Audits of Schedule of Burden, Fringe and Overhead Costs

Konowitz, Kahn & Company, P.C., is Connecticut's leading provider of specialized accounting and financial management consulting services for mid-market companies. With over 60 years of experience and more than 40 professionals and administrative staff, Konowitz, Kahn & Company offers unprecedented, partner-managed support across a wide range of industries, in virtually every service area. We specialize in Audits of Schedules of Burden, Fringe and Overhead Costs, as well as provide audit & accounting services; tax services; forensic & litigation support; business valuations; personal financial planning; elder care services; and accounting software support.

Burden, Fringe and Overhead Audits Offer Engineering Firms a Competitive Advantage
Engineering firms face many challenges in today’s volatile business environment. Competition has intensified and comes from new directions; government compliance regulations are stricter than ever before; and bidding procedures and bonding issues are extremely complex.

In an effort to expand their businesses and increase revenues, engineering firms can perform various consulting services for the State Department of Transportation. However, before a firm can be eligible to apply for consulting contracts, they need to be in compliance with the State’s contracting process.

Consulting contracts with the State Department of Transportation involve pre-qualification requirements including a burden, fringe and overhead (BFO) audit of their most recent fiscal year. BFO audits offer a competitive advantage for engineering firms contracting with the Department by fulfilling a major component of the pre-qualification requirements.

An Overview of The Process

BFO audits are usually performed by an independent Certified Public Accountant who is familiar with Generally Accepted Government Auditing Standards. 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.
Once 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.

Our Experienced Professionals Can Help
BFO audits are complex; however, the benefits can be tremendous for engineering firms seeking to grow their businesses and gain a competitive advantage. Our team of professionals is highly skilled and experienced in BFO audits as well as additional specialized services for engineering and consulting firms.

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.

PREVIOUS | NEXT