Redstone Government Consulting Blog | Compliant Accounting Infrastructure (3)

President Trump issued several executive orders addressing tariffs. American First Trade Policy dated January 20, 2025 and Modifying Reciprocal Tariff Rates to Reflect Trading Partner Retaliation and Alignment dated April 9, 2025. In addition, he has also issued a 90-day pause to some countries and is planning to reduce tariffs on certain industries such as US auto tariffs (see Amendments to Adjusting Imports of Automobiles and Automobile Parts into the United States dated April 29, 2025). It is clear that tariffs are impacting the supply chain and government contractors.

Topics: Compliant Accounting Infrastructure, Proposal Cost Volume Development & Pricing, Contracts & Subcontracts Administration, DFARS Business Systems, Contractor Purchasing System Review (CPSR), Government Regulations, Export & Import, Federal Acquisition Regulation (FAR), Manufacturing Operations Consulting

The Government Accounting Office (GAO) issued a Report, Recent Guidance Could Enhance Subaward Oversight to the Senate dated March 26, 2025 (GAO-25-107315), on its review of subaward oversight based on requirements in 2 CFR 200 Uniform Administrative Requirements, Cost Principles and Audit Requirements for Federal Grants. While prime recipients have responsibility over subawards, federal agencies are required to ensure recipients carry out oversight responsibilities.

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

Deltek Costpoint’s Time and Expense module is a powerful tool utilized by many government contractors and other businesses to collect labor hours and manage business expenses. The Time & Expense module’s flexibility aids in compliance and helps keep businesses DCAA audit-ready. Employees, managers, subcontractors, and others enter their labor hours and expenses as defined by company policy and established business rules. Deltek’s Time and Expense system allows for a variety of reporting and inquiring and can also aid in budget planning.

Topics: Compliant Accounting Infrastructure, DCAA Audit Support, Deltek Costpoint

One would think this is a straightforward calculation. However, nothing is that straightforward when it comes to applying the Federal Acquisition Regulations (FAR) cost principles in FAR part 31.

Topics: Compliant Accounting Infrastructure, DCAA Audit Support, Government Regulations, Federal Acquisition Regulation (FAR)

On April 11, 2025, the Department of Energy (DOE) announced a new policy action to limit indirect costs of DOE research funding to Institutes of Higher Education (IHE) to 15%. DOE projects this change to generate over $405 million in annual savings. As expected, a judge has issued a Temporary Restraining Order (TRO) on this policy. This comes on the heels of the National Institute of Health (NIH) issuing Supplemental Guidance to the 2023 NIH Grants Policy Statement: Indirect Costs dated February 7, 2025, limiting indirect costs on current and future grants to 15%. A Temporary Restraining Order (TRO) is still outstanding on the NIH policy.

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

What do indirect rates and indirect costs in Unanet mean for my organization? This is a question most of the world of government contractors ask. Managing costs isn’t just about tracking the dollars that are spent. It’s also about maintaining a profit, compliance with federal regulations and contract terms, and meeting organizational goals and standards. Unanet plays a pivotal role in navigating the complexities of government contracting, specifically, indirect rates and costs.

Topics: Compliant Accounting Infrastructure, Incurred Cost Proposal Submission (ICP/ICE), Unanet

On April 7, 2025, Defense Contract Audit Agency (DCAA) Director Ms. Jennifer Desautel announced a major DCAA reorganization to her staff that is perhaps DCAA’s largest since its 1965 inception. With the current federal government’s stress on efficiency and cost reduction, DCAA faced increased pressure to contain its costs and become more efficient. As a result, Ms. Desautel immediately began reorganizing the field and headquarters offices. DCAA will now have three Directorates (shown below): Land, Sea, and Air.

Topics: Compliant Accounting Infrastructure, Small Business Compliance, Contracts & Subcontracts Administration, DCAA Audit Support, Government Regulations

Time tracking isn’t just an HR or project management issue for government contractors, it’s a critical accounting function. Accurate timekeeping feeds directly into everything from billing and financial statements to compliance and audit readiness. Let’s explain why this matters for your business, especially through the accounting lens.

Topics: Compliant Accounting Infrastructure, Small Business Compliance, DCAA Audit Support, Quickbooks

On April 24, 2024, the US District Court for the Western District of Pennsylvania issued a decision on the Defendant’s request to dismiss a False Claims Act brought by a relator alleging violations and retaliation by Magee-Womens Research Institute and Foundation (Foundation), University of Pittsburgh, University of Pittsburgh Medical Center and UPMC Magee-Womens Hospital under the False Claims Act. The decision identified the areas of the False Claims Act that pertained to the case as follows:

• Knowingly present, or cause to be presented, a false or fraudulent claim for payment or approval
• Knowingly make, use, or cause to be made or used, a false record or statement material to a false or fraudulent claim
• Conspire to commit a violation
• Knowingly make, use, or cause to be made or used, a false record or statement material to an obligation to pay or transmit money or property to the Government, or knowingly conceal or decrease an obligation to pay or transmit money.

Topics: Compliant Accounting Infrastructure, Litigation Consulting Support, Government Regulations

Job costing involves tracking all expenses related to a specific job or project, including materials, labor, subcontractors, travel, and various other costs. For government contractors, this is especially crucial. In the context of payroll, job costing means taking each labor dollar and accurately allocating it to the appropriate cost pool and project. So, theoretically, all you need to do is set up a few projects, establish a DCAA-compliant chart of accounts, ensure you're following FAR Part 31 cost principles, and you’re ready to go, right? Unfortunately, it’s not that simple.

Topics: Compliant Accounting Infrastructure, Incurred Cost Proposal Submission (ICP/ICE), Small Business Compliance, Quickbooks, Federal Acquisition Regulation (FAR)