Your Score is: out of
Indirect Rate Negotiation and Audit Representation
If you have a cost-reimbursable award, do you know there is a 100% chance of being audited - allowing the government complete visibility into your accounting system and all costs, whether billed to the government or not? The annual “True-Up Report” (also known as an Incurred Cost Submission) is a requirement, and the government’s audit of that report is used to negotiate your final indirect rates and the final allowable contract and grant costs for that year.
Furthermore, your final negotiated indirect rate is used as a baseline to negotiate future provisional indirect rates, which are used for billing the government - and will determine whether you remain cash flow positive.