Minnesota Department of Transportation

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Audit

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.

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

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