c05 accounting for contract managers: the true love language of contracts!
TRANSCRIPT
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Breakout Session # C05
Robert E. Jones, CFCM, CCCM
Consultant & Speaker
Left Brain Professionals Inc.
Accounting for Contract Managers: The True Love Language of Contracts
Monday, November 3, 2014
3:45pm – 4:50pm
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Positive Share
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Safety Check
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Why Are You Here?
By the time accounting sees the contract, it's usually too late to make any changes!
More of an emotional presentation than a factual one.
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You ARE Here!
The intersection of contracts & accounting.
Where DCAA and DCMA meet to hold hands and sing kumbaya.
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A Love Language?
Is it a love/hate relationship? Marital bliss? Head in the sand?
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My Story
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Types of Transactions
Time
Materials
Travel
ODC
Subcontractors
Property
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A Record of Transactions
A contract is an agreement for a series of transactions.
Contracts are the vehicle for communicating the accounting (cost and price data) information and requirements.
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Understanding Transactions
Do you need to understand contracts to better understand accounting?
Do you need to understand accounting to better understand contracts?
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Six Business Systems
1. Accounting and Billing Systems (DCAA, DFARS 252.242-7006)
1. Contractor Purchasing System Administration (DCAA, DFARS 252.244-7001)
1. Cost Estimating System
(DCAA, DFARS 252.215-7002)
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Six Business Systems
4. Contractor Property Management System Administration
(DCMA, DFARS 252.245-7003)
4. Material Management and Accounting System(DCAA, DFARS 252.242-7004)
4. Earned Value Management System (DCMA, DFARS 252.234-7002)
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Small vs Large Business
Are there different requirements for different sizes of businesses?
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Accounting & Contracts Together?
Teamwork!
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Where Do We Focus?
I am a "when" not an "if" kind of guy.
Start with the end in mind and prepare for the final exam.
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Contract Types & Accounting
FFP – simplest
T&M - time collection
Cost-type - time and cost collection
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Setting Up Systems
Software tools automate postings by type and perform rate calculations.
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Resources
DCAA http://www.dcaa.mil/ Checklists
Information for Contractors
Cost Accounting Standards
DCMA http://www.dcma.mil/
FAR 31 http://www.acquisition.gov/
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Thank You!
