NCMA Audits Virtual Conference - Best practices for business management preparing for government audits.

1. Effective Business and Cost
Competitive Strategies
Presenter(s):
Robert E. Jones
Contracts Manager & Compliance
Officer
Pole/Zero Corporation
Session 2, 12:##p.m.-1:## p.m. (EST)
Audits Virtual Conference 2014
March 25, 2014 ▪ 12:00 p.m.-4:00p.m. (EST)

2. Agenda
• Creating cost elements and competitive rates
• Aligning company audit objectives with business
development goals
• Incorporating effective business strategies into daily
activities
• Managing cost pools for successful rates

3. Audits are Uncomfortable!

4. What if Audits were Awesome?

5. The Current Scenario

6. The Current Scenario

7. My First Audit
What did I learn from that audit?
1. Follow the rules
2. Always be prepared
3. When you have a copy of the test, use it!

8. My Second Audit
What did I learn from that audit?
1. Know where you are.
2. Know where you want to go.

9. Why an Audit
• Preaward survey
• Price reasonableness
• Government Property Management System
• Part of the business process – WHEN, not IF

10. You have the Checklist!

11. Where to Find Success
•Thorough analysis
•The bottom line never changes!

12. What You Can Achieve!
• Business Systems Rule DFARS 242.70
• Six Business Systems

13. What Pole/Zero Accomplished
• Created new cost elements and developed new
rates
• Aligned company audit objectives with business
development goals
• Incorporated effective business strategies into daily
activities
• Manage cost pools

14. Cost Elements & Competitive Rates
• More direct work lowers OH and G&A rates
• What are the cost elements? How are the cost pools
structured?
• Create new cost pools
• The bottom line never changes - only rearranging
how rates are presented
• Competitive rates help win awards

15. Align Audit Objectives
• Business development participated in changes
• Business development had a vested interest in
competitive rates
• Business development wanted better information
for Basis of Estimate

16. Incorporate Business Strategies
• Do what customers and auditors expect

17. Manage Cost Pools
• Monthly reports and meetings
• Adjust rates as necessary

18. Where Are You Today?
• Need thorough analysis to identify source of the
problem(s)
• Time collection system
• Cost collection system

19. Implement Good Practices

20. Audit Lifecycle
• Gain an understanding of the business
• Brainstorm risks and opportunities
• Develop hypotheses and set priorities
• Analyze risks and test controls
• Assess results and brainstorm solutions
• Report recommendations for positive change
• Begin your next challenge

21. Nirvana

22. Remember My Opening Story?

23. Contact Information
Robert E. Jones
Pole/Zero Corporation
Contracts Manager
www.PoleZero.com
Left Brain Professionals
Read the Answers Blog
www.LeftBrainPro.com
Questions? robert@leftbrainpro.com

24. QUESTIONS?
Press the “Raise Hand” icon to
ask a phone question.
OR
Type your question into
the Q&A panel.

25. END
Thank you for participating in today’s program.