FAR and CAS Compliance
MillerMusmar CPAs offers specialized services to help government contractors navigate the complexities of the Federal Acquisition Regulation (FAR) and Cost Accounting Standards (CAS). Our team of experienced professionals is dedicated to ensuring your accounting systems and practices comply with these stringent regulations, thereby facilitating successful government contract acquisitions and executions.
Understanding Cost Accounting Standards (CAS)
The Cost Accounting Standards are a set of 19 standards established to ensure uniformity and consistency in cost accounting practices among government contractors. These standards cover various aspects of cost accounting, including:
- CAS 401: Consistency in Estimating, Accumulating, and Reporting Costs
- CAS 402: Consistency in Allocating Costs Incurred for the Same Purpose
- CAS 403: Allocation of Home Office Expenses to Segments
- CAS 405: Accounting for Unallowable Costs
- CAS 406: Cost Accounting Period
- CAS 407: Use of Standard Costs for Direct Material and Direct Labor
- CAS 408: Accounting for Costs of Compensated Personal Absence
- CAS 409: Depreciation of Tangible Capital Assets
- CAS 410: Allocation of Business Unit General and Administrative Expenses to Final Cost Objectives
- CAS 411: Accounting for Acquisition Costs of Material
- CAS 412: Composition and Measurement of Pension Costs
- CAS 413: Adjustment and Allocation of Pension Cost
- CAS 414: Cost of Money as an Element of the Cost of Facilities Capital
- CAS 415: Accounting for the Cost of Deferred Compensation
- CAS 416: Accounting for Insurance Cost
- CAS 417: Cost of Money as an Element of the Cost of Capital Assets Under Construction
- CAS 418: Allocation of Direct and Indirect Costs
- CAS 420: Accounting for Independent Research and Development Costs and Bid and Proposal Costs
Adherence to these standards is crucial for contractors to maintain compliance and avoid potential penalties.
Applicability of CAS
CAS applicability depends on various factors, including contract value and type:
- Exemptions: Certain contracts are exempt from CAS, such as those awarded to small businesses, contracts under $7.5 million (provided the contractor does not have other CAS-covered contracts), and contracts for commercial items.
- Modified Coverage: Applies when a contractor receives a single CAS-covered contract of $7.5 million or more but less than $50 million. Under modified coverage, the contractor must comply with CAS 401, 402, 405, and 406.
- Full Coverage: Triggered when a contractor receives a CAS-covered contract of $50 million or more, or when the contractor’s CAS-covered awards in the preceding cost accounting period totaled $50 million or more. Full coverage requires compliance with all 19 standards.
Our FAR and CAS Compliance Services
At MillerMusmar CPAs, we offer a comprehensive suite of services to assist contractors in achieving and maintaining compliance with FAR and CAS:
- Accounting System Design and Implementation: We help design and implement accounting systems that meet government requirements, ensuring accurate cost accumulation and reporting.
- Policy and Procedure Development: Our team assists in developing and documenting policies and procedures that comply with FAR and CAS, tailored to your organization’s operations.
- Compliance Audits and Readiness Assessments: We conduct internal audits and readiness assessments to identify potential compliance issues and recommend corrective actions.
- Training and Education: We provide training sessions to educate your staff on FAR and CAS requirements, promoting a culture of compliance within your organization.
- Ongoing Compliance Support: Our experts offer continuous support to address compliance questions, assist with cost impact analyses, and provide guidance on maintaining compliant practices as regulations evolve.
Why Choose MillerMusmar CPAs?
Our firm’s professionals possess in-depth knowledge of government procurement regulations, including FAR, CAS, and the Defense Federal Acquisition Regulation Supplement (DFARS). We understand the challenges contractors face and are committed to providing proactive, forward-thinking solutions to navigate the complex regulatory environment.
By partnering with MillerMusmar CPAs, you gain a trusted advisor dedicated to ensuring your organization’s compliance, enhancing your competitiveness in the government contracting arena, and supporting your long-term success.