The PCI Network – Biggest Challenge and Important Consideration During an Audit

This episode of The PCI Network focuses on important considerations and challenges during an audit with Bill Walter, Director and Faculty at PCI. Bill Walter is a Partner with Dixon Hughes Goodman, LLP.  He holds a BS degree in Accounting from Penn State University and has more than 25 years of experience in cost accounting and financial management systems.  He has an extensive background in the application and interpretation of rules, regulations, and standards applicable to Government contractors, including the Federal Acquisition Regulation, individual agency supplements to the FAR, the Truth in Negotiations Act and the Cost Accounting Standards.  He began his career as an auditor for the Defense Contract Audit Agency (DCAA), where he was responsible for implementing micro-computers and training his fellow auditors and … Continue reading

Hot Topics in DCAA – San Diego

With the ongoing challenges in government contracting, knowledge of DCAA audit focus areas and trends including real world experiences with current and ongoing DCAA audits is invaluable. Learn from industry experts- Attend DCAA Hot Topics – Understanding the Current Audit Environment & Contractor Challenges June 10th in San Diego, CA. The training session will provide participants with a detailed overview of five key current issues: Incurred Cost Audit Trends Criteria for High Risk/Low Risk Incurred Cost Determination. DCAA vs. DCMA – The Changing Tide of Who is Responsible for Contractor Oversight Most Common DCAA Questioned Costs Best Practices on Mitigating Audit Findings   Capital Edge will share its current and ongoing experiences with the challenging and ever-changing DCAA Audit Environment to ensure that participants not … Continue reading

CAS 420 – Accounting for Independent Research & Development (IR&D) Costs and Bid & Proposal (B&P) Costs (Part 2 of 3)

*This is Part 2 of a 3-part blog.  Each part addresses the fundamental requirements and techniques for application related to the standard, and provides specific examples. Part 1 addressed the overall purpose of the standard, as well as the requirements/techniques for the accumulation of IR&D and B&P costs. This Part 2 addresses the allocation of IR&D and B&P costs, except for special allocations. Part 3 will address special allocations of IR&D and B&P costs.   Background: As stated at CAS 420-20, the purpose of the standard is to provide criteria for the accumulation of IR&D and B&P costs, and for the allocation of such costs to cost objectives based on the beneficial or causal relationship between such costs and cost objectives.   Allocation of IR&D and B&P … Continue reading

CAS 420 – Accounting for Independent Research & Development (IR&D) Costs and Bid & Proposal (B&P) Costs (Part 1 of 3)

*This is Part 1 of a 3-part blog.  Each part addresses the fundamental requirements and techniques for application related to the standard, and provides specific examples. This Part 1 addresses the overall purpose of the standard, as well as the requirements/techniques for the accumulation of IR&D and B&P costs. Part 2 will address the allocation of IR&D and B&P costs, except for special allocations. Part 3 will address special allocations of IR&D and B&P costs.   Background: As stated at CAS 420-20, the purpose of the standard is to provide criteria for the accumulation of IR&D and B&P costs, and for the allocation of such costs to cost objectives based on the beneficial or causal relationship between such costs and cost objectives   What it covers: The … Continue reading

Hot Topics in DCAA

Recently, DCAA reminded its auditors that access to contractor employees is a “routine and established audit procedure” which is necessary to comply with GAGAS (Generally Accepted Auditing Standards).  While the initial focus of the guidance to auditors relates to the well-known “floor check” procedure, it also opines that DCAA’s position is that contractors are required to allow access to any employee during any audit who might be a SME (Subject Matter Expert) on contractor processes and procedures, or data provided to the auditor.  DCAA is now focused on this matter because of past criticism by agencies having oversight of its performance.  The Agency’s objective is to ensure auditors have met the GAGAS requirement to “…obtain sufficient evidence to provide a reasonable basis for the conclusion … Continue reading

CAS 410 – Allocation of Business Unit General and Administrative (G&A) Expenses to Final Cost Objectives (Part 3 of 3)

*This is Part 3 of a 3-part blog.  Each part addresses the fundamental requirements and techniques for application related to the standard, and provides specific examples. Part 1 addressed the overall purpose of the standard, as well as the requirements/techniques related to the G&A expense pool. Part 2 addressed the requirements/techniques for application related to the G&A allocation base. This Part 3 addresses special allocations of G&A expenses.  Background: To provide criteria for the allocation of business unit general and administrative (G&A) expenses to business unit final cost objectives.  The standard also provides criteria for allocating home office expenses received by the business unit segment to business unit final cost objectives (CAS 410-20).   G&A Special Allocations   CAS 410-40(b)(2) states that the allocation of the … Continue reading

CAS 410 – Allocation of Business Unit General and Administrative (G&A) Expenses to Final Cost Objectives (Part 2 of 3)

*This is Part 2 of a 3-part blog.  Each part addresses the fundamental requirements and techniques for application related to the standard, and provides specific examples. Part 1 addressed the overall purpose of the standard, as well as the requirements/techniques related to the G&A expense pool. This Part 2 addresses the requirements/techniques for application related to the G&A allocation base. Part 3 will address special allocations of G&A expenses. Background:  To provide criteria for the allocation of business unit general and administrative (G&A) expenses to business unit final cost objectives.  The standard also provides criteria for allocating home office expenses received by the business unit segment to business unit final cost objectives (CAS 410-20). G&A Allocation Base A business unit may perform G&A activities for … Continue reading

CAS 410 – Allocation of Business Unit General and Administrative (G&A) Expenses to Final Cost Objectives (Part 1 of 3)

*This is Part 1 of a 3-part blog.  Each part addresses the fundamental requirements and techniques for application related to the standard, and provides specific examples. This Part 1 addresses the overall purpose of the standard, as well as the requirements/techniques related to the G&A expense pool. Part 2 will address the requirements/techniques for application related to the G&A allocation base. Part 3 will address special allocations of G&A expenses. Background:  To provide criteria for the allocation of business unit general and administrative (G&A) expenses to business unit final cost objectives.  The standard also provides criteria for allocating home office expenses received by the business unit segment to business unit final cost objectives (CAS 410-20). What it covers: The allocation of business unit G&A costs … Continue reading

CAS 418 – Allocation of Direct and Indirect Costs (Part 6 of 6)

*This is Part 6 of a 6-part blog.  Each part addresses the fundamental requirements and techniques for application related to the standard, and provides specific examples. Part 1 addressed the overall purpose of the standard, as well as the requirements/techniques for application related to direct costs. This Part 2 addressed the requirements/techniques for application related to indirect cost pools. Part 3 addressed the requirements/techniques for application related to allocation bases (with the exception of the allocation of indirect cost pools that benefit each other, which is addressed in Part 4 of this blog). Part 4 addressed the requirements/techniques for application related to allocation bases for the allocation of indirect cost pools that benefit each other. Part 5 addressed special allocations. This Part 6 addresses pre-determined … Continue reading

CAS 418 – Allocation of Direct and Indirect Costs (Part 4 of 6)

*This is Part 4 of a 6-part blog.  Each part addresses the fundamental requirements and techniques for application related to the standard, and provides specific examples. Part 1 addressed the overall purpose of the standard, as well as the requirements/techniques for application related to direct costs. This Part 2 addressed the requirements/techniques for application related to indirect cost pools. Part 3 addressed the requirements/techniques for application related to allocation bases (with the exception of the allocation of indirect cost pools that benefit each other, which is addressed in Part 4 of this blog). This Part 4 addresses the requirements/techniques for application related to allocation bases for the allocation of indirect cost pools that benefit each other. Part 5 will address special allocations. Part 6 will … Continue reading