Rate Audits: Your auditor’s role in successful prequalification with the
Florida Department of Transportation (FDOT) 

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If you are a professional consultant providing architectural, engineering, surveying and other services and wish to sell your services to any Florida state government agencies your auditor’s help could be key in this process.
The Request for Qualification Package for Professional Consultants that you will submit to the Florida Department of Transportation (FDOT) requires you to l include an audit report, a critical part of your package. Your auditor should provide the following:

1. A statement that your audit was performed in accordance with GAGAS (Generally Accepted Governmental Auditing Standards), the Department’s Reimbursement Rate Audit Guidelines, and Government Auditing Standards.

2. A statement certifying your accounting system meets the FDOT’s requirements. FDOT’s primary requirement is for your accounting systems to classify and separately report your direct and indirect costs.

According to FDOT, your accounting system should be comprised of:

i. A proper set of records with journals and ledgers

ii. A reporting system

iii. Written policies and procedures which are followed to record business transactions.

3. A statement outlining the direct labor costs incurred, allocable indirect costs, and other direct costs incurred for the most recent completed year.

4. A statement of reimbursement rates for indirect costs, direct expenses, and Facilities Capital Cost of Money (FCCM) for the most recent completed year.

5. A statement that your method of estimating costs for proposals is consistent with your accounting system.

FDOT has exceptions from the audit report requirement in certain circumstances, for example if you are a newly established firm (operating for less than one fiscal year) or are recently re-organized.

In addition to certifying that your accounting system is adequate, your auditor’s report will help you facilitate the process of setting-up your accounting system and obtaining approval of your reimbursement rates with the FDOT, including: overhead rates, direct expense rates, FCCM rates.

The Department’s adoption of direct expense and FCCM rates make the audit reporting requirements to FDOT unique and your auditor’s experience with reimbursement rate audit guidelines can be critical to your success in doing business with the FDOT and other Florida state government agencies.