Tuesday, January 30, 2018

DCAA's Financial Liaison Advisory Services

DCAA (Defense Contract Audit Agency) employs a cadre of individuals that act as Financial Liaison Advisors (FLAs). These individuals are generally auditors with a significant amount of audit experience and are assigned to support DoD procurement and contract administration offices to assist them in achieving the objectives of sound contracting by providing onsite accounting and financial advice to contracting officers, negotiators, and buyers. While contract auditors are independent under GAGAS (Generally Accepted Government Auditing Standards), FLAs are not. They sit side by side with Government procurement and advocate on behalf of the Government. Perhaps you've met some when sitting at the negotiating table.

FLA have been assigned four major and significant responsibilities.

  1. Facilitate effective communication and coordination between procurement officers and auditors
  2. Provide advice to the procurement office in connection with contractors' cost representations and related matters, in consultation with the auditor.
  3. Provide information back to the auditor regarding specific awards, trends in the type and volume of awards and other data impacting on immediate or long-range DCAA responsibilities.
  4. Provide DCAA management with information as to the adequacy, responsiveness and timeliness of the advisory audit reports being submitted by auditors (many auditors do not appreciate the FLA's tattle-tale role).

For more information on DCAA's FLA program, refer to Chapter 15 of the DCAA Contract Audit Manual.

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