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Indirect Cost Rate Negotiation & Audit Representation

If you have a cost-reimbursable award, do you know there is a 100% chance of being audited – allowing the government complete visibility into your accounting system and all costs, whether billed to the government or not? The annual “True-Up Report” (also known as an Incurred Cost Submission) is a requirement, and the government’s audit of that report is used to negotiate your final indirect rates and the final allowable contract and grant costs for that year.

Furthermore, your final negotiated indirect rate is used as a baseline to negotiate future provisional indirect rates, which are used for billing the government – and will determine whether you remain cash flow positive.

This is a lot to digest; but, to make things even more complicated, each funding agency has their own “personalities” and variations in their reporting, auditing and negotiating processes – which must be followed exactly. This is Jameson’s core service:

Preparation of all annual “True-Up Reports” required by your funding agency (as an example, here is the DoD model submission)

Representation of your company during the audit and financial negotiations

This service is only available for clients using:

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