Google Answers Logo
View Question
Q: OMB and FAR audit requirements ( Answered 5 out of 5 stars,   0 Comments )
Subject: OMB and FAR audit requirements
Category: Business and Money > Small Businesses
Asked by: gzw-ga
List Price: $10.00
Posted: 14 Jul 2005 07:21 PDT
Expires: 13 Aug 2005 07:21 PDT
Question ID: 543458
We are a small consulting business (3 partners and 1 employee).  We
have received some contract work from a receipient of a Federal Grant,
and they have asked us, and subrecipients, for evidence of a "FAR-Part
30" audit.  I am hoping that as a small business we might be exempt
from such an audit.  Are we?  If so, what's the exemption clause? if
not, how would we go about getting the audit?
Subject: Re: OMB and FAR audit requirements
Answered By: hagan-ga on 15 Jul 2005 12:56 PDT
Rated:5 out of 5 stars
gzw, I have good news!  (And no, I didn't just save a bunch of money
by...never mind.)
Looks as though you are exempt:
FAR is the Federal Acquisition Regulations.  FAR Part 30 states that
the Cost Accounting Standards do not apply to a contract with a small
"30.000  Scope of part. 
This part describes policies and procedures for applying the Cost
Accounting Standards Board (CASB) rules and regulations (48 CFR
Chapter 99 (FAR Appendix)) to negotiated contracts and subcontracts.
This part does not apply to sealed bid contracts or to any contract
with a small business concern (see 48 CFR 9903.201-1(b) (FAR Appendix)
for these and other exemptions)."

Since FAR Part 30 refers to 48 CFR 9903.201-1(b), I thought it prudent
to look there too.  That's the part of the Code of Federal Regulations
that discusses exemptions to the Cost Accounting Standards.  Sure
enough, small businesses are exempt.

"Sec. 9903.201-1  CAS applicability.
    (a) This subsection describes the rules for determining whether a 
proposed contract or subcontract is exempt from CAS. (See 9904 or 9905, 
as applicable.) Negotiated contracts not exempt in accordance with 
9903.201-1(b) shall be subject to CAS.
(b) The following categories of contracts and subcontracts are 
exempt from all CAS requirements:
(3) Contracts and subcontracts with small businesses."

Best of luck with your business.
gzw-ga rated this answer:5 out of 5 stars and gave an additional tip of: $10.00
Excellent, thank you so much!

There are no comments at this time.

Important Disclaimer: Answers and comments provided on Google Answers are general information, and are not intended to substitute for informed professional medical, psychiatric, psychological, tax, legal, investment, accounting, or other professional advice. Google does not endorse, and expressly disclaims liability for any product, manufacturer, distributor, service or service provider mentioned or any opinion expressed in answers or comments. Please read carefully the Google Answers Terms of Service.

If you feel that you have found inappropriate content, please let us know by emailing us at with the question ID listed above. Thank you.
Search Google Answers for
Google Answers  

Google Home - Answers FAQ - Terms of Service - Privacy Policy