GEM has, and maintains, financial resources, personnel, nationwide facilities, and overall capability to successfully provide the services required by our clients. We have a very strong financial position with a ten million dollar line of credit from Commerce Funding Corporation of Vienna, Virginia.
GEM finance and accounting systems and rate structures are current and Defense Contract Audit Agency (DCAA)-government approved. The DCAA is responsible for government audit of the GEM accounting system and all claimed costs. DCAA has found the GEM accounting system adequate for the accumulation and reporting of costs. Over the past five years, GEM has successfully grown under the scrutiny of competitive Requests for Proposals (RFP) by the federal government- primarily the DOE and NNSA. We have won over $40M in new contract work utilizing our General Service Administration (GSA) Federal Supply Schedules (FSS). The award of our FSS by GSA included a labor rate cost analysis and evaluation which included the DCAA accounting audit performed at that time. DCAA was requested by a federal agency to perform an audit on GEM’s accounting in 2006. The report found the accounting system adequate. Further, we have not altered any of our accounting practices since our last audit, have established a streamlined accounting system, and are ready and fully prepared to expedite any future DCAA audit.
The GEM cost estimating system is designed to mirror the anticipated actual costs that will be incurred on a particular contract and the established accounting methods applied to GEM government contracts. Major cost elements are priced using the most reliable information appropriate to meet the requirements of each particular RFP.
For the past eight years, GEM has been using the Peachtree Accounting Management System. We have been audited numerous times by the DCAA and verified to have the necessary cost accounting system and internal controls to do business with the Federal government. As the company has grown by over 300% over the past eight years, we have committed to position our accounting system for our future needs. GEM is in the process of changing our existing accounting system to the government preferred Deltek software. This will expedite client specific reports and company financial reports. We are currently in negotiations with the Deltek supplier and anticipate bringing the new Deltek system on line in 2007.