Unallowable Cost Reviews

It is a well known fact that all government grants, contracts and other funding methods include unallowable cost provisions. Whether your organization is subject to one of the OMB Circulars, the Federal Acquisition Regulations, or other similar state and local rules, certain costs will be unallowable or otherwise limited for reimbursement.

While these costs are often legitimate and necessary business expenses, the inclusion in indirect or incurred cost submissions, billings and public vouchers may result in refunds of previously recovered costs, suspension of contract financing and possible fines and penalties.

Certain types of unallowable costs are easily identified. These include alcoholic beverages, bad debt expense, lobbying, etc. Other costs may not be readily identifiable in accounting records, or may be subject to limitations and specific accounting treatment.

ML Weekes' staff has experience as government auditors and is knowledgeable of the provisions affecting the allowability of costs for Colleges and Universities, Hospitals, Not-for-Profits and commercial and government entities.

Our established audit programs and review procedures can be employed to assist you with:

• Government mandated overhead audits and other attestations.
• Incurred cost submissions
• Indirect (F&A) rate proposals
• Assessing the internal controls and policies and procedures for the identification and exclusion of unallowable costs.

ML Weekes will tailor a program that is right for the size and risk of your organization.