Estimated read time: 6 minutes Key Takeaways Point 1: The Immediate Fix. Timekeeping software only records raw hours; labor distribution translates those hours into compliant general ledger dollars. You must map every time code to a clear financial parameter right at the point of entry under FAR 31.202 standards. Point 2: The Compliance Risk. Letting labor distribution float as an un-reconciled spreadsheet math problem invites immediate defense system failures. Under DFARS 252.242-7005, structural deficiencies in labor… Read More
FAR Part 31
GovCon Cost Pools: How to Configure Them | GovCon Wednesday
Estimated read time: 6 minutes Key Takeaways Point 1: The Immediate Fix. Never arbitrarily mimic another firm’s indirect rate architecture. Your cost pools must organically mirror your unique workforce footprints, project delivery environments, and cost behaviors under FAR 31.203 guidelines. Point 2: The Compliance Risk. Bundling mismatched indirect costs into a generic ledger bucket distorts allocation math and triggers structural compliance deficiencies. Under DFARS 252.242-7005, failing to maintain adequate accounting control over your cost pools allows… Read More
Direct vs. Indirect Costs: GovCon System Setup | GovCon Wednesday
Estimated read time: 6 minutes Key Takeaways Point 1: The Immediate Fix. Consistency is an absolute legal mandate under FAR Part 31. You cannot classify an expense as a direct cost on one contract and an indirect cost on another when the underlying circumstances are identical. Point 2: The Compliance Risk. Treating direct vs. indirect classifications as a casual data-entry task creates immediate exposure. Under DFARS 252.242-7005, system deficiencies in cost structural accounting can… Read More
GovCon Chart of Accounts: Setup Guide | GovCon Wednesday
Estimated read time: 6 minutes Takeaways Point 1: The Immediate Fix. Do not make your general ledger accounts do all the tracking work. Keep your Chart of Accounts (COA) lean by using accounts strictly for cost type (e.g., Direct Labor) and mapping where it belongs using your software’s project, job, or cost center modules. Point 2: The Compliance Risk. Mixing unallowable expenses like business entertainment or penalties into standard operating accounts contaminates your indirect cost pools…. Read More
ICS Essentials #6: Who Reviews ICS? DCAA, Agency Auditors & GAO Oversight
GovCon Wednesdays Estimated Read Time: 5 minutes Once your Incurred Cost Submission (ICS) is submitted, it undergoes review by federal audit organizations responsible for ensuring taxpayer dollars are used appropriately. Depending on the agency you support, your ICS may be audited by DCAA, an Inspector General office, or another federal audit branch. This installment explains who reviews ICS packages and the standards they must follow. Core Concept: Who Reviews ICS?… Read More