Welcome to:

1
Introduction
Welcome to Using the AASHTO Audit Guide for the
Development of A/E Consultant Indirect Cost Rates
EXECUTIVE SUMMARY
2
Introduction
Case for Training
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Introduction
AASHTO Audit Guide

• Provides guidance related to the auditing and
  reporting of costs incurred by A/E firms in
  performing services for transportation projects.

Updated to

• Ensure consistency
• Provide clarifying guidance
• Address questions and concerns

4
Introduction
Series Goals

• Clarifying roles and responsibilities of State
  DOTs, A/E firms, CPA firms and FHWA
• Improving consistency in the interpretation of
  FAR Part 31 cost principles
• Increasing compliance with the FAR Part 31 cost
  principles by A/E firms
• Enhancing quality of CPA audits

5
Introduction
AASHTO Audit Guide Courses
Using the AASHTO Audit Guide for the Procurement
and Administration of A/E Contracts
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Target Audience
Target Audience
Design and monitor internal control systems
Close and perform final reconciliations of A/E
contracts
Audit indirect cost and contract proposals
Provide oversight and ensure compliance of
contracts or subcontracts
Sell A/E services to State DOTs and local
governments
Provide oversight of local contracts or
subcontracts
Perform indirect cost rate audits for A/E firms
Prepare and review cost proposals
Administer and manage contracts or subcontracts
procure services
Review RFPs and contracts for government projects
Develop indirect cost rates
Approve payment of A/E consultant invoices
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Course Structure
Course Structure
Two-Day Course Day 1 Lessons
1. The AASHTO Audit Guide and the Statutory and
Regulatory Framework
2. Contract Types and Payment Methods
3. Key Cost Principles
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Course Structure
Course Structure
Two-Day Course Day 1 Lessons
1. The AASHTO Audit Guide and the Statutory and
Regulatory Framework
2. Contract Types and Payment Methods
3. Key Cost Principles
4. Cost Criteria for Determining Allowability of
Selected Areas of Cost
5. Indirect Cost Rates
6. Home and Field Office Rates
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Course Structure
Course Structure
Two-Day Course Day 2 Lessons
7. Internal Controls and Labor Charging
8. Introduction to Compensation
9. Performing a Compensation Analysis
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Course Structure
Course Structure
Two-Day Course Day 2 Lessons
7. Internal Controls and Labor Charging
8. Introduction to Compensation
9. Performing a Compensation Analysis
10. Additional Compensation Considerations
11. Audits and Audit Requirements
12. Use of Indirect Cost Rate Audit
13. Course Review and Final Assessment
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Learning Outcomes
Learning Outcomes
Answer questions such as

• What contract type and payment method is the best
  match for our project?
• What are key labor charging controls?
• Why are non-billable costs charged to my project?
• How do we determine reasonable compensation?
• What costs are unallowable in our indirect cost
  rate?

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Learning Outcomes
Learning Outcomes

• Employ the appropriate requirements, concepts,
  and tools necessary to develop and apply indirect
  cost rates to A/E contracts.
• Describe the components of compliant internal
  controls.
• Prepare an appropriate analysis necessary to
  demonstrate the reasonableness of executive
  compensation.

• Interpret and apply Federal and State laws,
  regulations, policies, and procedures relating to
  the procurement of A/E services and
  administration of A/E contracts.
• Explain various components of the oversight
  framework, including State DOT risk management,
  ethics and dispute resolution.
• Define and compare contract types and payment
  methods, and implications on cost accounting,
  billing, and auditing emphasis.

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Learning Experience
Learning Experience
Facilitator-led discussion
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Learning Experience
Learning Experience
Examples and Activities
Facilitator-led discussion
Group discussions
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Learning Experience
Learning Experience
Examples and Activities
Facilitator-led discussion
Group discussions
Assessments
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Conclusion
Conclusion
For More Information Visit
nhi.fhwa.dot.gov
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Search NHI for AASHTO Audit Guide Courses
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NHI Audit Guide Course Selection