Minnesota Department of Transportation

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Audit

Pre-Awards

The MnDOT Office of Audit conducts Pre-Award Audits on contracts prior to contract execution.

Consultant Pre-Award Package

If MnDOT requests a Pre-Award for a Professional/Technical Contract, then a Consultant Pre-Award Audit Information Package (PDF) will need to be completed by the consultant (when the consultant costs are $50,000 or more), and their sub-consultants (when the sub-consultants costs are $10,000 or more for each sub-consultant).

It is the Prime's responsibility to ensure their sub-consultants have submitted all their documents for the pre-award.

The Consultant Pre-Award Audit Information Package consists of the following:

  • Pre-Award Overhead Rate Questionnaire (PDF)
  • The most recent financial statements, If sole proprietorship, a copy of the most recent tax return.
  • Chart of accounts that ties to the financial statements and (if applicable) overhead/indirect cost rate schedule
  • Independent Auditor’s Report on financial statements and accompanying management letter (if applicable)
  • Direct Cost Summary
  • An example of an Employee Timesheet.
  • An example of an Employee Expense Report
  • Management representation statement (last page of questionnaire)
  • Fee Schedule and/or a Billing Rate Schedule (if applicable)
  • Fixed Hourly Rate (FHR) Cost Detail Template
  • If vehicle expenses are billed directly, a copy of an actual mileage log sheet for a company vehicle
  • Overhead/Indirect Cost Rate acceptance letter - If you do not have a MnDOT overhead rate acceptance letter, submit the following items based on how your overhead rate was prepared:
    • CPA Prepared Overhead Rate
      • CPA Audited Overhead/Indirect Cost Rate Report – including the overhead calculation
      • Pre-Award Overhead Rate Questionnaire
      • Financial Statements
      • Certification of Final Indirect Costs
      • National Compensation Matrix
      • Common Control Rent – related party rent, if applicable (in Excel format)
      • Approval Letters from Other State if Available
    • Cognizant Audit from your Home State DOT Audit Office
      • Overhead Calculation
      • Pre-Award Overhead Rate Questionnaire
      • Financial Statements
      • Cognizant Letter from the Home State DOT Audit Office
      • Certification of Final Indirect Costs
      • National Compensation Matrix
      • Common Control Rent – related party rent, if applicable (in Excel format)
    • In-House Prepared Overhead Rate
      • Overhead Calculation and supporting workpapers
      • Pre-Award Overhead Rate Questionnaire
      • Reconciliation of overhead/indirect costs to the financial statements
      • Financial Statements
        • Profit and Loss Statement
        • Balance Sheet
      • General Ledger
      • Certification of Final Indirect Costs
      • National Compensation Matrix
      • Common Control Rent – related party rent, if applicable (in Excel format)
      • Approval Letters from Other State if Available
  • The company’s policies for vacation and sick leave
  • The company’s bonus policy
  • Other written policies, as required throughout the questionnaire.

If this Pre-Award is in response to an RFP, please submit a copy of the budget in Microsoft Excel format.

A checklist has been provided for your convenience:

Transit Pre-Award Package

If MnDOT requests a Pre-Award for a Transit Contract, then the Transit Pre-Award Package will need to be completed by the grantee.

The Transit Capital Pre-Award Package consists of the following:

  • Copy of Application and Supporting Documents - Including Financial Statements
  • Transit Accounting Questionnaire (PDF)
  • Budget Amount and Quantities (Example: Number of buses and requested dollar amount)
  • Transit System Contact Information
    • Contact Name and Title
    • Address
    • Phone
    • Email

General information

The Pre-Award cannot be completed without all the information listed above. Missing information can delay the Pre-Award process; therefore, it is very important to provide all information on the Pre-Award at the time of submittal, including the sub-consultants information (if applicable).

A Pre-Award Package will need to be submitted on each Pre-Award that MnDOT requests. The Pre-Award Package should be sent to the MnDOT Consultant Services Section who has requested the Pre-Award. If you have questions regarding the Pre-Award Package, please email professionaltechnicalaudits.dot@state.mn.us.

To comply with federal audit requirements, the MnDOT Office of Audit will request any additional information needed from consultants for audits through the Office of Project Management and Technical Support – Consultant Service Section. Any questions from the consultant regarding audits performed should be made directly to the Office of Project Management and Technical Support – Consultant Service Section. The MnDOT Office of Audit will assist the Office of Project Management and Technical Support – Consultant Service Section in addressing any questions/issues that may arise. All questions/inquiries auditors receive from a consultant will be re-directed to the Office of Project Management and Technical Support – Consultant Services Section for assistance.

Guidance