FAR 42.603

(a) The CACO shall perform, on a corporate-wide basis, the contract administration functions as designated by the responsible agency. Typical CACO functions include- (1) The determination of final indirect cost rates for cost-reimbursement contracts; (2) Establishment of advance agreements or recommendations on corporate/ home office expense allocations; and (3) Administration of Cost Accounting Standards (CAS) applicable to corporate-level and corporate-directed accounting practices. (b) The CACO shall- (1) Fully utilize the responsible contract audit agency financial and advisory accounting services, including- (i) Advice regarding the acceptability of corporate-wide policies; and (ii) Advisory audit reports; (2) Keep cognizant ACO’s and auditors informed of important matters under consideration and determinations made; and (3) Solicit their advice and participation as appropriate.

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