Audit support

We support our customers during audits to understand their financial information and appropriately present it to auditors to explain and support their practices. We focus on demonstrating compliance with regulatory requirements for maximum cost recovery.

CASE STUDY: A prominent IT and management consulting entity was audited for an incurred cost proposal that had been filed. The  customer did not have sufficient staff to support or manage the audit. Our consultants provided program management for the audit and developed all materials in response to audit requests.

This included location of supporting documentation, analysis of data, assessment of risk, development of strategic positions to reduce potential exposure, and the development of all formal responses on behalf of the customer. We worked closely with key corporate officers to explain risk and propose recommendations for customer concurrence prior to presentation to auditors.

We successfully negotiated several key areas of exposure for the customer and eliminated the financial risk that would have been associated with a non‐compliant finding.

Cost allocation methodologies

We review allocation methodologies to ensure compliance with government standards. We focus on assisting our customers to develop methodologies that will maximize their cost recovery.

CASE STUDY: As a government contractor’s business grew and they expanded to a globally oriented enterprise, they found that they needed to adjust their cost allocation methodologies to better distribute relative cost to all business segments.

Although they adjusted the allocation technique, they failed to do so in a manner that was compliant with government requirements. Our consultants reviewed the allocation methodologies, developed cost impact reviews and advised the client of areas of risk so that they could develop strategies to bring their practices into compliance with government cost accounting standards (CAS).

Indirect rate calculations/Incurred Cost Submissions

We analyze direct and indirect cost structures to determine G&A and overhead rate calculations. We strive to maximize compliance and cost recovery.

CASE STUDY: A publicly traded management consulting firm that provides services to State, Local and Federal governments held multiple types of government contracts under which indirect rates were used.

As a result of SOX requirements, this firm was required to restate some of its financial information for certain fiscal years. This, in turn required the firm to also recalculate its indirect cost rates. Our consultants assisted the company by calculating the new indirect rates based upon the updated financial information.

The calculation involved a review of the company's fiscal year financial statements and general ledger trial balance, meetings with management to determine the nature of certain types of costs and determination of unallowable costs in accordance with government regulations.

Through our assistance, the company was able to present its actual, updated rates to its customer as required.

Federal Acquisition Regulation (FAR) consultation

We consult with clients regarding complex cost allowability matters and establish policies for minimizing risks of noncompliance.

CASE STUDY: A multi‐billion dollar government contractor received penalties from its first incurred cost proposal audit for the inclusion of unallowable costs in its claimed cost pools.

We assisted this client by developing policies and procedures that incorporated compliance with the FAR restrictions including salary limitations, expense reporting and the use of per diems as set by the government for as the basis of allowable cost.

Our consultants assisted the company in training its employees on the new policies and procedures to reduce or eliminate unallowable cost in future incurred cost proposals.

Government compliance program assessment and development

We assist companies in the development of policies and procedures, which provide guidance to the company and its employees in complying with government rules and regulations.

CASE STUDY:  A leading information technology firm providing services to the government realized that its policies and procedures related to how it developed budgets, allocated cost, and determined indirect rates were insufficient to handle the complex compliance requirements of government contracting.  Our consultants assessed the company’s current policies and procedures against the stated requirements of the FAR and DCAA expectations, identified risk areas and assisted in writing and implementing policies and procedures that introduced best practices and full compliance with the requirements.

We interacted with representatives of all key areas of the company's operations and administration to ensure that key risk areas were identified.

The end result was the customer passing a DCAA audit with no exceptions on its budgeting and planning function, which set the basis for annual provisional pricing structures.

Government Contracting

BKH specializes in numerous aspects of government contracting. We help commercial companies enter the government marketplace and provide the know‐how and processes to ensure the right financial structure and compliance for your government contractor business.

Professional Consulting

Our professionals are experienced in aiding our customers to develop positions on a variety of matters. As a result of our extensive experience, our clients are able to use our practical knowledge and advice to avoid potential pitfalls or remediate issues before they impact the business.

Government Funding

BKH serves entities receiving government funding and provides the highest level of professional services to our clients. All of our consultants are experienced in managing the financial interests of organizations in the private and public sectors as either CFO’s or Controllers.