Webinar: Demystifying DCAA Incurred Cost Submissions

Demystifying DCAA Incurred Cost
Submissions
Donna Dominguez & Aisha Mian | May 10, 2017
http://blogs.aronsonllc.com/fedpoint/

About Aronson LLC
Aronson LLC provides a comprehensive platform of assurance, tax,
and consulting solutions to today’s most active industry sectors and
successful individuals. For more than 50 years, we have purposefully
expanded our service offerings and deepened our industry specialties
to better serve the needs of our clients, people, and community. From
startup to exit, we help our clients maximize opportunity, minimize risk,
and unlock their full potential.

About Aronson LLC
• Thinking ahead for clients for more than 50 years
• 225+ professionals located in Rockville, MD
• 80+ professionals dedicated to supporting government contractors
• Aronson helps clients rethink the way they approach their business
through innovative, industry-specific services and advice:
– Audit, Assurance and Tax
– Deltek Systems and Outsourcing
– Financial and Contract Compliance
– GSA Schedules
• www.aronsonllc.com/blogs/fedpoint/ – News and trends and insight
for today’s savvy government contractor

Awards / Accolades / Affiliations
The Gazette of Politics & Business Exceptional 53 Business Award
In 2012, Aronson received the PB53 award for the third year in a row. The program
acknowledges the top businesses and organizations in Maryland based on criteria that
includes the company’s annual revenue, employee growth, noteworthy product or service
innovations, community service efforts and more.
Accounting Today Top Firm
In 2013, Aronson was once again named to Accounting Today’s list of the top 100 firms in
the country. Accounting Today is a leading provider of online business news for the tax and
accounting community.
Washington Business Journal Top 25
Aronson is ranked #12 on the Washington Business Journal’s Top 25 Accounting Firms in
the DC Metropolitan area.
INSIDE Public Accounting Top 100
Once again, Aronson has earned a spot in the top 100 of this prestigious list, released by
INSIDE Public Accounting. This is the longest running, most comprehensive and accurate
independent analysis focusing on management and operations of America’s large local,
regional and national firms.
Washington Business Journal Best Places to Work
Aronson has been recognized five times as one of the Metro area’s “Best Places to Work.”
The award recognizes a company’s achievements in creating a positive work environment
that attracts and retains employees through a combination of employee satisfaction, working
conditions and company culture.
Montgomery County Chamber Corporate Social Responsibility Award
In 2010, Aronson was honored to receive the MCCC’s Corporate Social Responsibility Award
based on the depth and breadth of the company’s energetic commitment to support young people,
in the areas of education, housing and health.

Agenda
• Filing Requirements for an Incurred Cost
Submission
• Required Information needed to commence
preparation
• Preparation of the Incurred Cost Submission
• Ramifications of Non-Compliance
• Statute of Limitations
• Incurred Cost Audit Tips

Filing Requirements for an Incurred Cost
Submission

The Four W’s for an ICS
• WHAT: When a contract contains the following FAR Clause
52.216-7, Allowable Cost and Payment, normally found in
solicitations/contracts that are cost-reimbursement (flexibly priced)
or a time-and-materials contract (other than a contract for
commercial items).

• WHEN: Per FAR 52.216-7(d)(1)(2)(i) The Contractor shall submit
an adequate final indirect cost rate proposal to the Contracting
Officer (or cognizant Federal agency official) and auditor within the
6-month period following the expiration of each of its fiscal years.
– Reasonable extensions, for exceptional circumstances only, may
be requested in writing by the Contractor and granted in writing
by the Administrative Contracting Officer

• WHERE: To your cognizant DCMA and DCAA
Representative
• WHY: Balancing your Checkbook – To settle up on the
amount the Government owes you or the amount you owe
the Government

Quick Summary Reference on Incurred Cost Submission
• It begins with a contract FAR Clause 52.216-7, Allowable
Cost & Payment
– Can be found in Prime and Subcontracts
– Applicable to Cost Type (flexibly priced) and T&Ms
• A submission to “True-up” Provisional Rates to Actual
Rates
• Prepared Annually
– Due 6 months after company year-end

Background on Incurred Cost Submission
Commonly asked questions
• What if I have a T&M contract (prime or subcontract) with
no “M”s?
• What if I have a T&M prime or subcontract and did not
apply G&A on the pass through?
Skilled contract personnel are hard to find!

Who Does NOT Need to File an ICS
• Fixed Price Contracts
• Labor Hour Contracts
• Commercial Contracts
– GSA Contract & Task Orders
• Contracts closed out under the quick close out procedure.
When conditions under FAR 42.708(a) are satisfied
Contracting Officer can settle indirect costs in advance
of final indirect cost rate.

Required Information needed to commence preparation

Where to Begin - Data Checklist
• Trial Balance (in excel format)
• Payroll Reconciliation
– Year-end payroll summary report
– W-2 Summary
– 941 Quarterly Tax Returns
• Statement of Indirect Expenses OR Final FY Indirect Rate
Calculation
• Job/Project Summary Reports (at billing level)
– Flexibly priced government contracts
– Government T&M (normally GSA N/A)
• General Ledger Detail
• A/R History

• Year-end or last invoices (if contract ended prior to fiscal
year) with cumulative for all flexibly priced and T&M
government contracts with the applicable FAR 52.216-7
clause.
• Contract Briefs or Contract Information
– List of contract limitations for all contracts subject to ICS.
– Contract Briefs all for all contracts subject to ICS (Suppl O)
• List of total hours booked by labor category for each
applicable Federal Government T&M contract (usually
GSA task orders N/A).

• Note if each project listed on the ICS is DoD or Non-DoD
and if Prime or Subcontract.
• Note if each project listed on the ICS has physically
ended as of the year. (Yes/No)
• Note if subject to the penalty clause FAR 52.242-3.
• Subcontractor & Consultant information (for those that
worked on any contracts subject to ICS)
• Review General Ledger to ensure all unallowable costs
have not been claimed.

Supplemental Information (only required at time of audit)
• Comparative analysis of indirect expense detailed by
account (Supplemental As)
• General Organization and Executive Compensation
information (Supplemental B)
• Identification of Prime contracts which Contractor perform
as a Subcontractor (Supplemental C)
• Contract Briefs (Supplemental O)

• Certified Financial Statements
• Management Letter from CPA concerning any internal control
weaknesses
• Actions that have been and/or will be implemented to
correct the weakness described in management letter
• List of all Internal Audit Reports Issues since the last
disclosure of the Internal Audit Reports
• Annual Internal Audit plan of scheduled audit to be performed
in the fiscal year when final indirect cost rate submission is
made

• Federal and State Tax Returns
• Securities & Exchange Commission 10K report
• Minutes from Board of Directors meetings
• Listing of delay claims and termination claims
• Description of accounting system
• Procedures for identifying and handling unallowable costs
• List of work sites and the number of employees assigned
to each site

Written Policies
• Segregation of Unallowables
• Bonus Policy
• Labor & Timekeeping
• Subcontractor/Vendor procurement and payments
• Travel Policy
• Billing Policy
– Handling of withholds
– Contract Limitations
– Labor Category & Qualifications

Preparation of the ICS

Develop Custom ICS Model
• Recommend developing your own model &
customize to your company’s indirect rate
structure
• Can use DCAA’s ICE model under checklist &
tools (http://www.dcaa.mil/ice_model.html)
• Drop in Trial Balance and link to Schedules A-E
to calculate the actual rates

Sort The Trial Balance
GL ACCOUNT ACCOUNT NAME EB @ 12/31/2016
SFX ACCT 39 DIRECT LABOR 45,000,000.00
SFX ACCT 41 DL-UNBILLABLE 55,000.00
SFX ACCT 43 DIRECT TRAVEL 250,000.00
SFX ACCT 55 UNBILLABLE ODC'S 100,000.00
SFX ACCT 56 OTHER DIRECT COSTS 350,000.00
SFX ACCT 45 DIRECT SUBK/CONSLT 15,000,000.00
SFX ACCT 46 DIRECT MATERIALS 400,000.00 61,155,000.00 Direct
5001-000-00 PAID TIME OFF (PTO) 5,000,000.00
5001-001-00 BEREAVEMENT LEAVE 76,782.88
5001-002-00 JURYDUTYLEAVE 32,145.18
5001-003-00 MILITARYPAID LEAVE 10,899.32
5010-000-00 HOLIDAY 2,198,321.01
5019-000-00 BONUS 592,878.96
5020-000-00 FICA MATCH 4,702,247.04
5021-000-00 FUTA EXPENSE 56,844.59
5022-000-00 SUTA EXPENSE 403,197.87
5023-000-00 401K CORP MATCH 1,106,497.53
5024-000-00 WORKMAN'S COMP INSURANCE 95,071.02
5025-000-00 HEALTH INSURANCE 4,250,836.72
5026-000-00 LIFE INSURANCE 65,676.60
5027-000-00 SHORT TERM DISABILITY 175,139.77
5028-000-00 LONG TERM DISABILITY 73,073.31
5029-000-00 DENTAL INSURANCE 279,232.47
5030-000-00 HSA CORP MATCH 47,502.94
5031-000-00 ER TRANSIT/PRKG CONTRIB 163,597.10
5050-000-00 EMPL TRAINING/EDUC ASST 418,243.28
5051-000-00 EMPL RELOCATION/MOV ASST 2,000.00
7072-000-00 SERVICE PROVIDER FEES 67,121.63
5065-000-00 FRINGE BENEFIT ADMIN FEES 70,760.58 19,888,069.80 Fringe
70F0-000-00 FACILITIES LABOR 150,000.00
70F0-010-00 FACILITIES OFFICE EXPENSE 97,007.89
70F0-011-00 FACILITIES TEMP SVC/STAFF 53,965.00
70F0-015-00 FACILITIES COMPUTER SUPPL 169,233.08
70F0-016-00 FACILITIES OFFICE SUPPLIE 126,639.15
70F0-020-00 FACILITIES RENT 1,637,580.20
70F0-025-00 FACILITIES COMMUNICATIONS 134,096.39
70F0-030-00 FACILITIES POSTAGE &DELIV 25,818.76
70F0-034-00 FACILITIES REPAIR & MAINT 8,561.12
70F0-035-00 FACILITIES DEPRECIATION 159,079.01
70F0-040-00 FACILITIES AMORT EXP 193,973.76 2,755,954.36 SVC 1
6000-000-00 OVERHEAD SALARIES 2,000,000.00
6001-000-00 OVERHEAD BONUS 200,000.04
6014-000-00 CONFERENCE EXPENSE 13,962.69
6015-000-00 EMPLOYEE TRAINING 6,000.00
6025-023-00 COMMUNICATIONS 1,623.62
6030-000-00 LOCAL TRAVEL 21,032.02
6031-000-00 OUT OF TOWN TRAVEL 14,599.13
6035-022-00 BUSINESS MEALS 30,241.76
6080-000-00 RECRUITMENT 15,000.00 2,302,459.26 Overhead
7000-000-00 GENERAL & ADMIN SALARIES 2,500,000.00
70B0-000-00 BUS DEV LABOR 847,433.52
7001-000-00 GENERAL & ADMIN BONUS 210,000.00
70B0-010-00 BUS DEV CONSULTANTS 45,038.68
70B0-014-00 BUS DEV CONFERENCE EXPENSE 267.00
70B0-030-00 BUS DEV LOCAL TRAVEL 249.27
70B0-031-00 BUS DEV OUT OF TOWN TRAVEL 80,281.38
7010-000-00 CONSULTANTS 185,395.71
7011-000-00 ACCOUNTING AND TAX 183,006.53
7012-000-00 LEGAL 143,286.06
7014-000-00 CONFERENCE EXPENSE 4,395.00
7015-000-00 EMPLOYEE TRAINING 795.00
7030-000-00 LOCAL TRAVEL 3,744.59
7031-000-00 OUT OF TOWN TRAVEL 41,485.20
7050-000-00 DUES & SUBSCRIPTIONS 83,814.42
7070-000-00 LICENSE & TAXES 517,142.94
7071-000-00 BUSINESS INSURANCE 12,410.00
7080-000-00 RECRUITMENT 67,794.12 4,926,539.42 G&A
9100-000-00 CONTRIBUTIONS 1,000.00
9110-000-00 GSA FEE (Should be Contra Revenue) 1,000.00
9120-000-00 PROMOTION & ADVERTISING 1,000.00
9130-000-00 UNALLOW-DEFERRED RENT 1,000.00
9140-000-00 UNALLOW-BANK FEES/FIN CHR 1,000.00
9150-000-00 UNALLOW-PENALTY& INT 1,000.00
9160-000-00 Unallow Advert/Trade Show 1,000.00
9170-000-00 UNALLOWABLE ENTERTAINMENT 1,000.00
9180-000-00 GIFTS 1,000.00
9190-000-00 UNALLOWABLE TRAVEL 1,000.00
9195-000-00 UNALLOWABLE LEGAL 1,000.00
9197-000-00 UNALLOWABLE INCOME TAX 1,000.00 12,000.00 Unallowable
B&P ACCT 39 B&P LABOR 1,100,000.00
B&P ACCT 43 B&P TRAVEL 148,000.00
B&P ACCT 46 B&P MATERIALS 1,200.00
B&P ACCT 56 B&P ODCS 4,500.00 1,253,700.00 B&P
R&D ACCT 39 IR&D LABOR 500,000.00
R&D ACCT 56 IR&D ODCS 5,000.00 505,000.00 IR&D
OUT OF BALANCE (0.00) (0.00)

Sort The Trial Balance
GL ACCOUNT ACCOUNT NAME EB @ 12/31/2016
SFX ACCT 39 DIRECT LABOR 45,000,000.00
SFX ACCT 41 DL-UNBILLABLE 55,000.00
SFX ACCT 43 DIRECT TRAVEL 250,000.00
SFX ACCT 55 UNBILLABLE ODC'S 100,000.00
SFX ACCT 56 OTHER DIRECT COSTS 350,000.00
SFX ACCT 45 DIRECT SUBK/CONSLT 15,000,000.00
SFX ACCT 46 DIRECT MATERIALS 400,000.00 61,155,000.00 Direct
5001-000-00 PAID TIME OFF (PTO) 5,000,000.00
5001-001-00 BEREAVEMENT LEAVE 76,782.88
5001-002-00 JURYDUTYLEAVE 32,145.18
5001-003-00 MILITARYPAID LEAVE 10,899.32
5010-000-00 HOLIDAY 2,198,321.01
5019-000-00 BONUS 592,878.96
5020-000-00 FICA MATCH 4,702,247.04
5021-000-00 FUTA EXPENSE 56,844.59
5022-000-00 SUTA EXPENSE 403,197.87
5023-000-00 401K CORP MATCH 1,106,497.53
5024-000-00 WORKMAN'S COMP INSURANCE 95,071.02
5025-000-00 HEALTH INSURANCE 4,250,836.72
5026-000-00 LIFE INSURANCE 65,676.60
5027-000-00 SHORT TERM DISABILITY 175,139.77
5028-000-00 LONG TERM DISABILITY 73,073.31
5029-000-00 DENTAL INSURANCE 279,232.47
5030-000-00 HSA CORP MATCH 47,502.94
5031-000-00 ER TRANSIT/PRKG CONTRIB 163,597.10
5050-000-00 EMPL TRAINING/EDUC ASST 418,243.28
5051-000-00 EMPL RELOCATION/MOV ASST 2,000.00
7072-000-00 SERVICE PROVIDER FEES 67,121.63
5065-000-00 FRINGE BENEFIT ADMIN FEES 70,760.58 19,888,069.80 Fringe

Schedule B – G&A Pool (Final Claimed Rate)
Schedule B
Account Description
Expenses per
G/L
Adjustments
Expenses
Claimed
Notes Reference
7000-000-00 GENERAL & ADMIN SALARIES 2,500,000.00$ 2,500,000.00$
70B0-000-00 BUS DEV LABOR 847,433.52 847,433.52
_ - -
TOTAL G&A LABOR 3,347,433.52$ -$ 3,347,433.52$
7001-000-00 GENERAL & ADMIN BONUS 210,000.00 210,000.00
70B0-010-00 BUS DEV CONSULTANTS 45,038.68 45,038.68
70B0-014-00 BUS DEV CONFERENCE EXPENSE 267.00 267.00
70B0-030-00 BUS DEV LOCAL TRAVEL 249.27 249.27
70B0-031-00 BUS DEV OUT OF TOWN TRAVEL 80,281.38 80,281.38
7010-000-00 CONSULTANTS 185,395.71 185,395.71
7011-000-00 ACCOUNTING AND TAX 183,006.53 183,006.53
7012-000-00 LEGAL 143,286.06 143,286.06
7014-000-00 CONFERENCE EXPENSE 4,395.00 4,395.00
7015-000-00 EMPLOYEE TRAINING 795.00 795.00
7030-000-00 LOCAL TRAVEL 3,744.59 3,744.59
7031-000-00 OUT OF TOWN TRAVEL 41,485.20 41,485.20
7050-000-00 DUES & SUBSCRIPTIONS 83,814.42 83,814.42
7070-000-00 LICENSE & TAXES 517,142.94 517,142.94
7071-000-00 BUSINESS INSURANCE 12,410.00 12,410.00
7080-000-00 RECRUITMENT 67,794.12 67,794.12
_ - -
_ - -
TOTAL BEFORE ALLOCATIONS & B&P 4,926,539.42$ -$ 4,926,539.42$
ARONSON LLC - EXAMPLE
Schedule B - General and Administrative (G&A) Expenses (Final Indirect Cost Pool)
For The Year Ended 12/31/16

Account Description
Expenses per
G/L
Adjustments
Expenses
Claimed
Notes Reference
Fringe Allocation 1,276,527.04 1,276,527.04 SCHED C-1
Facility SVC 843,946.83 843,946.83 SCHED D
TOTAL BEFORE B&P 4,926,539.42$ 2,120,473.87$ 7,047,013.29$
B&P ACCT 39 B&P LABOR 1,100,000.00 1,100,000.00
B&P ACCT 43 B&P TRAVEL 148,000.00 148,000.00
B&P ACCT 46 B&P MATERIALS 1,200.00 1,200.00
B&P ACCT 56 B&P ODCS 4,500.00 4,500.00
Fringe Allocation 419,479.50 419,479.50 SCHED C-1
Overhead Allocation 118,696.70 118,696.70 SCHED E
TOTAL B&P 1,253,700.00$ 538,176.20$ 1,791,876.20$
R&D ACCT 39 IR&D LABOR 500,000.00 500,000.00
R&D ACCT 56 IR&D ODCS 5,000.00 5,000.00
Overhead Allocation 53,953.04 53,953.04 SCHED E
TOTAL IR&D 505,000.00$ 244,625.54$ 749,625.54$
TOTAL G&A 6,685,239.42$ 2,903,275.61$ 9,588,515.03$

Account Description
Expenses per
G/L
Adjustments
Expenses
Claimed
Notes Reference
Unallowable Costs
9100-000-00 CONTRIBUTIONS 1,000.00 (1,000.00) - (1)
9110-000-00 GSA FEE (Should be Contra Revenue) 1,000.00 (1,000.00) - (1)
9120-000-00 PROMOTION & ADVERTISING 1,000.00 (1,000.00) - (1)
9130-000-00 UNALLOW-DEFERRED RENT 1,000.00 (1,000.00) - (1)
9140-000-00 UNALLOW-BANK FEES/FIN CHR 1,000.00 (1,000.00) - (1)
9150-000-00 UNALLOW-PENALTY& INT 1,000.00 (1,000.00) - (1)
9150-000-00 UNALLOW-PENALTY& INT 1,000.00 (1,000.00) - (1)
9195-000-00 UNALLOWABLE LEGAL 1,000.00 (1,000.00) - (1)
9197-000-00 UNALLOWABLE INCOME TAX 1,000.00 (1,000.00) - (1)
_ - - - (1)
TOTAL UNALLOWABLE 9,000.00$ (9,000.00)$ -$
Unallowable Costs subject to G&A
9170-000-00 UNALLOWABLE ENTERTAINMENT 1,000.00 (1,000.00) - (2) SCHED E
9180-000-00 GIFTS 1,000.00 (1,000.00) - (2) SCHED E
9190-000-00 UNALLOWABLE TRAVEL 1,000.00 (1,000.00) - (2) SCHED E
_ - - - (2) SCHED E
TOTAL UNALLOWABLE 3,000.00$ (3,000.00)$ -$
Explanatory Notes:
(1) Unallowable per FAR 31.2
(2) Unallowable per FAR 31.2 -- Included in the base of G&A on Schedule E

Schedule B-1 – SM&H Pool (Final Claimed Rate) If Applicable
Schedule B-1
Account Description
Expenses per
G/L
Adjustments
Expenses
Claimed
Notes
Refer
ence
70M0-000-00 MATERIAL HANDLNG LABOR 1.00$ 1.00$
_ - -
TOTAL SM&H LABOR 1.00$ -$ 1.00$
70M0-010-00 MATERIAL HANDLNG CONSULT 1.00 1.00
_ - -
TOTAL BEFORE ALLOCATIONS 2.00$ -$ 2.00$
Fringe Allocation 0.26 0.26 SCHED C-2
Facility SVC 0.53 0.53 SCHED D
SVC 2 0.05 0.05 SCHED D-1
TOTAL SM&H POOL 2.00$ 0.85$ 2.85$
- -
TB SCHED H
CLIENT NAME
Schedule B-1 - Subcontract/Material & Handling Costs (Final Indirect Cost Pool)

Schedule C – Overhead(s) Pool (Final Claimed Rate) may have
multiple Schedules
Schedule C
Account Description
Expenses per
G/L
Adjustments
Expenses
Claimed
Notes Reference
6000-000-00 OVERHEAD SALARIES 2,000,000.00$ 2,000,000.00$
_ - -
TOTAL OH LABOR 2,000,000.00$ -$ 2,000,000.00$
6001-000-00 OVERHEAD BONUS 200,000.04 200,000.04
6014-000-00 CONFERENCE EXPENSE 13,962.69 13,962.69
6015-000-00 EMPLOYEE TRAINING 6,000.00 6,000.00
6025-023-00 COMMUNICATIONS 1,623.62 1,623.62
6030-000-00 LOCAL TRAVEL 21,032.02 21,032.02
6031-000-00 OUT OF TOWN TRAVEL 14,599.13 14,599.13
6035-022-00 BUSINESS MEALS 30,241.76 30,241.76
6080-000-00 RECRUITMENT 15,000.00 15,000.00
_ - -
TOTAL BEFORE ALLOCATIONS 2,302,459.26$ -$ 2,302,459.26$
Facility SVC 1,969,209.28 1,969,209.28 SCHED D
TOTAL OVERHEAD 2,302,459.26$ 2,731,899.28$ 5,034,358.54$
- -
TB SCHED H
Schedule C - Overhead Expenses (Final Indirect Cost Pool)

Schedule C-1 – Fringe Pool (Final Claimed Rate)
Schedule C-1
Account Description
Expenses per
G/L
Adjustments
Expenses
Claimed
Notes Reference
5001-000-00 PAID TIME OFF (PTO) 5,000,000.00$ 5,000,000.00$
5001-001-00 BEREAVEMENT LEAVE 76,782.88 76,782.88
5001-002-00 JURYDUTYLEAVE 32,145.18 32,145.18
5001-003-00 MILITARYPAID LEAVE 10,899.32 10,899.32
5010-000-00 HOLIDAY 2,198,321.01 2,198,321.01
5051-000-00 EMPL RELOCATION/MOV ASST 2,000.00 2,000.00
5031-000-00 ER TRANSIT/PRKG CONTRIB 163,597.10 163,597.10
_ - -
TOTAL FRINGE LABOR 7,483,745.49$ -$ 7,483,745.49$
5019-000-00 BONUS 592,878.96 592,878.96
5020-000-00 FICA MATCH 4,702,247.04 4,702,247.04
5021-000-00 FUTA EXPENSE 56,844.59 56,844.59
5022-000-00 SUTA EXPENSE 403,197.87 403,197.87
5023-000-00 401K CORP MATCH 1,106,497.53 1,106,497.53
5024-000-00 WORKMAN'S COMP INSURANCE 95,071.02 95,071.02
5025-000-00 HEALTH INSURANCE 4,250,836.72 4,250,836.72
5026-000-00 LIFE INSURANCE 65,676.60 65,676.60
5027-000-00 SHORT TERM DISABILITY 175,139.77 175,139.77
5028-000-00 LONG TERM DISABILITY 73,073.31 73,073.31
5029-000-00 DENTAL INSURANCE 279,232.47 279,232.47
5030-000-00 HSA CORP MATCH 47,502.94 47,502.94
5050-000-00 EMPL TRAINING/EDUC ASST 418,243.28 418,243.28
5065-000-00 FRINGE BENEFIT ADMIN FEES 70,760.58 70,760.58
7072-000-00 SERVICE PROVIDER FEES 67,121.63 67,121.63
_ - -
TOTAL FRINGE POOL 19,888,069.80$ -$ 19,888,069.80$
Schedule C-1 - Fringe Benefits Expenses (Final Indirect Cost Pool)

Schedule C-1 – Fringe Pool (Final Claimed Rate)
_ - -
TOTAL FRINGE POOL 19,888,069.80$ -$ 19,888,069.80$
Allocation based is over cumulative Total Labor Dollars
Description Total Labor % of Total Allocation Notes Reference
G&A Labor 3,347,433.52 6.42% 1,276,527.04 SCHED B
B&P Labor 1,100,000.00 2.11% 419,479.50 SCHED B
IR&D Labor 500,000.00 0.96% 190,672.50 SCHED B
Overhead Labor 2,000,000.00 3.83% 762,690.00 SCHED C
FAC SVC Labor 150,000.00 0.29% 57,201.75 SCHED D
Direct Labor 45,000,000.00 86.29% 17,160,525.03 TB
DL - Unbillable 55,000.00 0.11% 20,973.98 SCHED B
TOTALS 52,152,433.52$ 100.00% 19,888,069.80$
- 0.00 -
TB ICS SCHED C-1

Schedule D – Facility/IT Service Center (Intermediate Pool)
Schedule D
Account Description
Expenses per
G/L
Adjustments
Expenses
Claimed
Notes Reference
70F0-000-00 FACILITIES LABOR 150,000.00$ 150,000.00$
_ - -
TOTAL FAC LABOR 150,000.00$ -$ 150,000.00$
-
70F0-010-00 FACILITIES OFFICE EXPENSE 97,007.89 97,007.89
70F0-011-00 FACILITIES TEMP SVC/STAFF 53,965.00 53,965.00
70F0-015-00 FACILITIES COMPUTER SUPPL 169,233.08 169,233.08
70F0-016-00 FACILITIES OFFICE SUPPLIE 126,639.15 126,639.15
70F0-020-00 FACILITIES RENT 1,637,580.20 1,637,580.20
70F0-025-00 FACILITIES COMMUNICATIONS 134,096.39 134,096.39
70F0-030-00 FACILITIES POSTAGE &DELIV 25,818.76 25,818.76
70F0-034-00 FACILITIES REPAIR & MAINT 8,561.12 8,561.12
70F0-035-00 FACILITIES DEPRECIATION 159,079.01 159,079.01
70F0-040-00 FACILITIES AMORT EXP 193,973.76 193,973.76
_ - -
TOTAL SERVICE CENTER 2,755,954.36$ 57,201.75$ 2,813,156.11$
Allocated based over Labor Hours for all applicable labor
Description Labor Hours % of Total Allocation Notes Reference
G&A/B&P/IR&D Labor 30.00 30.00% 843,946.83 SCHED B
OH Labor 70.00 70.00% 1,969,209.28 SCHED C
TOTALS 100.00 100.00% 2,813,156.11$
- - -
TB ICS Schedule D
Schedule D - Service Center for Facility Costs (Intermediate Indirect Cost Pool)

Schedule E – Basis of Allocation
Schedule E
Pool & Description
Expenses per
G/L Adjustments
Expenses
Claimed Ref
Fringe Benefits 19,888,069.80$ -$ 19,888,069.80$ Sch C-1 -
Fringe Benefits Base: Allocation
OH Labor 2,000,000.00 2,000,000.00 Sch C 762,690.00
FAC SVC Labor 150,000.00 150,000.00 Sch D 57,201.75
G&A Labor 3,347,433.52 3,347,433.52 Sch B 1,276,527.04
B&P Labor 1,100,000.00 1,100,000.00 Sch B 419,479.50
IR&D Labor 500,000.00 500,000.00 Sch B 190,672.50
Direct Labor 45,000,000.00 45,000,000.00 TB 17,160,525.03
DL - Unbillable 55,000.00 55,000.00 TB 20,973.98
Total Fringe Base 52,152,433.52$ -$ 52,152,433.52$ 19,888,069.80$ -
-
Fringe Rate 38.13%
Overhead Pool 2,302,459.26$ 2,731,899.28$ 5,034,358.54$ Sch C -
Overhead Base: Allocation
Direct Labor 45,000,000.00 45,000,000.00 TB 3,515,250.69
Fringe on DL 17,160,525.03 17,160,525.03 Sch E 1,340,523.28
DL - Unbillable 55,000.00 55,000.00 TB 4,296.42
Fringe on DL 20,973.98 20,973.98 Sch E 1,638.42
B&P Labor 1,100,000.00 1,100,000.00 Sch B 85,928.35
Fringe on B&P 419,479.50 419,479.50 Sch E 32,768.35
IR&D Labor 500,000.00 500,000.00 Sch B 39,058.34
Fringe on IR&D 190,672.50 190,672.50 Sch E 14,894.70
Total Overhead Base 64,446,651.01$ -$ 64,446,651.01$ 5,034,358.54$
-
OH Rate 7.81%
Schedule E - Reconciliation of Claimed Allocation Bases

Schedule E – Basis of Allocation
Schedule E
Pool & Description
Expenses per
G/L Adjustments
Expenses
Claimed Ref
G&A Pool 6,685,239.42$ 2,903,275.61$ 9,588,515.03$ Sch B -
G&A Base: Allocation
Direct Labor 45,000,000.00 45,000,000.00 TB 5,186,020.59
Fringe on DL 17,160,525.03 17,160,525.03 Sch E 1,977,663.02
OH on Direct Labor 4,855,773.96 4,855,773.96 Sch E 559,603.19
DL - Unbillable 55,000.00 55,000.00 TB 6,338.47
Fringe on DL 20,973.98 20,973.98 Sch E 2,417.14
OH on Direct Labor 5,934.83 5,934.83 Sch E 683.96
Direct Travel 250,000.00 250,000.00 TB 28,811.23
Other Direct Costs 350,000.00 350,000.00 TB 40,335.72
Unbilled ODC's 100,000.00 100,000.00 TB 11,524.49
Subcontractors 15,000,000.00 15,000,000.00 TB 1,728,673.53
Materials 400,000.00 400,000.00 TB 46,097.96
U/A subject to G&A 3,000.00 3,000.00 Sch B 345.73
Total Cost Input G&A Base 83,201,207.81$ -$ 83,201,207.81$ 9,588,515.03$
-
G&A Rate 11.52%
Pool Fringe Benefit Expenses - Schedule C-2
Base Total labor dollars excluding fringe labor dollars - Schedule E
Pool Overhead Expenses - Schedule C
Base
Pool General and Administrative Expenses - Schedule B
Base Total Cost Input G&A (total direct costs before B&P/IR&D costs) - Schedule E
Pool Facility Expenses (intermediate) - Schedule D
Base Allocated based over Labor Hours for all applicable labor
Schedule E - Reconciliation of Claimed Allocation Bases
Direct labor & B&P/IR&D dollars and applicable fringes - Schedule H

Proof of Rates – Not Required but Recommended
PROOF
ICS
RATE PER ICS PER TB
Direct Labor 45,000,000.00$ 45,000,000.00$
Fringe Costs 38.13% 17,160,525.03 19,888,069.80
Overhead Rate 7.81% 4,855,773.96 2,302,459.26
DL - Unbillable 55,000.00 55,000.00
Fringe Costs 38.13% 20,973.98
Overhead Rate 7.81% 5,934.83
B&P/IR&D Costs 1,758,700.00
Facility Costs 2,755,954.36
Direct Travel 250,000.00 250,000.00
Other Direct Costs 350,000.00 100,000.00
Unbilled ODC's 100,000.00 350,000.00
Subcontractor 15,000,000.00 15,000,000.00
Materials 400,000.00 400,000.00
Subtotal 83,198,207.81 87,860,183.42
G&A Rate 11.52% 9,588,169.30 4,926,539.42
TOTAL CLAIMED COSTS 92,786,377.11$ 92,786,722.84$
Unallowable Costs Sch B 12,000.00 12,000.00
G&A Alloc on U/A Sch E 345.73
TOTAL COSTS PER ICS 92,798,722.84$ 92,798,722.84$
Immaterial Difference 0.00% - -
Due to Rounding
TOTAL COSTS PER TB 92,798,722.84$ 92,798,722.84$
Proof ICS to Trial Balance

Schedule H
Schedule H
SUFFIX 39 SUFFIX 41 SUFFIX 43 SUFFIX 56 SUFFIX 55 SUFFIX 45 SUFFIX 46
Internal No. Contract No. Direct Labor
Direct Labor -
Non-Billable Travel
Other Direct
Costs Non-Billable
Subcontracts &
Consultants Materials
Total Direct
Costs
US Gov't CPFF Contracts
Flexibly Priced - DoD (Prime)
1000-100 ARONSON-C-0009 5,000.00 1,000.00 250,000.00 256,000.00
1000-200 ARONSON-C-0010 1,000.00 44,881.00 45,881.00
1000-300 ARONSON-C-0011 -
1000-400 ARONSON-C-0012 1,000.00 417,635.00 418,635.00
Flexibly Priced - DoD (Subcontractor)
-
Subtotal US Gov't CPFF 494,454.00$ 5,000.00$ 203,320.00$ 302,629.00$ 23,000.00$ 10,900,919.00$ 205,000.00$ 12,134,322.00$
US Gov't T&M Contracts
Time & Materials - DoD (Prime)
T100-100 ARONSON-07-D-10 500,000.00 500,000.00
T100-200 ARONSON-07-D-11 15,454.00 58,727.00 74,181.00
T100-300 ARONSON-07-D-12 64,743.00 64,743.00
T100-400 ARONSON-07-D-13 457,196.00 457,196.00
T100-500 ARONSON-07-D-14 79,099.00 79,099.00
Time & Materials - DoD (Subcontractor)
-
Subtotal US Gov't T&M 2,289,669.00$ -$ -$ -$ -$ 3,023,605.00$ -$ 5,313,274.00$
2016 TB
Trial Balance for
FY 2016
FFP/Commercial and GSA Task Orders$ 42,215,877.00 $ 50,000.00 $ 46,680.00 $ 47,371.00 $ 77,000.00 $ 1,075,476.00 $ 195,000.00 $ 43,707,404.00
45,000,000.00$ 55,000.00$ 250,000.00$ 350,000.00$ 100,000.00$ 15,000,000.00$ 400,000.00$ 61,155,000.00$
B&P 1,100,000.00 148,000.00 4,500.00 1,200.00 1,253,700.00
IR&D 500,000.00 5,000.00 505,000.00
Total B&P/IR&D 1,600,000.00$ -$ 148,000.00$ 9,500.00$ -$ -$ 1,200.00$ 1,758,700.00$
46,600,000.00$ 55,000.00$ 398,000.00$ 359,500.00$ 100,000.00$ 15,000,000.00$ 401,200.00$ 62,913,700.00$
CHECK SUM - - - - - - -
- - - -
TOTAL ALL COSTS
TOTAL CONTRACT COSTS
Schedule H - Direct Cost by Contract/Subcontract, IR&D/B&P. Direct Incurred, and Indirect Expense Applied at Claimed

Schedule H (Continued)
Schedule H
38.13% 7.81% 11.52%
Fringe Overhead
Direct Costs
& Overhead G&A
Total Claimed
Costs
1,906.73 539.53 258,446.26 29,784.61 288,230.87
- - 45,881.00 5,287.55 51,168.55
- - - - -
- - 418,635.00 48,245.55 466,880.55
- - - - -
190,464.29$ 53,894.13$ 12,378,680.41$ 1,426,579.81$ 13,805,260.22$
- - 500,000.00 57,622.45 557,622.45
5,893.31 1,667.58 81,741.89 9,420.34 91,162.22
24,689.42 6,986.16 96,418.58 11,111.75 107,530.33
- - 457,196.00 52,689.51 509,885.51
30,164.01 8,535.26 117,798.27 13,575.65 131,373.92
- - - - -
873,153.83$ 247,069.22$ 6,433,497.05$ 741,427.74$ 7,174,924.79$
$16,117,880.90 $ 4,560,745.45 $ 64,386,030.34 $ 7,420,161.75 $ 71,806,192.09
17,181,499.01$ 4,861,708.80$ 83,198,207.81$ 9,588,169.30$ 92,786,377.11$
419,479.50 118,696.70 1,791,876.20 1,791,876.20
190,672.50 53,953.04 749,625.54 749,625.54
610,152.00$ 172,649.74$ 2,541,501.74$ 2,541,501.74$
17,791,651.01$ 5,034,358.54$ 85,739,709.55$ 9,588,169.30$ 95,327,878.85$
[Schedule E] [Schedule C] [Schedule B]
(0.00) - - (0.00) (0.00)
- - 0.00
Schedule H - Direct Cost by Contract/Subcontract, IR&D/B&P. Direct

Schedule H – With Indirect Rate Ceilings
Schedule H
38.13% 7.81% 11.52%
Fringe Overhead
Direct Costs
& Overhead G&A
Less: G&A
Over Ceiling
Amount
Total Claimed
Costs
1,906.73 539.53 258,446.26 29,784.61 (6,524.45) 281,706.42
- - 45,881.00 5,287.55 51,168.55
- - - - -
- - 418,635.00 48,245.55 466,880.55
- - - - -
190,464.29$ 53,894.13$ 12,378,680.41$ 1,426,579.81$ (6,524.45)$ 13,798,735.77$
- - 500,000.00 57,622.45 557,622.45
5,893.31 1,667.58 81,741.89 9,420.34 91,162.22
24,689.42 6,986.16 96,418.58 11,111.75 107,530.33
- - 457,196.00 52,689.51 509,885.51
30,164.01 8,535.26 117,798.27 13,575.65 131,373.92
- - - - -
873,153.83$ 247,069.22$ 6,433,497.05$ 741,427.74$ -$ 7,174,924.79$
$16,117,880.90 $ 4,560,745.45 $ 64,386,030.34 $ 7,420,161.75 $ - $ 71,806,192.09
17,181,499.01$ 4,861,708.80$ 83,198,207.81$ 9,588,169.30$ (6,524.45)$ 92,779,852.65$
419,479.50 118,696.70 1,791,876.20 1,791,876.20
190,672.50 53,953.04 749,625.54 749,625.54
610,152.00$ 172,649.74$ 2,541,501.74$ 2,541,501.74$
17,791,651.01$ 5,034,358.54$ 85,739,709.55$ 9,588,169.30$ 95,321,354.40$
[Schedule E] [Schedule C] [Schedule B]
(0.00) - - (0.00) (0.00)
- - 0.00
Schedule H - Direct Cost by Contract/Subcontract, IR&D/B&P. Direct Incurred, and Indirect

Schedule I
Internal No. Contract No.
Subject
to
Penalty
Clause
Prior Year
Settled Cost
Prior Year
Costs 2012
Prior Year Costs
2013
Prior Year Costs
2014
Prior Year Costs
2015
Current Year
Costs FYE 2016
Total Cumulative
Settled or
Claimed
Less Contract
Limitations
Rebates/ Credits
Net Cumulative
Settled or
Claimed
Cost Plus - All DoD
Prime SCHED H
1000-100 ARONSON-C-0009 YES 10.00$ 10.00$ 10.00$ (6,524.45)$ (6,494.45)$ (278,811.23)$ (285,305.68)$
1000-200 ARONSON-C-0010 YES 10.00 10.00 10.00 - 30.00 (50,053.31) (50,023.31)
1000-300 ARONSON-C-0011 YES 10.00 10.00 10.00 - 30.00 - 30.00
1000-400 ARONSON-C-0012 YES 10.00 10.00 10.00 - 30.00 (465,765.30) (465,735.30)
- - -
Subcontractor SCHED H - -
- - -
TOTAL Cost Plus -$ -$ 100.00$ 100.00$ 100.00$ (6,524.45)$ (6,224.45)$ (12,494,884.40)$ (12,501,108.85)$
T&M Contracts - DoD SCHED K
Subcontractor
T100-100 ARONSON-07-D-10 NO 10,000.00$ 10,000.00$ 10,000.00$ 10,000.00$ 1,155,314.92$ 1,195,314.92$ (557,622.45)$ 637,692.47$
T100-200 ARONSON-07-D-11 NO 10,000.00 10,000.00 10,000.00 10,000.00 148,225.97 188,225.97 (65,494.99) 122,730.98
T100-300 ARONSON-07-D-12 NO 10,000.00 10,000.00 10,000.00 10,000.00 72,205.30 112,205.30 - 112,205.30
T100-400 ARONSON-07-D-13 NO 10,000.00 10,000.00 10,000.00 10,000.00 1,019,772.02 1,059,772.02 (509,885.51) 549,886.51
T100-500 ARONSON-07-D-14 NO 10,000.00 10,000.00 10,000.00 10,000.00 88,215.76 128,215.76 - 128,215.76
- -
- -
- -
Total T&M -$ 100,000.00$ 100,000.00$ 100,000.00$ 100,000.00$ 9,337,740.82$ 9,737,740.82$ (3,372,060.06)$ 6,365,680.76$
-$ 100,000.00$ 100,100.00$ 100,100.00$ 100,100.00$ 9,331,216.37$ 9,731,516.37$ (15,866,944.46)$ (6,135,428.09)$
Explanatory Notes:
(1)
(2)
TOTAL CONTRACTS
CUMULATIVE CLAIMED
Schedule I - Schedule of Cumulative Direct and Indirect Cost Claimed & Billed

Schedule I (Continued)
Schedule I
PV No.
Date Cost
Billed Through Amount
Over (Under)
Billing Note(s)
Physically
Complete
Y/N Contract Value
Remaining
Funding
1000 12/31/11 14,493,270.06$ 14,778,575.74$ YES 16,000,000.00 1,506,729.94
1001 04/30/11 312,297.45 362,320.76 YES 300,000.00 Over Funding Limit
1002 04/30/11 1,838,163.52 1,838,133.52 YES 2,000,000.00 161,836.48
1003 04/30/11 1,156,722.04 1,622,457.34 YES 2,000,000.00 843,277.96
-
-
-
95,946,393.51$ 108,447,502.36$
2000 12/31/12 627,690.00$ (10,002.47)$ YES 700,000.00 72,310.00
2001 12/31/12 112,730.00 (10,000.98) NO 700,000.00 587,270.00
2002 12/31/12 102,202.00 (10,003.30) NO 700,000.00 597,798.00
2003 12/31/12 539,887.00 (9,999.51) NO 700,000.00 160,113.00
2004 12/31/12 118,215.00 (10,000.76) NO 700,000.00 581,785.00
-
-
-
6,265,683.00$ (99,997.76)$
102,212,076.51$ 108,347,504.60$
CUMULATIVE BILLED

Schedule K
Schedule K
INTERNAL NUMBER: T100-100
PRIME CONTRACT NO.: ARONSON-07-D-11
LABOR RATE HRS AMOUNT OTHER COSTS AMOUNT
WH Specialist II 35.18$ 1,139.00 40,070.02 Travel -
- ODCs -
- Non-Billable 500,000.00
- Subk/Conslt. -
- Materials 500,000.00
- Sub-Total 1,000,000.00
-
- G&A @: 11.52% 115,244.90
-
- Subtotal 1,115,244.90
-
- TOTAL 1,155,314.92$
-
Subtotal - Labor 1,139.00 40,070.02 Task Ceiling
INTERNAL NUMBER: T100-200
PRIME CONTRACT NO.: ARONSON-07-D-11
LABOR RATE HRS AMOUNT OTHER COSTS AMOUNT
WH Specialist II 1.00$ 1.00 1.00 Travel -
- ODCs -
- Non-Billable 58,727.00
- Subk/Conslt. -
- Materials 74,181.00
- Sub-Total 132,908.00
-
- G&A @: 11.52% 15,316.97
-
- Subtotal 148,224.97
-
- TOTAL 148,225.97$
-
Subtotal - Labor 1.00 1.00 Task Ceiling
Schedule K- Summary of Hours and Amounts on T&M/Labor Hour Contracts

Ramifications of Non-Compliance

Associated Risk for non-compliance:
• Administrative Contracting Officer (ACO) can unilaterally decrement
your rates up to 16.2% if submissions are not on time! (FAR 42.703-
2(c)(2))
• Rates established unilaterally will be:
̶ Based on audited historical data or other available data as long
as unallowable costs are excluded; and
̶ Set low enough to ensure that unallowable costs will not be
reimbursed.
Be timely with your submissions!

Failure to provide an Incurred Cost Submission can also
compromise the status of your accounting system.
Failed accounting system affects your ability
to win new/follow-on work

Unallowables and Penalties
Unallowable Cost
• DCAA’s guidance on Identifying Expressly Unallowable Costs!!
Penalties
• Penalties for claiming unallowable costs FAR 42.709-1.
• If the indirect cost is expressly unallowable under a cost principle in the FAR, the
penalty is equal to—
– Deemed Unallowable during Audit
• The amount of the disallowed costs allocated to contracts that are subject
to this section; plus
• Interest on the paid portion, if any.
– Deemed Unallowable prior to ICS
• Two times the amount of the disallowed costs allocated to contracts that
are subject to this section; plus
• Interest on the paid portion, if any.
These penalties are in addition to other administrative, civil,
and criminal penalties provided by law.

Statute of Limitations

• In October, 1994, the Federal Acquisition Streamlining Act
(FASA) established a six (6) year Statute of Limitations for
claims under the Contract Disputes Act (CDA).
• FAR Clause 33.206 Initiation of a claim
• (b) The contracting officer shall issue a written decision on any
Government claim initiated against a contractor within 6 years
after accrual of the claim, unless the contracting parties
agreed to a shorter time period. The 6-year period shall not
apply to contracts awarded prior to October 1, 1995, or to a
Government claim based on a contractor claim involving fraud.

• “Accrual of a claim” means the date when all events, that fix
the alleged liability of either the Government or the contractor
and permit assertion of the claim, were known or should have
been known. For liability to be fixed, some injury must have
occurred. However, monetary damages need not have been
incurred.
• Historically this was thought by the Government to start tolling
on the date the audit was complete. However, based on 2
recent court decisions (Boeing and Raytheon) it is in fact per
the date of submission (were known or should have been
known).

Schedule N
This is to certify that I have reviewed this proposal to establish final indirect cost rates and to the best
of my knowledge and belief:
1. All costs included in this proposal to establish final indirect cost rates for the period January 1, 2016
to December 31, 2016, are allowable in accordance with the cost principles of the Federal Acquisition
Regulation (FAR) and its supplements applicable to the contracts to which the final indirect cost rates
will apply; and
2. This proposal does not include any costs which are expressly unallowable under applicable cost
principles of the FAR or its supplements.
Firm: ARONSON LLC - EXAMPLE
Signature:
Name of Certifying Official:
Title:
Date of Execution:
FAR Part 52.242-4-- Certification of Final Indirect Costs.
As prescribed in 42.703-2(f), insert the following clause: Certification of Final Indirect Costs (Jan 1997)
(a) The Contractor shall --
(1) Certify any proposal to establish or modify final indirect cost rates;
(2) Use the format in paragraph (c) of this clause to certify; and
(3) Have the certificate signed by an individual of the Contractor's organization
at a level no lower than a vice president or chief financial officer of the business
segment of the Contractor that submits the proposal.
(b) Failure by the Contractor to submit a signed certificate, as described in this
clause, may result in final indirect costs at rates unilaterally established by the
Contracting Officer.
(c) The certificate of final indirect costs shall read as follows: (see above)
Schedule N- Certificate of Final Indirect Costs

This means there are 3 areas contractors need to be aware of:
1. This is encouraging DCAA to deem contractors ICS as
inadequate and have them recertify.
2. Contractors should not recertify unless the revisions change
the indirect rates proposed. This will restart the clock.
3. Contracting Officers not likely to negotiate with contractors
when the clock is running out. The Government will
unilaterally determine the rates.

Tips for Surviving an ICS Audit

TIP #1
Adequate Incurred Cost Submission
• Proof the Trial Balance to Submission
• Verify that all unallowables have been removed
• Go to each Tab and validate information ties to related schedules
• Verify formulas and hyperlinks throughout
• Make sure to sign AND date Schedule N
• Save all data used to develop ICS
• Pull DCAA’s checklist and verify before submission
(http://www.dcaa.mil/incurred_cost_checklist.html)

TIP #2
Compiled Data for Audit
Stephen Covey’s, The 7 Habits of Highly Effective People
“Begin with the End in Mind”
• Have support data available, accessible and with copy of submission.
– The audit of the incurred cost submission will likely occur at a later date
(often much later).
– The individual who prepared the submission or support data may not
be accessible or even working for your organization
– Appoint a point of contact who will manage the audit, review all data
provided and follow up on all requests.

TIP #3
Common Pitfalls to Avoid
• Lack of adequate documentation to support cost
• Lack of description of work provided by subcontractors &
consultants
• Reclassification of time without proper description &
approval
• Out of period costs claimed
• Forgetting to put certain Unallowables in the base of G&A
• Forgetting to account for Indirect Rate Ceilings

TIP #4
Common Questioned Costs
• Business Meetings
• Employee Moral
• Executive Compensation
• Bonuses
• Credit Card Expenses (Travel & Per Diem)
• Marketing Costs
• Leased Autos
• Legal Fees
• Management Fees

DCAA Resources & Audit Programs
Go to DCAA web site  http://www.dcaa.mil/
 Under Guidance
• Contract Audit Manual (CAM) – Chapter 6 Incurred Cost Audit Procedures
• Selected Area of Cost Guidebook: FAR 31.205 Cost Principles
• FAR Cost Principles Guide
 Directory of Audit Programs
• Risk Assessment Checklist
• Audit Program for Incurred Costs - Post Year End Incurred Cost Audit – AP 10100
(Feb 2016)
 Audit Process Overview
• Information for Contractors
 Under Checklist and Tools
• Incurred Cost Electronically (ICE) (customize to contractor indirect rate structure)
• Incurred Cost Adequacy Checklist

Donna Dominguez is a director in Aronson LLC’s Government Contract
Services Group, where she provides a wide range of financial compliance
advisory services for government contractors. She is experienced in matters
related to Federal Acquisition Regulations (FAR), cost accounting standards
(CAS), incurred cost submissions, DCAA/cognizant audit support, provisional
billing rates, establishing/revising indirect rate structures and cost proposal
support.
Donna works with contractors to help them grow their business while keeping
their accounting systems adequate in the eyes of the government and their
billing systems current and relevant. She is also involved in supporting the
government contracting community as a frequent guest speaker on a variety of
compliance topics.
Donna earned her bachelor’s degree in accounting from the University
Maryland and has completed additional coursework in contracts administration.
She is a contributor to Aronson’s Fed Point blog and has co-authored articles
for NCMA Contract Management Magazine.
Director, Government Contract Services Group
301.222.8232
ddominguez@aronsonllc.com
Donna M. Dominguez

301.222.8232
Contact Donna Dominguez / Aronson LLC
ddominguez@aronsonllc.com
https://www.linkedin.com/in/donna-
dominguez-664b26b
https://twitter.com/Aronsonllc

Aisha N. Mian is a managing consultant in Aronson LLC’s
Government Contract Services Group. She has more than eight
years of experience in the government contracting industry, with
expertise in both project control and financial compliance. Her
professional skills include contract/project financial analysis and
various areas of financial compliance, including preparation of
incurred cost submissions; support in evaluating, preparing and
advising appropriate indirect rate structures; preparation of disclosure
statements; and analysis and impact of cost accounting standards
(CAS). She has also worked alongside in-house DCAA auditors
supporting audits for incurred cost submissions during her time in the
industry.
Aisha has been a guest speaker on financial and government
contracting topics at the GWSCPA Government Contracting
Conference and has hosted Aronson LLC webinars related to
government contracting topics. She earned her bachelor’s degree in
finance from George Mason University and her MBA from the Robert
H. Smith School at the University of Maryland College Park.
Managing Consultant, Government Contract Services Group
240..364.2614
amian@aronsonllc.com
Aisha N. Mian

240.364.2614
Contact Aisha Mian / Aronson LLC
amian@aronsonllc.com
https://www.linkedin.com/in/aishamian
https://twitter.com/Aronsonllc

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