Rates
Overhead rates should be submitted to the Office of Audit on an annual basis. Overhead rates can be submitted to greg.hlivka@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 audit from your home state please submit the following:
- Statement of Overhead
- AASHTO Internal Control Questionnaire
- Financial Statements
- Cognizant Letter
- Certification of Final Indirect Costs
If MnDOT is your cognizant agency and you are requesting a cognizant audit from MnDOT, please contact MnDOT prior to signing an engagement letter. Once the overhead rate is ready for review please submit the following:
- Statement of Overhead
- AASHTO Internal Control Questionnaire
- Financial Statements
- Certification of Final Indirect Costs
If you have hired a CPA to perform your overhead rate calculation, please submit the following:
- Statement of Overhead
- AASHTO Internal Control Questionnaire
- Financial Statements
- Certification of Final Indirect Costs
- Approval Letters from Other States
If you have prepared your overhead rate in-house please submit the following:
- Overhead Calculation and supporting workpapers
- National Compensation Matrix
- MnDOT Overhead Rate Questionnaire
- Financial Statements
- Balance Sheet
- Profit and Loss Statement
- General Ledger
- Certification of Final Indirect Costs
- Approval Letters from Other States If available
Once the MnDOT Office of Audit has approved your overhead rate we will issue a letter.
MnDOT is one of two opt-out states, therefore we have cap on our overhead rate of 160.00%, per the MnDOT Policy: Audit Oversight of Consultant Contract Indirect Cost Rates. However, with contracts with the 'Process Start Date' of April 15, 2019 or later the overhead rate cap will be 170.00%.
Federal Acquisition Regulations
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.
The Uniform Audit and Accounting Guide 2012 Edition is free.
- Here is a sample of an overhead rate calculation. 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 costs, the direct costs or excluded from the overhead rate.
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
MnDOT Overhead Rate Questionnaire
Certification of Final Indirect Costs
NCM – Multiple
2019 (to be used with 2018 Data)
2018 (to be used with 2017 Data)
2017 (to be used with 2016 Data)
* MnDOT is one of two opt-out states, therefore we have a cap on our overhead rate of 160.00%, per the MnDOT Policy: Audit Oversight of Consultant Contract Indirect Cost Rates.
Audit Oversight of Consultant Contract Indirect Cost Rates Policy
Sample Overhead Rate Calculation
Common Unallowable Costs
Contact
Greg Hlivka, External Audit Manager
Phone: 651-366-4142
Email: greg.hlivka@state.mn.us
Frequently Asked Questions
Q: How often should we submit our overhead rate?
A: The overhead rate should be submitted on an annual basis.
Q: When does the overhead rate need to be submitted?
A: We request the overhead rate be submitted six months after the calendar year end.
Q: We want to give a bonus to our employees, can we put that on the cost proposal?
A: 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.