Update to NJDOT Audit Requirements
On June 19th, the NJDOT announced final regulations for the auditing of cost plus fixed fee contracts. In summary, Contracting Consultant Engineering Firms (not classified as exempt, see below) are required to engage a qualified auditor to conduct Overhead and Direct Cost audits on contracts that exceed $50,000 of NJDOT related direct Labor in any one fiscal year.
WISS is one of just a few firms in New Jersey that has a practice area specifically dedicated to the needs of engineering firms. We are:
- Experienced with the requirements of Generally Accepted Government Auditing Standards -- Yellow Book Compliant
- Knowledgeable in FAR – we audit overhead reports under FAR
- Experienced in working with the NJDOT – we have performed audits under the oversight of the NJDOT and grants funded by the NJDOT
The cost of Overhead Audits is an eligible overhead cost and therefore billable through increased overhead billing across all contracts. The cost of Direct Cost Audits is eligible for reimbursement against the individual contracts being audited. Where a direct cost audit engagement includes the audit of more than one consultant agreement, the CPA audit costs will be distributed among the audited agreements proportional to the total agreement expenditures to date.
If you have any questions about the new requirements or would like to hear how WISS can help, please contact Paul Peterson, Partner-in-Charge, Engineering Services at
ppeterson@wiss.com or 973-994-9400.
Exempt Firms
Firms that are either registered with the NJDOT as an Emerging Small Business Enterprise or with the New Jersey Commerce, Economic Growth, and Tourism Commission as a Category 1 or Category 2 Small Business Enterprise.
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