PVBS partner Federal Contractor Solutions conducted an amazing webinar, hosted by PVBS, recently on how to prepare for incurred cost submission deadlines.
FedConSol’s Rich Marksberry and Carl Sweetnam spoke about how while other financial tasks and deadlines often take precedence, preparing for incurred costs submission concurrent with completion of other year end tasks will save you time prior to the June 30 deadline. Preparation of a satisfactory incurred costs proposal on a timely basis is of utmost importance in maintaining an adequate accounting system. More importantly, it prevents unilateral determination of indirect cost rates by your contracting officer due to missed deadlines and helps prevent penalties which may be realized when misclassification of costs come about.
Many contractors face the close of their fiscal year often concurrent with the calendar year. There are usually an overwhelming number of reports and filings which need to be completed. Tasks such as DCAA audits, federal and state tax filings, defined benefit reporting, W-2′s, and 1099′s must all be completed by their respective deadlines. One year end item which is often set aside is the preparation of the incurred costs submission for those contractors subject to the allowable cost and payment clause. Bankers often require financial reporting no later than 90 days from fiscal year end. The IRS and state tax agencies do not extend deadlines for simple reporting delays.
To assist with a timely and satisfactory incurred costs submission, Carl and Rich showed participants how to track and leverage information gathered throughout the year utilizing an independent audit. They also provided participants with current updates to the Federal Register (FAR clause 52.216-7, “Allowable Cost and Payment”) and other Defense Contract Audit Agency initiatives that will help them prepare for potential upcoming regulation revisions.