How to Record Lobbying Salary Allocation
Accounting for the specific portion of employee salary dedicated to lobbying activities, which are unallowable under FAR 31.205-22.
| Account Name | Type | Debit ($) | Credit ($) |
|---|---|---|---|
| Unallowable Lobbying Labor | Debit | 4,500.00 | - |
| Indirect Labor Expense | Credit | - | 4,500.00 |
💡 Accountant's Note
This entry reclassifies labor costs from a standard indirect labor pool to an unallowable account to ensure they are not included in the indirect rate calculation for government contracts.
Practitioner & Systems Framework
💻 ERP Architecture
Use a unique pay code in the timekeeping system that maps to an unallowable G/L account.
⚠️ Audit Flags
DCAA audits of labor charging and timesheet floor checks for employees listed on lobbying disclosure reports.
📄 Required Documentation
Lobbying disclosure forms and detailed labor distribution reports (LDRs).
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