Government contractors subject to the Allowable Cost and Payment contract clause (FAR 52.216-7) must submit to the government an adequate incurred cost proposal (ICP) within six months after the end of the fiscal year. A completed ICP provides the contractor with their claimed rates, which, when approved, become final indirect rates for the period in question. For an adequate submission, contractors must know all the components of the incurred cost proposal and understand the proper treatment of costs to accurately calculate indirect rates.
This course is Part II of a two-part series. During this series, Robert Jones (Left Brain Professionals) will provide step-by-step guidance of each schedule and explain the required and recommended supporting documentation. You will learn how to present adjustments to general ledger amounts and document your working papers in preparation for an audit.
Part I in this series focused on general and job cost ledger-related schedules. Part II will be focusing on other schedules, special issues, and templates.
Here’s what you’ll learn:
1. The importance of comparative analysis.
2. Three common issues with labor reconciliation.
3. The proper treatment of adjustments to the GL.
4. Four best practices when working with templates.
Target Audience: Small business owners, accountants, contract managers