Redstone Government Consulting Blog | Accounting System Compliance

The FAR Council’s proposed revisions to FAR 52.216-7 would change several requirements used to determine whether an incurred cost submission is adequate. The changes would reorganize or remove certain schedules and add requirements for some fixed-price incentive contracts, creating important considerations for submission preparation, audit support, and contract closeout.

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

The CAS Board has finalized significant changes to CAS thresholds and coverage requirements effective October 1, 2026. The rule raises the basic and full coverage thresholds while introducing new considerations for IDIQ contracts, existing awards, and Disclosure Statement requirements.

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

Effective October 1, 2026, the CAS Board rescinds CAS 407 and transfers retained standard costing requirements to CAS 418. Greater reliance on GAAP reduces duplicative requirements, but government contractors must continue to follow consistent accounting practices and evaluate disclosure and cost impact obligations before making changes.

Topics: Accounting System Compliance, Proposal Cost Volume Development & Pricing, Incurred Cost Proposal Submission (ICP/ICE), Government Regulations, Cost Accounting Standards (CAS)

On August 18, 2026, DoW issued a memorandum calling for broader access to contractor and subcontractor cost data, greater pricing transparency, and increased scrutiny of profit. The direction could significantly affect pricing practices, negotiations, system access, and compliance expectations across the defense industrial base.

Topics: Accounting System Compliance, Proposal Cost Volume Development & Pricing, Contracts & Subcontracts Administration, DFARS Business Systems, DCAA Audit Support, Government Regulations, Federal Acquisition Regulation (FAR), Estimating System Compliance

DCAA has ended planned compliance audits for CAS 404, 408, 409, and 411 following their removal from CAS effective August 7, 2026. While standalone audits for these standards are being discontinued, government contractors should expect continued scrutiny of compliance with Generally Accepted Accounting Practices (GAAP), accounting practice changes, CAS 401 compliance, and disclosure statements through other DCAA audit activity.

Topics: Accounting System Compliance, Proposal Cost Volume Development & Pricing, Incurred Cost Proposal Submission (ICP/ICE), Contracts & Subcontracts Administration, DCAA Audit Support, Government Regulations, Cost Accounting Standards (CAS), Material Management & Accounting System (MMAS)

DoD’s July 30, 2026, class deviation raises the Full CAS and Disclosure Statement thresholds to $100 million, changing how CAS coverage may apply to certain defense contracts. Government contractors should reassess CAS applicability, pending proposals, Disclosure Statement requirements, and ongoing audit activity to determine how the new thresholds affect current obligations.

Topics: Accounting System Compliance, DFARS Business Systems, Government Regulations, Cost Accounting Standards (CAS), Federal Acquisition Regulation (FAR), Estimating System Compliance

A successful Costpoint implementation isn’t defined by whether the system is live. It’s defined by whether the business is truly ready to operate within it. That means processes are working, data is reliable, users are confident, and the organization can execute day-to-day operations without disruption.

Topics: Accounting System Compliance, DFARS Business Systems, Deltek Costpoint, Organizational Change Management Consulting

Government contractors often focus on billing formulas, revenue setup, and reporting outputs without realizing Project Account Group (PAG) structure helps drive those outcomes. PAG decisions can affect how costs are categorized, which then affects financial reporting, project reporting, billing, and revenue calculations. A well-designed PAG structure helps create consistency across projects, while a misaligned structure can lead to unexpected reporting results, additional reconciliation efforts, and unnecessary maintenance over time. In this article, we'll explore what PAGs are, why they matter, and how proper configuration can help support more reliable billing, revenue, and project reporting.

Topics: Accounting System Compliance, DFARS Business Systems, Deltek Costpoint

The CASB’s final rule rescinds CAS 408 and 411 and most of CAS 404 and 409 to align CAS with GAAP, effective August 7, 2026. For government contractors, the change may reduce duplicative requirements, but it does not eliminate considerations related to disclosure, consistency, or cost impact tied to accounting practice changes.

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

QuickBooks is often one of the first accounting systems used by small and growing government contractors. It is accessible, familiar, and capable of supporting many core accounting needs. But the way QuickBooks is set up matters. Early decisions about accounts, projects, payroll, cost pools, and reporting may not seem significant at the time, but those choices can create problems later when the government contractor needs to support contract billing, indirect rate analysis, incurred cost preparation, or questions from a government customer or auditor.

Topics: Accounting System Compliance, Small Business Compliance, DCAA Audit Support, Quickbooks