The Applicable Business System in the Government

There are different business systems which are applicable in the government. There are six business systems that include the following:

The Applicable Business System in the Government
  1. Accounting – This applies to the Billing, Labor, Indirect Costs, Budgeting, Compensation, and EDP Controls.
  2. Estimating – This is an acceptable system that gives a use of right source data, consistent approach, sound estimating judgment, and the adherence to established processes and policies.
  3. Purchasing – This needs to subcontract and purchasing systems to include the make or buy decisions, price negotiation, training, vendor section justification, internal audits, and management reviews.
  4. Government Property – This makes sure that there is compliance with the government property clauses of the contract.
  5. Earned Value Management Systems – This is the description of the company’s approach to the program organization, work authorization, indirect cost management, corrective actions, scheduling and budgeting, accounting, and managerial analysis.
  6. Material Management (MMAS) – This describes the system of planning, accounting for the acquisition, disposition, use, controlling, and issuing of the material. These should also comply with the “Ten Key Elements” of a sufficient system.
The Applicable Business System in the Government

The ten key elements of material management or MMAS are:

  1. Having sufficient system description, processes, policies, and operating instructions.
  2. Having a valid time-phased need with 98% accuracy for BOM and 95% accuracy for MPS.
  3. They should also give a mechanism to report, know, and resolve the control weaknesses of the system.
  4. They should also give audit trains and have the records maintained.
  5. They should also keep up the 95% accuracy of the physical inventory records
  6. They should also give a detailed description of the circumstances which will result to either manual or system generated parts transfer.
  7. They should also keep up a consistent, unbiased, and fair logic for the costing of material transactions.
  8. They should also keep up the controls for allocation from the common inventory.
  9. They should also keep up the control on the physical commingled inventories.
  10. They should make sure of the compliance in the government standards through the internal audits.
The Applicable Business System in the Government