Redstone Government Consulting Blog | Accounting System Compliance

In reference to the now outdated terminology “Multiple Personality Disorders” (now “DID” or Dissociative Identity Disorder), my focus is on two Government actions, the 2026 NDAA (National Defense Authorization Act) and the very recent EO (Executive Order), “Prioritizing the Warfighter in Defense Contracting.” Before getting into the substance of this blog, just to note that one can only hope that the proposed/legislated changes to improve the efficiencies and effectiveness of the procurement process (for the Department of War and more broadly the US Government) will actually succeed and not be just one more set of idealized and unfulfilled political promises.

Topics: Accounting System Compliance, Contracts & Subcontracts Administration, DFARS Business Systems, DCAA Audit Support, Government Regulations, Cost Accounting Standards (CAS)

Highlights

• The Fiscal Year 2026 National Defense Authorization Act was signed into law on December 18, 2025, and includes statutory changes affecting the applicability of Cost Accounting Standards to certain government contracts and subcontracts.
• Amendments in Section 1806 of the FY 2026 NDAA revised CAS applicability thresholds and contract price adjustment requirements, leading to confusion regarding fixed price contracts and subcontracts.
• This Redstone GCI article explains how the FY 2026 NDAA impacts when Cost Accounting Standards apply at award and how post-award contract price adjustments are limited following cost accounting practice changes.

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Topics: Accounting System Compliance, Contracts & Subcontracts Administration, DCAA Audit Support, Government Regulations, Cost Accounting Standards (CAS)

For the last few years, our friends at the Defense Contract Audit Agency (DCAA) have been very helpful by publishing the Contractor Compensation Cap in the December timeframe. This year, I am guessing that the Government shutdown has diverted their attention. To help our clients, we have calculated the 2026 amount of the cap.

Topics: Accounting System Compliance, Proposal Cost Volume Development & Pricing, Employee & Contractor Compensation, Incurred Cost Proposal Submission (ICP/ICE), DCAA Audit Support, Human Resources, Government Regulations, Federal Acquisition Regulation (FAR)

On November 24, 2025, President Trump signed EO 14363, Launching the Genesis Mission to accelerate America’s race for global dominance in the application of AI to scientific discovery and scientific challenges.

Topics: Accounting System Compliance, Incurred Cost Proposal Submission (ICP/ICE), DFARS Business Systems, DCAA Audit Support, Government Regulations, Federal Acquisition Regulation (FAR), Grants & Cooperative Agreements (2 CFR 200)

On Sunday, December 7, 2025, Congress put out a compromise version of the 2026 National Defense Authorization Act (NDAA). There is a lot in this version, but I wanted to bring to your attention the exciting possible changes to the Cost Accounting Standards (CAS).

Topics: Accounting System Compliance, Contracts & Subcontracts Administration, Government Regulations, Export & Import, Cost Accounting Standards (CAS)

On November 26, 2025, the Office of Management and Budget (OMB) issued the 2025 Compliance Supplement. The Supplement outlines the compliance requirements to assist auditors in understanding the Federal program’s objectives, procedures and requirements when performing a Single audit for fiscal years beginning after June 30, 2024. The Compliance Supplement is normally issued in the spring of each year; however, OMB delayed its issuance to incorporate significant updates to 2 CFR 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, in October 2024. In order to assist auditors with the different requirements, Part 3 Compliance Requirements of the Supplement was divided into two Parts for audit testing as follows:

• Part 3.1 for awards subject to 2 CFR 200 prior to October 2024 and
• Part 3.2 for awards after October 1, 2024

Topics: Accounting System Compliance, DFARS Business Systems, DCAA Audit Support, Contractor Purchasing System Review (CPSR), Government Regulations, Grants & Cooperative Agreements (2 CFR 200)

Closing out the year is an important step in your accounting cycle, and it should involve more than just “closing the books.” For government contractors, year-end is about ensuring your financials are accurate, compliant, and audit-ready, not just for tax purposes, but to support ongoing contract and regulatory requirements.

Topics: Accounting System Compliance, Small Business Compliance, Quickbooks, Federal Acquisition Regulation (FAR)

On October 21, 2025, the Small Business Administration (SBA) released a state-level analysis or estimate of the impact of a government shutdown on small business lending. The shutdown has frozen the SBA’s core 7(a) and 504 small-business lending programs. These lending programs are designed to support small businesses’ access to funds to acquire or improve long-term fixed assets such as real estate, machinery, and equipment.

Topics: Accounting System Compliance, Small Business Compliance, Government Regulations

Implementing any new ERP system is no small task. As you probably know, Deltek Costpoint is a complex system. Complex doesn’t have to mean complicated. No need to stress. This is where a strong implementation partner and a strong internal implementation team play an important role. What drives the success of an implementation? Detailed planning, effective communication, training, hands-on testing, data reconciliations, and a commitment by company personnel to see the project through every “first” after go-live.

Topics: Accounting System Compliance, Deltek Costpoint

Government contracting entails unique accounting requirements that go far beyond basic bookkeeping. There are compliance rules, complex cost pools, and sometimes razor-thin margins, which means the stakes are too high for “good enough.” Errors in cost allocation, indirect rates, or contract setup can create audit findings, repayment demands, or unexpected losses, yet hiring an in-house controller or CFO with the right expertise can be costly and difficult to justify for many small and mid-sized firms.

Topics: Accounting System Compliance, Small Business Compliance, Quickbooks, Organizational Change Management Consulting