This course examines the regulations concerning the Federal contractor’s accounting system, and the Government’s consequent oversight of contractor cost accounting and billing of contract costs.  

Three core elements of Government contract cost accounting hold significance because of the Government’s interest in administering due diligence over the acquisition pricing of goods and services: 

1. Determining Accounting System Adequacy 
2. Establishing Provisional Billing Rates
3. Submitting a Final Indirect Cost Rate Proposal 

This course gives CPAs and other business leaders foundational as well as practical knowledge for compliant federal contract cost accounting. For each of these three areas, we will identify the source regulations and Federal guidance, provide examples to illustrate the practical application of these requirements, and explain what to expect from Government auditors during their audits of these systems, processes, and reports.

Course Learning Objectives: 

• Identify the compliance requirements that arise from the award of certain contract types.
• Differentiate types of costs and associated methods used for cost accounting in Government contracts.
• Relate the configuration of a contractor’s accounting system to the criteria in Standard Form 1408.
• Provide examples of how the contractor’s accounting system satisfies the auditor based on the audit program.
• Recognize the requirements for establishing and monitoring provisional billing rates pursuant to FAR Subpart 42.7.
• Evaluate the adequacy of each schedule included in a contractor’s Final Indirect Cost Rate Proposal, pursuant to FAR Clause 52.216-7.
• Identify relevant source regulations and guidance pertaining to accounting system compliance, provisional billing rates, and final indirect cost rate proposals.