. Instead, government contractors need a system that will allow them to properly capture and allocate direct and indirect costs and a system that has a robust reporting tool so that they can demonstrate their compliance with the various government contracting rules and regulations. For all of these reasons, government contractors are increasingly turning away from basic accounting software and are seeking broader and integrated enterprise resource planning (ERP) solutions, such as Microsoft Dynamics SL.
With Microsoft Dynamics SL, government contractors can easily capture and allocate their direct and indirect costs and generate reports they need to show contract status and compliance. To further assist government contractors with their DCAA audits, Microsoft Dynamics SL includes a US Government Contractor Report Pack. These standard reports make the audit process straightforward and include the following reports categories: Job Summary (Project at Target and Actual, and Task at Target and Actual); Job Summary Supporting (Labor Hours Detail, Labor Hours and Costs Details, Other Direct Costs Details and Revenue Detail); Cost Summary (at Target and Actual Indirect Rates), Project Revenue (at Target and Actual Indirect Rates); and Indirect cost Analysis (Indirect RateVariance by Project). In addition to satisfying the requests of DCAA auditors, these reports can help government contractors identify the profit impact from current contracts, plan new initiatives based on past performance, and provide information that project managers need.