CBCA and Court of Appeals Found that Taxes Paid by Parent were NOT Cost Incurred by Subsidiary

The Court of Appeals decision came out on June 26, 2024, and I have been trying work it through my head how they got to their decision. I for sure do not have an answer but I have come up with some ideas and concerns. International Development Solutions, LLC v. Secretary of State, U.S. Court of Appeals, Federal Circuit, 68 CCF ¶82,658, (Jun. 26, 2024)

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Topics: Compliant Accounting Infrastructure, Litigation Consulting Support, Incurred Cost Proposal Submission (ICP/ICE), DCAA Audit Support, Federal Acquisition Regulation (FAR)

Key Grant Regulations You Need to Know to Stay Compliant and Avoid Penalties

Grants are complex and the regulations in 2 CFR 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards aren’t exactly straight forward and easy to understand. When you receive a grant, you are expected to have internal controls in place such as policies and procedures, segregation of duties, timekeeping, documentation requirements, etc. If you do not have internal controls, you will need to implement them as soon as possible after award. While anyone can make mistakes, you don’t want continuous errors, overbillings, billing of unallowable costs to become significant noncompliance issues requiring corrective action or even the appearance of alleged fraud.

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Topics: Compliant Accounting Infrastructure, Government Regulations, Federal Acquisition Regulation (FAR), Grants & Cooperative Agreements (2 CFR 200)

How to Set Up Government Contracts in QuickBooks Online

QuickBooks Online, while not specifically designed for government contractors, is still considered a compliant software for government contractors. It can also handle the setup of any type of contract that you may be awarded. The process is straightforward, but there are some key considerations that need to be made before diving in headfirst into your project setup.

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Topics: Compliant Accounting Infrastructure, Small Business Compliance, Quickbooks

Are For-Profit Organizations with Grants or Subawards Required to Obtain a "Single Audit"?

For-profit organizations that receive grants must establish a cost accounting system that complies with the Cost Principles in FAR part 31.2, read our article Which Cost Accounting Regulations Apply When You Have Grants and Federal Contracts. Additionally, a for-profit organization with a grant must also comply with the 2 CFR 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards and agency supplements for all other requirements under the grant, cooperative agreement, or subaward. While there are similarities between the FAR and 2 CFR 200 requirements – for example: written policies and procedures, accounting by project, and timekeeping practices, there are differences as well – the requirement for audit is one.

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Topics: Compliant Accounting Infrastructure, Government Regulations, Federal Acquisition Regulation (FAR), Grants & Cooperative Agreements (2 CFR 200)

Indirect Rates for Grants and Cooperative Agreements

You are putting together a proposal in response to a Funding Opportunity Announcement (FOA) for a grant or cooperative agreement. It’s pretty simple. Just estimate direct labor, equipment, other direct costs, and my indirect rates. Correct? Well, maybe, but your indirect rates can be complex.

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Topics: Compliant Accounting Infrastructure, Government Regulations, Federal Acquisition Regulation (FAR), Grants & Cooperative Agreements (2 CFR 200)

Government Contractors Need to Use These 3 Reports in QuickBooks Online

QuickBooks Online is one of the most used accounting software for small to medium-sized businesses. The same is true for small businesses in the government contracting sector. QuickBooks Online does not label itself as a DCAA-compliant software to the extent that other software does (Costpoint, Unanet, etc.). However, it is a DCAA-compliant software, and it has the reporting capabilities needed to be considered as such. Let’s look at three essential reports you need to use as a government contractor for QuickBooks Online. Now, I realize these reports are not exactly groundbreaking reports. However, some people fail to realize the importance of each report and do not really understand how to utilize them to their full potential.

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Topics: Compliant Accounting Infrastructure, Small Business Compliance, Quickbooks

Ensure Your Subledgers Tie to Your General Ledger in Deltek Costpoint Before Year-End

As we get closer to the fiscal year-end for government and calendar year filers, now is the time to start thinking about cleaning up your subledgers!

In this article, we will explain what a subledger is, explain why it is a problem if they are out of alignment, explain how this happens, and then give you some ideas on what you can do to fix it.

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Topics: Compliant Accounting Infrastructure, Deltek Costpoint

DCAA Wants to Re-Connect with Government Contractors

The Defense Contract Audit Agency (DCAA) wants to re-connect with you. About four years ago, DCAA was looking around and evaluating its workload and saw a problem: it was going away. With a previously perennial favorite of the incurred cost backlog finally going away and few incurred cost audits due to sampling, DCAA had to look for how it can still be important to the acquisition community.

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Topics: Compliant Accounting Infrastructure, Contracts & Subcontracts Administration, DCAA Audit Support

Streamlining Procurement with a Source to Pay Process in Deltek Costpoint

Looking to streamline your procurement process? Now is the perfect time to begin reviewing your complete source to pay process to increase efficiency, productivity, integration, and revenue.

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Topics: Compliant Accounting Infrastructure, Contractor Purchasing System Review (CPSR), Deltek Costpoint, Manufacturing Operations Consulting

The CAS Board is Looking for Input on its Proposed Changes Related to Revenue and Right of Use Leases

In the June 27, 2024 Federal Register, the Cost Accounting Standards Board (CASB) put out a notification that it was looking for input on its efforts to conform Cost Accounting Standards (CAS) to Generally Accepted Accounting Principles (GAAP) related to operating revenue and lease accounting. Back on March 13, 2019, the CASB published a Discussion Paper to collect initial input on the conformance of CAS to GAAP. Then on November 5, 2020, the CASB published a notice of proposed rulemaking specifically addressing operating revenue and lease accounting.

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Topics: Compliant Accounting Infrastructure, Contracts & Subcontracts Administration, Government Regulations, Cost Accounting Standards (CAS)