Audit

Cathy Hilgendorf, Audit Chief

Vermont Agency of Transportation
National Life Building
One National Life Drive
Montpelier, VT 05633-5001

Tele: (802) 828-3598

 

The Audit Section provides compliance assistance to agency management under the supervision of the Director of Finance and Administration. The primary mission is to satisfy state and federal requirements related to eligible costs submitted by private consultants under contract with the agency. This unit provides audit assurance about the agency's administration of public funds with third parties by reviewing overhead costs and invoicing issues with A/E consulting firms. Another Important function is review and strengthening of agency internal controls.

Pre-Award Reviews

Before an A/E consultant contract is executed, the language of the agreement is reviewed by Audit to ensure it contains clauses that will allow the agency to audit the project costs upon completion. Audit also checks for language that specifies the governing regulations, the contract type and payment terms, and that the agreement is in accordance with the approved cost proposal. Audit checks to see that financial information for the firm has been submitted as required and that the cost proposal includes an overhead rate in line with the audited rate provided (if available).

Contract and Invoice Audits

Consultant invoices are audited to determine that payments were made in accordance with each contract’s terms and conditions, as well as to ensure that all applicable federal and state contract reimbursement principles have been followed. Governmental reimbursement regulations ordinarily follow those principles prescribed in the Federal Acquisition Regulations (the FAR). The amounts paid to contractors are verified to all financial records including the consultant’s invoices and VAOT’s accounting and payment system (STARS) and direct labor charges are verified to the contractor’s original payroll schedules. Final audit questioned costs are subject to an appeal process that provides the contractor with the opportunity for monetary relief.

AASHTO Internal Control Questionnaire for Consultants

AASHTO ICQ incl. Indirect Cost Certification
Indirect Cost Certification Form

This form requires submittal of certain levels of prime financial background information based upon the estimated cost of the proposed contract. The form also requires information about the consultants accounting systems, their ability to track project and labor costs, and information related to the financial organization of the company.

Major Audit Section Functions:

  • Liaison for external audits (ex: internal control questionnaire, statewide single audit)
  • Internal performance audits and reviews (ex: purchasing cards, employee expense reimbursement, toll credits, central garage rates)
  • A/E consultant financial requirements and indirect cost rates
  • A/E Consultant random invoice audits
  • A/E Consultant Contract close-outs
  • Review of new contracts, amendments, and work authorizations for A/E consultant contracts (for financial integrity and overhead costs)