Defense, Aerospace & Government Contracting

How to Record Mentor-Protege Program Costs

Recording expenses incurred under an approved DOD Mentor-Protege agreement to provide technical or developmental assistance.

Account NameTypeDebit ($)Credit ($)
Mentor-Protege Developmental CostsDebit15,000.00-
Cash or Accrued PayrollCredit-15,000.00

💡 Accountant's Note

Costs incurred by a mentor firm for providing assistance to a protege firm under a formal agreement are captured here for tracking and potential reimbursement or credit toward small business goals.

Practitioner & Systems Framework

💻 ERP Architecture

Set up a specific project code or work breakdown structure (WBS) to segregate these costs from standard G&A.

⚠️ Audit Flags

Verification of the formal DOD Mentor-Protege agreement approval letter and alignment with FAR 31.205-1.

📄 Required Documentation

Mentorship agreement, labor timecards specifically coded to the protege assistance, and expense receipts.

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Expert Analysis by Qusai Ahmad

General Accountant Supervisor & IFRS Specialist

Specialized in SAP GUI automation and Middle Eastern tax compliance. Building digital tools for the next generation of finance leaders.

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