CAS Disclosure Statements

A CAS Disclosure Statement is a written description of a contractor's cost accounting practices and procedures. In general, it is required for fully CAS covered contractors and must be completed prior to the award of a CAS covered contract of $50 million or more. Additionally, corporate offices or other intermediate home offices that allcoate costs to one or more disclosing segments must complete Part VIII of the disclosure statement.

Once submitted, the contracting officer will request auditors to determine adequacy. This determination assures that the disclosure statement has adequately disclosed the practices required to be disclosed by the CAS Board's rules, regulations, and standards. The Government's objective is to obtain an adequate description of the accounting system. During an adequacy review, contractors (or prospective contractors) are usually given the opportunity to revise any identified deficiencies, clarify wording, or expand upon a description or accounting practice.

There are eight sections to a CAS disclosure statement;

1. General information
2. Direct costs
3. Direct versus indirect costs
4. Indirect costs
5. Depreciation and use allowances
6. Other costs and credits
7. Deferred compensation and insurance
8. Home office expenses

Click here for a flowchart to help you determine your level of CAS coverage and disclosure statement responsibility.