Course description
Government Contracts come with specific accounting requirements from the contractor by the government through the Federal Acquisition Regulation (FAR) and the Cost Accounting Standards (CAS). Although Government Contract Accounting is built upon a foundation of Generally Accepted Accounting Principles, it is more demanding of the contractor or the finance staff of the contracting firm.
Why is Government Contract Accounting needed?
Government Contract Accounting is the delicate part of receiving a government contract. The funds received or to be received need to be managed and tracked correctly so the contractor can survive government audits or recover the expenses incurred – as the case may be. The government issues contracts (purchase services and goods) using three different methods. It can be on a fixed price basis, a cost-reimbursement basis, or a time and materials basis. Fixed-Price contracts are issued with a specific price quoted to the government without subjection to any adjustments. With cost-reimbursement contracts, allowable incurred costs are paid to the extent stated in contracts. Finally, time-and-materials contracts have contractual risks lying with the government.
Upcoming start dates
Suitability - Who should attend?
Who Should Attend?
The Government Contract Accounting Certification Course by Rcademy is suitable for people and professionals that need more knowledge about the intricacies of Government Contract Accounting, being an outlier in the world of commercial business. The following personnel should undertake this course:
- Government contract officers or administratorswho need to increase their knowledge of accounting for Government Contracts and keep up with the ever-changing regulations and compliance standards
- Contract and pricing executiveswho are responsible or lead a team for contracts, their pricing, and compliance efforts
- Lawyerswho draft and revise contracts
- Contract managerswho prepare bids for new contracts and develop business proposals
- An internal auditorwho is responsible for the examination of compliance level by contractors’ accounting systems
- Accountantscommitted to learning advanced Government Contract Accounting
Outcome / Qualification etc.
What are the Course Objectives?
The Government Contract Accounting Certification Course by Rcademy aims that the participants achieve the following objectives:
- Comprehend the characteristics of the federal marketplace, the acquisition lifecycle, and other relevant regulations
- Understand key terms and definitions of Governmental Contract Accounting
- Recognize types of Government Contract
- Analyze the difference in accounting requirements for different acquisition contracts
- Understand and apply basic CAS principles
- Understand the Truth in Negotiation Act (TINA) and Cost & Price Data
- Determine basic indirect costs
- Recognize change orders and pricing methodologies
- Understand the audit process of the DCAA
Training Course Content
Module 1: Regulatory Environment
- Characteristics of the federal marketplace
- The acquisition lifecycle
- The highlight of the regulatory environment
- Relevant regulations and rules
Module 2: Overview of Contracting
- Methods of getting a contract
- Types of contracts
- Accounting requirements for the types of contracts
- Competitive vs non-competitive methods of getting a contract
- Commercial item acquisition rules
- General Security Agreement (GSA) schedule contract
Module 3: Costs in a Contract
- Definition of allowable
- What does reasonableness mean
- Similarities and differences between allowable and allocable costs
- Advanced agreements
- Credits
- Unallowable costs
- Material cost
- Product engineering costs
- Compensation for personal services
- Uncompensated costs
Module 4: Cost Accounting Standards (CAS)
- Basic concepts in CAS
- Where to apply CAS
- The types of coverage
- Allocation standards
- Disclosure statement requirements
- Changes to cost accounting practices
Module 5: Cost Accounting Systems
- Importance of cost accounting systems
- Direct vs indirect costs
- Job order vs process costing
- Actual vs standard costs
- Accounting for indirect costs
- Calculating indirect rates
Module 6: Cost Estimation and Contract Pricing
- Truth in negotiations act (TINA)
- Cost or pricing data
- Subcontractor pricing considerations
- Certification requirements
- Cos proposal requirements
- Contractor estimating systems
- Profit analysis
Module 7: Contract Accounting and Administration
- Lifecycle of indirect rates
- Forward pricing rate agreements
- Provisional billing rate agreements
- Incurred cost claims
- Representations and certifications
- Contract cost and schedule reporting (EVMS)
- Limitations of funds and limitation of cost clauses
- Mandatory disclosure
- DOD business systems
Module 8: Contract Changes
- Overview and background of change orders
- Types of change orders
- Associated claims of claim orders
- Pricing methodologies
- Change order accounting
- Profit and interest on claims
Module 9: Surviving Government Audits
- The Defence Contract Audit Agency – DCAA
- Government audit rights
- Government auditors and their missions
- The process of auditing
- Dealing with government auditors
- Resolving audit
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Rcademy is a global training and consultation organisation set out to bridge the gap between you now and what you can be in the near future. We are facilitators of knowledge impartation. Our team of established and experienced training enthusiasts...