There is accounting...and there is Government contract accounting. Government contractors are subject to a wide range of unique accounting regulations, entering into contracts for which negotiation, performance, termination, and more require following specific accounting principles and standards. And, dealing with the Federal Government can be difficult and complex—a world apart from commercial business.

Accounting in Government contracting, then, has its own unique and specialized rules, regulations, standards, problems, hurdles. And unless a proper accounting system is in place—at every stage of the contract—a contractor can be faced with enormous difficulties, not the least of which is lost profits, lost contracts.

For Government contract administrators, executives, lawyers, managers, financial officers, and internal auditors, as well as for accountants who do not necessarily concentrate in this field, the subject is generally mystifying and often carries with it the intimidating sense of the unknown. So there is a need—a significant need—for this specially developed program.

Government Contract Accounting's exhaustive scope is set forth in the Course Curriculum below. Its coverage includes not only general accounting concepts as they relate to Government contracting, but the specifics of cost principles, cost accounting standards, accounting for claims, special accounting problems, and profit.

By the conclusion of this program, attendees will have a solid, practical understanding of Government contract accounting, including:

• Government forms and formats for pricing proposals.
• Direct and indirect cost rate submissions.
• Cost principles for allowability.
• Cost allocability and reasonableness under the FAR and CAS.
• Accounting systems requirements.
• The impact of the type of contract on the accounting requirements.
• Billing the Government for work accomplished.
• Dealing with Government auditors.

...and more.

1. Regulatory Environment
   1. Characteristics of the Federal Marketplace
   2. The Acquisition Cycle
   3. The Regulatory Environment
   4. Relevant Statutes
   
   
2. Procurement Overview
   1. Methods Of Award
   2. Contract Types
   3. Accounting Implications for Various Types
   4. Competitive vs. Non-competitive Procurement
   5. Commercial Item Acquisition Rules
   6. GSA Schedules & Price Guarantees
   7. Small Business Status
   
   
3. Cost Accounting Systems
   1. Purposes of a Cost Accounting System
   2. Direct vs. Indirect Cost
   3. Job Order vs. Process Costing
   4. Actual vs. Standard Cost
   5. Accounting For Indirect Costs
   6. Refining Cost Systems
   7. Activity Based Costing
   8. Financial Reporting Considerations
   
   
4. Cost Allowability
   1. Definition Of Allowable
   2. Reasonableness
   3. Allowability vs. Allocability
   4. Advance Agreements
   5. Credits
   6. Expressly Unallowable Costs
   7. Material Costs
   8. Product Engineering Costs
   9. Compensation for Personal Services
   10. Uncompensated Overtime
   11. Other Selected FAR Part 31 Cost Principles
   
   
5. Cost Accounting Standards
   1. Applicability
   2. Types Of Coverage
   3. Disclosure Statement Requirements
   4. Changes To Cost Accounting Practice
   5. Cost Accounting Standards
   
   
6. Cost Estimation and Contract Pricing
   1. Truth In Negotiations Act
   2. Cost or Pricing Data
   3. Subcontractor Pricing Considerations
   4. Certification Requirements
   5. Cost Proposal Requirements
   6. Contractor Estimating Systems
   7. Profit Analysis
   8. Sample Proposal
   
   
7. Contract Accounting and Administration
   1. Lifecycle of Indirect Rates
   2. Forward Pricing Rate Agreements
   3. Provisional Billing Rate Agreements
   4. Incurred Cost Claims
   5. Representations and Certifications
   6. Contract Cost/Schedule Reporting(Earned Value Management Systems)
   7. Limitation of Funds/Limitation of Cost Clauses
   
   
8. Changes, Delays & Terminations
   1. Change Orders: Overview and Background
   2. Types of Change Orders and Associated Claims
   3. Pricing Methodologies
   4. Change Order Accounting
   5. Profit and Interest on Claims
   6. Termination for Convenience vs. Termination for Default
   7. Termination Claims
   
   
9. Surviving Government Audits
   1. Government Audit Rights
   2. Government Auditors and Their Missions
   3. The Audit Process
   4. Dealing with Government Auditors
   5. Resolving Audit Disputes
   6. Special Issues Related to Disallowed Cost

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The Course Faculty

The Course Faculty for the program will consist of individuals from the list below. All are Government contract accounting professionals from the national accounting firm of Ernst & Young LLP.

Barry Cohen Principal in Ernst & Young's Washington, DC Government Contract Services Practice. Services include interpreting and applying government regulations to specific contract situations; developing systems to support contract proposal and administration activities; implementing pricing, accounting, and financing rules; preparing claims; resolving disputes; and training. Mr. Cohen's expertise and experience cover an extensive range of Government procurement policies and practices. This especially includes those adopted by the Department of Defense, National Aeronautics and Space Administration, and Department of Energy. Mr. Cohen is an industry leader on commercial item acquisition initiatives, particularly as they relate to qualification of products for simplified treatment by the Government and using commercial pricing techniques for such products.

Deborah Nixon is a Certified Public Accountant and partner in Ernst & Young's Government Contract Services practice, located in Washington, D.C. Deborah has more than 15 years of experience assisting clients conducting business with the Federal Government. Her experience includes contract pricing actions; preparation of claims and indirect rate proposals; and determining compliance with Government procurement regulations. Prior to joining Ernst & Young, Deborah held management positions with both large and small Government contractors where she was responsible for the coordination, preparation and management of cost proposals; reviewing and responding to solicitations; and the administration of contracts for both cost and priced based acquisitions.

Brian Taylor is a Senior Manager in Ernst & Young's Government Contract Services practice, located in Washington, D.C. He advises clients on FAR and CAS compliance matters, including compliance reviews, cost impact support, contract pricing actions, proposal preparation and indirect rate proposals. Prior to joining Ernst & Young, Brian held industry positions supporting acquisition strategy and planning, Request for Proposal (RFP) Development and source selection support to the Federal Government, as well as providing indirect rate, cost and price proposal development and contract administration support for contractors.

Robert Malyska, CPA, Certified Management Accountant, Certified Fraud Examiner, is a partner in Ernst & Young's Los Angeles, CA, Government Contract Services practice. Prior to joining Ernst & Young, Robert held financial management positions with major aerospace and defense contractors. He advises clients in FAR/CAS compliance matters, proposal preparation, indirect cost rate structures, cost reporting and final incurred cost proposals. He also assists clients with requests for equitable adjustment, delay/disruption claims, and termination settlement proposals.

Chris Pockney Partner in Ernst & Young's Government Contract Services. Located in the Washington, D.C. office, he provides Federal contract advisory services to a broad range of clients including defense contractors, commercial contractors, non-profits, educational institutions, and regulated utilities. He has assisted clients in numerous manufacturing and service industries including aerospace, automotive, electronics, software, health care, construction, insurance, food processing, and textiles.

Among the services he has provided are analyses and development of contract cost accounting practices including compliance with Cost Accounting Standards, Federal Acquisition Regulations, and Office of Management and Budget Circulars. He has assisted with the preparation and pricing of contract proposals, changes and claims, terminations and indirect cost submissions; and preparation of Cost Accounting Standards Board Disclosure Statements, including changes and related cost impact proposals. He has also assisted with pricing and compliance reviews for Federal Supply Schedule contracts under the General Services Administration and Department of Veterans Affairs multiple award schedule programs. He is a nationally recognized expert in the area of using commercial pricing techniques.