How to Record Unallowable Lobbying Costs
Reclassifying costs associated with lobbying activities to an unallowable account to ensure they are not included in indirect rate calculations per FAR 31.205-22.
| Account Name | Type | Debit ($) | Credit ($) |
|---|---|---|---|
| Unallowable Expense - Lobbying | Expense | 12,000.00 | - |
| G&A Expense Pool - Salaries | Expense | - | 12,000.00 |
💡 Accountant's Note
Per FAR regulations, lobbying costs are unallowable and must be segregated into a non-billable account to prevent them from inflating the G&A rate applied to government contracts.
Practitioner & Systems Framework
💻 ERP Architecture
Use a specific 'non-allowable' account range (e.g., 9000-series) that is excluded from the indirect pool allocation logic.
⚠️ Audit Flags
DCAA audits focusing on executive compensation and timekeeping for government relations personnel.
📄 Required Documentation
Timesheets with labor codes for legislative activities and detailed ledger descriptions.
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Discussion & Community Questions
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