WebJun 10, 2024 · DOD Answer - We disagree, any PPP loan that has been forgiven necessarily can be treated as though it belongs to the company to use as it pleases. FAR 31.201-1, Composition of Total Cost, states that total cost is the sum of the direct and indirect costs allocable to the contract less any allocable credits. Accordingly, to the … WebMar 10, 2024 · Loan Forgiveness Impact on FAR Overhead Rate. Unlike popular preconceived notions, it is significant to note that FAR 31.201-5 encompasses all costs, …
Government Contracting: DCAA Guidance on COVID-19 Legislation
WebFeb 21, 2024 · Government contractors that believed they had finally finished navigating the PPP process when the SBA forgave their loans might face a later DCAA audit to determine whether they must credit the government with any of the forgiven amount. 5. Forgiven PPP loans still carry potential M&A risks and considerations. WebJan 21, 2024 · Consistent with these FAR requirements and DCAA guidance provided in MRD 20-PIC-006(R)-Revised dated April 23, 2024, when receiving PPP loan … mariage a hollywood marc fisher
PPP Loan Forgiveness Impact on Overhead Rate - Withum
WebMar 10, 2024 · PPP loan forgiveness: Available to cover the following expenses: payroll costs, rent, utilities and mortgage interest. At least 60% of the forgiven amount must have been used for payroll and costs incurred during the covered period. ... This is a new hot topic area for DCAA that will certainly be audited to ensure the proper allocation of costs ... WebFeb 9, 2024 · The FHWA guidance provided to-date stated that “A&E firms cannot use PPP loan proceeds to pay for the direct costs on Federally funded state DOT projects,” and further, “A&E firms must adjust their indirect cost rates for PPP funds forgiven.”. We believe that the current FHWA guidance does not comply with FAR 31.201-5 or the CARES Act. WebJan 25, 2024 · A&E firms must adjust their indirect cost rates for PPP funds forgiven. The surprising part of the guidance is the second bullet: “A&E firms cannot use PPP loan proceeds to pay for the direct costs on a Federally … mariage a disneyland