Description
Course Overview
This special two-day course provides a comprehensive understanding of accounting system requirements for government contractors. Participants will explore the fundamentals of government procurement regulations and their impact on cost accounting practices. The course covers key components of an acceptable contract cost accounting system, compliance with FAR and CAS regulations, and best practices for establishing and maintaining a well-functioning accounting system.
Through real-world case studies and expert instruction, attendees will learn how to navigate cost segregation, indirect cost allocation, timekeeping, billing, and audit preparation. Whether new to government contracting or seeking to update existing accounting practices, this course will provide essential knowledge for compliance and success.
Learning Objectives
At the completion of this two-day comprehensive course, participants will be able to:
- Demonstrate knowledge of general cost accounting concepts.
- Develop acceptable accounting practices used by government contractors.
- Explain the differences between GAAP and government contract accounting principles.
- Create and maintain compliant cost accounting practices.
- Adopt acceptable accounting system controls.
- Apply CAS and FAR regulations to accounting practices.
Program Content
This course will cover the following topics:
- Introduction to the Regulatory Environment
- Overview of the Federal Marketplace
- Acquisition Cycle
- The Regulatory Environment
- Bid Proposals and Contract Award
- Contract Performance and Closeout
- Foundation Expectations of Government in Accounting Systems
- Main Players in Acquisition Process
- Procuring Contracting Officer (PCO)
- Administrative Contracting Officer (ACO)
- Defense Contract Audit Agency (DCAA)
- Inspector General (IG)
- Key Regulations Affecting Cost Accounting Systems
- FAR Part 9 Contractor Qualifications
- FAR Part 15 Contracting by Negotiations
- FAR Part 16 Contract Types
- FAR Part 31 Cost Principles
- FAR Part 32 Contract Financing
- Cost Accounting Standards (CAS)
- Truth-in-Negotiations Act (TINA)
- Overview of the Federal Marketplace
- Establishing an Adequate Cost Accounting System
- Foundation Requirements
- General Ledger Controls & Requirements
- Financial Tracking and Profitability Evaluation
- Subsidiary Systems Expectations
- Chart of Accounts
- Reconciliation Processes
- Basic Job Cost Accounting Expectations
- Cost Segregation by Contract
- Project Cost Ledger System
- Tracking Unallowable Costs
- Transaction Traceability to Subsidiary Ledgers
- Requirements of SF 1408
- Specific Cost Accounting Provisions
- Direct vs. Indirect Costs
- Understanding Direct Costs & Allocation Techniques
- Indirect Costs
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- Pooling Logical Cost Groupings
- Selecting Appropriate Allocation Bases
- Overhead vs. G&A
- Intermediate Cost or Service Centers
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- Consistency in Allocating Costs—CAS 402
- Direct vs. Indirect Costs
- Accounting for Unallowable Costs
- Documentation Expectations
- Timekeeping and Labor Charging
- Billing System
- Relationship to Accounting System
- Billing Indirect Costs
- Monitoring Invoiced Amounts to Contract Ceilings
- Allowable Cost and Payment Contract Clause
- Relationship of EVMS to Accounting System
- Foundation Requirements
- Expanded Discussion of Selected FAR Part 31 Provisions
- Contracts Covered by FAR Part 31
- Selected Costs
- Public Relations/Advertising
- Bad Debts
- Compensation
- Contributions
- Cost of Money
- Employee Morale, Health & Welfare
- Entertainment
- Fines & Penalties
- IR&D/B&P
- Interest
- Lobbying
- Organization
- Professional & Consultant Costs
- Relocation
- Rental
- Selling & Marketing
- Trade, Business Technical & Professional
- Employee Travel
- Overview of Government Contract Audits Linked to Cost Accounting Systems
- Bid Proposals
- Accounting System Audits
- Provisional Indirect Billing Rates
- Incurred Cost Proposals
- CAS Compliance
- Estimating Systems
- Timekeeping & Labor Charging
- Billing Systems
- Financial Capability
- Purchasing System
- Defective Pricing
- Case Study on SAMPLECO Contractor
- Designing Compliant Chart of Accounts
- Segregation & Tracking of Unallowable Costs
- Direct vs. Indirect Cost Identification
- Identifying Direct Costs
- Charging Indirect Costs to Appropriate Cost Center
- Indirect Cost Centers
- Overhead
- General & Administrative
- Intermediate/Service Centers
- Assigning Appropriate Allocation Bases
- Calculating and Tracking Actual Indirect Rates
- Job Cost Reports
- Grouping Direct Costs by Job/Contract
- Using Provisional Indirect Rates
- Billing System Considerations
- Billing from Job Cost Summaries
- Adjusting Provisional to Actual Indirect Rates
- Charging & Tracking Costs for Four Typical Types of Contracts
Course Run Time
- 2 days or 11 hours
Customization Options: This course can be customized into a half-day, 1-day, or 2-day training based on your company’s needs.
CPE Credit
- CPE credit is available using the following training methods: Custom Training, In Person Training (Group), In Person Training (Individual), and Live Webinar Training.
Redstone Government Consulting, Inc. is registered with the National Association of State Boards of Accountancy (NASBA) as a sponsor of continuing professional education on the National Registry of CPE Sponsors. State boards of accountancy have final authority on the acceptance of individual courses for CPE credit. Complaints regarding registered sponsors may be submitted to the National Registry of CPE Sponsors through its website: www.nasbaregistry.org.
