Course
A/E firms that took Paycheck Protection Program loans to maintain
cash flow and alleviate market uncertainties are now considering applying for
loan forgiveness under the terms of the Small Business Administration and U.S.
Treasury guidelines. But how might PPP loan forgiveness alter the firm’s
indirect cost rate on government contracts? How will PPP loan forgiveness
be treated under Federal Acquisition Regulations? Will a credit to
overhead be required? These are critical questions for firms contracting
with federal, state, and local public clients using a FAR-compliant overhead
rate.
In addition to PPP loan forgiveness, the economic effect of the
pandemic, governmental response actions, and on-going telework conditions in
many parts of the country continue to create uncertainties and disrupt
engineering firm operations. The resulting impacts on firm overhead rates
will be varied and complicated.
In this timely webinar, Monday, September 28, at 1:30 p.m. EDT,
two FAR accounting experts will explore these critical issues as firms enter
the last quarter of 2020 and look ahead to their annual FAR audit.
Participants will get the latest updates on federal guidance and likely
accounting treatment of PPP loan forgiveness, including some practical steps
they can take now to accommodate for potential outcomes. Firms will also
understand how telework and other business practice changes could alter their
indirect cost rates, billing, and profitability in 2021 and beyond.
Participants in this session will learn:
- The most up-to-date guidance on treatment of forgiven
PPP loans for government contractors; - Potential accounting scenarios for PPP loans and likely
outcomes; - How to understand and manage the impact of anomalous
business conditions on the firm’s overhead rate; - The latest discussions and next steps in discussions
with FHWA, State DOTs, and other key client sectors on potential
accommodations.
Presenter: Wayne Owens, T. Wayne Owens & Associates and Scott Sutton at Somerset CPAs & Advisors