How to Record DCAA Forward Pricing Audit Costs
Accounting for labor and consulting costs incurred while supporting a DCAA audit of a Forward Pricing Rate Proposal (FPRP).
| Account Name | Type | Debit ($) | Credit ($) |
|---|---|---|---|
| G&A Expense - Audit Support (Allowable) | Expense | 5,400.00 | - |
| Accrued Payroll | Liability | - | 5,400.00 |
💡 Accountant's Note
Labor costs for employees responding to DCAA data requests during a rate audit are generally allowable G&A expenses as they benefit the company's entire government contracting base.
Practitioner & Systems Framework
💻 ERP Architecture
Set up a unique indirect charge code for 'FPRP Audit Support' to track effort separately from routine accounting.
⚠️ Audit Flags
Significant variances between proposed rates and audited rates leading to excessive support time.
📄 Required Documentation
DCAA audit notification, timecards showing specific audit support hours, and the resulting audit report.
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Discussion & Community Questions
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