What Are Indirect Rate Overhead Audits and When Is It Required?
Architectural & Engineering (A&E) firms that propose or work on government contracts may be required to provide overhead rates prepared in accordance with the Federal Acquisition Regulation (FAR). Many government agencies require that A&E firms have their overhead rates audited.
In this episode of Cherry Bekaert’s Professional Service Podcast, Brynn McNeil, an Audit Partner in the Firm’s Professional Services Industry practice, welcomes Mandy Grivnovics, an Audit Senior Manager in our Professional Services practice. Together they define an indirect rate audit and its drivers. They also discuss key considerations and best practices to get through an indirect rate overhead audit.
Listen in to find out about:
- Overhead rate audits and their drivers
- Determining factors for A&E firms that work with State Departments of Transportation whether an audit is needed
- Critical audit components, including timekeeping/labor and cost allowability
- Key considerations relating to allowable costs and unallowable costs
- Best practices for preparing and successfully getting through an overhead rate audit
If you have any questions specific to your business needs, Cherry Bekaert’s Professional Service Assurance and Advisory team is available to discuss your situation with you.
- Webinar Recording: 2022 Professional Services Series: Understanding Overhead Rate Basics
- Article: The FAR Audit: Does Your Architectural/Engineering Firm Need One?