Cost Accounting Standards Board (CASB)

What Is the Cost Accounting Standards Board (CASB)?

The Cost Accounting Standards Board (CASB) is a U.S. federal government body that commands consistency and consistency in cost accounting activities for government awards and contracts. Laid out by Congress in 1970, the CASB was broken up in 1980 however was permanently restored in 1988. The CASB is a function of the Office of Federal Procurement Policy (OFPP), and the board's regulations are classified at 48 CFR, Chapter 99.

Understanding the Cost Accounting Standards Board (CASB)

The Cost Accounting Standards (CAS) are a set of 19 standards and rules proclaimed by the U.S. government to be utilized in laying out costs on negotiated procurements. CAS varies from Federal Acquisition Regulation (FAR) on the grounds that FAR applies to most contractors while CAS applies essentially to the bigger ones.

The CASB is a function situated inside the White House's Office of Federal Procurement Policy (OFPP). The OFPP is a part of the U.S. Office of Management and Budget (OMB), which, thus, is the biggest office inside the Executive Office of the U.S. President. OFPP gives overall course to government-wide procurement procedures and advances economy, productivity, and effectiveness in the procurement cycle.

As per the Office of Federal Procurement Policy Cost Accounting Standards Board, "The Board has the exclusive authority to make, declare, and correct cost accounting standards and translations intended to accomplish consistency and consistency in the cost accounting practices administering the measurement, assignment, and allocation of costs to contracts with the United States."

The CASB has five individuals, a chair and four individuals with tenure and experience in government contract cost accounting. The other four individuals are two individuals from the government, one industry representative, and one person from the accounting calling. The CASB met in February 2018, the initial time in very nearly seven years, since it coming up short on quorum. The CASB rolled out an improvement to an exemption for firm-fixed-value (FFP) contracts and subcontracts to match a comparable exemption under FAR. The update limits the exemption to contracts requiring certification.

A New Cost Accounting Standards Board

In 2017, Section 820 of the National Defense Authorization Act for Fiscal Year 2017 laid out another Defense Cost Accounting Standards Board (D-CASB) to manage the Cost Accounting Standards' application to defense contracts. The amendments made by Section 820 came full circle on October 1, 2018.

The new [regulations](/federal-hold regulations) likewise make new responsibilities regarding the existing CASB. The CASB must guarantee that CAS depends on commercial standards and accounting practices and frameworks; routinely audits the CAS to guarantee conforming standards where suitable to Generally Accepted Accounting Principles (GAAP); and every year survey CAS debates brought to the Boards of Contract Appeals thinking about whether greater lucidity in the CAS could keep away from such questions.

Features

• Laid out by Congress in 1970, the Cost Accounting Standards Board (CASB) was broken up in 1980 however was permanently restored in 1988.
• The Cost Accounting Standards (CAS) are a set of 19 standards and rules declared by the U.S. government to be utilized in laying out costs on negotiated procurements.
• The Cost Accounting Standards Board (CASB) is a U.S. federal government body that advances consistency and consistency in cost accounting for government awards and contracts.