PBMares Accounting Blog

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

Read More

Topics: Government Contracts

Subcontracting Primer – Team Work and Due Diligence Pays Off

Posted by Neena Shukla, CPA, CFE, CGMA, FCPA on Jun 21, 2017 3:25:32 PM

 

FAR 44.101 defines a subcontractor as “Any supplier, distributor, vendor, or firm that furnishes supplies or services to, or for, a prime contractor or another subcontractor.”

As a prime contractor or a subcontractor with subcontractors you have certain responsibilities that will help to ensure an efficient and productive relationship that, in the end, provides the desired results (FAR 42.202)e)(2).

Read More

Topics: Government Contracts

Does Your Gov Con Have a Policies and Procedures Road Map?

Posted by Neena Shukla, CPA, CFE, CGMA, FCPA on Jun 6, 2017 10:25:37 AM

To emphasize the need for compliant policies and procedures we need to refer to a quote from the great Yogi Berra, “If you don’t know where you’re going, you might not get there.”  Over the years we have seen organizations doing everything right but without compliant policies and procedures as a road map to ensure consistent compliance, they have failed government audits.  Other organizations that have compliant policies and procedures but have not shared them with the people who need them (i.e. they have them but they are gathering dust on the shelf and are probably obsolete), have also failed, because people did not know what the organization’s goals were or how to respond to compliance situations.

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 May 4, 2017 9:34:55 AM

Read More

Topics: Government Contracts

Plan’s Interest in a Master Trust - Disclosure Requirements

Posted by Neena Shukla, CPA, CFE, CGMA, FCPA on Apr 10, 2017 8:50:00 AM

ASU Issued:

The Financial Accounting Standards Board (FASB) issued ASU 2017-06, Plan Accounting: Defined Benefit Pension Plans (Topic 960), Defined Contribution Pension Plans (Topic 962), Health and Welfare Benefit Plans (Topic 965): Employee Benefit Plan Master Trust Reporting (a consensus of the Emerging Issues Task Force), on February 27, 2017.

Read More

Topics: Employee Benefit Plans, Government Contracts

Identifying Unallowable Costs – Marketing vs. Direct Selling Expenses

Posted by Neena Shukla, CPA, CFE, CGMA, FCPA on Apr 3, 2017 10:30:05 AM


Read More

Topics: Government Contracts

Insider Threat Program Implementation

Posted by Neena Shukla, CPA, CFE, CGMA, FCPA on Mar 27, 2017 4:34:04 PM

 

Contractors that have a facility clearance through the Department of Defense’s Defense Security Service (DSS) must have a written plan in place for the implementation of an insider threat program that is designed to detect, deter and mitigate insider threats.

Read More

Topics: Government Contracts

Goodwill Impairment – Simplified

Posted by Neena Shukla, CPA, CFE, CGMA, FCPA on Mar 21, 2017 8:28:00 AM

On January 26, 2017, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update 2017- 04, Intangibles – Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment. This ASU simplifies eliminates Step 2 of the goodwill impairment test, thereby simplifying the measurement of goodwill impairment. The revised guidance will be more similar to IFRS which also has a single-step goodwill impairment test.

Read More

Topics: Government Contracts