CAS Board - 48th Meeting
April 4, 2007

Chairman Paul Denett convened the meeting at 9:00 A.M. and welcomed the members to the 48th meeting of the Cost Accounting Standards (CAS) Board which was held in the Eisenhower Executive Office Building, 1750 Pennsylvania Avenue, Washington, DC.  In addition to the Chairman, Board Members Mses. April Stephenson and Kathleen Turco as well as Messrs. Bruce Timman and Richard Wall were in attendance.  Also in attendance for the entire meeting were Messrs. Rob Burton, Deputy Administrator, OFPP, David Capitano and Eric Shipley, CAS Board Staff and Ms. Laura Auletta, CAS Board Manager.

Agenda Items as Determined by the February Board Meeting

Final Rules

Alternative Disclosure Statements for United Kingdom Contractors.  The Board discussed and unanimously approved issuing a final rule.

Time-and-Material/Labor-Hour Contracts for Commercial Items.  The Board discussed and unanimously approved, pending two changes to the draft Federal Register notice, issuing a final rule that will implement Section 1432 of the 2004 National Defense Authorization Act (Pub. L. 108-136).

Adjustment of Thresholds for Inflation.  The Board discussed and unanimously approved issuing a final rule.

Proposed Rule

Contract Clause for Foreign Concerns.  The Board discussed and unanimously approved a proposed rule. 

Staff Briefings

Pension Protection Act.  As instructed by the Board at the February 2007 meeting, Eric Shipley briefed the Board on issues related to CAS 412 and 413 and the Pension Protection Act changes to the Employees Retirement Income Security Act of 1974 (ERISA).  The Board unanimously agreed to establish a working group and tasked it to develop a draft Staff Discussion Paper (SDP) for Board review by May 29, 2007.

Incomplete Initiatives.  As instructed by the Board at the February 2007 meeting, the staff provided the following list of incomplete initiatives and the Board unanimously approved them in the following order of priority:

• Employee Stock Ownership Plans – due at next meeting
• CAS 403, Operating Revenue Threshold – due at next meeting
• Computing the Cost Impact of a Change in Accounting Practice - staff briefing due at next meeting
• CAS Exemption for Contracts Executed and Performed Outside the United States
• CAS Comprehensive Review
• CAS 410, Appendix A, Transition from a cost of sales or sales base to a cost input base
• Disclosure Statements
• CAS 404 and 409, Tangible Capital Assets
• Catastrophic Losses

The Board members discussed the process for members to provide suggested agenda topics for future meetings per 48 CFR 9901.308.  As a result, Mr. Wall requested that the following two items be included on the agenda for the next meeting: Blanket CAS exemption for all commercial item contracts and CAS applicability to hybrid contract types.

The Board’s next meeting will be June 12, 2007 at 9:00 AM in the Eisenhower Executive Office Building.  

Adjournment
The Chair, Mr. Denett, adjourned the meeting at 12:00 P.M.  
Minutes submitted by Laura Auletta April 9, 2007.