Mr. Collins,
I appreciate your help. The problem now is Not looking forward as I am currently doing by paying myself as if I was an employee of the company. The big problem is DCAA and I are trying to settle the incurred cost proposal for FY2005 and later for , 2006, 2007, and part of FY2008. The auditor is stating that because I did Not pay myself every payperiod during FY2005, all of my direct labor cost I billed to the governement for the work I did and for which the governemnt accepted the work and signed the paper work is unsupported and is telling the contracting officer to recover that monies from me since I was not in compliance with FAR 52-216-7(i). Although the auditor recognizes that I did the work and there is a time sheet showing the hours I spent every payperiod. What the auditor also said that because i had draws during FY2005 and the total dollor of these draws are much less than my direct labor cost that I billed the government for. Therfore, the government is at risk of being overbilled.
I have used this way of getting draw checks since 1998, and all previous auditors did even bother with something like that and they interpreted the FAR cluase differently and some of those auditors have retired and I have sopken to them on this and they all think is stupid to think that way "referring to the new audito and the new management who concurs with auditor interpretation of the FAR clause.
I have searched for a presedent or a prior case like this and found none in the open public domain. In summary, this auditor is asking the contracting office to collect the money for my direct labor cost for the work I had performed and they aknowledge that I did the work day in and day out.
Please let my know if you can help, since the only option now I have is if DCAA does Not change its opnion, is to go the Armed Service Board of Contracts or a federal court and argue my case as sole propriator and by definition I was Not Not required to pay myself or at least this was Not an issue, but I need to know if there somebody out there who can help.
Thanks,
Dr. Mohammed A. Mawid