Difference between revisions of "Home Office Allocation Policy"
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| − | == | + | ==1. BACKGROUND== |
1.1. GovC through its subsidiaries, conducts extensive business with the US Government (USG), both directly with US military agencies (and other government agencies), and indirectly through prime contractors. As a result, GovC is subject to the provisions of numerous USG contracting rules and regulations, including the Federal Acquisition Regulation (FAR) and Cost Accounting Standards (CAS). | 1.1. GovC through its subsidiaries, conducts extensive business with the US Government (USG), both directly with US military agencies (and other government agencies), and indirectly through prime contractors. As a result, GovC is subject to the provisions of numerous USG contracting rules and regulations, including the Federal Acquisition Regulation (FAR) and Cost Accounting Standards (CAS). | ||
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1.2. As with many large multi-national corporations GovC has both Corporate Home Office expenses and Group Home Office Expenses. | 1.2. As with many large multi-national corporations GovC has both Corporate Home Office expenses and Group Home Office Expenses. | ||
| − | == | + | ==2. PURPOSE== |
2.1. The purpose of this policy is to establish the requirement for Home Allocation Procedures for GovC to ensure compliance with CAS 403 Allocation of Home Office expenses to segments. | 2.1. The purpose of this policy is to establish the requirement for Home Allocation Procedures for GovC to ensure compliance with CAS 403 Allocation of Home Office expenses to segments. | ||
| − | == | + | ==3. DEFINITIONS== |
3.2. The following terms are defined as follows: | 3.2. The following terms are defined as follows: | ||
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'''“Segment”''' means BUs that benefit from activities performed by a Home Office. | '''“Segment”''' means BUs that benefit from activities performed by a Home Office. | ||
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| + | ==4. Scope== | ||
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| + | 4.1. This policy applies to all GovC entities that have costs allocated to US Government contracts either directly or indirectly. | ||
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| + | ==5. POLICY== | ||
Revision as of 16:07, 1 December 2015
Contents |
1. BACKGROUND
1.1. GovC through its subsidiaries, conducts extensive business with the US Government (USG), both directly with US military agencies (and other government agencies), and indirectly through prime contractors. As a result, GovC is subject to the provisions of numerous USG contracting rules and regulations, including the Federal Acquisition Regulation (FAR) and Cost Accounting Standards (CAS).
1.2. As with many large multi-national corporations GovC has both Corporate Home Office expenses and Group Home Office Expenses.
2. PURPOSE
2.1. The purpose of this policy is to establish the requirement for Home Allocation Procedures for GovC to ensure compliance with CAS 403 Allocation of Home Office expenses to segments.
3. DEFINITIONS
3.2. The following terms are defined as follows:
“Allocate” means to assign an item of cost, or a group of items of cost, to one or more cost objectives. This term includes both direct assignments of cost and the reassignment of a share from an Indirect Cost Pool.
“Cost Objective” means a function, organizational subdivision, contract, or other work unit for which cost data are directly related and for which provision is made to accumulate and measure the cost to processes, products, jobs, capitalized projects, etc.
“Directly Associated Cost” means any cost which is generated solely as a result of the incurrence of another cost, and which would not have been incurred had the other cost not been incurred.
“Direct Cost” means cost which is identified specifically with a particular final cost objective.
“Home Office” means an office responsible for directing or managing two or more Segments.
“Homogeneous Pools” means groups of indirect costs with a common cost objective that are capable of being allocated on the same basis as each other.
“Incurred Cost Submission” means an annual submission required from BUs to USG six months after the end of the fiscal year. The submission includes financial statements and other accounting records to compute indirect rates, direct costs by contract, and indirect costs by pool including Unallowable Costs (also known as indirect cost claim).
“Indirect Cost” means any cost not directly identified with a single final cost objective, but identified with two or more final cost objectives or with at least one intermediate cost objective.
"Indirect Cost Pool” means a grouping of indirect costs. “Operating Revenue” means amounts charged to customers for the sale of products, for services, and for rentals of property held primarily for leasing to others. Excludes interest dividends, royalty, rental income, and proceeds from the sale of assets.
“Segment” means BUs that benefit from activities performed by a Home Office.
4. Scope
4.1. This policy applies to all GovC entities that have costs allocated to US Government contracts either directly or indirectly.
