Audits (Consultant Contracts)

Federal Aid Policy

The Federal Aid Policy Guide Section 172.5 (d), states the following:

State responsibility in local agency contracts. The state highway agency shall ensure that procurement actions by or through other State agencies or local agencies comply with this regulation. When Federal-aid highway funds participate in the contract, a local agency shall use the same procedures as used by the State to administer contracts not under CA, the SRP or the CRP. These contracts shall be subject to the prior approval of the State highway agency and the FHWA. Nothing herein shall be taken as relieving the State of its responsibility under Federal-aid highway laws and regulations for the work to be performed under any agreements entered into by a local agency.

Audit Tasks

The Office of Audits performs the following tasks to accomplish this mandate:

Audits of all third party consultant contracts, including but not limited to Pre-Award Reviews, Accounting Systems Reviews, Overhead Audits and Final Filling Audits.
Planning and research grant audits of billings from state and local governments, educational institutions, regional development commissions, metropolitan planning organizations, etc., including but not limited to Final Billing Reviews and A-133 CPA Audit Reviews.
Cost audits of force account billings from railroads and public and private utilities.