accounting for your future dcaa update presented for ncma cape canaveral chapter april 9, 2008...
TRANSCRIPT
Accounting for Your Accounting for Your FutureFuture
DCAA UpdateDCAA UpdatePresented for NCMA Cape Canaveral Presented for NCMA Cape Canaveral
ChapterChapterApril 9, 2008April 9, 2008
Government Contracting Consulting Services GroupGovernment Contracting Consulting Services Group
Worldwide Consulting
K.D. “Ken” Bricker, CPA, DABFASenior Partner
Accounting for Your Accounting for Your FutureFuture
DCAA Audit Results
• 2002 Results• Pricing Proposals (123 B)• Incurred Costs (88.4 B)• Net Savings (5 B)• Budget (390 M)• Tax Payer Savings 6.4 to 1
• 2005 Results• 9,673 Pricing Proposals
(150.7 B)• Incurred Costs (118.7 B)• Net Savings (2.7 B)• Budget (435 M)• Tax Payer Savings 6.2 to 1
WWW.DCAA.MIL
Accounting for Your Accounting for Your FutureFuture
Fiscal Year 2003 2004 2005 2006
No. of Reviews 41,114 39,705 39,021 35,610
Sustention Rate 66.4% 75.2% 56.4% 63.5%
Return on Investment
$5.4 to 1 $5.0 to 1 $6.2 to 1 $5.2 to 1
Summary of DCAA Audit ResultsSummary of DCAA Audit ResultsPrior Complete Years and FY 2006 Prior Complete Years and FY 2006
ResultsResults
$2.2 $2.1
$2.7$2.3
Net
Sav
ings
Net
Sav
ings
(in
Bill
ion
s)(i
n B
illio
ns)Effective
Auditing ProducesResults
EffectiveAuditing
ProducesResults
*Slide accredited to the DCAA
Accounting for Your Accounting for Your FutureFuture
Improve e-mail protocol processesComplete 100% of the DCAA controllable incurred cost auditsIncrease MOCAS transaction based volume of electronic billings on cost vouchers to 85%Conduct a study of lessons learned in contract audit **more laterEvaluate current approach to training audit staff and assess training needs / enhance leadership trainingEvaluate success in passing CPA examEvaluate workflow into and within FAODevelop improvements for coordination in planning and performing incurred cost audits **more laterAssess the effectiveness of defective pricing audit planning and execution ***could be problems, more laterAnalyze incurred cost and forward pricing audit guidance including audit programs **more laterAchieve 10% reduction in costs of COTS software and on-line subscriptionsMultiple feasibility studies
DCAADCAAStrategic Plan Goals to be Completed Strategic Plan Goals to be Completed
in or by Program Year Ended in or by Program Year Ended September 30, 2007September 30, 2007
(The Year of Self Improvement?)(The Year of Self Improvement?)
Accounting for Your Accounting for Your FutureFuture
Audit FocusAudit Focus
• Executive Compensation• Financial Capability• Internal Controls• Professional Services
• Teams to Determine What is Being Missed
Accounting for Your Accounting for Your FutureFuture
Executive Executive CompensationCompensation
Ceilings:– 1997 $250,000– 1998 $340,650– 1999 $342,968– 2000 $353,010– 2001 $374,228– 2002 $387,783
– 2003 $406,273– 2004 $432,851– 2005 $473,318– 2006 $546,689– 2007 $597,912
Accounting for Your Accounting for Your FutureFuture
SurveysSurveys• Dietrich• DRI• ECS• ERI• EXEC• Hays• RIA• Watson Wyatt
Accounting for Your Accounting for Your FutureFuture
JUSTIFYING JUSTIFYING COMPENSATIONCOMPENSATION
• Executives Roles (Multiple?)• Benefit to company – therefore the
government• Escalation • Full Benefit Package• Percentile• Income Tax Payments
Accounting for Your Accounting for Your FutureFuture
QUESTIONS?QUESTIONS?