AASHTO & FAR Overhead
Rate Audits for A/E Firms
A/E Overhead Rate Audits:
FAR Part 31 Compliance & AASHTO Certification
Secure More Contracts with an Audited, Defensible Overhead Rate
Government and State DOT contracts are a vital revenue source for Architecture and Engineering firms. However, securing and profiting from them hinges entirely on one critical financial deliverable: your Certified Overhead Rate.
A non-compliant rate, or one based on an incomplete audit, can lead to costly disallowances, prolonged agency negotiations, and jeopardize future opportunities.
Brady Ware specializes in the unique accounting demands of the A/E industry. We don’t just audit; we partner with you to achieve a maximized, fully defensible overhead rate that complies with all federal and state guidelines.
Our A/E Audit & Consulting Services
We provide end-to-end assurance services to ensure your firm is positioned for maximum reimbursement and seamless contract approval.
Certified AASHTO/FAR Overhead Rate Audit
State DOT Acceptance
Our audits are performed to the rigorous standards of Government Auditing Standards (GAGAS) and follow the specific guidance of the AASHTO Uniform Audit & Accounting Guide. This ensures your rate is recognized and accepted by all State Departments of Transportation.
FAR Part 31 Compliance
We provide a comprehensive review and audit of your Schedule of Indirect Costs based on the cost principles in Part 31 of the FAR.
Deliverables
You receive the necessary Opinion Letter and certified report required to confidently submit your rate for billing.
Overhead Rate Maximization & Consulting
Strategic Cost Segregation
We perform an in-depth analysis of your direct, indirect, and unallowable costs. We find opportunities to maximize your allowable costs (like fringe benefits and facility costs) to achieve a higher, yet fully justifiable, reimbursement rate.
Unallowable Cost Protection
Proactive identification and segregation of all unallowable expenses (e.g., entertainment, political contributions, federal taxes) to prevent audit findings. Management bears the sole responsibility for this crucial step.
Accounting System & Internal Controls Review
GAAP Accrual Basis
Review and consultation to ensure your accounting system is maintained on the accrual basis in accordance with GAAP—a critical foundation for any successful FAR audit.
Labor & Timekeeping Integrity
Assessment of your internal controls, especially for direct labor and timekeeping, to ensure compliance with FAR requirements for cost allocation.
Why A/E Firms Choose Brady Ware
We turn the mandatory annual overhead rate audit into a strategic financial tool that improves your bottom line.
| Industry Challenge | Our Solution |
|---|---|
| Low Reimbursement | We maximize the ratio of allowable indirect costs to direct labor costs, ensuring you get the best possible rate. |
| Agency Delays | Our comprehensive, AASHTO-compliant reports help to streamline negotiations and accelerate the agency review process. |
| Profit Risk | We offer clarity of unallowable costs so you pay for them from profit, instead of facing costly disallowances. |
| Audit Preparation | We help you implement strong internal controls and maintain accurate records, which are key to an efficient and successful audit. |
“An accurate, audited overhead rate and understanding its drivers can optimize your potential reimbursement on every government contract.”
Ready to Elevate Your Contract Profitability?
Don’t let the complexity of FAR Part 31 and the AASHTO Guide limit your A/E firm’s revenue potential. Partner with a CPA firm that understands your business and the rules that govern your contracts.
Take the first step toward a higher, defensible overhead rate.
