Core Incurred Cost Submission Schedules
The ICE Model includes schedules covering different aspects of the contractor's cost structure. The specific schedules displayed can depend on the contractor's setup and accounting practices.
- Schedules A through F cover claimed indirect rates, G&A expenses, indirect cost pools, allocation bases, and facilities capital cost of money.
- Schedule G reconciles books of account with claimed direct costs.
- Schedules H and H-1 provide contract-level direct and indirect cost information and government participation in indirect expense pools.
- Schedules I through L address cumulative costs and billings, subcontract information, T&M or labor-hour contracts, and payroll reconciliation.
- Schedules M through O cover accounting or organizational changes, the certificate of final indirect costs, and contract closing information.
This structure creates a logical progression from company-level accounting data to contract-level costs and final submission documentation.
How the Schedules Work Together
Each schedule has a specific role, but the schedules should tell a consistent financial story. For example, the indirect expense pools reported in the applicable pool schedules should support the rates summarized in Schedule A, while the allocation bases should agree with the accounting records used to calculate those rates.
Schedule H then applies the claimed rates to direct contract or subcontract costs, while Schedule J provides subcontract information. Schedule I can connect cumulative direct and indirect costs claimed and billed with the final indirect cost information. This cross-schedule consistency is essential when reconciling the submission.
A simplified indirect rate calculation is:
Indirect Cost Rate = Indirect Cost Pool ÷ Allocation Base × 100
For example, if an indirect cost pool is $1,050,000 and its allocation base is $5,250,000, the rate is $1,050,000 ÷ $5,250,000 × 100 = 20%. That 20% rate should be reflected consistently wherever the applicable rate is used in the submission.
Accounting, Procurement, and Supporting Records
Accurate schedules depend on source records that support how costs were accumulated and classified. A Business Expense Incurred record can provide context for business transactions entering the accounting system, while Employee Expense Incurred information can support employee-related costs included in the appropriate cost categories.
Procurement records are particularly relevant for material and subcontract costs. A controlled procurement process can connect requisitions, sourcing, approvals, purchase documentation, and procure-to-pay records with the resulting accounting entries.
A purchase order can provide transaction-level support for ordered goods or services. A Purchase Order Inventory Management System can further connect purchase orders with vendor, inventory, compliance, and cost-control information where those records support the submission.
A Duplicaton Check can help identify duplicate purchase requests by checking current inventory and existing PR data across cost centers, supporting cleaner source information before costs are incorporated into financial schedules.
Reconciliation and Period-End Preparation
Reconciliation should occur across the general ledger, job-cost records, contract records, payroll information, subcontract files, and supporting schedules. Differences should be investigated before submission so that the final schedules use consistent fiscal-year data.
Period-end activities can also include accruals for costs incurred but not yet invoiced. Cut Off Date Accruals can support flexible daily, weekly, and month-end close schedules so applicable accrual processes align with the accounting period being reported.
Payment records provide another reconciliation point. Reviewing vendor payment activity, payment approvals, methods, timing, discounts, and cash outflows can help connect supplier transactions with the amounts recorded in the accounting system.
Submission Review and Financial Controls
Before finalizing the submission, finance teams should verify that schedules agree with one another and with the underlying books. A review should cover rate calculations, allocation bases, contract costs, subcontract information, payroll reconciliation, cumulative billings, and required certifications.
AR Automation Software can automate manual collection followups and matching of payments with invoices, supporting reconciled financial information that feeds broader reporting workflows.
Early Payments Recommendations can review early payment discounts, vendor terms, and cost of capital to recommend payment timing while supporting payment approvals and processing. Accurate payment records can then contribute to stronger transaction-level reconciliation.
Teams preparing schedules across finance, contracts, and accounting functions can use Unlimited Access to provide users with automated onboarding, role-based configurations, and continuous availability for applicable finance workflows.
Best Practices for Managing the Schedule Set
Maintain an index of applicable schedules and document why a schedule does not apply when appropriate. Keep the company name and fiscal period consistent across submitted schedules, preserve traceable supporting documentation, and reconcile summary amounts before final certification.
Rollforward Schedules can also provide useful continuity for recurring financial workflows by showing how balances or amounts move from one reporting period to the next. This supports organized close and reconciliation practices without replacing the specific schedules required for an incurred cost submission.
The goal is a connected submission in which every major reported amount can be traced from the summary schedules to accounting records and, where applicable, individual contracts, transactions, payroll records, or supporting documents.
Summary
Incurred Cost Submission Schedules organize the financial and contract information needed to support a contractor's final incurred cost proposal. They cover indirect rates and pools, allocation bases, direct contract costs, subcontract information, payroll, cumulative billings, accounting changes, certifications, and contract closeout information. Effective preparation depends on consistent accounting data, cross-schedule reconciliation, complete supporting records, and disciplined period-end controls.