Marcum Recognized as Top Three Construction Accounting Firm
New York City, NY – Marcum LLP was recognized as the No. 3 construction accounting firm nationally in The Top 50 Accounting Firms™ ranking by Construction Executive, in the July-August issue.
This is the second consecutive year Marcum was recognized as a top three construction accounting firm.
The 2021 Construction Executive ranking focuses on how firms are guiding their clients amid ongoing economic uncertainty due to COVID-19.
“We greatly appreciate this recognition from Construction Executive, particularly during a period of such economic turmoil. The past 12-18 months were especially challenging for our construction clients in major metropolitan areas, but hopefully the $1 trillion infrastructure bill now in the House will pass and put the industry back to work. Until then, we are advising construction contractors to focus on making sure they have a properly structured balance sheet so they will be able to capitalize on the work if and when the bill passes. It’s an optimistic outlook but it is real—there will be lot of money out on the street, and contractors who use the time well between now and then will be an ideal position to win bids,” said Joseph Natarelli, national leader of Marcum’s construction services practice.
In addition to six data sets pertaining to each firm’s construction practice, the survey asked construction accounting leaders for insights into specific construction accounting issues.
Audits of PPP Loans
Regarding how to prepare for a potential audit of payroll protection program loans, Mr. Natarelli said, “Companies with Paycheck Protection Program loans will, in many cases, be requested (required above $2M) to complete the PPP Loan Necessity Questionnaire as part of the forgiveness application; the questionnaire may be used by the SBA in reviewing the good-faith certification that a company makes on the PPP borrower application and as a roadmap in the SBA’s audit of the loan. The questionnaire requests certain financial measurements to determine the need for the loan.
“When completing the form, contractors should attach a supplemental narrative discussing all of the ways the pandemic impacted the company; examples include delays in the collection of receivables, delays or shutdowns of projects with scheduled timeframes and related costs, delays or cancellations of any projects out to bid, additional costs (e.g., PPE or other) incurred due to the pandemic, government shutdowns and other COVID-19-specific impacts to the company in its daily business operations. Also include letters from third party service providers (e.g., bonding companies and banks) as to the need to maintain certain financial metrics required for bonding programs, not only support the existing work but to be able to continue to bid on new work. Additionally, the company should maintain documentation of all amounts spent on eligible payroll and non-payroll costs, including payroll tax filings, payroll registers, bank statements, invoices, copies of canceled checks, etc., most of which is provided to the bank in connection with the submission of the forgiveness application.”
On the topic of cybersecurity, Mr. Natarelli said, “New York state-based companies are required to implement written third-party cyber risk policies and confirm that due diligence is performed to evaluate the adequacy of third-party cyber practices. Contractors are increasingly asked to demonstrate sound cybersecurity practices, whether under a law such as New York’s or as an emerging best practice. The standardization of cyber risk assessments makes it easier than ever for companies to vet third-party vendors and contractors. Construction companies that either lack these internal controls or are unable to effectively communicate them may be unable to survive many RFP processes—or even be ineligible to participate or prequalify for a project owner.”
About Marcum Construction Services
One of the leading construction accounting firms in the U.S., Marcum LLP’s Construction Services group provides audit, consulting, and taxation services to clients ranging from start-ups to multi-billion-dollar enterprises. The group’s professionals, among the country’s foremost experts in construction accounting, are frequent industry authors and speakers and serve as technical reviewers for the AICPA’s construction audit and taxation guides. Marcum’s construction group also publishes several definitive industry resources – including the annual Marcum National Construction Survey, the quarterly Marcum Commercial Construction Index, the Marcum PAS Contractor Compensation Quarterly, and the annual Marcum JOLTS Analysis of construction employment trends – and presents an ongoing series of industry summits and technical webinars focused on the unique needs of construction contractors.