242.7501 Policy.

Contractors receiving cost-reimbursement or incentive type contracts, or contracts which provide for progress payments based on costs or on a percentage or stage of completion, shall maintain an accounting system and related internal controls throughout contract performance which provide reasonable assurance that-

(a)  Applicable laws and regulations are complied with;

(b)  The accounting system and cost data are reliable;

(c)  Risk of misallocations and mischarges are minimized; and

(d)  Contract allocations and charges are consistent with invoice procedures.