Salary That Was Not Paid Was Improperly Billed
(Editor’s Note. The following demonstrates the need to have an established compensation policy clearly in place before a cost is claimed.)
DCAA questioned $53,000 of claimed salary costs contained in Accurate’s FY 2007 incurred cost proposal asserting that the salary costs were unallowable in accordance FAR 52.216-7 because they were never paid to the president. Accurate contended they satisfied the FAR because the president was paid in 2008 with issuance of company stock under a deferred compensation plan. The Board ruled against Accurate ruling the company failed to show that such a plan was in place before or during FY 2007 or that financial records of the company identified such references (Accurate Automation Corp., ASBCA 59727).
