How to Record TINA Interest Penalties
Recording interest penalties owed to the government due to defective pricing identified under the Truth in Negotiations Act (TINA).
| Account Name | Type | Debit ($) | Credit ($) |
|---|---|---|---|
| Unallowable Fines and Penalties | Debit | 1,500.00 | - |
| Liability to U.S. Government | Credit | - | 1,500.00 |
💡 Accountant's Note
Under TINA, if a price was increased due to defective data, the government is entitled to interest on the overpayment. This interest is specifically unallowable.
Practitioner & Systems Framework
💻 ERP Architecture
Recording the liability as a separate payable to the US Treasury to avoid comingling with vendor AP.
⚠️ Audit Flags
Post-award audit findings by DCAA identifying defective certified cost or pricing data.
📄 Required Documentation
DCAA audit report, contracting officer's final decision, and interest calculation workpapers.
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