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DOL Announces New LM-10 Guidance and Extended Filing Deadline

Client Alert | 1 min read | 03.09.06

On March 7, 2006, the U.S. Department of Labor ("DOL") issued new guidance on employers' LM-10 reporting requirements in the form of additional Frequently Asked Questions (FAQ) added to the DOL's Advisory and FAQ issued in November 2005.

The DOL's November 2005 Advisory indicated a much more aggressive enforcement posture with respect to LM-10 reporting, but also created a grace period for reporting -- employers who file compliant LM-10 forms within 90 days of the company's 2005 fiscal year will not be penalized for their failure to submit reports for any prior years. The revised FAQ announces that employers whose fiscal year ended December 31, 2005 will now have until May 15, 2006 to file their fiscal year 1005 LM-10s

The revised Advisory and FAQs clarify who must file annual LM-10 reports, provide additional examples of reportable expenditures, and explain how an employer who has no reportable expenditures for the 2005 fiscal year can still take advantage of the grace period. Unionized employers should carefully review the revised FAQ, as well as the underlying statutes and case law in this very complicated area of the law, to determine their reporting requirements and ensure that appropriate processes are in place to track reportable expenditures.

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Client Alert | 1 min read | 07.08.26

CAS Board Publishes Final Rule Rescinding CAS 404, 408, 409, and 4117

As part of its ongoing effort to conform the Cost Accounting Standards (“CAS”) to generally accepted accounting principles (“GAAP”), the CAS Board published a final rule rescinding CAS 408 (Accounting for costs of compensated personal absence) and CAS 411 (Accounting for acquisition costs of material).  The CAS Board also rescinded CAS 404 (Capitalization of tangible assets) and CAS 409 (Depreciation of tangible capital assets) but retained certain requirements of CAS 404 and 409, which will be located in new paragraphs of CAS 405 (Accounting for unallowable costs).  Specifically, the CAS Board retained the requirements currently located at CAS 404-50(d)(1), CAS 409-50(e)(5), CAS 409-50(j)(1), and CAS 409-50(j)(4), which the CAS Board explained are necessary to protect the Government’s interests.  Otherwise, the CAS Board determined that the requirements of CAS 404, 408, 409, and 411 overlapped with GAAP such that GAAP “may be applied reasonably as a substitute for CAS to support contract cost and pricing.”...

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