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FAR trinaing notes taken by me in order to learn about the far-wowee so amazing much amaze much FAR so goo d for you and me. Let's read together this thing with one another.
FAR trinaing notes taken by me in order to learn about the far-wowee so amazing much amaze much FAR so goo d for you and me. Let's read together this thing with one another.
FAR trinaing notes taken by me in order to learn about the far-wowee so amazing much amaze much FAR so goo d for you and me. Let's read together this thing with one another.
Depends: 1. on type of contract is being rewarded 2. And on if contractor is prime or not Accounting review occurs when contractor is interfacing directly with Government and has their first Cost plus fixed fee Types of Contracts: Fixed price price on front end, due-diligence done on front end Time & material various labor categories are determined, there are billable labor rates, ultimate price is determined by allowable rates and timesheets government may conduct further audits based upon timesheets (audit time tracking records) Cost plus fixed fee pricing of contract determined by costs the contractor charges in their books. These are priced to the contract. So government must audit the contractors books as this is where the costs are derived from. Many Primes require subs to have DCAA compliant accounting methods. Some may even conduct the accounting review internally according to DCAAs checklist DCAA looks for: 1. Contract is established with applicable GAAP a. General ledger in place b. Chart of accounts properly classifies liab.s, assets, etc. c. Proper internal controls d. Can produce financial reports e. Reconciling bank statements f. Uses good supporting documentation g. Using accrual basis of accounting 2. Proper segregation o direct costs from indirect costs a. First they must be allowable costs b. 5 factors of allowable costs: 1. reasonableness -Four Factors: 1. ordinary and necessary for business 2. generally accepted practices 3. contractors responsibilities 4. significant deviations from practices 2. allocability
3. standards from CAS Board or GAAP
4. terms of contract 5. limitations from FAR subpart 31.2 Costs Direct Costs vs indirect Costs Direct identified with a single cost objective Indirect identified with more then one cost objective Need policies and procedures for separating these costs Need to identify and accumulate these costs Provide a logical and consistent allocation method of indirect to contracts Allocation rate must be: Fair Reasonable Logical Consistent Timekeeping Must identify by intermediate or final cost objectives Governments are very interested in time-keeping -they are looking for certain internal controls -DCAA looks for: 1. adequate segregation of duties for labor related activities - separate from payroll accounting - employees responsible for meeting contract budgets should not initiate employee time charges 2. Internal Procedures should be clear, reasonable, easy to understand to mitigate confusion 3. adherence to procedures must be continually monitored 4. individual employees must be regularly reminded of controls that act as deterrents against violations changes must be initialed Floor Check Audit Show up unannounced -auditor interviews various employees -reviews current timesheets
generate costs through routine posting to books
-contractors should be able to pull straight from their books the contract cost reports