Many of the Government’s compliance rules and programs can be complex and hard to follow. In this document we will walk you through determining if your contract/subcontract is CAS covered, what type of coverage it is subject to, what standards you are required to follow, and if your CAS contract/subcontract requires a Disclosure Statement.
So, let’s start at the beginning….
Cost Accounting Standards (CAS) are a set of 19 standards and rules put in place by the United States Government for use in determining costs on negotiated procurements. CAS dictates the way in which a contractor must manage their accounting system and practices to meet the standards required by the government.
After receiving a contract/subcontract the first thing to do is to determine what type of CAS coverage, if any, your contract/subcontract is subject to.
Once you are CAS-covered you will be required to submit a Disclosure Statement (CASB DS-1) to your contracting officer. This form formally documents your cost accounting processes and ensures you are properly and thoroughly following the CAS standards.
Once your Disclosure Statement is submitted the contracting officer will have auditors determine if your Disclosure Statement is up to date, accurate, and complete. The point of the statement and the thorough inspection is to determine if your organization has a adequate and compliant accounting system put in place to use and manage your awards efficiently, effectively, and accurately.
During the review you will be allowed to revise any parts of the Disclosure Statement that you feel are inadequate or do not fully represent the accounting standards you have in place. If everything looks good the contracting officer will determine that the Disclosure Statement is compliant. If the contracting officer determines that the form is inadequate, you will be given 60 days to correct any deficiencies.
The best way to ensure your accounting standards are compliant and effective is to use an accounting system that was made exactly for these purposes. Deltek software is built from the ground up to be compliant and handle even your most complex government-required tasks. Deltek understands the demands on contractors and for the past 30+ years has delivered software that makes their lives easier and keeps them in the game.
If you are looking for a compliant accounting software that will save you time, money, and resources or are just weighing your options please reach out to us for more information. Let our experts help you find the right fit for your needs.