Government Contractors
We Are Uniquely Equipped to Handle Government Contractors
Government contractors are under increased scrutiny because they operate in a field that requires transparency and compliance with shifting regulations. While government contracts can be lucrative and are highly sought after, the firms they get awarded to need to meet these stringent regulations and adjust when they are changed. Merely knowing what all the regulations are and what you need to do to meet them is a job in and of itself.
This is where Rubino comes in. When you partner with us, you can rest assured that you will receive proactive information and expert advice, so you stay ahead of changes to regulatory and accounting standards.
Proactive services and support that gives you an edge with any government contract
Our Services
Rubino has been focused on meeting the needs of government contractors for over 40 years. We offer the essential services your organization needs to meet regulations and stay compliant:
- Incurred Cost Audit support
- Cost allowability allocability determinations
- Financial statement audit / review
- Tax consulting
- Accounting system design and review
- Grant compliance
- Regulatory compliance consulting
- Contract consulting
- Contract dispute assistance
Rubino is a trusted partner. We help clients achieve their goals and grow by being in sync with what they need and by providing the experience and expertise of a large firm with the service of a small firm. Learn more about our staff or find out more about us and what drives us to be a complete CPA firm.
Our blog is an important resource for important accounting topics such as how to make an audit easier or better understand the role technology plays in accounting. Stay on top of the latest accounting news and trends.
We are focused on helping people succeed. Whether it be the people who work for Rubino, our clients, or the community, everything we do is focused on solving challenges and being a catalyst for success. Our services are tailored to help people manage finances effectively and responsibly:
Rubino—A Full-Service Partner
How Government Contractors Benefit From Rubino Consulting
Through our years of work with government contractors, our dedicated team of compliance experts understands the regulatory challenges every government contractor faces. We are ready to help you.
At Rubino, we offer value by listening to your needs and responding with professionalism, knowledge and empathy. Not all organizations are made the same and we apply diverse solutions to real issues
Rubino has substantial expertise in government procurement and government contracting at every level, from small start-ups to large, established contractors. We help you ensure that your financial and accounting practices comply with applicable standards, laws, and regulations.
A Unified Mission
At Rubino, our clients always come first. We are unified in our mission to have a positive effect on our clients, our company, and the community.
Frequently Asked Questions (FAQs) For Government Contractors
Answer: The Defense Contract Audit Agency (DCAA) is responsible for auditing Department of Defense (DoD) contracts and ensuring that government contractors comply with federal regulations, particularly the Federal Acquisition Regulation (FAR) and Cost Accounting Standards (CAS).
DCAA compliance is critical for government contractors because failure to adhere to these standards can lead to penalties, loss of contracts, or disqualification from future contract opportunities. DCAA audits focus on verifying the accuracy and allowability of costs charged to government contracts, ensuring that the contractor’s accounting systems can properly segregate direct and indirect costs
Answer: Indirect costs are expenses that cannot be directly attributed to a specific government contract or project but support the overall operation of the business. Common examples include utilities, administrative salaries, and office supplies.
In government contracting, indirect costs are categorized into different pools, such as overhead, general and administrative (G&A), and fringe benefits, which are then allocated to contracts based on a consistent and logical method. Proper management and allocation of indirect costs are essential to ensure compliance with government regulations and avoid under- or overcharging the government.
Answer:
- A fixed-price contract is an agreement where the contractor agrees to deliver a product or service for a set price. The contractor assumes most of the risk because they are responsible for any costs that exceed the agreed-upon price.
- A cost-reimbursement contract, on the other hand, allows the contractor to be reimbursed for allowable, allocable, and reasonable costs associated with fulfilling the contract. However, cost-reimbursement contracts often come with more oversight, including strict auditing and reporting requirements to ensure compliance with FAR and other regulations.
Answer: Allowable costs are expenses that are reasonable, allocable to the contract, and compliant with the specific terms of the contract and FAR Part 31. Common examples of allowable costs include direct labor, materials, subcontractor costs, and indirect costs that support contract performance.
Unallowable costs, on the other hand, are expenses that cannot be billed to the government under any circumstances. Examples include entertainment, lobbying expenses, fines and penalties, and personal expenses. Unallowable costs must be segregated in the contractor’s accounting system to avoid charging them to the government, which can lead to audit findings or penalties.
Answer: A compliant accounting system is critical for government contractors because it ensures that costs are accurately recorded, allocated, and reported in line with FAR and DCAA requirements. A compliant system must:
- Segregate direct and indirect costs.
- Identify and track allowable and unallowable costs.
- Provide timely, accurate financial reports.
- Support audits and other reviews by government agencies.
DCAA audits will evaluate whether a contractor’s accounting system meets these standards. Failure to maintain a compliant system can result in contract delays, disallowance of costs, or loss of government business.
Answer: Incurred Cost Submissions (ICS) are required for government contractors with cost-reimbursement contracts or other types of contracts that require cost data reporting. The ICS details all costs incurred by the contractor during the fiscal year, including direct and indirect costs.
Contractors are required to submit their ICS within six months after the end of their fiscal year. The DCAA reviews these submissions to ensure that the costs billed to the government are allowable, allocable, and reasonable. Failure to submit an accurate and timely ICS can lead to penalties, disallowed costs, or increased scrutiny in future audits.
Answer: Allowable costs are expenses that are reasonable, allocable to the contract, and compliant with the specific terms of the contract and FAR Part 31. Common examples of allowable costs include direct labor, materials, subcontractor costs, and indirect costs that support contract performance.
Unallowable costs, on the other hand, are expenses that cannot be billed to the government under any circumstances. Examples include entertainment, lobbying expenses, fines and penalties, and personal expenses. Unallowable costs must be segregated in the contractor’s accounting system to avoid charging them to the government, which can lead to audit findings or penalties.
For a complete list of Government Contracting FAQs, please click here.
