Defense and aerospace, and architecture, engineering and construction are two of the five largest market segments for United States government spending. Contracts in these segments often require extensive reporting of costs incurred under those contracts, including schedules prepared in accordance with the Federal Acquisition Regulation (FAR), specifically indirect cost rate schedules.
The challenge for any size business under these contracts is to design and implement an accounting and internal control structure to appropriately identify and allocate direct, indirect, allowable and unallowable costs under the FAR.
Bonadio offers more than a decade of experience in auditing indirect cost rates and providing related consultation services. Our workforce includes 230 professionals who meet the continuing education requirements to supervise and perform audits in accordance with Generally Accepted Government Auditing Standards. With a primary goal of performing an audit that meets our client’s reporting requirements, we also assist clients in maximizing their indirect cost rates under the FAR to avoid understating their rate, and to prevent them from leaving money on the table.
We offer these services to companies requiring a FAR-compliant, audited indirect cost rate:
- Audits of indirect cost (overhead) rate schedules prepared in accordance with Part 31 of the Federal Acquisition Regulation in accordance with Government Auditing Standards
- Audits performed under the guidelines of the AASHTO Audit and Accounting Guide for NYSDOT audit requirements for architectural and engineering firms
- Management letter regarding internal control related matters noted during our audit procedures
- Other insights noted during our audit
In addition, we offer these consultation services:
- Consultation regarding existing accounting systems for:
- Evaluation of internal control systems for identifying and allocating allowable and unallowable costs
- Evaluation of internal control systems to properly segregate direct and indirect expenses
- Review of cost allocation methodologies
- Establishing systems to accumulate and allocate costs
- Consultation regarding allowability of specific costs
- Assistance with preparation of the indirect cost rate schedule