Organizations that work for the government are required to stay compliant with all the accounting standards set forth by the Cost Accounting Standards Board (CASB). If you are unsure whether your organization is currently in compliance or have been turned down for a government contract due to a lack of compliance, the CPAs at Diener & Associates can assist you with obtaining compliance or regaining compliance by determining the reason for being in violation.
What Are The Cost Accounting Standards?
The Cost Accounting Standards (CAS) is a list of nineteen accounting standards put forth by the Cost Accounting Standards Board (CASB) that dictates the procurement and pricing of government contracts. CAS creates consistency between and within contractors’ cost accounting practices. This regulates contract prices and what can be charged to the appropriate contracts, as well as dictating how to maintain your accounting systems and how the costs must flow from purchase to final cost. CAS compliance refers to verifying that the nineteen standards are adopted and implemented within an organization.
The dollar amount of a contract or subcontract determines whether it is subject to CAS and what level of coverage is required. Full contracts must follow all nineteen standards, while modified contracts are only required to follow four standards. Companies with full coverage contracts must also file a CAS Disclosure Statement that outlines a company’s accounting practices.
The Importance of CAS Compliance
The Cost Accounting Standards were created to achieve uniformity and consistency in the pricing of goods and services. It also facilitates the administration, negotiation, and settlement of contracts.
CAS aligns with generally accepted accounting principles (GAAP) and is usually used by auditors as a guideline even if the contract does not fall under CAS jurisdiction. When costs are significant, some standards apply to all contractors even though a contract may not be covered under CAS. An inability to comply with CAS could lead to an inability to receive future work on government contracts or the cancelation of a current contract.
CAS Compliance With Diener & Associates
Diener & Associates makes remaining CAS compliant more manageable. By trusting our CPAs to maintain your CAS compliance, your employees will not have to spend time on tasks such as financial recording and bookkeeping and your organization can focus on what it does best. Our CPAs specialize in government contract accounting and understand every detail regarding CAS and maintaining compliance with other federal regulations.
Speak With Our CAS Compliance Professionals To Learn More
Following and implementing all necessary cost accounting standards can prevent you from focusing on the overall growth and development of your organization. Our professionals can conduct a thorough assessment of your current CAS compliance protocol and identify ways to improve your compliance. Contact us by phone at 703.386.7864 or schedule a consultation online for more information about CAS and for insights on how your organization can obtain compliance today.zx