Material Management & Accounting System (MMAS) Compliance

Overview

DCAA audits of Material Management and Accounting Systems (MMAS) are ramping up, and not many manufacturing contractors have experienced this type of audit with DCAA. An effective MMAS system is essential to your ability to bill the government for accurate and time-phased materials. We understand the importance and intricacy of having a compliant MMAS system and passing a DCAA audit of that system. Redstone’s team of experts has extensive backgrounds in the design, implementation, and audit of MMAS systems so that you are compliant with regulations and DCAA audit expectations.

Services

• Policy and Procedures– An adequate system description, including policies, procedures, and operating instructions, are vital for a compliant MMAS system. We can review, enhance, or develop a compliant system description to ensure that you are meeting all the elements of the 10 standards. The 10 Standards requirements focus on the following criteria:

• • An adequate system description including policies, procedures, and operating instructions that comply with the FAR and DFARS.
  • Ensuring that costs of purchased and fabricated material charged or allocated to a contract are based on valid time-phased requirements.
  • Providing audit trails and maintaining records necessary to evaluate system logic and to verify through transaction testing that the system is operating as desired.
  • Establishing and maintaining adequate levels of record accuracy and including reconciliation of recorded inventory quantities to physical inventory by part number on a periodic basis.
  • Providing detailed descriptions of circumstances that will result in manual or system-generated parts transfers.
  • Maintaining a consistent, equitable, and unbiased logic for material costing.
  • Periodic internal reviews to ensure compliance with established policies and procedures.

• Mock Audits– To strengthen your company’s existing processes, we offer mock auditing of your system, providing you with a gap analysis and report for improvement.
• DCAA Audit Support– Audits can be intimidating. We can act as a liaison between you and DCAA, or as a supporting member of your team, during an audit and provide much-needed support and guidance through the process.
• Mitigating DCAA Audit Findings– Contractors are not always prepared for a DCAA audit. If an audit results in audit findings, we can help you respond and mitigate those findings by developing a corrective action plan that satisfies auditor expectations.
• Implementation Assistance – Whether implementing from scratch or corrective actions discovered in a mock audit or DCAA audit, our experts can help your team design and/or implement a new tailored MMAS system or update the existing system for process improvement.
• Training– Our experts will provide on-site or virtual training on MMAS system requirements and auditor expectations, providing your team with the knowledge to manage and maintain the MMAS system independently.
• Internal Audit Support– Oversight is one of the 10 standards required by the MMAS regulations. We can serve as your internal auditor or as part of your internal audit team to perform the oversight requirement and provide management with perceived risks and compliance issues needing remediation on an ongoing basis.