Cost Accounting Standards (CAS): A Comprehensive Overview for Government Contractors
Cost Accounting Standards (CAS) are 19 standards and rules promulgated by 41 U.S.C. 422. These standards impact emerging small and large businesses alike. They are designed to achieve uniformity and consistency in cost accounting practices and to improve the accuracy of cost data by ensuring its basis on consistent definitions and principles.
Ultimately, the Federal government wants a reliable basis for cost comparison and decision making. This allows them to be able to compare proposals from contractor to contractor and from a single contractor year-over-year.
In this new Cherry Bekaert GovCon Podcast CAS series, Eric Poppe, a Managing Director in Cherry Bekaert’s Government Contracting Industry practice, is joined by Jeff Annessa, a Senior Manager in the Firm’s GovCon practice who spent 13+ years with DCAA holding positions such as Quality Manager, Supervisory Auditor and Field Audit Office Manager, to give an overview of CAS. Listen to find out:
- An overview of CAS
- The differences between the Federal Acquisition Regulation (FAR) and CAS
- What the standards consist of, including the four main categories
- When CAS comes into consideration as it pertains to government contracting
- When CAS would apply to a contract and if there are certain dollar thresholds
- The current exemptions, differences in full and modified CAS coverage and application
- Overview of the disclosure statement requirement
- Why contractors should consider completing a disclosure statement prior to being CAS- covered
- Who is responsible in administering CAS and making the required determinations and findings
- The benefits of abiding by CAS
- Pitfalls and compliance considerations for changes in accounting practices, M&A activity and budgeting/forecasting
Cherry Bekaert’s Government Contractor Industry practice has significant CAS experience and can help you navigate CAS compliance issues or disclosure statement development. Contact us to discuss your situation.
Don’t forget to keep an eye out for the remainder of our GovCon podcast CAS series, where our hosts will go into more detail on the specifics of the individual CAS standards, general requirements, cost accounting changes and the disclosure statement.