Other Accrued Liabilities

6 Months Ended

Jan. 31, 2015

Other Accrued Liabilities [Abstract]

Other Accrued Liabilities

11. Other Accrued Liabilities

Other accrued liabilities are summarized in the following table.

	Balance at
	January 31, 2015		July 31, 2014
Allowance for project disallowances	$	2,242,813	$	2,393,351
Other		1,708,048		1,841,911
Total other accrued liabilities	$	3,950,861	$	4,235,262

The allowance for project disallowances represents potential disallowances of amounts previously billed and collected under government contracts.  Allowances for project disallowances are recorded when the amounts are estimable.  Resolution of these amounts is dependent upon the results of government audits and other formal contract close-out procedures.  Activity within the allowance for project disallowances is summarized in the following table.

	Three Months Ended January 31,					Six Months Ended January 31,
	2015			2014		2015			2014
Balance at beginning of period	$	2,393,351		$	2,670,851	$	2,393,351		$	2,663,351
Net change during the period		(150,538	)		2,500		(150,538	)		10,000
Balance at end of period	$	2,242,813		$	2,673,351	$	2,242,813		$	2,673,351

The reduction in the allowance for project disallowances during the quarter and six months ended January 31, 2015 resulted from settlement of an allowance liability recorded in a prior fiscal year, which resulted in a cash payment of less than $0.1 million and a $0.1 million contract adjustment recorded as an addition to revenue, net in the accompanying condensed consolidated statements of operations.