CONSULTANT SELECTION COMMITTEE 

 When the Agency is selecting a consultant for a contract, Audit reviews the cost for, continuity, and compliance with the RFP. Where burdened labor rates are calculated, Audit compares the overhead rate proposed against the audited or approved overhead rate. Audit reviews the financial information submitted by both prime and as required by the AF38 form. Audit’s analysis includes checking the firm’s long-term viability. Audit notifies Contract Administration of any areas found to be in non-compliance, reviews additional information provided to reach compliance, summarizes the cost proposals for the committee, attends the CSC meeting and makes recommendations as needed. Home

Pre-Award Reviews 

Before an agreement (either project specific or retainer) is executed, the language of the agreement is reviewed by Audit to ensure it contains clauses that will allow the agency to audit the project costs upon completion. Audit also checks for language that specifies the governing regulations, the contract type, the maximum limiting amount, the termination date, that the agreement is in accordance with the approved cost proposal, and that it is reasonable.  Audit checks to see that an AF-38 and current financial information for the firm has been submitted as required, that the cost proposal includes an overhead rate in line with the audited rate provided (if available), and that the firm has no outstanding receivables with AOT.  In addition to these items, amendments are compared with the original agreement for continuity of type, and reasonableness, and work authorizations are compared with the original retainer agreement and the total authorizations to date to ensure the MLA will not be exceeded by the new assignment. Home

Final Contract Audits 

Final contract audits at the VAOT are required to determine that payments were made in accordance with each contract’s terms and conditions, as well as to ensure that all applicable federal and state contract reimbursement principles have been followed.  Governmental reimbursement regulations ordinarily follow those principles prescribed in the CFRs.   The amounts paid to contractors are verified to all financial records including the consultant’s invoices and VAOT’s accounting and payment system (STARS).  A final determination of amounts (if any) due to or from the contractor are recommended to Agency management. Final audit questioned costs are subject to an appeal process that provides the contractor with the opportunity for monetary relief.  This appeal is ordinarily made to the Secretary of Transportation. Home

Subrecipient Monitoring 

Audit is involved in the Supplemental Subrecipient Monitoring, as required by OMB Circular A-133, to review all Single Audit reports for entities expending over $300,000.00 in federal assistance in one year (this threshold has been increased to $500,000.00 for fiscal years ending after December 31, 2004).  Audit ensures the expenditures made by the Grantee are in conformity with VAOT payments to the Grantee, and then Audit issues a “memo report” on the Grantee’s compliance. Home  

Code of Federal Regulations - The Code of Federal Regulations (CFR) is the codification of the general and permanent rules published in the Federal Register by the executive departments and agencies of the Federal Government. It is divided into 50 titles that represent broad areas subject to Federal regulation. Each volume of the CFR is updated once each calendar year and is issued on a quarterly basis.  Home

 AF38-“Consultant Financial Background Questionnaire”  

This form requires submittal of certain levels of prime & sub financial background information based upon the estimated cost of the proposed contract. The form also requires information about the consultants accounting system, their ability to track project and labor costs, and information on the employees to be assigned to the contract.  Home

 Single Audit – A single audit report contains information about a subrecipient’s use of federal money and compliance with program objectives, when payments meet the threshold.  Home  

Grant– A legally enforceable agreement between an agency and a subrecipient to carry out a program as defined in a grant agreement. Home

Typical agreement types subject to Audit’s pre-award review are: 

Closing a “contract” is not the same as closing a “project” 

1. A contract closure notice states all work has been satisfactorily performed and accepted. Once Audit has received a contract closure notice, the contract can be scheduled for a final contract audit. A contract closure notice is sent to the Audit unit, with a copy of the closure notice being sent to Billings Unit.

2. A project closure notice usually indicates an EA should be shut off in the STARS system. A project closure notice is sent to the Billings Unit.  Home