Guidance

10. User guide for actual rates claim report

This user guide, template and glossary are discontinued since the launch of the new DefCARS on 15 March and are therefore for reference purposes only.

• From: Single Source Regulations Office
• Published: 1 April 2016

Documents

User guide for actual rates claim report

PDF, 148 KB, 6 pages

Details

The purpose of this report is to provide the SSRO and the MOD with the actual cost recovery rates and cost recovery bases used in a qualifying business unit (QBU), and how these have been calculated.

There is no report template for the actual rates claim report (ARCR).

The minimum value of the qualifying defence contract or qualifying subcontract for the reporting requirement to be imposed is:

• £20 million for the financial years ending on 31 March 2016 and 31 March 2017; or
• £50 million for subsequent financial years.

The report includes the following:

• a list of all cost recovery rates that have been calculated for that QBU and for which a claim relating to the relevant accounting period has been or will be made;
• a list of all the cost recovery bases that have been used to calculate the cost recovery rates described above;
• a description of any deviation from the relevant statutory guidance in calculating those cost recovery rates;
• the QBU’s financial accounting statements and supporting accounting schedules for the relevant accounting period;
• a quantified analysis of the adjustments made between those financial accounting statements and costs claimed for recovery through cost recovery rates;
• a calculation for each recovery base; and
• a calculation for each cost recovery rate, including the total cost claimed and the cost recovery base which has been used to calculate it, and the amount of each such cost recovery rate.

The report is due three months after either (whichever is the later), the end of the relevant accounting period, or the date on which the ongoing contract condition was first met in relation to the relevant financial year.

Alternatively a date can be agreed between the Secretary of State and the designated person, which is within three months after the end of the period described above.

Published 1 April 2016