PBMares Accounting Blog

Neena Shukla, CPA, CFE, CGMA, FCPA

Recent Posts

Understanding Your Indirect Rates

Posted by Neena Shukla, CPA, CFE, CGMA, FCPA on Jan 4, 2018 11:56:59 AM

Whether you are new to government contracting and are just setting up your accounting system or are more established and not sure costs are being recorded properly on a consistent basis,  you will need to document your indirect rate structure.  You need to define, in writing, what indirect rates you need (i.e. fringe benefits, operating/overhead, material handling, major subcontract administration, general and administrative, etc.) and their method of allocation.

Read More

Topics: Government Contracts

Are Your Holiday Party Expenses Allowable? Maybe!

Posted by Neena Shukla, CPA, CFE, CGMA, FCPA on Dec 21, 2017 8:10:29 AM

The holidays are here. Is your company getting ready to have its annual holiday party? If so, you may be asking, “Are the costs of the company holiday party allowable or unallowable?” The answer is maybe.

Read More

Topics: Government Contracts

Again, There is a Potential for a Government Shutdown. Are You Ready?

Posted by Neena Shukla, CPA, CFE, CGMA, FCPA on Dec 20, 2017 1:29:24 PM

This is a follow-up to previous discussions about a potential Federal government shutdown that was avoided through a continuing resolution restricting expenditures.   The threat hinges on Congress being able to establish a 2018 budget that contains funding for the wall between the U.S. and Mexico, one that defunds Obamacare and a resolution of the DACA issue. All within spending caps that still need to be defined before the Government runs out of money to pay its bills on or around December 22nd

As a government contractor, whether large or small, NOW is the time to take actions to be prepared for these events and to minimize their impact on your organization!

Read More

Topics: Government Contracts

IR&D Cost Allowability Technical Interchange Requirements Changed Via Class Deviation

Posted by Neena Shukla, CPA, CFE, CGMA, FCPA on Dec 1, 2017 8:00:00 AM

We reported in December 2016 that the Department of Defense had issued a final DFARS rule requiring major contractors to engage in technical interchanges with the DOD before such costs are generated.  These interchanges were required to “improve the effectiveness of independent research and development (IR&D) investments by the defense industrial base” that are reimbursed as allowable costs. 

Read More

Topics: Government Contracts

Due Diligence Should Be More than Numbers

Posted by Neena Shukla, CPA, CFE, CGMA, FCPA on Nov 28, 2017 9:47:05 AM

 

Read More

Topics: Government Contracts, Due Diligence

Explaining the Truthful Cost or Pricing Data Act: What Government Contractors Need to Know

Posted by Neena Shukla, CPA, CFE, CGMA, FCPA on Oct 30, 2017 3:08:57 PM

For government contractors, compliance with the Truthful Cost or Pricing Data Act (TINA) is a critical part of staying on the right side of federal contracting and acquisition requirements. But what is the law, and what does it do? Here’s a brief primer.

Let’s start with the obvious: Why is the Truthful Cost or Pricing Data Act called “TINA”?
Because it started out as the Truth in Negotiations Act. TINA was passed in 1962 because government agencies were concerned that they were not getting a fair price from suppliers. However, it wasn’t until the mid-1980s that the government began treating defective pricing as an indication of criminal fraud, especially in single-supplier situations where the government doesn’t always know if it’s paying a fair and reasonable price. In 2013, the government renamed the law, but the old acronym stuck. Understandably, nobody chose to start calling it “TCoPDA.”

Read More

Topics: Government Contracts, TINA

State and Local Tax Compliance: What Government Contractors Need to Know

Posted by Neena Shukla, CPA, CFE, CGMA, FCPA on Sep 19, 2017 2:13:06 PM

The federal government is, by law, exempt from paying state and local taxes. However, this exemption does not apply to organizations with federal or state government contracts, which are designated as agents of the government. In fact, government contractors are subject to specific state and local taxes simply because they are government contractors.

Contractors must be aware of the tax laws specific to the states they operate in, and any localities that impose taxes as well.

Read More

Topics: Government Contracts, SALT

Identifying Unallowable Costs – Executive Compensation

Posted by Neena Shukla, CPA, CFE, CGMA, FCPA on Aug 15, 2017 2:29:15 PM

A large number of small companies and even some considered large have historically not concerned themselves with the allowability of their executive’s compensation.  With annual allowability limits approaching and even exceeding $1,000,000 it was not something that presented an issue in the past.  Executive compensation would never reach that high.  Time to take another look.

The new limit on allowability of annual executive compensation applicable to contracts awarded on and after June 24, 2014 is $487,000 and is applicable to all employees, not just the top five highest paid employees in executive positions.  Employee annual compensation exceeding $487,000 is now a very real potential.

Read More

Topics: Government Contracts

Labor Floor Checks and Labor Interviews – Labor Recording Up Close and Personal

Posted by Neena Shukla, CPA, CFE, CGMA, FCPA on Aug 2, 2017 2:35:23 PM

The costs of labor, especially in service-oriented companies is the most sensitive area of incurred cost that the Defense Contract Audit Agency (DCAA) is required to audit.   Unlike other cost items charged to the Government, labor is not supported by third party documentation such as invoices, purchase orders or receipts. 

Read More

Topics: Government Contracts

"Hi! I’m From DCAA and I’m Here to..."

Posted by Neena Shukla, CPA, CFE, CGMA, FCPA on Jul 25, 2017 9:03:00 AM

If you have proposed on or been awarded a contract with the Federal government, and especially with the Department of Defense, you probably have been the recipient of a visit from the Defense Contract Audit Agency (DCAA).  While these visits to perform a multitude of audits and evaluations are not the end of the world, they should be taken and reacted to seriously.

Read More

Topics: Government Contracts