AccountingSystemAdequacy-SandiaNationalLaboratories.docVIP

Accounting System Process Adequacy For Small and Startup Businesses Guidance for Companies with 25-500 Employees By: Sandia National Laboratories Contract Audit Department October 3, 2013 Accounting System Process Adequacy For Small and Startup Businesses Information for Companies with 25-500 Employees Table of Contents To quickly go to any item in the Table of Contents, click on it while pressing the Control key. Or use “Control-F” to find key words for which you are searching. Table of Contents 1 Purpose 2 How to Use This Document 3 1. General Attributes of an Adequate Accounting System 6 Contract-Cost Element Matrix 7 Documented Policies 8 Cost Elements 8 Accounting Period 9 Audit Trail 9 Internal Controls 9 2. Process and System Attributes 10 Labor 10 Travel 11 Materials Purchased Services 12 Other Direct Costs 14 Equipment 15 Subcontractors 16 Indirect Costs 17 Facilities Capital Cost of Money 18 Unallowable Costs 19 3. Supporting Document Attributes 20 The Accounting System Review-What to Expect 37 Where to Get Assistance 37 References 38 Purpose This guide is intended for use by prospective and current small and startup businesses with 25 to 500 employees; that wish to conduct business with Sandia National Laboratories. It is intended to help these companies to develop adequate accounting systems and processes to support their government contracting efforts. Prior to placing any contract, Sandia will gain assurances that a prospective contractors’ accounting system can adequately collect, process, and report required cost or pricing information. An Accounting System Review (ASR), which is discussed later, is the tool used by Sandia to gain an understanding of the prospective contractor’s accounting system. The ASR and audit procedures conducted by Sandia National Laboratories are authorized by Federal Acquisition Regulations (FAR) (FAR 15.404.2 FAR 9.106). If properly implemented, the attributes described in this document should result in systems th