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Burden Fringe and Overhead Audits
 Burden, Fringe and Overhead (BFO) Audits are usually performed for engineering and consulting firms by an independent Certified Public Accountant (CPA) who is familiar with Generally Accepted Government Auditing Standards. Our team of professionals at Konowitz, Kahn & Company, P.C. is highly skilled and experienced in BFO audits.
Burden, Fringe and Overhead Audits Offer Engineering Firms a Competitive Advantage
With engineering firms faced with more intense competition, stricter government compliance regulations and complex bidding procedures and bonding issues, a BFO audit can provide these companies with a competitive advantage when applying for consulting contacts. For instance, a BFO audit of a firm’s most recent fiscal year is a major component of the pre-qualification requirements for consulting services contracts with the State Department of Transportation.
An Overview of The Process
Once a CPA performs the BFO, the overhead audit opinion needs to be in compliance with governmental auditing standards issued by the Controller General of the United States and any other requirements of the Department of Transportation. These standards require issuance of reports detailing the firm’s internal controls and compliance with laws and regulations.
After the overhead audit opinion and any additional pre-qualification documents are submitted to the Department of Transportation, the Department will review the audit to determine if it meets all criteria. They may also request to review the auditor’s work papers to verify the overhead rate. The Department will notify the engineering firm of the approved overhead rate.
A BFO Audit is Worth the Investment
BFO audits are complex; however, the benefits can be tremendous for engineering firms seeking to grow their businesses by obtaining consulting contracts with the State. We, at Konowitz, Kahn & Company, work with you to review your financial statements and conduct a thorough audit, providing you with a great financial tool that adds to your competitive advantage.
As one of Connecticut's leading providers of specialized accounting and financial management consulting services for mid-market companies, Konowitz, Kahn & Company also provides services in financial fraud and forensic accounting; business valuations; wealth management; elder care finances; accounting software support; and trust and estate accounting. With 70 years of experience and more than 40 professionals and administrative staff, our firm offers unprecedented, partner-managed support across a wide range of industries.
If you have questions or would like more information about BFO audits, please contact Matthias Strilbyckij, Principal and BFO Audit Specialist, at 203-239-6888 or via e-mail at matt@konowitzkahn.com.
Read more about BFO Audits in Our Articles.
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