FAR Audit And Consulting

FGMK works extensively with architecture and engineering (A&E) firms, and our experienced professionals are very familiar with the cost accounting standards that apply to federally funded contracts with State Departments of Transportation and local agencies. These costing standards are incorporated in Part 31 of the Federal Acquisition Regulation (FAR) and govern how costs should be accumulated and charged to federally funded projects as either direct project costs or as part of firms’ indirect cost rates.

FGMK professionals can consult with A&E firms working on public sector projects to set up internal processes and systems for FAR compliance and better position them to secure profitable contracts. We can assist with the development of overhead rates and expedite the prequalification process with Departments of Transportation. FGMK can also audit or review indirect cost schedules if such assurance is a funding requirement on the part of Departments of Transportation or other agencies or can coordinate obtaining a cognizant review for firms doing business in multiple states. FAR related services include:

  • Coordination with Home State Departments of Transportation to obtain a cognizant rate for A&E firms with operations in multiple states. Cognizant rates are generally accepted by other states which greatly reduces administrative effort for those A&E firms.
  • Evaluation and design of systems and processes to accumulate labor and other costs and ensure they are properly reflected in overhead rates based on FAR requirements.
  • Ongoing consultations on FAR related issues.
  • Performance of high quality audits of schedules of direct labor, fringe benefits and overhead in accordance with applicable auditing standards.
  • Representation in the event of audits by funding agencies to communicate with agency auditors and avoid or minimize reductions in overhead rates.
  • Review and design of procedures ensure that those costs that are not FAR allowable are identified and excluded from the overhead rate calculation.
  • Review of bonus and other compensation policies for compliance with FAR requirements or other agency imposed criteria.
  • Training of accounting and project management personnel on FAR compliance issues.
 

Cornelius F. Murphy

847.444.8498

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FGMK professionals can consult with A&E firms working on public sector projects to set up internal processes and systems for FAR compliance and better position them to secure profitable contracts.

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