Consultant Audit Information

Deadline for submission of 2023 Indirect Cost Rate (ICR) Audits

The deadline for submission of 2023 ICR audits is five (5) months after the company’s year-end.

For example, for calendar year-end companies, the deadline would be May 31, 2024.

For fiscal year-end companies, for example FYE March 31^st, the deadline would be August 31, 2024.

Questions or requests for extensions should be emailed to: DOT.Externalaudits@ct.gov

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.

Submission due date is five (5) months after consultant year-end

Annual Submission Package

Independent CPA audit of the indirect cost rate performed in accordance with Government Auditing Standards and in compliance with FAR Part 31

AASHTO Internal Control Questionnaire [ICQ] for Consulting Engineers and all the attachments listed on ICQ page B-2

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

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

Executive Compensation analysis

Certification of Final Indirect Costs

Indirect Cost Schedule in Excel format

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.

Individual email messages MUST indicate the following:

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.
Company Owned Equipment: Audits of company owned equipment should be submitted with the indirect costs audit.
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 AASHTO 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.