Government contractors subject to the Allowable Cost and Payment contract clause (FAR 52.216-7) must submit an adequate incurred cost proposal (ICP) within six months after the end of the fiscal year. A completed ICP provides the contractor with their claimed rates which, when approved, become final indirect rates for the period in question. In order to provide an adequate submission to the government, contractors must be knowledgeable of all the components of the incurred cost proposal and have an understanding of the proper treatment of costs to accurately calculate indirect rates. Join us for our two-part webinar where we will provide step-by-step guidance of each schedule and the required and recommended supporting documentation. We'll make sure you know how to properly present adjustments to general ledger amounts and how to document your working papers in preparation for an audit. Part I in this series will focus on general and job cost ledger related schedules. Part II will dive into other schedules, special issues, and templates.

1. Detailed Preparation of the
Incurred Cost Proposal Part I:
General & Job Cost Ledger
Related Schedules

2. We Know Government
Contract Accounting

3. Who we are
Left Brain Professionals is a boutique accounting firm that serves
government contractors. We specialize in accounting system design
& implementation, audit support, training, and cybersecurity
compliance.

4. Our Services
ACCOUNTING
• Accounting
Systems
• Monthly Support
Services
• CFO & Controller
Services
• Software
AUDIT SUPPORT
• DCAA Audit
Support
• DCMA Audit
Support
CYBERSECURITY
• CMMC
Compliance
TRAINING/TOOLS
• GovCon Training
• FCCM Calculator
• Indirect Rate
Calculator
• Proposal
Adequacy
Checklist

5. Our Team
Robert E. Jones
Government Contracts &
Accounting Expert
CPA, CPCM, NCMA Fellow
Melissa Metzger
Government Accounting &
Finance Advisor
MAFM, CPA Candidate
Steven Bressler
Government Contract
Associate
steve@LeftBrainPro.com
melissa@LeftBrainPro.com
robert@LeftBrainPro.com

6. Learning
Objectives
• Describe the goal of completing
the general ledger schedules.
• List the supporting documents
necessary to complete the ICP.
• Explain the purpose o the job-
related schedules.
• List five Excel tips and functions to
aid in success.

7. Poll
What is your level of knowledge on job cost ledger related
schedules & the ICP?
A. What is a job cost ledger related schedule?
B. I’m unsure how the job cost ledger related schedules correlate to
the ICP.
C. I’m fairly knowledgeable on both.
D. I’m an expert!

8. Purpose of General
Ledger Schedules

9. Purpose of General Ledger
Schedules
Fringe Pool
Cost to maintain W-2 employees
• Employer Taxes
• Health Insurance
• Retirement
• Paid Absences
Cont…

10. Purpose of General Ledger Schedules, Continued…
Fringe Pool, Continued…
Cont…

11. Purpose of General Ledger
Schedules
Fringe Base
Total W-2 Labor
• Direct Labor
• Overhead Labor
• G&A Labor
• Unallowable Labor
Cont…

12. Purpose of General Ledger Schedules, Continued…
Fringe Base, Continued…
Cont…

13. Purpose of General Ledger
Schedules
Schedule C | Overhead Pool
Costs to support customers, products and jobs
• General support
• Idle time
• Training
• Mfg/service supplies
• Facilities
• Plus applied fringe
Cont…

14. Purpose of General Ledger Schedules, Continued…
Schedule C | Overhead Pool, Continued…
Cont…

15. Purpose of General Ledger
Schedules
Schedule E | Overhead Base
Typically direct type labor plus applied fringe
• Direct Labor
• B&P Labor
• IRAD Labor
Can include materials in manufacturing or
assembly environment.
Cont…

16. Poll
Which is NOT a cost to maintain W-2 Employees?
A. Employer Taxes
B. Health Insurance
C. Dependent Care
D. Retirement

17. Purpose of General Ledger Schedules, Continued…
Schedule E | Overhead Base, Continued…
Cont…

18. Purpose of General Ledger
Schedules
Schedule B | G&A Pool
Cost of operating the business
• Accounting
• Business Development
• HR
• IT
• Legal
• Insurance
• Licenses
• Plus applied fringe
• Plus B&P & IRAD
Cont…

19. Purpose of General Ledger Schedules, Continued…
Schedule B | G&A Pool, Continued…
Cont…

20. Purpose of General Ledger Schedules, Continued…
Schedule B | G&A Pool, Continued…
Cont…

21. Purpose of General Ledger Schedules, Continued…
Schedule E | G&A Base, Continued…
For this session, our focus is on Total Cost Input (TCI)
Cont…

22. Poll
Which is considered a cost of operating the business?
A. Business Development
B. Accounting
C. HR
D. All the above

23. Job-Related
Schedules

24. Job-Related Schedules
Schedule H
Cost element summary by job
Cont…

25. Job-Related Schedules, Continued…
Schedule H, Continued…
Plus applied indirect rates
Cont…

26. Job-Related Schedules, Continued…
Schedule H, Continued…
And cost elements plus applied fringe & overhead for B&P and IRAD
Cont…

27. Job-Related Schedules, Continued…
Summary Schedule H
Cont…

28. Job-Related Schedules, Continued…
Schedule G | Reconciliation of GL to Schedule H
Cont…

29. Job-Related Schedules, Continued…
Schedule G | Government Participation
Cont…

30. Job-Related Schedules, Continued…
Schedule I | “Ultimate Reconciliation” of Costs Incurred to
Amounts Billed

31. Poll
In Schedule G, it is the Reconciliation of ______ to Schedule H.
A. GL
B. Cost Ledger
C. B&P Costs
D. None of the above

32. ICP Supporting
Documents

33. ICP Supporting Documents
Trial Balance
• CSV or Excel
Cont…

34. ICP Supporting Documents,
Continued…
Job Cost Ledger
• Summarized cost elements by contract
• Invoiced amounts by contract
Cont…
Cont…

35. ICP Supporting Documents,
Continued…
COVID-19 Relief
• PPP Forgiveness
• Section 3610
• Employee Retention Credit
• FFCRA Paid Sick Leave
Cont…

36. Poll
COVID-19 Relief is an ICP Supporting Document.
A. True
B. False

37. Excel Tips & Functions

38. Excel Tips & Functions
Our Indirect Rate Calculator
(available on our website under
“Tools”) utilizes many of these
functions.
Cont…

39. Excel Tips & Functions,
Continued…
Named Ranges
Define and use names in formulas – Office
Support (Microsoft.com)
• Name a cell or group of cells.
• Easier to write formulas when you reference
a logical name.
• Visually easier to read, interpret and validate
formulas.
Cont…

40. Excel Tips & Functions, Continued…
Named Ranges, Continued…
Cont…

41. Excel Tips & Functions,
Continued…
Tables
Overview of Excel Tables – Office Support
(Microsoft.com)
• Tables ease management of data and allow
for easier-to-follow formulas through their
built-in structured referencing.
Cont…

42. Excel Tips & Functions, Continued…
Tables, Continued…
Cont…

43. Poll
It’s easier to write formulas when you reference a ________.
A. Numbered cell
B. Logical name
C. Re-typed number
D. None of the above

44. Excel Tips & Functions,
Continued…
Tables, Continued…
Using structured references with Excel Tables –
Office Support (Microsoft.com)
• Tables are automatically assigned a name
which can be customized.
• Tables automatically recognize column titles
as data headers.
• Tables allow for ease in referencing individual
data rows or totals.
Cont…

45. Excel Tips & Functions, Continued…
Tables, Continued…
Cont…

46. Excel Tips & Functions,
Continued…
XLOOKUP
XLOOKUP function – Office Support
(Microsoft.com)
• Forget VLOOKUP, HLOOKUP and
INDEX/MATCH!
• Order of columns and rows does not matter.
• Great tool to use in conjunction with Named
Ranges and Tables.
Only available in recent version such as Excel for
Microsoft 365.
Cont…

47. Excel Tips & Functions, Continued…
XLOOKUP, Continued…
Cont…

48. Excel Tips & Functions,
Continued…
SUMIF(S)
SUMIF function – Office Support (Microsoft.com)
• Perfect function for summing dollars based
on a criteria such as a tag, category, date,
dollar amount, etc.
• Works well with Tables & Named Ranges.
Cont…

49. Excel Tips & Functions, Continued…
SUMIF(S), Continued…
Cont…

50. Excel Tips & Functions,
Continued…
Data Entry/Trial Balance Tab
• Uses formulas to populate other tabs.
• Eliminates copy-paste errors.
• Easy to update data entry/trial balance in one
place.
Cont…

51. Excel Tips & Functions,
Continued…
Color Coded Cells
Use different colors for:
• Data entry
• Links
• Formulas

52. Detailed Preparation of the ICP: General & Job
Cost Related Schedules
Government contractors subject to the Allowable
Cost and Payment contract clause (FAR 52.216-7)
must submit an adequate incurred cost proposal
(ICP) within six months after the end of the fiscal
year. A completed ICP provides the contractor with
their claimed rates which, when approved, become
final indirect rates for the period in question. In
order to provide an adequate submission to the
government, contractors must be knowledgeable of
all the components of the incurred cost proposal
and have an understanding of the proper treatment
of costs to accurately calculate indirect rates.

53. Connect
with us
Download the presentation
Left Brain
Professionals Inc.
@LeftBrainPro
Email us
Support@LeftBrainPro.com
@LeftBrainPro
Left Brain Pro
LeftBrainPro
www.LeftBrainPro.com/presentations

54. For information on our upcoming webinars, visit us at
LeftBrainPro.com/events for more details.