GOVERNMENT GRANT ACCOUNTING
Specialized Compliance for Federal Contracts and Grants
Federal grants, contracts, and cooperative agreements come with specialized accounting and compliance requirements that differ significantly from standard business accounting. Non-compliance can result in funding clawbacks, debarment, or legal liability.
Federal Contract Compliance
Contract Accounting Requirements:
- Job cost accounting systems for contract-specific tracking
- Allowable cost determination and documentation
- Progress billing and revenue recognition
- Contract modification accounting
- DCAA audit support
Uniform Guidance (2 CFR 200)
Compliance Areas:
- Administrative Requirements
— Financial management standards, internal controls, property and procurement. - Cost Principles
— Allowable cost determination, direct vs. indirect classification, documentation. - Audit Requirements
— Single Audit preparation, SEFA, corrective action plans.
Cost Accounting Standards (CAS)
CAS Compliance Services:
- CAS applicability determination (full vs. modified coverage)
- Disclosure Statement preparation (CAS DS-1 and DS-2)
- Cost accounting practice design and documentation
- CAS violation identification and resolution
FAR Compliance
FAR Services:
- FAR Cost Principles
— Allowability, reasonableness, allocability standards. - System Design
— Cost accounting systems for FAR compliance. - Agency Supplements
— DFARS, DEAR, NASA FAR Supplement compliance. - Indirect Cost Rates
— Forward pricing and incurred cost submissions.