Government*Horizons Inc. Training Series™

CAS, Cost Allowability and Allocability in Government Contracts

October 29-31, 2008
Arlington, VA

This workshop is recommended for 24 Continuous Learning Points (CLPs) toward DAWIA, FAC-C and FAC-COTR requirements. A Government*Horizons Certificate of Completion will be provided to all attendees upon conclusion of the workshop. For information on fulfilling core, elective and continuous learning requirements, click here.   Attendees will strengthen JFMIP/CFO-recommended core competencies for financial managers, including increasing program effectiveness; understanding financial, budget and management issues; and decreasing/maintaining unit costs.

Attendees of Government Horizons’ most recent offering of this workshop rated it a 5.0 out of a possible 5.0!

“Course was great, and I know a lot more now than I did before I attended. It was a good mix of CAS and FAR regulations, and how they are connected with each other. A strictly CAS class would not have been as meaningful or interesting without the acknowledgement of the FAR requirements. Instructor Joe Higgins was knowledgeable and kept the class interesting,” - Douglas Low

“Mr. Higgins is an excellent presenter he reflects a wide variety of experience".  - Mr. Harry H. Abe PACAF Engineering & Technical Services Contract Manager, U.S. Air Force

“The course was very helpful.  The instructor was very lively and knowledgeable on all subjects". - Gayle Matheson, Purchasing Agent, Beacon Power Corp

Registration: 8:00 AM
Program Starts: 8:30 AM
Wrap-Up: 4:00 PM

Course materials, continental breakfast (coffee and pastries) and refreshments included.

About This Course:

Understanding the requirements of cost allowability, allocability, and accounting on federal contracts can save valuable time and resources, ensure you recover all of the costs to which you are entitled, and protect your company from financial mismanagement penalties. For a cost to be allowable (i.e. recoverable) on a Government contract, the cost must be:

- Reasonable
- Allocable
- Not contrary to the Cost Accounting Standards (CAS)
- Not prohibited by terms of the contract, and
- Not limited by FAR Part 31 Cost Principles

In addition, Public Law 100-679 (41 U.S.C. 422) requires certain contractors and subcontractors to comply with Cost Accounting Standards (CAS). Experts predict that many contractors who were never subject to full CAS coverage in the past will now become subject to the rules as agencies move away from T&M and ID/IQ contracts towards more cost-type contracts. Even contractors who are currently subject to “modified CAS coverage” should understand all of the requirements, as certain contracts can “trigger” full coverage.

This three-day course gives you the tools you need to understand the requirements and ensure compliance.

Learning Objectives:

• Cost Reasonableness Principles 
• Allowable vs. Unallowable Costs
• Cost Accounting Standards
• Cost Allocation
• Applicability to Government Contracts
• Disclosure and Reporting
• Cost Issues concerning Home Office, G&A, Overhead and IR&D

Continuing Education:

Recommended for 24 continuous learning points (CLPs) to maintain DAWIA/FAC-C certification.

NOTICE: All auditors performing at least 20% of their work under the Generally Accepted Government Accounting Standards (GAGAS) must obtain at least 24 hours of CPE directly related to government contracting per year. Government Horizons’ CAS workshop fulfills 16 hours towards this requirement.

Attendees will be issued a Government*Horizons Certificate of Completion for 24 learning hours in the field of Government Contract Financial Management/Cost Accounting.

*A new government report recommends contract training to achieve better federal contracting results.  Click here to download the Managing the Government’s Technical Experts to Achieve Positive Contract Outcomes report by the U.S. Merit Systems Protection Board dated December 2005.

Who Should Attend:

• Contract Administrators
• Auditors
• Financial managers
• CFOs
• Accounts receivable managers
• Contract compliance officers
• Contracting Officers/ACOs
• Treasurers
• Controllers

Previous Attendees Include:

ADC Acquisition Company, VP-Treasurer
DRS Mobile Environmental Systems, Controller
GTSI, CFO
Institute for Genomic Research, Sponsored Projects Accounting Manager
J. Craig Venter Institute, Controller
L-3, Finance Manager
Morgan Franklin, Vice President
National Institute on Aging, Administrative Officer
NIH-NIDA-CMB, Supervisor Contract Specialist
NSF, Audit Manager
OPNET Technologies, Inc., Manager, Government Accounting
Overwatch Systems of Virginia, Inc., Assistant Controller
Sandia National Laboratories, Senior Member Lab Staff
The Louis Berger Group Inc, Contract Compliance Manager
US Mint at Denver, Deputy Plant Manager
Vanguard Contractors, Accounting Manager

What Previous Students Said in their Evaluations...

“I have been to several trainings, this one is by far the best”. - Sara McCown, Quality Assurance Budget Manager, ICMA

“Great ideas of making it real, his message hit me right in between the eyes.” - Ron Hayes, Risk Manager, Calcasieu Parrish School Board

“Very honest, great factual information and good recommendations.” - Janie Hecker, Supervisor of Auxiliary Services, Colonial Intermediate Unit 20

“Excellent, need information and great suggestions, presented in an effective way that can easily be shared with others.” - Carolyn Andrews, Managing Parnter, Andrews and Associates.

Course Outline:

FAR Part 31 Cost Principles

• Applicability
• Pre-award
• Post-award
• Costs that are generally allowable
• Costs that are generally unallowable
• Costs with limited allowability
• Credits
• Advance Agreements

Cost Accounting Standards (CAS)

• Applicability of the CAS
• CAS Coverage Levels
• Full vs. Modified Coverage
• The Nineteen Standards
• Consistency Standards
• Allocation Standards
• Specific Cost Standards
• The Disclosure Statement
• Requirements
• Reviews
• Adequacy
• Compliance
• Cost Accounting Changes

CAS in FAR Part 31

• Unallowable Costs
• Compensation
• Pensions
• Deferred Compensation
• Cost of Money
• Insurance

Certification of Indirect Costs

About Your Instructor:

Joseph T. Higgins

Joe has extensive financial management experience in government contracting, specifically in the development and implementation of cost allocation systems to ensure cost recovery on government contracts. He has assisted clients with completion of CASB Disclosure Statements and related issues with compliance with the Cost Accounting Standards. Mr. Higgins has expertise in all required government contracting management systems, including cost estimating and earned value management systems (EVMS). He has extensive knowledge in the areas of contract claims, particularly claims in connection with terminations for the convenience of the government.

Joe brings a diversity of experience to the classroom, having worked 15 years as a Vice President Finance/Chief Financial Officer with A&D companies and slightly more time performing auditing and consulting work within the federal government as well as the private sector. Joe has a current operating-level perspective on the challenges that face today’s government contractor. Not only does he have the technical competence to deal with the regulatory/compliance aspects of an issue, he also has the practical insight to appreciate the business and organizational implications that may be involved. Having worked at various levels in the Defense Contract Audit Agency, Joe has the background necessary to bring clarity to potentially volatile audit situations. And his experience as a consultant and auditor with major international accounting firms gives him additional qualification and perspective.

Joe teaches other courses for Government*Horizons, specifically “FAR Overview”, a three-day guided tour of this important document and “Defective Pricing”, a two-day study of this critical and controversial government contracting topic.

In Government Horizons’ most recent offering of CAS, attendees rated Joe Higgins 5.0 out of a possible 5.0 in the categories of subject knowledge, presentation skills, and overall course performance.

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