Top 5 failures in a Preaward Survey Part 1 of 2-part series The preaward accounting system survey or audit (better known as preaward survey) is an evaluation on the prospective contractor’s accounting system. It is documented on SF 1408. This evaluation…
Read MoreWho needs an Incurred Cost Submission?
What is an Incurred Cost Submission and Who Needs to Submit One? The Federal Acquisition Regulations (FAR) clause FAR 52.216-7 requires government contractors to submit final annual indirect cost rates six months after the fiscal year end; known as the…
Read MoreCost Reimbursement Contracts
Cost Reimbursement Contracts Federal Acquisitions Regulations (FAR) 16.301-1 defines cost reimbursement contracts as contracts which allow for payment of allowable costs up to the agreed estimated ceiling amount. There are four types of cost reimbursement contracts. A cost sharing contract…
Read MoreOverhead versus G&A Indirect Costs
Overhead versus G&A Indirect Costs Is there an important difference between a general and administrative (G&A) expense and an overhead (OH) expense? Do these indirect costs really matter? The answer is yes if you want to remain a government contractor…
Read MorePublic Relations & Advertising Costs – Allowable or Unallowable?
Many companies incur advertising and public relations costs. For the government contractor, the complication comes in determining whether these costs are allowable under the Federal Acquisition Regulations (FAR). The basic rule of thumb is if it is related to benefiting the government,…
Read MoreLess Expensive CPAs Don’t Equate to Savings
CPAs often get a bad rap for their field being dull. But the truth is that a good CPA can help your business with financial strategy, reduce your tax obligations, and ensure your company is meeting audit requirements for your…
Read MoreDCAA Compliant Timekeeping
DCAA Compliant Timekeeping One would think, timekeeping would be a simple process. An employee is paid for 40 hours a week, so how difficult can it be? Not so fast. The Defense Contract Audit Agency (DCAA) focuses on the labor charges process…
Read MoreDCAA Compliance Checklist
This is the typical process that federal contractors adhere to in order to become and remain DCAA compliant. 1. Complete the Pre-award Survey of Prospective Contractor Accounting System Checklist. a. This survey is a checklist of the DCAA requirements of…
Read MoreSenior Executive Compensation Benchmark
FAR Proposed Rule: Senior Executive Compensation Benchmark applicable to all contractor employees effective January 1, 2012 (certain agencies) In this proposed rule, DoD, GSA, and NASA are proposing to amend FAR 31.205-6(p) to require that the compensation costs incurred after…
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