June 30 is the deadline for Incurred Cost Submissions (ICS) for GovCons with calendar year-ends (or six months post fiscal year-end). To minimize the risk of non-compliance and its repercussions, it’s best to prepare early and thoroughly review the data before it’s time to submit.
Best practice for ICS involves maintaining excellent records and documentation that prove the need to justify any costs. The data reported is used to determine a company’s actual indirect costs versus the indirect costs provisionally billed for a fiscal year.
Will you pass the DCAA ICS Adequacy Checklist?
An ICS report must pass nearly 50 questions on the DCAA Incurred Cost Submissions Adequacy Checklist to be found “adequate.” Common, yet avoidable, reasons for DCAA to find ICS to be “not adequate” are:
- Not including all schedules with the submission
- Formula errors (for example, adding a row to a schedule, and failing to copy the formula row)
- Schedules that fail to tie to one another within the submission
ICS reviewers look for any significant risks, such as business system deficiencies, that have a substantial impact on the final indirect rate proposal for the fiscal year, math errors, and incorrect rates used on schedules.
Prepare early for ICS to avoid a deadline crisis
The ICS deadline and preparation can be overwhelming for GovCons – those recently established or even seasoned organizations – as they prepare for reporting. It takes expertise in the requirements for filing, knowledge of deadlines and extensions, and an understanding of the consequences of non-compliance to minimize the risk of a full DCAA audit.
That’s where we come in. Our team at WJ Technologies knows the ins and outs of the ICS and offers services and support to ensure GovCon compliance – giving you peace of mind and saving you valuable time. To learn more contact us today, Kris Fitzgerald at WiJiT (email@example.com).