Cherry Bekaert: Government Contractors Guidance Cherry Bekaert

In the third episode of Cherry Bekaert’s Cost Accounting Standards (CAS) podcast series, Brendan Halloran, a Director with Cherry Bekaert Advisory, is joined by Jeffery Annessa, a Senior Manager in Cherry Bekaert’s Government Contractor Industry practice, to discuss CAS implications during mergers and acquisitions. 

Cherry Bekaert’s government contracting consulting team has years of CAS experience and can help you navigate CAS compliance issues or disclosure statement development.

This episode highlights key topics to help guide your business forward, including:
Scenarios and implications to CAS when:A CAS-covered company acquires a company that is non-CAS coveredA non-CAS covered company acquires a company with CAS coverageThe two most common approaches on how to treat the company you are acquiring, specifically:A legal entity dissolved and integrated fullyA legal entity being maintained as a wholly owned subsidiaryUnderstanding CAS structure as it relates to the companySteps to consider when merging with or acquiring a companyCommon areas that do not constitute a cost accounting practice changeImpacts and considerations when the acquired company is CAS coveredAreas a CAS-covered company should focus their attention on when acquiring, including:Transitional accounting periodIndirect rate structureSimilarity of laborAllocationsRestructuring costPitfalls to avoidAreas a non-CAS covered company should focus their attention on when acquiring, such as:Analysis of the CAS-covered contracts to understand period of performance, numbers and money magnitudeAdditional exposureCompliance requirementsIf you haven’t already, catch up on part one and two of the series:
Cost Accounting Systems Series: Part 1 – An OverviewCost Accounting Systems Series: Part 2 – Growing a GovCon Related Guidance
Webinar Recording: Cost Accounting Standards (CAS): Part 1 – CAS Coverage Types, Common Standards, and CAS ApplicabilityWebinar Recording: Cost Accounting Standards (CAS): Part 2 – Cost Accounting Changes and ImpactView all Government Contracting Podcasts

On December 26, 2023, the proposed rule for the Department of Defense (DoD) Cybersecurity Maturity Model Certification (CMMC) Program was published in the Federal Register. 
Listen to Eric Poppe, a Managing Director in Cherry Bekaert’s Government Contractor Industry practice and Brian Kirk, Senior Manager in the Firm’s Information Assurance & Cybersecurity practice, as they share insights into the proposed rule, including the surprises that came out and DoD’s timing for implementation.
Refresher on CMMC Level 1 Self-Assessment, CMMC Level 2 Self-Assessment + CMMC Third-Party Assessment Organization (C3PAO) Assessment, and CMMC Level 3 Government-Led AssessmentEquivalency: Cloud Service Provider (CSP) and External Service Provider (ESP)Phased Implementation (DoD rollout in solicitations)Final Certification vs. Conditional CertificationCMMC Level 3 requires a CMMC Level 2 Final CertificationDefense Industrial Base Cybersecurity Assessment Center (DIBCAC) High conversion to CMMC Level 2 Final Certification for perfect scoresCost ConsiderationsHow do I prepare for CMMC certification?
If you have any questions regarding CMMC, Cherry Bekaert’s Information Assurance & Cybersecurity and Government Contracting advisors are available to discuss your situation with you. 
Cherry Bekaert is an authorized CMMC Third-Party Assessment Organization (C3PAO) by the Cybersecurity Maturity Model Certification (CMMC) Accreditation Body, Inc. (The Cyber AB). We assist Organization’s Seeking Certification (OSCs) with CMMC readiness assessments for Levels 1, 2 and 3. Additionally, as an authorized C3PAO, Cherry Bekaert partners with the Defense Contractor Management Agency (DCMA) Defense Industrial Base Cybersecurity Assessment Center (DIBCAC) under their Joint Surveillance audit program to perform DIBCAC High (NIST 800-171) Assessments which are convertible to CMMC Level 2 Certification, if a perfect score is obtained. 
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In this episode of Cherry Bekaert’s GovCon Podcast series on the Small Business Administration’s (SBA) 8(a) Business Development Program, Brynn McNeil and Craig Hunter, assurance partners in Cherry Bekaert’s Government Contracting Industry practice, discuss accounting best practices for 8(a) companies. Listen to find out about:
Setting up an accounting system to segregate costsChart of AccountsIndirect ratesReporting functionality for:Contract revenue summary by contractShowing cumulative revenueAnnual revenueDirect costsImportance of month end reconciliations of balance sheet account Recent accounting pronouncements that impact accounting ASC 505ASC 842What to consider when selecting an accounting system Accounting department general housekeeping best practicesCherry Bekaert’s team of government contracting consultants have extensive experience in navigating the SBA 8(a) Business Development Program and can assist your business with accounting best practices. If you have any questions specific to your situation, our GovCon consultants are available to discuss your situation with you. Contact us.
If you haven’t already, catch up on other episodes in our podcast series discussing various aspects of the Small Business Administration’s (SBA) 8(a) Business Development Program:
The SBA 8(a) Business Development Program – What Is It and What Are the Requirements?The SBA 8(a) Business Development Program Application Process and RequirementsWhat Are the Compliance Requirements for 8(a) Certified Companies?Winning an SBA 8(a) Sole Source Award Contract – What’s Involved and What to KnowWinning an 8(a) Competitive ContractSmall Business Administration (SBA) Mentor-Protégé ProgramSBA Mentor-Protégé & Joint Venture Arrangements – Important Elements of the AgreementThe lifecycle of an 8(a) CompanyOIG Report: SBA’s Business Development Assistance to 8(a) Program ParticipantsContract Performance After the SBA 8(a) Business Development ProgramView all Government Contracting Podcasts

In the first episode of a new series on effective operational and financial performance for government contractors, Eric Poppe, a Managing Director in Cherry Bekaert’s Government Contracting Industry practice, is joined by Todd Angioli, a Director in the Firm’s GovCon practice with 20+ years of financial operations experience, to discuss considerations when budgeting for year end. Listen to this episode to find out more about:


What government contractors should consider during year end and while budgeting for the next calendar yearHigh-level considerations when reviewing the operating plan:RevenueDirect LaborFringeOverheadGeneral and Administrative Expenses (G&A)Bottom Line Key budget planning areas:Recompete/New BusinessResourcesWhat growing government contractors should be doing at year endCherry Bekaert’s team of government contracting consultants have significant operations and finance experience. If you have any questions specific to your situation, our GovCon consultants are available to discuss your situation with you. Contact us.
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In the second episode of Cherry Bekaert’s Cost Accounting Standards (CAS) podcast series, Eric Poppe, a Managing Director in Cherry Bekaert’s Government Contracting Industry practice, is joined by Jeff Annessa, a Senior Manager in the Firm’s GovCon practice who spent 13+ years with DCAA and held various positions such as Quality Manager, Supervisory Auditor, Field Audit Office Manager, and Artan Ivezaj, a manager in Cherry Bekaert’s GovCon practice with 15 years of experience at the DCAA, to discuss CAS considerations for a growing GovCon. Listen to this the episode to find out more about:
When a company should start thinking about CASThe difference between full and modified CAS coverageExplanation of the fundamental requirements of CAS 401 and 402CAS 401: Consistency in Estimating, Accumulating, and Reporting CostsCAS 402: Consistency in Allocating Costs Incurred for the Same PurposeThe commonality of Federal Acquisition Regulation (FAR) Cost Principles, Approved Accounting System, and CASBeing aware of CAS 405 and 406CAS 405: Approved accounting system requires the system to ensure unallowable costs are reviewed and removed from government billingsCAS 406: Cost Accounting PeriodImportant notes about CAS Coverage and the applicability towards subcontractsDisclosure Agreement as it pertains to CASCherry Bekaert’s team of government contracting consultants have significant CAS experience and can help your growing government contracting business navigate CAS. If you have any questions specific to your situation, our GovCon consultants are available to discuss your situation with you. Contact us.
If you haven’t already, catch up on Part 1 of the series:
Cost Accounting Systems Series: Part 1 – An OverviewRelated Guidance
Webinar Recording: Cost Accounting Standards (CAS): Part 1 – CAS Coverage Types, Common Standards, and CAS ApplicabilityWebinar Recording: Cost Accounting Standards (CAS): Part 2 – Cost Accounting Changes and ImpactView all Government Contracting Podcasts

Cost Accounting Standards (CAS) are 19 standards and rules promulgated by 41 U.S.C. 422. These standards impact emerging small and large businesses alike. They are designed to achieve uniformity and consistency in cost accounting practices and to improve the accuracy of cost data by ensuring its basis on consistent definitions and principles.  
Ultimately, the Federal government wants a reliable basis for cost comparison and decision making. This allows them to be able to compare proposals from contractor to contractor and from a single contractor year-over-year.

In this new Cherry Bekaert GovCon Podcast CAS series, Eric Poppe, a Managing Director in Cherry Bekaert’s Government Contracting Industry practice, is joined by Jeff Annessa, a Senior Manager in the Firm’s GovCon practice who spent 13+ years with DCAA holding positions such as Quality Manager, Supervisory Auditor and Field Audit Office Manager, to give an overview of CAS. Listen to find out:
An overview of CASThe differences between the Federal Acquisition Regulation (FAR) and CASWhat the standards consist of, including the four main categories When CAS comes into consideration as it pertains to government contractingWhen CAS would apply to a contract and if there are certain dollar thresholdsThe current exemptions, differences in full and modified CAS coverage and applicationOverview of the disclosure statement requirementWhy contractors should consider completing a disclosure statement prior to being CAS- covered Who is responsible in administering CAS and making the required determinations and findings The benefits of abiding by CASPitfalls and compliance considerations for changes in accounting practices, M&A activity and budgeting/forecasting Cherry Bekaert’s Government Contractor Industry practice has significant  CAS experience and can help you navigate CAS compliance issues or disclosure statement development. Contact us to discuss your situation.

Don’t forget to keep an eye out for the remainder of our GovCon podcast CAS series, where our hosts will go into more detail on the specifics of the individual CAS standards, general requirements, cost accounting changes and the disclosure statement. 
View all Government Contracting Podcasts