Government Contract Accounting

Complete Seminar Details

CLE Hours

This Course is Eligible for

11.0(60 minute)

13.2(50 minute)

CPE Hours

This Course is Eligible for

13.0(CPE) hours of credit.

Program Level: Basic

Program Prerequisite: None

Advance Preparation: None

Method: Group-Live

There is accounting...and there is Government contract accounting. Government contractors are subject to a wide range of unique accounting regulations, entering into contracts for which negotiation, performance, termination, and more require following specific accounting principles and standards. And, dealing with the Federal Government can be difficult and complex—a world apart from commercial business.

Accounting in Government contracting, then, has its own unique and specialized rules, regulations, standards, problems, hurdles. And unless a proper accounting system is in place—at every stage of the contract—a contractor can be faced with enormous difficulties, not the least of which is lost profits, lost contracts.

For Government contract administrators, executives, lawyers, managers, financial officers, and internal auditors, as well as for accountants who do not necessarily concentrate in this field, the subject is generally mystifying and often carries with it the intimidating sense of the unknown. So there is a need—a significant need—for this specially developed program.

Government Contract Accounting's exhaustive scope is set forth in the Course Curriculum below. Its coverage includes not only general accounting concepts as they relate to Government contracting, but the specifics of cost principles, cost accounting standards, accounting for claims, special accounting problems, and profit.

By the conclusion of this program, attendees will have a solid, practical understanding of Government contract accounting, including:

• Government forms and formats for pricing proposals.
• Direct and indirect cost rate submissions.
• Cost principles for allowability.
• Cost allocability and reasonableness under the FAR and CAS.
• Accounting systems requirements.
• The impact of the type of contract on the accounting requirements.
• Billing the Government for work accomplished.
• Dealing with Government auditors.
• ...and more.

The Course Curriculum

Regulatory Environment

• Characteristics of the Federal Marketplace
• The Acquisition Cycle
• The Regulatory Environment
• Relevant Statutes

Procurement Overview

• Methods Of Award
• Contract Types
• Accounting Implications For Various Types
• Competitive vs. Non-competitive Procurement
• Commercial Item Acquisition Rules
• GSA Schedules & Price Guarantees
• Small Business Status

Cost Accounting Systems

• Purposes of a Cost Accounting System
• Direct vs. Indirect Cost
• Job Order vs. Process Costing
• Actual vs. Standard Cost
• Accounting For Indirect Costs
• Refining Cost Systems
• Activity Based Costing
• Financial Reporting Considerations

Cost Allowability

• Definition Of Allowable
• Reasonableness
• Allowability vs. Allocability
• Advance Agreements
• Credits
• Expressly Unallowable Costs
• Material Costs
• Product Engineering Costs
• Compensation for Personal Services
• Uncompensated Overtime
• Other Selected FAR Part 31 Cost Principles

Cost Accounting Standards

• Applicability
• Types Of Coverage
• Disclosure Statement Requirements
• Changes To Cost Accounting Practice
• Cost Accounting Standards

Cost Estimation and Contract Pricing

• Truth In Negotiations Act
• Cost or Pricing Data
• Subcontractor Pricing Considerations
• Certification Requirements
• Cost Proposal Requirements
• Contractor Estimating Systems
• Profit Analysis
• Sample Proposal

Contract Accounting and Administration

• Lifecycle of Indirect Rates
• Forward Pricing Rate Agreements
• Provisional Billing Rate Agreements
• Incurred Cost Claims
• Representations and Certifications
• Contract Cost/Schedule Reporting(Earned Value Management Systems)
• Limitations of Funds/Limitation of Cost Clauses

Changes, Delays & Terminations

• Change Orders: Overview and Background
• Types of Change Orders and Associated Claims
• Pricing Methodologies
• Change Order Accounting
• Profit and Interest on Claims
• Termination for Convenience vs. Termination for Default
• Termination Claims

Surviving Government Audits

• Government Audit Rights
• Government Auditors and Their Missions
• The Audit Process
• Dealing with Government Auditors
• Resolving Audit Disputes
• Special Issues Related to Disallowed Cost

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