All pre-qualified prime Florida Department of Transportation (FDOT) consultants must have an approved accounting system in operation and a reimbursement rate audit of their most recent completed year, which is due within six months of their latest fiscal year end. Without an approved reimbursement rate audit report, you will not be allowed to perform services for the FDOT for projects in excess of $250,000. The FDOT requires that the reimbursement rate audit be performed by an independent Certified Public Accountant, an agency of the Federal government, another State transportation agency or similar independent audit organization.
It is important that you carefully choose a provider to conduct these audits, as they are “subject to approval by the Department’s Office of Inspector General to meet FDOT requirements.” The audit must also be done in accordance with applicable generally Accepted Government Auditing Standards, Florida Statute 112.061, Florida Administrative Code, applicable requirements of Subparts 9900 and 31 of the Federal Acquisition Regulations and other criteria required by the FDOT. In addition, FDOT has implemented the Uniform Audit Accounting Guide (“Guide”) prepared by the American association of Highway and Transportation Officials for audits. The Guide outlines the techniques to be used related to audits of overhead schedules as well as the evaluation of accounting systems, job cost systems and labor charging systems that serve as a basis for the overhead schedule.
Grau & Associates has been providing this specialized auditing service to FDOT contractors for years. We are intimately familiar with the Federal Acquisition Regulations (FARs) and the various, complicated interpretations therein. We will perform an overhead audit or examination‐level attestation engagement in accordance with Government Auditing Standards (GAGAS) to obtain reasonable assurance that the A/E consultant complied with FAR Part 31 and applicable Cost Accounting Standards.
As with all audits, proactive planning is the key. Not only will this facilitate compliance, it may even increase your firm’s profitability through improved processes, procedures, internal controls and streamlined operations. Overhead audits are complex, but the benefits may be significant for A/E firms seeking to grow their businesses by obtaining consulting contracts with the State.
We will work with you to ensure compliance with the following:
For more information about our Overhead Audit Services, please contact us.