C. AUDITS OF CREDITS DUE STATE

1. Background History

Per agreement (usually between the State and a utility company or Municipality), the State has agreed for it’s construction contractor to perform certain work on behalf of the Utility/Municipality or other third party. The Utility/Municipality or other third party agrees to reimburse the State for all or a portion of the cost to this work performed by the State’s contractor, plus in most cases an allocation of State provided services.

2. Purpose of the Audit

To determine the proper credit due the State for the reimbursable work in order to ensure the State is fully reimbursed.

3. Criteria Used in Determining Allowable Costs

Criteria determining allowable costs are the "Public Service Facility Policy and Procedures for Highways in Connecticut" dated June 1, 1987, or subsequent revision and/or the terms of the agreement(s).

4. Information to be Submitted with Audit Request

a. Entity Name

b. State Project Number

c. Federal Aid Project Number (if applicable)

d. All Agreements

e. Copies of pertinent correspondence

f. Demand Deposits or Letters of Credit

g. Signed and dated calculation of the Credit Due State amount (item number, item description, quantity, unit price, total)

h. Copy of Final Estimate for State’s Contractor

5. Office Responsible for Requesting Audit

• The Construction District Offices - for municipal agreements and public utilities
• Financial Services - for private and Municipality owned utilities

6. Reports

Reports are sent to the requesting office, which forwards a copy to the Municipality, utility company or other third party.

7. Other Considerations

If a Letter of Credit is involved, the audit should be requested well in advance of the expiration of the Letter of Credit. Extension of the Letter of Credit may be necessary.

D. AUDIT OF UTILITY RELOCATIONS

1. Background History

Due to the construction of a State highway, utility company’s facilities must be relocated. The work is generally performed by the utility company and the cost of the adjustments are shared by the Company, State and/or Federal Government.

2. Purpose of the Audit

To determine if the work was performed in accordance with the scope of the agreement(s). Generally, this is done by analyzing major materials installed and removed. We also perform various auditing procedures to determine if there is an over-billing of labor, equipment and other costs billed, and if such costs are in compliance with the terms of the agreement(s).

3. Criteria Used in Determining Allowable Costs

Criteria used to determine allowable costs are "Public Service Facility Policy and Procedures for Highways in Connecticut" dated June 1, 1987, or subsequent revision, the Federal Aid Policy Guide and the terms of the agreement(s).

4. Information to be Submitted with Audit Request

a. Entity Name

b. State Project Number

c. Federal Aid Project Number (if applicable)

d. All Agreements, Estimates, Change in Scopes and Cost Overrun Letter.

e. All Billings (with supporting documentation sent by the Company)

f. Pertinent correspondence (approvals, authorizations, etc.)

g. Payment History

h. Detailed schedule of outstanding adjustments made by requesting unit (including explanations, documentation and supporting workpapers.)

i. Explanation of any tick marks

j. Clean copy of billing without tick marks or any other changes

5. Office Responsible for Requesting Audits

• Office of Financial Services

6. Reports

Reports are sent to the requesting office, which will forward a copy to the utility company.