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 (Governmental)

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 qualified assessment that must be passed at a 70% rate to earn 2 CPE credits and receive a Certificate of Completion. Participants are notified of their assessment score immediately upon completion of the assessment. Participants who do not achieve a passing score may retake the  assessment, with a maximum of three attempts permitted.

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;
• Recognize allowability requirements for key areas of cost;
• 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: August 17, 2026

Course expiration date: 60 days from the date of purchase

Delivery method: QAS ™ Self Study (Traditional)

A/E Clarity Administrative Policies

Refund Policy: All registration fees are non-refundable. Participants are encouraged to verify course suitability and availability before registering. Questions or requests concerning registration or payment errors should be submitted to tr******@*******ty.com and will be reviewed by A/E Clarity Consulting and Training, LLC. If a program is canceled by A/E Clarity Consulting and Training, LLC, participants will receive a full refund or a credit toward a future program.

Cancellation Policy: A/E Clarity Consulting and Training, LLC reserves the right to cancel a program due to low enrollment, instructor unavailability, or other unforeseen circumstances. If a program is canceled, registered participants will be notified by email within two business days of the decision to cancel and offered either a full refund or a credit transfer to a comparable future program.

Complaint Resolution Policy: A/E Clarity Consulting and Training, LLC is committed to participant satisfaction. Complaints should be submitted in writing to Dan Purvine, President at tr******@*******ty.com. Complaints will be acknowledged within 5 business days and reviewed within 15 business days. A written resolution will be provided, and unresolved complaints may be appealed to NASBA’s National Registry of CPE Sponsors.