Thomas Reynolds, CPA
Mr. Reynolds is an Associate Director in the Government Contractor Services practice of Navigant Consulting, Inc. (NCI), resident in the firm’s Vienna, Virginia office. He previously worked with a major international public accounting firm. Mr. Reynolds works principally with government contractors, providing both consulting and auditing services to companies in a wide range of industries, including manufacturing, engineering, professional services, healthcare, and information technology.
Professional Experience
Mr. Reynolds has audited the financial statements of government contractors and other companies with annual revenues ranging from $10 million to $74 billion. He has performed extensive testing and analysis relating to revenue recognition methodology, reserves, and internal control processes. He has also performed due diligence procedures relating to a potential acquisition on behalf of a client. Mr. Reynolds prepared a report of his findings, which was used by the organization in evaluating the potential acquisition target.
Mr. Reynolds has evaluated the effectiveness of internal controls over financial reporting and compliance with government procurement laws and regulations. He has assisted a leading government contractor and an international energy provider in their Sarbanes-Oxley Act, Section 404 implementation efforts of best practice controls. His efforts included documenting critical business processes in the areas of procurement and revenue recognition, evaluating the controls related to those processes, identifying control deficiencies, and working with management to develop and implement best practice solutions. He also has experience assisting clients with the preparation of desktop procedures for submission to the Defense Contract Audit Agency (DCAA).
Mr. Reynolds has also consulted with his clients regarding cost accounting matters, including compliance with Cost Accounting Standards (CAS) and Federal Acquisition Regulation (FAR) cost principles. Mr. Reynolds has led and supervised engagement teams from 2 to 20 members and has been responsible for day-to-day client interaction, properly staffing engagements, and invoicing clients.
Mr. Reynolds has assisted several service and consulting companies prepare their annual incurred cost submissions. His efforts have included supervising personnel reviewing for unallowable costs and applying those determinations to various schedules within the submission. Mr. Reynolds’ responsibilities also included reviewing the integrity and accuracy of various schedules included in the submissions.
Mr. Reynolds has also assisted a multi-national, multi-billion dollar construction, engineering, and services company in the procurement department by reviewing procurement files to ensure that the files were in compliance with federal procurement regulations, reviewing procurement documents in preparation for a Contractor Purchasing System Review (CPSR), and assisting legal counsel in preparing responses to DCAA’s Cost Disapproval Statements.
Mr. Reynolds performed complex revenue recognition reviews and analyses for two multi-billion dollar information technology firms. His efforts included reviewing key contracts to evaluate revenue recognition procedures related to percentage-of-completion and sales basis accounting, reserves, claims, and charge orders to verify whether current procedures were in compliance with revenue recognition accounting standards (i.e., SOP 81-1, SAB 104, etc.).
Mr. Reynolds managed efforts to develop an inter-company cost allocation process improvement plan for an $84 billion healthcare organization. Specifically, he analyzed current allocation practices, identified areas for improvement, and provided recommendations to internal legal counsel and corporate finance directors.
In addition, Mr. Reynolds is experienced working with companies on complex matters in connection with special investigations. His responsibilities involved fact-finding and analysis of accounting records and related data. Specifically, he conducted an investigation of alleged financial fraud at a Central American distribution unit of a global power company. He investigated and reviewed the alleged accounting improprieties and prepared a report summarizing his findings. Mr. Reynolds also assisted external legal counsel by performing a review of time charging practices for a government contractor specializing in engineering and technology services.
Mr. Reynolds has also participated in numerous business development and thought leadership initiatives. Specifically, Mr. Reynolds co-authored an article entitled “Government Contract Cost Accounting, Part 1: Federal Marketplace and the Need for Contract Cost Accounting” which appeared in the July 2010 edition of the Contract Management magazine. Mr. Reynolds has also presented several government contracting related topics via both internal and external training seminars. Mr. Reynolds presented a four day training seminar to individuals at a $22 billion management consulting, technology services, and outsourcing organization. The training focused on basic government contracting principles with a specific focus on cost allowability and statistical sampling in connection with incurred cost proposals.