In recent years, more and more architectural and engineering (“A/E”) firms are finding that they must have an audited overhead rate in accordance with the Federal Acquisition Regulation Part 31 (“FAR”). The issuance of the new AASHTO Uniform Audit & Accounting Guide has resulted in an increased focus on properly calculated and audited FAR overhead rates rather than the use of estimates by A/E firms and different rates in various states.
FAR overhead statements are unique and FAR audits should be performed by a CPA that is experienced in working with A/E firms and in performing FAR audits. We have expertise in this and currently conduct FAR overhead rate audits for clients who contract with dozens of state agencies. These audits include the calculation of the facilities cost of capital and the preparation of the required report on compliance and internal control matters. As further evidence of our expertise and the reputation that we have gained in the industry and with users of FAR overhead audit reports, we have also been engaged by the Arizona State Department of Transportation to perform contract audits of A/E firms.
Please contact us today with any questions.
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