Cost Accounting Standard (CAS) 411 – Accounting for Acquisition of Material Cost

Cost Accounting Standard (CAS) 411 – Accounting for Acquisition of Material Cost - Redstone gci

CAS 411 provides criteria for accounting for the measurement and assignment of material costs to cost objectives and follows generally accepted accounting principles (GAAP).

What is the Purpose of CAS 411?

If you don’t have contracts subject to full CAS, then FAR 31.205-26 Material costs requires contractors to implement GAAP when accounting for material. Material costs can either be charged direct to a contract or assigned to contracts through inventory accounts. Material that is charged direct should be identified on the purchase order and material assigned through an inventory account should be consistently applied by category of material. While CAS 411 requires written policies for accounting for material, it is a best practice to establish written policies whether CAS 411 is applicable or not.

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Topics: Compliant Accounting Infrastructure, Proposal Cost Volume Development & Pricing, DCAA Audit Support, Government Regulations, Cost Accounting Standards (CAS), Federal Acquisition Regulation (FAR), Material Management & Accounting System (MMAS)

DoD Implementing the Congressional Direction to Align DFARS with GAAS

DoD Implementing the Congressional Direction to Align DFARS with GAAS - Redstone gci

In the June 27, 2024 Federal Register, the Department of Defense (DoD) is proposing to change the Defense Federal Acquisition Regulation Supplement (DFARS) to implement a section of the National Defense Authorization Act for Fiscal Year 2021 requiring that the generally accepted auditing standards (GAAS) definition of a “material weakness” be used in place of the current definition of a “significant deficiency” when evaluating a contractor’s business system.

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Topics: Small Business Compliance, DFARS Business Systems, DCAA Audit Support, Government Regulations, Federal Acquisition Regulation (FAR), Material Management & Accounting System (MMAS), Estimating System Compliance

What Policies and Procedures Should a Government Contractor Have?

What Policies and Procedures Should a Government Contractor Have? - Redstone gci

If this were only a simple question. The most straightforward answer is that it is a good idea for any company to have policies and procedures. If that company is going to do business with the US Government those policies and procedures are going to have to be expanded as each contract may present additional requirements. To help you understand the complex level of requirements we will address the major business systems and other key areas.

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Topics: Compliant Accounting Infrastructure, Contracts & Subcontracts Administration, DFARS Business Systems, Human Resources, Contractor Purchasing System Review (CPSR), Government Regulations, Government Property Management, Federal Acquisition Regulation (FAR), Material Management & Accounting System (MMAS), Estimating System Compliance

ASBCA Case Helps Nail Down Record Retention Requirements

ASBCA Case Helps Nail Down Record Retention Requirements - Redstone gci

In the ASCBA Case 61691 Doubleshot, Inc. July 19, 2022 Decision, the Board supported what we believe is the correct reading of the records retention requirement under the FAR related to Cost-Reimbursable contracts. FAR 52.215-2, Audit and Records, requires contractors to make available until 3 years after final payment or any shorter period specified in Subpart 4.7.[1] FAR 4.705-2(b) limits the required retention period to 2 years from the end of fiscal year for pay related records (e.g., timesheet or cards).[2] So provided you submit your Incurred Cost Submission (required by FAR 52.216-7, Allowable Cost and Payment Clause) on time, you only need to maintain any of the records listed in FAR Subpart 4.7 for the time period set forth in that section of the FAR.

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Topics: Contracts & Subcontracts Administration, Government Regulations, Federal Acquisition Regulation (FAR), Material Management & Accounting System (MMAS), Estimating System Compliance

The What, How and When of the Material Management and Accounting System (MMAS)

The What, How and When of the Material Management and Accounting System (MMAS) - Redstone gci

Defense Federal Acquisition Regulations Supplement (DFARS) Business Systems have come into focus as DCAA and DCMA increase their audits of these business systems. This blog will help to provide the specific requirements of the Material Management Accounting System (MMAS) and the difference in MMAS and other business system reviews.

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Topics: DFARS Business Systems, Material Management & Accounting System (MMAS)

Material Management & Accounting System (MMAS) Requirements

Material Management & Accounting System (MMAS) Requirements - Redstone gci

The DFARS requires contractors to maintain compliant systems for Material Management and Accounting System (MMAS). This video and article will help you understand the requirements of a compliant Material Management and Accounting System.

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Topics: DFARS Business Systems, Vlog, Material Management & Accounting System (MMAS)

Is DCAA’s Changed MMAS Audit Approach Value Added?

Is DCAA’s Changed MMAS Audit Approach Value Added? - Redstone gci

DCAA has had MMAS (Material Management and Accounting System) audit cognizance or review responsibility for DOD contractors since the advent of the DFARS Business Systems Rule in 2012. DCAA’s scope of audit is to determine if a contractor’s MMAS complies with the ten criteria or standards set forth in DFARS 252.242.7004.

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Topics: DFARS Business Systems, DCAA Audit Support, Material Management & Accounting System (MMAS)

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