Billing System Review

Scope

Reviews the process flow from cost accumulation to invoice generation, verifying that billed amounts reconcile with the general ledger, that indirect cost rates applied match provisional billing rates, that unallowable costs are excluded, and that progress payment and cost-reimbursement billing procedures comply with contract terms and FAR requirements.

Frequency

Typically reviewed as part of the accounting system adequacy audit or on a 3-5 year cycle. More frequent reviews triggered by billing discrepancies, late voucher submissions, or findings during incurred cost audits that suggest billing system weaknesses.

What to Expect

Auditors trace a sample of invoices from the accounting system to the billing submission, verify rate applications, check for unallowable cost exclusion, and test cumulative billing accuracy. The audit may identify overbillings requiring refund or systemic issues requiring corrective action. Results feed into the overall accounting system adequacy determination.

Key Documents

• SF 1034/1035 — Public Vouchers
• Invoice generation procedures
• Provisional billing rate agreements
• Cumulative billing reconciliation
• Unallowable cost identification procedures

Other post-award Audits

Other DCAA Audit Types