What Are Indirect Rate Overhead Audits and When Are They Required?

Architectural & Engineering (A&E) firms that propose or work on government contracts may be required to provide overhead rates prepared in accordance with the Federal Acquisition Regulation (FAR). Many government agencies require that A&E firms have their overhead rates audited.

In this episode of Cherry Bekaert’s Professional Service Podcast, Brynn McNeil, an Audit Partner in the Firm’s Professional Services Industry practice, welcomes Mandy Crowder, an Audit Director in our Professional Services practice. Together they define an indirect rate audit and its drivers. They also discuss key considerations and best practices to get through an indirect rate overhead audit.

Listen in to find out about: 

  • Overhead rate audits and their drivers
  • Determining factors for A&E firms that work with State Departments of Transportation whether an audit is needed
  • Critical audit components, including timekeeping/labor and cost allowability
  • Key considerations relating to allowable costs and unallowable costs
  • Best practices for preparing and successfully getting through an overhead rate audit

If you have any questions specific to your business needs, Cherry Bekaert’s Professional Service Assurance and Advisory team is available to discuss your situation with you.

Related Insights:


View All Professional Services Podcasts

 

Brynn McNeil

Assurance Services

Partner, Cherry Bekaert LLP
Partner, Cherry Bekaert Advisory LLC

Mandy Crowder

Assurance Services

Director, Cherry Bekaert Advisory LLC

Past Episodes

Podcast

November 19, 2024

18:36

Speakers: Lynnette Leidwinger, Brendan Halloran

Explore key subcontracting insights, including compliance reviews, teaming arrangements, and hiring tips for government contractors.

Podcast

November 14, 2024

22:36

Speakers: Michael G. Cippel, Irwin Kaplan

Discover year-end planning essentials for government contractors, including contractor waterfall insights, cash forecasting & monthly performance tracking.

Podcast

November 11, 2024

20:43

Speakers: Sarah McGregor, Brooks E. Nelson, Mark Giallonardo

Learn how to claim disaster losses and defer casualty gains under IRS rules. Explore relief measures for individuals and businesses affected by disasters.