Minnesota Department of Transportation

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Audit

About us

The MnDOT Office of Audit provides independent and objective auditing, assurance, and management advisory services based on systemic examination of evidence to ensure that the agency’s operations, programs, and activities are operating as intended and as required by applicable state and federal requirements to ensure compliance with Government Auditing Standards (Yellow Book).  

The MnDOT Office of Audit has the authority to provide professional audit services department wide, regardless of MnDOT's organizational reporting structure and is unrestricted in the scope of its audit work. 

The MnDOT Office of Audit assists the agency achieve compliance with Minnesota Statutes §16A.057, subd. 8 which states that the head of each executive agency is responsible for designing, implementing, and maintaining an effective internal control system within the agency by fulfilling its function to: 

  • provide feedback regarding the adequacy and effectiveness of internal controls; 
  • ensure MnDOT’s compliance with applicable laws, rules, and regulations; and 
  • ensure MnDOT accomplishes its operational goals of excellence in customer trust, operational excellence, and workforce excellence. 

The MnDOT Office of Audit provides audit and assurance services in the following areas:

Internal Audits

Internal audits are conducted on internal business processes throughout the agency to ensure effectiveness, efficiency, consistency, strong internal controls, and provide management with reasonable assurance that fraud is not occurring.

Investigations

Investigations are conducted at the request of management or through the receipt of information from the report of wrongdoing website form.

Highway Construction Audits

Highway construction audits are conducted on highway construction projects that receive federal assistance to ensure compliance with applicable requirements.

Construction claim audits are conducted on claims submitted by contractors. These audits provide recommendations on reasonable and allowable amounts in accordance with contract and regulatory requirements.

Additive Rate audits are conducted on the cost rates established by MnDOT’s Office of Financial Management to determine if the rates are accurate, consistent, and include all eligible costs.

External Close-Out Audits

External close-out audits are conducted on claims submitted by consultants, planning agencies, railroads, utilities, transits, and various other entities as a result of contracts/grants entered into between MnDOT and these entities. Audits are conducted to determine whether the costs reported are allowable, are in accordance with GAAP, meet the criteria per the subject agreement, and to provide reasonable assurance of detecting errors, fraud, misstatement, and/or illegal acts or other types of noncompliance.

External Pre-Award & Overhead Rate Audits

Pre-award audits are conducted on entities that MnDOT will potentially enter into a contract with. These audits review financials, rates, and cost proposals to make recommendations to be utilized in the contract to eliminate questions and unallowable costs at the time of the post-award audit.

Overhead rate audits review indirect cost rates for consultants and grant recipients. These audits ensure that the rates are in conformance with federal regulations.