Former_DCAA Posted October 20, 2023 Report Share Posted October 20, 2023 Our company is considering switching to to an unlimited PTO model. Has anyone encountered issues explaining this to an auditor? Quote Link to comment Share on other sites More sharing options...
Neil Roberts Posted October 20, 2023 Report Share Posted October 20, 2023 can you provide more detail about an unlimited PTO model? Quote Link to comment Share on other sites More sharing options...
Former_DCAA Posted October 23, 2023 Author Report Share Posted October 23, 2023 On 10/20/2023 at 7:49 PM, Neil Roberts said: can you provide more detail about an unlimited PTO model? No vacation or sick time will be accumulated and nobody will have a "bucket" of hours/days. Employees can take an "unlimited" amount of PTO, but have to get their jobs done and coordinate with their manager. Quote Link to comment Share on other sites More sharing options...
Retreadfed Posted October 23, 2023 Report Share Posted October 23, 2023 5 minutes ago, Former_DCAA said: No vacation or sick time will be accumulated and nobody will have a "bucket" of hours/days. Employees can take an "unlimited" amount of PTO, but have to get their jobs done and coordinate with their manager. How would this work if employees are subject to the SCA? Quote Link to comment Share on other sites More sharing options...
Former_DCAA Posted October 23, 2023 Author Report Share Posted October 23, 2023 1 hour ago, Retreadfed said: How would this work if employees are subject to the SCA? There is nobody subject to SCA. Quote Link to comment Share on other sites More sharing options...
here_2_help Posted October 23, 2023 Report Share Posted October 23, 2023 If I understand the situation correctly, the company is moving to a pay-as-you go model. There is no liability on the balance sheet. Is that correct? If so, what does CAS 408 say? It occurs to me that the company can estimate its liability, based on historical usage trends. A liability for the estimated annual usage can be booked. Let DCAA audit that value. Quote Link to comment Share on other sites More sharing options...
Former_DCAA Posted October 23, 2023 Author Report Share Posted October 23, 2023 11 minutes ago, here_2_help said: If I understand the situation correctly, the company is moving to a pay-as-you go model. There is no liability on the balance sheet. Is that correct? If so, what does CAS 408 say? It occurs to me that the company can estimate its liability, based on historical usage trends. A liability for the estimated annual usage can be booked. Let DCAA audit that value. Correct, there will be no liability on the balance sheet. They're still a bit small for CAS to come into play, but I will review CAS 408. Quote Link to comment Share on other sites More sharing options...
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