GENERAL INFORMATION ON FDOT AUDITS
Who needs a FDOT Audit?
If you are a professional consultant providing architectural, engineering, surveying and other services and are prequalified or wish to become prequalified with the Florida Department of Transportation for contracts over $250,000 you are required to include an audit report as part of your re-certification or qualification package.
The audit report will include the following:
1. A statement that your audit was performed in accordance with Generally Accepted Governmental Auditing Standards (GAGAS), the Department’s Reimbursement Rate Audit Guidelines, and Government Auditing Standards.
2. A statement on Internal Controls including that the Company’s accounting system meets DOT requirements.
3. At statement that your method of estimating cost is consistent with your accounting system.
The Financial Statements will include the following:
1. A Statement of reimbursement rate for:
a. Indirect costs.
b. Direct expense
c. Facility Capital Cost of Money (FCCM)
2. An overhead rate statement presentation of the:
a. Direct labor costs incurred.
b. Allocable indirect costs.
c. Other direct costs incurred.
The Principal Requirements of the Accounting system:
1. Classification of cost to each Jobs
2. Classification of cost between direct and indirect expense categories
3. Reporting system
4. Written policies and procedures
(Please contact us for more detail information on the Accounting System Requirements for Professional Consultants)
There may be exceptions to the audit requirements for newly formed firms and firm bidding on contracts for under $250,000. However, the requirement for the adequacy of the Company’s accounting system is still required.
Cassells & Associates, CPA is well versed in the area of FDOT audits and would be happy to provide you with a free, no obligation consultation.
Please call 954-889-5828 and when you call please request to speak with Annette Cassells-Wilson, CPA.
Cassells & Associates, CPA
Ft. Lauderdale, FL
PH: 954-889-5828 Fax: 954-889-5832