FCA Chats: Cost Accounting and the False Claims Act Exposed

In this episode of the “Let’s Talk FCA” podcast, Jason Crawford, Agustin Orozco, and Erin Rankin discuss the $377M settlement by Booz Allen Hamilton to resolve allegations of non-compliance with Cost Accounting Standards. They highlight the importance of cost accounting in government contracts and the potential risks for contractors who fail to comply. The podcast covers key takeaways from the settlement and provides insights into the False Claims Act and its implications for government contractors.

• Booz Allen Hamilton recently settled a case for $377M over alleged non-compliance with Cost Accounting Standards.
• Cost accounting is essential for government contractors to ensure accurate invoicing and prevent fraudulent claims.
• The False Claims Act imposes liability for submitting false claims to the government, including failure to comply with Cost Accounting Standards.
• The settlement highlights the significant financial risks and reputational damage that contractors can face for non-compliance.
• Contractors should review their cost accounting practices and implement internal controls to mitigate the risk of False Claims Act violations.

Let’s Talk FCA: Cost Accounting and the False Claims Act

In this episode of the “Let’s Talk FCA” podcast, Jason Crawford, Agustin Orozco, and Erin Rankin discuss the recent $377M settlement by Booz Allen Hamilton to resolve allegations of non-compliance with Cost Accounting Standards. The settlement serves as a reminder of the importance of cost accounting in government contracts and the potential risks for contractors who fail to comply.

The False Claims Act (FCA) imposes liability on individuals and entities that submit false claims to the government. This includes claims for payment that are not supported by accurate and compliant cost accounting practices. The FCA has been a powerful tool for the government to recover funds lost due to fraudulent claims, and it has led to substantial settlements and judgments against government contractors.

The Booz Allen Hamilton settlement is one of the more noteworthy examples of FCA enforcement in recent years. The allegations against the company focused on its failure to comply with Cost Accounting Standards, which are specific requirements established by the government to ensure accuracy and fairness in the allocation of costs on government contracts. The settlement amount of $377M reflects the seriousness of the allegations and the potential harm caused to the government.

The podcast hosts emphasize the need for government contractors to prioritize cost accounting compliance. They recommend that contractors carefully review their cost accounting practices and implement internal controls to ensure adherence to Cost Accounting Standards. Taking proactive measures can help mitigate the risk of FCA violations and the substantial financial and reputational consequences that may follow.

Furthermore, the podcast explores key takeaways from the Booz Allen Hamilton settlement. It highlights the government’s focus on cost accounting compliance and its willingness to pursue significant enforcement actions. Contractors need to be aware of the potential risks and the importance of maintaining accurate records and following established regulations.

Overall, the Booz Allen Hamilton settlement serves as a stark reminder of the consequences for contractors who fail to comply with Cost Accounting Standards. The FCA continues to be a powerful enforcement tool, and government contractors must prioritize cost accounting compliance to avoid costly and damaging legal actions.