Long-Term Challenges of the U.S. Defense Industrial Base
According to a recently published Pentagon report, America’s defense industry outperformed other industrial sectors in fiscal year 2017 but faces serious challenges in the future. The Fiscal Year 2017 Annual Industrial Capabilities Report to Congress, released in May 2018, found that long-term trends threaten the health of the industrial base, limit innovation, and reduce U.S. competitiveness in global markets. The greatest challenge appears to be demographics of the workforce. Specifically, defense companies are faced with a shortage of qualified workers to meet current demands as well as future demands created by retiring senior-level engineers and skilled technicians. The risks vary. Read More.
SBA Issues Amendments and Clarifications of Regulations
The U.S. Small Business Administration (“SBA”) amended its regulations to incorporate a provision of the National Defense Authorization Act of 2018 (“NDAA 2018”) and to update and provide technical corrections to SBA’s current regulations. The rule was issued on March 26, 2018, and became effective on May 25, 2018. The NDAA 2018 amended the Small Business Act by replacing the fixed dollar amount thresholds with references to the micro-purchase and simplified acquisition thresholds contained in the FAR. The NDAA 2018, signed into law by President Trump on December 17, 2017, now defines the micro-purchase threshold for products as $10,000; a. Read More.
SEC Commissioner Says Agency Lacks Ability to Prohibit Mandatory Arbitration
Speaking last month on whether the Securities and Exchange Commission (“SEC”) should allow public companies to restrict investors’ ability to seek grievances in a courtroom, commissioner Hester Peirce said the agency lacks the authority to ban companies from requiring shareholder disputes be decided via arbitration. Peirce noted that the Federal Arbitration Act prevents the SEC from overturning an arbitration clause that agrees with state law. She believes the matter is the responsibility of state regulators. Peirce also said that if any states allow, companies should have the ability to decide whether arbitration is required. She acknowledged that arbitration could be. Read More.
Cost Plus a Percentage of Cost Contracts
By: John Ford , Senior Consultant, Government Contractor Services Group Recently, I wrote an article that appeared in the August 2018 edition of Contract Management Magazine published by the National Contract Management Association (NCMA). That article addressed a contractor’s obligation to manage its subcontractors. In that article, I discussed the prohibition against the use of cost plus a percentage of cost (“CPPC”) subcontracts. In this regard, I identified the criteria for determining the existence of a CPPC contract as stated by the U.S. Government Accountability Office (“GAO”) and adopted by the Court of Appeals for the Federal Circuit. These criteria are: payment is. Read More.
GASB Task Force to Review Financial Reporting by Native American Tribes
The Governmental Accounting Standards Board (“GASB”) has formed a task force responsible for examining financial reporting options for Native American tribes. Several tribes rely on the GASB’s guidance regarding any issues they come across. Task force members were chosen due to their knowledge of tribal accounting. Members of the task force are as follows: Heather Acker, Baker Tilly Virchow Krause LLP partner Lacey Horn, Cherokee Nation treasurer Christopher Lee, Key Bank vice president—head of government credit Paul Mansour, Conning Holdings Ltd. managing director and head of municipal research Hattie Mitchell, Native American insurance company AMERIND Risk director of finance and. Read More.
Gender Pay Gap among CEOs Still Wide at Nonprofits
GuideStar’s latest compensation report on those in the chief executive officer position continues to reflect the results from previous years. According to the nonprofit reporting company, the nonprofit gender pay gap for those in the CEO role remains large at higher-end organizations. The gender pay gap is highest among nonprofits with budgets over $10 million. Additionally, nonprofits with budgets over $50 million have a pay gap of 20 percent. GuideStar also discovered that in the top budget band of nonprofits, men CEOs received pay increases nearly twice more (8.4 percent) than women CEOs (4.9 percent). More on GuideStar’s report is available in the Nonprofit Quarterly article. If your nonprofit needs accounting. Read More.