Rates
Overhead rates should be submitted to the Office of Audit on an annual basis. Overhead rates can be submitted to auditpreawards.dot@state.mn.us, below is an outline of what needs to be submitted depending on how your overhead rate is prepared.
Overhead Rate Submissions
If you have received a Cognizant Overhead Audit from your Home State DOT Audit Office, please submit the following:
- Overhead Calculation
- Cognizant Letter from the Home State DOT Audit Office
- AASHTO Internal Control Questionnaire
- Financial Statements
- National Compensation Matrix
- Certification of Final Indirect Costs
If MnDOT is your Cognizant Agency and you are requesting a Cognizant Review from MnDOT Audit, please contact MnDOT Audit “prior to signing” an Engagement Letter with a CPA. After the overhead rate is ready for review, please submit the following:
When you have hired a CPA to perform your overhead rate calculation, please submit the following:
- Complete CPA Audited Overhead Rate Report, including the Overhead Calculation
- AASHTO Internal Control Questionnaire
- Financial Statements
- National Compensation Matrix (Excel)
- Certification of Final Indirect Costs
- Approval Letters from Other States (If available)
Whereas, if you have prepared your overhead rate in-house, please submit the following:
- Overhead Calculation and supporting workpapers
- MnDOT Overhead Rate Questionnaire
- Financial Statements
- Balance Sheet
- Profit and Loss Statement
- General Ledger
- Certification of Final Indirect Costs
- National Compensation Matrix
- Approval Letters from Other States (If available)
After the MnDOT Office of Audit has approved your overhead rate, we will issue a letter to the appropriate Officer/Employee of the Company, while also copying MnDOT Consultant Services, and our local FHWA Office.
Federal Acquisition Regulations (FAR)
Overhead rates must be in accordance with FAR Part 31.
The Uniform Audit and Accounting Guide 2016 Edition is the most current edition and can be purchased from AASHTO. This guide is beneficial when calculating your overhead rate, since it is the most recent version, and it can be easier to read than FAR.
The Uniform Audit and Accounting Guide 2012 Edition (PDF) is free.
- Here is a sample of an overhead rate calculation (Sample Overhead Rate Calculation (Excel)). Please note, this is a sample and should be geared toward your accounting system.
Premium Portion of Overtime
The Premium Portion of Overtime can either be included in the Indirect Labor Costs, the Direct Labor Costs, or Excluded from the Overhead Rate Costs by being part of Direct Expenses.
Facilities Capital Cost of Money
MnDOT does not accept Facility Capital Cost of Money rates, per the Audit Oversight of Consultant Contract Indirect Cost Rates Policy.
Links
- AASHTO Internal Control Questionnaire (Word)
- MnDOT Overhead Rate Questionnaire (Word)
- Certification of Final Indirect Costs (PDF)
- NCM – Multiple Choices, depending on the year of Actual Cost Detail that is being evaluated:
- 2020 NCM (Excel) (to be used with 2019 Data)
- 2019 NCM (Excel) (to be used with 2018 Data)
- 2018 NCM (Excel) (to be used with 2017 Data)
- 2017 NCM (Excel) (to be used with 2016 Data)
* MnDOT is one of two Opt-Out States per the United States Congress, and therefore, we have a Cap/Limit on our Overhead Rate of 160.00%, per the MnDOT Policy: Audit Oversight of Consultant Contract Indirect Cost Rates. However, with contracts when the 'Contract Process Start Date' is April 15, 2019 or later, the Overhead Rate Cap/Limit will be 170.00%.
- Audit Oversight of Consultant Contract Indirect Cost Rates Policy
- Sample Overhead Rate Calculation (Excel)
- Common Unallowable Costs (Word)
Contact
auditpreawards.dot@state.mn.us
Frequently asked questions
How often should we submit our overhead rate?
The overhead rate should be submitted on an annual basis.
When does the overhead rate need to be submitted?
We request the overhead rate be submitted six months after the calendar year end.
We want to give a bonus to our employees, can we put that on the cost proposal?
Bonuses are recouped from the overhead rate. Therefore, no, bonuses cannot be listed on the cost proposal and MnDOT will only reimburse these bonuses through the overhead rate.
Guidance video
- Pre-Award Package and Overhead Calculations Seminar - June 15, 2020 (YouTube): This seminar provides guidance to MnDOT consultants to help clarify the MnDOT Audit Pre-Award process and identify required supporting documents.
- FHR Cost Detail template (Excel)