FAR Part 31 – A Closer Look at Cost Allowability

CPE Credits: 2

Cost: $199

Knowledge Level : Basic

Pre-requisites/required knowledge: None

Field of Study: Accounting

Course Description: Don’t miss this 2-hour web-based training in which instructor Dan Purvine will provide a more detailed examination of FAR Part 31 requirements for cost allowability applicable to the development of A/E firm overhead rates.  Topics covered will include the key cost principles of FAR Part 31 that provide the fundamental basis for both A/E firms and CPA firms to evaluate costs.  Dan will discuss how to determine cost allowability and reasonableness of many types of costs incurred by A/E firms, as well as the common interpretations of FAR requirements.  He will also explain how to plan and perform audit procedures to properly address the most important issues related to cost allowability.

Dan will provide insight into AASHTO Audit Guide requirements and state DOT expectations regarding documentation of costs to support allowability.  Materials including slides and example spreadsheets are provided. The webinar will be followed by a 10-question quiz that must be passed at a 70% rate for a Certificate of Completion.

Important Topics: Fundamental FAR principles of allowability, reasonableness, and allocability; expressly unallowable costs under FAR Part 31; the concept of directly associated costs; allowability requirements for specific categories of costs; an overview of the testing of indirect costs for allowability in an audit; documentation requirements to support cost allowability.

Learning outcomes:

• Identify expressly unallowable cost categories;
• Describe allowability requirements for key areas of cost;
• Explain how to identify risk areas for unallowable costs.

Intended Audience: A/E firm accounting staff, state and local government agency auditors, and CPA firm staff

Instructor: Dan Purvine

Most recent revision or review date: February 2025

Course expiration date: 30 days from the date of purchase

Delivery method: QAS ™ Self Study

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