It’s Almost That Time Again…. How to Get a Head Start on your Annual Incurred Cost Submission
By: Eric Poppe, Senior Manager and Javier Diaz, Manager It’s that time of year. Year-end financial statement audits are going on, you are working with your accountant on your tax returns hoping to complete on time, and just around the corner, you are required to submit your Incurred Cost Submission (“ICS”). Is there time to breathe? As we know, for companies with a fiscal year ending December 31, 2017, the 2017 ICS will be due by June 30, 2018, six months after the close of that fiscal year. The determining factor which requires companies to submit an ICS is the Federal Acquisition Regulation (“FAR”). Read More.
No More DCAA Performing ICS Audits?
No more Defense Contract Audit Agency (“DCAA”) auditors auditing your company’s incurred cost submission? It could happen! As a result of the 2018 National Defense Authorization Act (“NDAA”) signed by President Trump on December 12, 2017, it is a real possibility for an independent accounting firm to audit your incurred cost submission instead of auditors from the DCAA. Under the NDAA, which outlines defense spending priorities for the new fiscal year and established federal funding levels, there is a provision for the Department of Defense (“DoD”) to start using private auditors to perform some incurred cost audits. The idea is. Read More.
Topics: 2018 National Defense Authorization Act, audits, Defense Contract Audit Agency "DCAA", Department of Defense "DoD", Generally Accepted Government Auditing Standards "GAGAS", Incurred Cost Submission "ICS"
If the Government Claims a Refund, When did the “Claims Clock” Start Running?
By: David Lundsten , Partner, Government Contractor Services Group and John Ford , Senior Consultant, Government Contractor Services Group The Contract Disputes Act (“CDA”) requires a contract claim by either party (the government or the contractor) to be submitted within six years after accrual of the claim. This six-year “claims clock” is otherwise known as the CDA Statute of Limitations (“SOL”). The CDA does not state the test for determining when a claim accrues. However, the Federal Acquisition Regulation (“FAR”) has filled this gap at FAR 33.201, which states that a claim accrues when “all events, that fix the alleged liability . . .. Read More.
Guidance Issued on Treatment of “Blended” Compensation Caps in Incurred Cost Submissions
On June 30, 2016, the Defense Contract Audit Agency (“DCAA”) issued Memorandum for Regional Directors (“MRD”) 16-PSP-007(R), Audit Alert on Handling Incurred Cost Proposals Using a Blending Approach of Compensation Caps. In this memo, the DCAA discusses how auditors are to treat new and existing incurred cost submissions (“ICS”) that include blended compensation caps, in the absence of an advance agreement. One of the key points of the memorandum is that DCAA should not delay the adequacy review of an ICS if an advance agreement is not present. The audit team must continue with the adequacy review. During the adequacy. Read More.
New DCAA Guidance on Revised Policies Related to Low-Risk Incurred Cost Submissions
As the Defense Contract Audit Agency (“DCAA”) slowly pushes to eliminate Incurred Cost Submission (“ICS”) audit backlog, DCAA has recently published a new memorandum (“MRD”) revising guidance for selecting low-risk Incurred Cost Submission proposals less than $250 million in “auditable dollar volume” (“ADV”). Published on May 27, 2016, the memorandum revises the MRD 12-PPD-023(R), dated September 6, 2012, and MRD 13-PPD-021(R), dated October 29, 2013. While not specifically defined in the Federal Acquisition Regulation (“FAR”), Contract Audit Manual (“CAM”) or elsewhere, ADV is typically considered by DCAA to be the total contract cost for flexibly priced government contracts and subcontracts. Read More.
The Clock is Ticking: Getting an Edge on Your Annual ICS
It’s that time of year. Your personal tax returns are complete. Your company completed its taxes on time. The auditors wrapped up the financial statement audit. Is there time to breathe? Certainly not…It’s finally time to prepare your annual Incurred Cost Submission (ICS)! For companies with fiscal year ending December 31, 2015, the 2015 ICS will be due by June 30, 2016, six months after the close of your fiscal year. Throughout the years, we have seen a variety of different hiccups and struggles for companies as they shift out of “busy season.” Here are a few things to consider. Read More.