Government Contractor Services

Financial, Contract, and Regulatory Compliance Internal Controls

Government contractors face increasing financial accounting and reporting scrutiny by regulators and other watchdog groups. Areas such as long-term revenue recognition policies and accounting for deferred costs are often the focus of inquiries. Complicating matters, the nexus between government contract cost accounting and financial accounting and reporting is often misunderstood in the financial community. Navigant’s Government Contractor Services professional’s unique perspective and expertise with both government contract cost accounting and financial reporting will provide invaluable assistance with complex financial accounting matters.

The post-Enron/Sarbanes-Oxley business environment requires an effective risk management/internal audit function. We help government contractors establish or improve their risk management processes by providing full or partial internal audit outsourcing. We provide a multi-disciplinary approach that brings to bear all of the multifaceted expertise of our practice. Our internal audit services combine the skills of highly qualified professionals with program management, engineering, scheduling, and accounting and auditing expertise to meet the operational, financial, compliance, and disclosure needs of contractors.

Traditional government contractor watchdogs have greatly intensified their scrutiny of contractor controls. Government regulations impact a number of critical business processes, including cost estimating, procurement, material management and accounting, government property, and billing. We offer a proven methodology to identify a contractor’s critical business processes, assess compliance and business risks, determine requisite internal controls, and evaluate whether such controls are in place and operating effectively. Additionally, we benchmark critical business processes against both government regulations and industry practices. Where inconsistencies exist, we identify and help implement recommendations for improvement.