GOVERNMENT CONTRACTORS : CASE STUDIES

Rubino & McGeehin provides a wide range of services for our government contractor clients. The following are examples of non-audit services:

Internal Control Procedures
R&M was engaged to review five specific matters related to the internal control over contract reporting and billing to help a client ensure that their systems were properly tracking contracts by type, billing at the appropriate T&M rates, applying the correct indirect rates, properly carrying forward contract cost data, and computing billings correctly. This engagement entailed sampling from the company’s contract mix, reviewing contract files, and reviewing the details of the project set up in the accounting system, including contractual ceilings and spending limits. The engagement further included reviewing the indirect rates applied to each contract as well as the contract billing calculations. R&M was able to provide assurance that the accounting system had been properly initiated and that contract data had been correctly entered into the accounting system.

Contract Close-Out Procedures
R&M assisted a client in preparing a final bill in conjunction with contract close out procedures. The initial draft of the invoice resulted in an obligation to the government of approximately $1.1 million. R&M consultants were able to demonstrate to the client that specific costs should be recovered under the contract, which resulted in reducing the amount of the client’s obligation to approximately $100,000. The final invoice was reviewed and approved by government auditors. The client was extremely pleased that the $1 million dollar adjustment was in their favor.

System Conversion
R&M assisted a client with an accounting software conversion from Quickbooks to Deltek’s GCS Premier. R&M was responsible for everything from creating a chart of accounts to establishing an indirect cost pools and rate application structure in the software to converting historic cost data. The conversion entailed running parallel systems for two full months while data integrity checks were completed. The end result was full functionality of the new software and the client’s new accounting system.