The areas of identified DCAA focus include the following:
- Distinguishing between business development and marketing costs (in general, business development is allowable while marketing costs are not).
- More scrutiny in making sure contractors do not exceed the cap on meals, lodging, and incidental expenses (Historically this has not been a high risk area meaning that findings have been rather insignificant. After 15 years, most contractors have this one down pat).
- Assessing adequacy of estimating and purchasing policies, procedures, and practices
- Making sure that bonuses are paid pursuant to a formal plan
- Personal use of company cell phones (We wonder why DCAA would expend resources auditing this area. How significant would any incremental costs be?)
- Health insurance paid for nonqualified dependents (this was the subject of an audit alert a few months back).
- Making sure contractors retain original documents after scanning (We're not sure what this has to do with audits of costs. Its more a record retention issue under the purview of the contract administrator.)