# Presentation: 112466

## Division of Financial Advisory Services, OALM, OD, NIH
Craig Herndon, Chief, SRB, DFAS
Dan Milstead, Deputy Director, DFAS

2008 AMC Symposium
Gettysburg, Pennsylvania
November 17, 2008

- Division of Financial Advisory Services, OALM, OD, NIH
*Craig Herndon, Chief, SRB, DFAS*
*Dan Milstead, Deputy Director, DFAS*
- 2008 AMC Symposium
- Gettysburg, Pennsylvania
- November 17, 2008

***Board of Contract Awards & Financial Capability***

## Today’s Agenda

**Today’s Agenda**

**Game On!!!**

**The Funding Feud**

## Today’s Agenda

**Today’s Agenda**

**Three Rounds:**
** **Round #1 – BoCA
-  Round #2 – Financially Responsible
-  Round #3 – Financial Statement Analysis

**The Bounty:**
** **Bragging Rights
-  A chance to win up to $50,000!!!

## “Funding Feud” Rules

**“****Funding Feud” ****Rules**

- Two Teams – up to 5 persons per team
- Points awarded based on ranked answer
- Team that answers first / best controls the board
- Three strikes then other team has a chance to steal
- Can go to the audience one time each round
- Team with most points at the end of today’s session wins

## Round #1: We surveyed 100 DFAS auditors, both past and present, the top 5 answers are on the board. 

**Round #1: **We surveyed 100 DFAS auditors, both past and present, the _top 5_ answers are on the board.

**BoCA**

*Question:***  ****When reviewing a BoCA file for a cost reimbursable contract, what are the most important things that DFAS is looking for?**

**Conclusions supported by analysis and doc. (30 pts)**

- # 1

- # 2

**Price / Cost Analysis in accordance w/ FAR 15.4 (25 pts)**

**Consistency between & accuracy of key documents (20 pts)**

**Cost Realism is addressed (15 pts)**

**Financial Responsibility addressed (10 pts)**

- # 3

- # 4

- # 5

**X**

**X**

**X**

**X**

## BoCA

**BoCA**

**Time out for learning**

- Re: “Conclusions are supported by analysis and documentation”  _What are DFAS’s concerns?_

- To say an analysis was done is different than demonstrating that an analysis was done.
- Putting ‘source documents’ in the file is not in itself a sufficient analysis.

## BoCA

**BoCA**

- Contract Files should stand on their own
- When doing a comparison, prepare a spreadsheet
- If doing a computation, show your computation
- Reference the workpapers so others can follow

**Time out for learning**

- Re: “Conclusions are supported by analysis and documentation”  _What are DFAS’s suggestions?_

## BoCA

**BoCA**

- Cost information on the contract document is in agreement with the SON.
- Costs on SON are in agreement with Contractor’s final proposal revision
- Indirect costs are in agreement with the most recent rate agreement.

**Time out for learning**

- Re: “Consistency between & accuracy of key documents”  _What is DFAS looking for?_

## BoCA

**BoCA**

- That brings us back to the....

**Time out for learning**

- Re: “Financial Responsibility adequately addressed”  _Can you explain how to do this type of review?_

- FEUD

## Round #2: We surveyed 100 DFAS auditors, both past and present, the top 5 answers are on the board. 

**Round #2: **We surveyed 100 DFAS auditors, both past and present, the _top 5_ answers are on the board.

**Financial Capability**

*Question:***  ****Name the best method / technique to confirm that a company is financially responsible?**

**Financial Statement Analysis (50 pts)**

- # 1

- # 2

**Company Website (15 pts)**

**Review Public Filings – SEC (20 pts)**

**D&B Report (10 pts)**

**Verify credit line / future funding from outside source   (5 pts)**

- # 3

- # 4

- # 5

- The Feud

- is Heating-up!

**X**

**X**

**X**

**X**

## Financial Capability

**Financial Capability**

- Annual Report / Financial Statements (10-k)
- Quarterly Reports / Financial Statements (10-q)
- Significant events (8-k)

**Time out for learning**

- Re: “Review  Public Filings – SEC”   _Can you explain this further?_

- If a publicly traded company visit _[www.sec.gov](http://www.sec.gov/)__ for valuable information including:_

## Financial Capability

**Financial Capability**

- SEC filings
- Financial Reports (can be more user friendly than SEC filings)
- Press Release

**Time out for learning**

- Re: “Company Website”   _Can you explain this further?_

- Sometimes you can obtain valuable information by viewing a company’s website (_[www.google.com](http://www.google.com/)__):_

## Financial Capability

**Financial Capability**

- One more time....back to the....

**Time out for learning**

- Re: “Financial Statement Analysis”  _Can you explain how to do this type of analysis?_

- FEUD

## Round #3: We surveyed 100 DFAS auditors, both past and present, the top 3 answers are on the board. 

**Round #3: **We surveyed 100 DFAS auditors, both past and present, the _top 3_ answers are on the board.

**Financial Statement Analysis**

*Question:***  ****What are the most important things to consider in performing a financial statement analysis?**

**Opinion Statement / Going Concern (40 pts)**

- # 1

- # 2

**Current Ratios (35 pts)**

**Notes to Financial Statements (25 pts)**

- # 3

**X**

**X**

**X**

**X**

## Financial Statement Analysis

**Financial Statement Analysis**

- Going Concern
- Current Ratios
- Notes to Financial Statements
- *** Please Refer to Handout**

**Time out for learning**

- Re: “Financial Statement Analysis”  _Can you show me where I can find this information in the financial statements?_

## Questions?

**Questions?**