Week 1

MODULE 1:
GETTING READY: Critical Pre-Planning Steps to Help Prepare for Your Audits

November 1 • 1:00pm–4:30pm EST (Includes 30 minute break)

Every government contractor may be undergoing business systems audits in the coming months/ years and making the time now for early strategic planning will make sure that your organization is prepared. This session will provide an overview for the entire 6 module program. We will provide a primer for how to design a business systems compliance program and to document your internal control system. There will be a review of the audit process, a brief discussion of the timelines and cycles for each audit, along with the approaches DCMA and DCAA take to their audits.

Topics to be covered include:

  • An overview of the DFARS Business Systems Clause
  • Applicability of each Business System clause and associated audit triggers
  • A discussion of DCMA review and DCAA audit approaches
  • Best practices for designing a business systems compliance program to stay ahead of the game, including
    • Identifying system, process and control owners
    • Compiling and preparing control documentation and narratives
    • Performing self-assessments and monitoring
  • Key documents and flowcharts to help you prepare
  • Policies, procedures, and internal controls
  • What to expect on Day 1 of the audit?
  • Advice and best practices from experienced contractors
  • Advice from experienced contractors

Marc DesLauriers

Business Unit Manager – Business Systems & SOX Controls

Ball Aerospace

Kimberly Lanfersieck

Manager, Business Systems Compliance

General Atomics Aeronautical Systems, Inc.

Joseph McCaffrey

Partner

Baker Tilly US, LLP

Joseph Meier

Business Systems Technical Specialist & Instructor

Defense Contract Audit Agency

Michael Spiewak

Supervisory Auditor

Defense Contract Audit Agency

MODULE 2:
ESTIMATING SYSTEM: Preparing for Your Estimating System Audit and What Types of Questions Will Be Asked

November 3 • 1:00pm–4:30pm EST (Includes 30 minute break)

This session will focus on the estimating system and applicable audits covering foundational requirements, audit best practices, and common pitfalls to avoid.

Estimating System Background and Requirements Overview
  • Purpose of estimating systems audits
  • Overview of DFARS estimating system rule
  • Outlining an acceptable estimating system
  • Interconnectivity with other business systems
  • Unique aspects to DFARS 252.215
  • DFARS 252.215-7002 applicability
  • Estimating system criteria and requirements, including system structure, training & oversight, and data

Estimating System Audits
  • Audit process and data requests
  • Stakeholder involvement
  • Key audit focus areas
  • Historical audit results and audit trends

Estimating System Best Practices and Pitfalls
  • Best practices for the audit and system adequacy challenges
  • Pitfalls to avoid during an Estimating System audit
  • Unique estimating challenges, including forward pricing rates and defective pricing audits

Derek Boyd

Partner

Baker Tilly US, LLP

Ken Nichol

David Cozart

Director of Compliance and Contract

III-VII Incorporated

John Norden

Vice President- Strategic Pricing

GDIT

Brent Esplin

Course Manager/Instructor

Defense Contract Audit Agency

Michael Spiewak

Supervisory Auditor

Defense Contract Audit Agency

Week 2

MODULE 3:
MMAS SYSTEM: Understanding the Key Elements of the Material Management Accounting System and What To Expect During The Audit

November 8 • 1:00pm–4:30pm EST (Includes 30 minute break)

This session will focus on the key requirements for the MMAS system along with audit best practices, frequent questions, and review of key metrics.

A Team Sport

  • Inventory Mgmt
  • Cost Accounting
  • Production Planning & Control
  • Procurement
  • Engineering

System Overview, Procedures and Process Ownership

  • System description, map and PAIAMS
  • Functional procedures and owners

System Control Environment

  • Integrity and ethical values
  • Executive oversight
  • Commitment to competency
  • Organizational structure/segregations of duties
  • Management philosophy & style
  • Assignment of authority and responsibility
  • HR policies & practices

Risk Assessment & Change Management

  • Internal and external risk assessment
  • How to manage change


Control Activities

  • Purchases & fabricated material are based on valid time-phases requirements as impacted by minimum/economic order quantity restrictions
  • Identify operational exceptions as soon as known
  • Establish and maintain adequate levels of record accuracy & include reconciliation of recorded investor quantities to physical inventory by Part # on a periodic basis
  • Detailed descriptions when manual or system generated d transfers of parts occur
  • Maintain a consistent, equitable and unbiased logic for costing of material transactions
  • Common inventory account controls
  • Adequate controls ensuring physically commingles inventories


Information, Communication & Monitoring

  • Documentation and audit trail
  • Metrics
  • Periodic internal review
  • Administrative contracting officer surveillance
  • DCAA MAAR 13 audits

Kelly G. Peters

Corporate Director, Contracts and Government Compliance

Huntington Ingalls

MODULE 4:
ACCOUNTING SYSTEM: Overview of System Requirements, Internal Control Areas, and Best Practices to be Audit-Ready

November 10 • 1:00pm–4:30pm EST (Includes 30 minute break)

This session will focus on key accounting system requirements, audit expectations, and best practices around internal controls, policy & procedures, and audit preparation.

Background

  • Accounting System Definition & Requirements Applicability
  • Why Accounting Systems are Audited
  • Accounting System Oversight & Types of Audits


Accounting System Requirements Overview

  • Pre-award Accounting System Requirements
  • DFARS Criteria Overview and Analysis
  • Other Key Accounting System Contract Requirements


Key Accounting System Processes, Internal Controls, & Audit Considerations

  • Overall Control Environment (Including HR & Information Technology Expectations)
  • Labor Accounting (Timekeeping & Labor Distribution)
  • Billing System
  • Indirect Cost and Rates
  • Direct Contract Costs (Subcontracts, Material, Other Direct Costs)
  • Accounting for Unallowable Costs


Accounting System Oversight & Monitoring

  • System Reviews & Internal Audit Plans and Risk Assessment
  • Developing and Maintaining System Documentation (policies, procedures, & internal controls)
  • Internal Control Monitoring
  • Training

Valerie J. Griffiths

Government Accounting

Raytheon Missiles & Defense

John Hindman

Director

RSM US LLP

Joseph Meier

Business Systems Technical Specialist & Instructor

Defense Contract Audit Agency

Brent Esplin

Course Manager/Instructor

Defense Contract Audit Agency

Week 3

MODULE 5:
PURCHASING SYSTEM: Review of the Purchasing System and the Contractor Purchasing System Review (CPSR)

November 15 • 1:00pm–4:30pm EST (Includes 30 minute break)

This session will focus on contractor purchasing system requirements and the CPSR process and expectations for policies, procedures, and purchasing documentation.

Background

  • Purchasing System Definition & Applicability Overview
  • Purpose, Scope, and Benefits of the CPSR and Approved Purchasing Systems
  • Overview of the Purchasing System Risk Assessment and Key CPSR Scope Considerations


Purchasing System Requirements Overview

  • Overview of FAR Part 44 Purchasing System Requirements
  • Key Contract Clauses and Applicable Procurement Regulations
  • DFARS Purchasing System Criteria Overview & Analysis


CPSR Overview

  • Overview of CPSR Process, Timeline, and Data Requests
  • Major CPSR Review Elements
  • Specific Documentation Expectations
  • Identify Policy & Procedure and Internal Control Expectations
  • Common CPSR Pitfalls and Best Practices to Mitigate Significant Deficiencies


Purchasing System Monitoring & Maintenance

  • Discuss Best Practices in Overall Purchasing System Monitoring & Maintenance
  • Procurement File Documentation Review & Remediation
  • Policy & Procedure Monitoring
  • Training Expectations

Cyndi Dunn

Senior Director

RSM US LLP

Kent Sharp

Senior Compliance Regulatory Manager

GE Aviation

MODULE 6:
POST AUDIT PROCESS: Corrective Action Requests, Audit Timeline and Practical Tips from Experienced Contractors

November 17 • 1:00pm–4:30pm EST (Includes 30 minute break)

This session will present a summary of the business system review process and provide key takeaways for the attendees to bring back to your organization. Participants will have time to get their questions answered.

  • Understanding the length and timing of the review process
    • DCAA vs DCMA
  • Entrance conference, interim conference and exit conference expectations.
  • Tips to work successfully with DCAA/DCMA
  • What happens when you get a Corrective Action Request (CAR)
    • Deficiency or significant deficiency
    • How to correct
    • Making a Corrective Action Plan (CAP)
    • Understanding the validation review
  • Documentation best practices for all formal communications, status memos, and meetings
  • What happens after exit conference and have a finding – now what?
    • Timelines
    • Significant findings vs. less than significant findings
    • System disapproval and fee withholds
  • What happens after the audit?
  • What happens outside of DOD environment with Fed Civ contracts
  • Potential litigation/formal disputes/claims etch

Marc DesLauriers

Business Unit Manager – Business Systems & SOX Controls

Ball Aerospace

Kimberly Lanfersieck

Manager, Business Systems Compliance

General Atomics Aeronautical Systems, Inc.

Crystal Teed

Senior Legal Counsel

BAE Systems