Overhead Rate Audit

For architectural or engineering firms, it’s a fact of doing business. In order to participate in government contracts or receive federal or state funding, indirect or overhead costs must be calculated prior to submitting a bid or proposal. 

In addition, these overhead rates must be compliant with the Federal Acquisition Regulation (FAR), a complex set of rules governing the federal government's purchasing process. Many states also require these overhead rates be audited by an independent CPA in accordance with the Uniform Audit and Accounting Guide established by the American Association of State Highway and Transportation Officials’ (AASHTO). 

Because this audit can impact your firm’s ability to be awarded a contract, much less make money on it, it’s important to choose your CPA firm wisely.

At DGC, our specialized teams work with your firm to help you:

  • Accurately determine the billing proper rates
  • Identify, segregate, and remove unallowable costs from all government contract billings
  • Develop preliminary rates for upcoming years
  • Maintain your compliance with applicable regulations as they apply to your overhead costs

Perspectives

Podcast: How A&E Firms Should Handle Bonus Criteria
Podcast: How A&E Firms Should Handle Bonus Criteria 01/07/2019

There is now increased scrutiny from State DOTs surrounding bonuses. How can firm owners reward their employees and themselves while adhering to the requirements imposed by government contract regulations? Read more

eBook: How to Balance FAR Compliance with Practical & Effective Firm Policies
eBook: How to Balance FAR Compliance with Practical & Effective Firm Policies 08/25/2018

Under U.S. Architecture and Engineering (A&E) firms subject to overhead rate audits can maximize their allowable overhead rate and increase the likelihood of a successful audit by implementing... Read more

Webinar Recording - Year-End Tax Planning for Businesses on 11/12/19
Webinar Recording - Year-End Tax Planning for Businesses on 11/12/19 11/12/2019

DGC's experts shared valuable insights, especially after the first tax season under the Tax Cuts and Jobs Act. Attendees learned more about proactive strategies that can help ensure they are well-positioned for the future. Read more

Webinar Recording - Year-End Tax Planning for Individuals on 11/19/19
Webinar Recording - Year-End Tax Planning for Individuals on 11/19/19 11/19/2019

Richelle Maguire, CPA, MST, AEP and Scott Treacy, CPA discussed decisions you need to make before year-end, such as charitable giving, gifting, and information for self-employed individuals. Read more

What Our Clients Say About Us

The speed in which the financial statements were produced and the tight time frame which DGC completed the audit was refreshing. DGC had a comprehensive understanding of our business which minimized my need to respond to questions. The approach was collaborative and flexible.

Richard G. Barletta SVP, Finance and Administration InnoCentive, Inc.

Our team at DGC is a true business partner—they took the time to understand our business and our organization so they could provide input in a variety of areas. This depth of understanding allowed them to audit our financials more efficiently while also contributing insights into the performance of our business.

Ken Manning Chief Operating Officer Curaspan Health Group, Inc.