The Course Curriculum & Faculty

Day One

The CAS System: Administration and Enforcement

Matthew Haws, Jenner & Block 

The CAS System: A concentrated explanatory briefing on the scope, scheme, operating mechanisms, and general impact of the Cost Accounting Standards system. Applicability of Cost Accounting Standards and Disclosure Statement requirements to: (a) defense prime contracts and subcontracts, (b) non-defense prime contracts and subcontracts, (c) corporate divisions, (d) corporate subsidiaries. Relationship of Cost Accounting Standards to the allowability of costs. The contract clauses that implement the Standards — an analysis of their provisions, functions, and application.

Administration & Enforcement: Duties and rights of Government contractors and their subcontractors. Responsibility of the procuring agencies for administration and enforcement of the Standards. The critical cost impact of changes (required by the Standards in cost accounting prices). Adjustments in contract prices — upward and downward — resulting from the Standards. Procedures for negotiating price adjustments including coordinated negotiation. Current CAS problem areas.

Disclosure Statements; Cost Accounting Practices

Deboarh Nixon, Crosshair Advisors LLC

Disclosure Statements: Their purpose, content, submission, review — a study of what’s required and what’s not.

Cost Accounting Practices: A survey of acceptable accounting systems, reasonable cost accounting practices, and the Accounting Standards relating to these areas.

• Standard 401 — Consistency in Estimating, Accumulating, and Reporting Costs
• Standard 402 — Consistency in Allocating Costs Incurred for the Same Purpose
• Standard 405 — Accounting for Unallowable Costs
• Standard 406 — Cost Accounting Period

Day Two

Home Office, G&A Expense, Overhead, and IR&D

Deborah Nixon, Crosshair Advisors LLC

• Standard 403 — Allocation of Home Office Expense
  to Segments
• Standard 410 — Allocation of G&A Expense
• Standard 418 — Allocation of Direct and Indirect Costs
• Standard 420 — Accounting for IR&D and B&P Costs

Analyses of Specific Standards
The critical current Cost Accounting Standards have been grouped into four substance-related categories that will be covered in the following sessions. For each category, the assigned Faculty member will: (a) explain the requirements of the Standards; (b) analyze their features — the good, the bad, the unusual; (c) point out any gaps or loopholes in their coverage; (d) indicate any inconsistencies that exist between the Standards and (i) generally accepted accounting principles, (ii) the cost principles applicable to Government contracts, and (iii) accounting for tax purposes; and (e) cover the mechanics and problems of transition from previously acceptable procedures to the Standards.

Tangible Assets and Capital
Deborah Nixon, Crosshair Advisors LLC

• Standard 404 — Capitalization of Tangible Assets
• Standard 407 — Use of Standard Costs for Direct Material and Direct Labor
• Standard 409 — Depreciation of Tangible Capital Assets
• Standard 411 — Accounting for Acquisition Costs of Material
• Standard 414 — Cost of Money as an Element of the Cost of Facilities Capital
• Standard 416 — Accounting for Insurance Costs
• Standard 417 — Cost of Money as an Element of Cost of Facilities Under Construction

Day Three

Compensation of Personnel

William Romenius

• Standard 408 — Compensated Personal Absence
• Standard 412 — Compensation and
• Measurement of Pension Costs
• Standard 413 — Adjustment and Allocation of
  Pension Costs
• Standard 415 — Accounting for the Cost of
  Deferred Compensation