OverviewThe incurred cost submission (ICS) consists of a series of spreadsheets that detail all the expenses and contract actions of the company. The spreadsheet has multiple tabs for each schedule of the ICS. The worksheets connect to each other to validate the information. The goal is Schedule A which computes and displays the final fringe and overhead/G&A rates for the company. All cost contract work for the prior year is then adjusted to these actual rates with you owing for any overbilling. Under billing can be billed to the government for reimbursement.
The SchedulesThere are a lot of schedules but not all are required. If a schedule is not required you can list it as not required or leave it out of your submission. I recommend you include a cover sheet listing all the schedules and mark those not completed so DCAA doesn’t think you just forgot one.
- Schedule A – Summary of Claimed Indirect Expense Rates
- Schedule B – General & Administrative Expenses
- Schedule C – Final Indirect Cost Pool
- Schedule D – Intermediate Indirect Cost Pool
- Fringe – Fringe Expense
- Schedule E – Claimed Allocation Bases
- Schedule F – Facilities Capital Cost of Money Factors Computation
- Schedule F-1 – Calculate Average Net Book Value (optional)
- Schedule G – Reconciliation of Books of Account and Claimed Direct Costs
- Schedule G-1 – Reconciliation of General Ledger and Job Costs (optional)
- Schedule H Summary – Summary Schedule H of Direct Contract/Subcontract Costs
- Schedule H – Schedule of Direct Costs by Contract/Subcontract and Indirect Expense Applied at Claimed Rates
- Schedule H-1 – Government Participation in Indirect Expense Pools
- Schedule I – Schedule of Cumulative Direct and Indirect Costs Claimed and Billed
- Schedule J – Subcontract Information
- Schedule K – Summary of Hours and Amounts on T&M/Labor Hour Contracts
- Schedule L – Reconciliation of Total Payroll to Total Labor Distribution
- Schedule M – Listing of Decisions/Agreements/Approvals and Description of Accounting/Organizational Changes
- Schedule N – Certificate of Final Indirect Costs
- Schedule O – Contract Closing Information for Contracts Completed in this Fiscal Year
- Schedule P – Incurred Cost Proposals Prior to FY93 (optional)
- Schedule R – Federal and State Income Tax Return Reconciliation (optional)
- Schedule S – ACO’s and PCO’s for Cost Contracts (optional)
- Supplemental A (1-4) – Comparative Analysis of Indirect Cost Pools and Direct Costs (optional). This is also referred to as Schedule Q. A-1 compares overhead costs, A-2 compares general & administrative (G&A) costs, A-3 covers intermediate pool expenses such as overhead and A-4 compares direct costs.
- Supplemental B – General Organizational Information and Executive Compensation (optional). The Executive Compensation information is also referred to as Schedule T.
- Supplemental C – Prime Contracts With Performance as Subcontractor (optional)
- Supplemental O – Briefing Contracts (optional) – also referred to as Schedule S.
The SpreadsheetDCAA provides a comprehensive spreadsheet for the incurred cost submission called Incurred Cost Electronically or ICE. The spreadsheet contains all the schedules above, formulas and links between the schedules. The spreadsheet can be modified if you have multiple overhead rates through the setup screen. The download of the spreadsheet from DCAA will include the empty spreadsheet, a user’s guide and a demo spreadsheet.
It can be advantageous to use ICE as DCAA is familiar with it and can quickly process the information provided. You can create your own spreadsheet as long as the schedules match DCAA’s format and you include all formulas in the submission.
The incurred cost submission is required and can result in you owing a refund to the government. You might also be able to invoice the government for under billing which is good.