Identifying unallowable costs is essential for government contractors to avoid billing issues, incurred cost audit findings, and to pass pre-award accounting system surveys. This presentation discusses the often overlooked information in FAR Sections 31.000-31.204 and how they set the stage for the selected costs in FAR 31.205. We’ve updated this session for changes in 2016 and 2017, including the recently released FAR 31.205 Cost Principles Guidebook.
Unallowable costs remains a hot topic amidst an increase in government audits. Contractors who misinterpret the regulations or take a position contrary to the government’s risk paying penalties and interest on unallowable costs. Although guidance may be found in FAR Part 31, DCAA’s Cost Principles Guide, audit alerts, and the outcome of legal proceedings, there are still a lot of questions surrounding the allowability of specific costs.
Target Audience: Small business management, accounting