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Question and Answers

  • Accounting Treatment of Officer and Office Salaries
  • Allowability of Severance Costs
  • Appeal Steps After DCAA Issues a Form 1
  • Are IR&D Costs For Commercial Items Allowable
  • Are Material and Subcontract Fees Appropriate
  • Avoid Providing Cost Breakdown on Subcontract Invoice
  • Can We Rescind an Incurred Cost Proposal and Resubmit a New One
  • Early Check In Fees Allowable
  • Establishing Commercial Item Status
  • FAR Requirements for Scanned Documents
  • How to Obtain an Audit of Our Accounting System
  • Is Applying a G&A Rate Mandatory
  • Is Compensation For Employee Release Agreements Allowable
  • Is Fixed Fee on CPFF Contract Really Fixed
  • Meaning of Requirement to Monitor Subcontractor Costs
  • Profit and G&A Rates on “Pass Through” Items
  • Submitting an Incurred Cost Proposal After Being Acquired
  • Treatment of Building Costs For Classified Work
  • When is Key Man Insurance Allowable
  • Where Should Personal Property Taxes Be Allocated
  • “Reasonableness” of Business Meals
  • Newsletters
  • Report

When is Key Man Insurance Allowable

Q. Is key man insurance allowable when the company is the beneficiary? If not, can we change incurred cost proposals that made it allowable?

A. No. The key man insurance you described is unallowable. However, insurance costs whose beneficiary is the family are allowable. Yes, the ICP can be rescinded and changed before an audit is begun.

Consulting Services

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Who we have worked with

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  • Over 50 CAS Covered Contractors
  • Hundreds of Small and Mid-Sized Companies
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