This course provides students with guidance on accounting for recovering and monitoring costs at each step of contract performance, from bidding to closeout. Students will obtain an in-depth understanding of the FAR (particularly Part 31), the Truth in Negotiations Act (TINA) and treatment of unallowable costs. Students will also learn about the auditing standards, how to deal with auditors, and how to handle claims and profit determinations, as well as many other requirements.

Course Topics

1.  Legal Framework

     a.   Generally Accepted Accounting Principles (GAAP)

     b.   Federal Acquisition Regulations (FAR)

     c.   FAR supplements

     d.   Cost Accounting Standards (CAS)
 

2. Types of Contracts

     a.    Fixed-price

     b.   Cost-reimbursement

     c.   Other contract types
 

3.  Cost Accounting Systems

     a.   Full cost absorption

     b.   Consistency

     c.   Job cost capability

     d.   Standard costing

     e.   Labor time keeping and distribution

     f.     Estimating systems

     g.   General accounting controls
 

4.  Cost Allowability

     a.   FAR Part 31

     b.   Contract

     c.   Reasonableness

     d.   Treatment of unallowable costs

     e.   Advance agreements

     f.    Travel costs

     g.   Contracts with noncommercial organizations

5.  Cost Allocability

     a.   Basic requirements

     b.   Direct costs vs. indirect costs

     c.   Cost objectives

     d.   Indirect cost rates

     e.   Forward pricing rates

6.  Special Topics

     a.   Change order accounting

     b.   Fixed cost vs. variable cost

     c.   Truth in Negotiations Act (TINA)

     d.   Profit determinations

     e.   Claims

     f.    Contract terminations

7.  Accounting Rules Applicable to Other Entities

     a.    Nonprofit associations (OMB Circular A-122)

     b.   Colleges and universities (OMB Circular A-21)

     c.   State and local governments (OMB Circular A-87)

8.  Audit Standards

     a.   Generally Accepted Auditing Standards (GAAS)

     b.   DCAA Contract Audit Manual (CAM)

     c.   Generally Accepted Government Auditing Standards (GAGAS)

9.  Financial Accounting Systems

     a.   Critical accounting functions

     b.   Recent trends in accounting software market

     c.   Accounting software evaluation methodology

10. Emerging Trends

     a.   Activity-based costing

     b.   Privatization of government activities (OMB Circular A-76)

     c.   Rules for commercial items