ConnDOT: Consultant Audit Information

CONSULTANT HOME PAGE

 

This information is provided to describe CTDOTs requirements for annual Indirect Cost (Burden, Fringe and Overhead) Rate submissions by A/E Consultants.  In addition, a set of tools is provided to assist A/E Consultants in the preparation of indirect cost schedules and related financial documents and their independent CPAs in the performance of the audit of the indirect cost schedule to ensure compliance with the Federal Acquisition Regulations [FAR] Part 31. 

 

 

Indirect Cost Submittal Requirements:

  • All A/E Consultants must submit an audit of their Indirect Cost Rate performed in accordance with Government Auditing Standards for compliance with the FAR Part 31 to the Office of External Audits. 
  • All A/E Consultants must complete the AASHTO Internal Control Questionnaire for Consulting Engineers [ICQ], available below in the Tools section.  CTDOT will only accept the current version of the ICQ and all required documents listed on the ICQ must also be submitted.
  • Annual Cost Certification:  In compliance with FHWA Directive 4470.1A, all companies must certify that proposed indirect costs rates were prepared in compliance with applicable Federal regulations.  Accordingly, the Certification of Final Indirect Costs document, available in the Tools section, is mandatory.
  • It is no longer necessary to submit a separate audit of Indirect Costs that is in compliance with OPM General Letter No. 97-1; however, an internally generated 97-1 rate must be available upon request. 

 

Annual Submission Package:

Ø Independent CPA audit of the indirect cost rate performed in accordance with Government Auditing

     Standards and in compliance with FAR Part 31

Ø AASHTO Internal Control Questionnaire [ICQ] for Consulting Engineers and all  the attachments listed on

     ICQ page B-2

Ø Cognizant State’s Review Letter needs to be forwarded immediately upon receipt in order to facilitate CTDOT

      review process

Ø Approval Letter[s] received from other State DOTs should be forwarded upon receipt in order to facilitate

     CTDOT review process

Ø Executive Compensation analysis

Ø Certification of Final Indirect Costs

Ø Indirect Cost Schedule in Excel format

Ø Company financial statement

 

 

Submittal Method: It is recommended that the required documents be submitted electronically via email to DOT.ExternalAudits@ct.gov. (Note: Please do not send the documents via "cc" to any other CTDOT email addresses.) The documents should be submitted in Microsoft Excel, Microsoft Word, or Adobe PDF format when possible. Please submit all indirect cost schedules in Excel format, if possible. This will greatly facilitate and expedite the review process. Documents of large size may be mailed and submitted on a CD.

 

Individual email messages MUST indicate the following

    1. The Firm name and year of the indirect cost rate schedule must appear in the subject line.
    2. The body of the email must include a listing of all attached files.
    3. Multiple emails from the same company should be identified accordingly; for example, “Sample Consulting Firm, Year 2013 cost submittal, 1 of 3.” 

 

Request for Extension: Requests for extension must be in writing, on company letterhead, and submitted electronically via email to DOT.ExternalAudits@ct.gov.

 

Mileage Reimbursement: For direct billings on CTDOT contracts, all A/E Consultants are limited to the mileage rate specified by the Connecticut Office of the Comptroller. See the Tools section for details.

 

Mileage Logs: A/E Consultants must track mileage on all company-owned vehicles, so that vehicle costs are allocated consistently to direct and indirect cost categories. All direct vehicle costs, and costs associated with commuting and other unallowable activities (as discussed in 48 CFR 31) must be eliminated from the indirect cost rate used for billing on CTDOT contracts. 

 

LABOR CHARGING SYSTEMS:  In accordance with FAR 31.201[d], consultants must maintain adequate records to demonstrate that claimed costs have been incurred and allocable to Federal aid contracts.  Time applicable to Bid and Proposal; and Selling efforts must be documented separately on timesheets.  Certain selling costs are unallowable per FAR. 

 

See Chapter 6 of the Audit Guide for more detailed information

 

DIRECTLY ASSOCIATED COSTS:  As per FAR 31.001 and 31.201-6[a] directly associated costs refers to a cost generated solely as the result of the incurrence of another cost and which would not have been incurred had the other cost not been incurred.  Therefore, if a cost is determined to be unallowable, then any directly associated cost is also unallowable. 

 

 

Please direct all questions regarding cost submissions to DOT.ExternalAudits@ct.gov.

 

 

Tools:

 

o    AASHTO Internal and External Audit Subcommittee for the following items:

§ AASHTO Audit Guide; Current Edition

§ AASHTO Internal Control Questionnaire

§ National Compensation Matrix

§ AASHTO-CPA Workpaper Review Program

 

o    CTDOT Indirect Cost Rate Schedules [Excel Document]

§ Cost of Money

§ Cost of Ownership

 

o    Mileage Rates [Excel Document]

 

o    State of Connecticut Office of Policy and Management (OPM)

§ General Letter No. 97-1  [PDF]

 

o    Certification of Final Indirect Costs [Word Document]

 

 

 

LINKS AND RESOURCES

 

AASHTO Internal and External Audit Subcommittee

            AASHTO - Internal/External Audit Subcommittee - Home

 

Federal Acquisition Regulations

            https://acquisition.gov/far/index.html   

      Or

            USA.gov: The U.S. Government's Official Web Portal 

            then search for Federal Acquisition Regulations    

 

FHWA - Consultant Services

            http://www.fhwa.dot.gov/programadmin/consultant.cfm

 

Defense Contract Audit Agency

            DCAA - Defense Contract Audit Agency

 

Facilities Capital Cost of Money Rates 

            Prompt Payment: Prompt Pay Interest Rate History

 

GAO

            http://www.gao.gov/

 

General Services Administration [Federal Travel Regulations]

            Federal Travel Regulation (FTR)

 



Content Last Modified on 7/24/2017 10:15:50 AM