DCAA Issues (Mis)Guidance on Expressly Unallowable Costs
Client Alert | 1 min read | 02.23.15
On January 7, 2015, DCAA issued guidance to auditors for determining whether certain costs are "expressly unallowable" – and therefore subject to penalties – even when the regulations "do not state in direct terms that the cost is unallowable." This guidance, which is intended to "enhance" the equally troubling December 18 guidance to similar effect, is inconsistent with the CAS 405 definition of "expressly unallowable cost" (i.e., "a particular item or type of cost which, under the express provisions of an applicable law, regulation, or contract, is specifically named and stated to be unallowable") and will likely lead to confusion in the audit process and undoubtedly result in DCAA auditors assessing more penalties against contractors on dubious grounds.
Insights
Client Alert | 2 min read | 04.29.25
President Trump Issues Executive Order Deprioritizing Disparate Impact Theory of Discrimination
On April 23, 2025, President Trump signed an executive order, Restoring Equality of Opportunity and Meritocracy, declaring it the policy of the United States “to eliminate the use of disparate-impact liability in all contexts to the maximum degree possible to avoid violating the constitution, Federal civil rights laws, and basic American ideals.” The order reasons that “disparate impact liability all but requires individuals and businesses to consider race and engage in racial balancing to avoid potentially crippling legal liability.”
Client Alert | 6 min read | 04.28.25
Client Alert | 3 min read | 04.28.25
Client Alert | 3 min read | 04.25.25
