Enter the expenditure categories required by the contract. Enter the cumulative incurred costs up to the end of the prior reporting period. This column will be blank at the time of the submission of the initial report. Enter the costs which were incurred during the current period. Make entries only when the contractor estimates that a particular expenditure category will vary from the amount negotiated.
Realistic estimates are essential.
When a line item varies by plus or minus 10 percent, i.e., the percentage arrived at by dividing Column J by Column I, an explanation of the variance should be submitted. List any modification in the amount negotiated for an item since the preceding report in the appropriate cost category. Expenditures Not Negotiated.