The New Jersey Department of Transportation (NJDOT) Bureau of Auditing oversees work with external organizations such as professional engineering, architecture, utility and railroad companies that do business with NJDOT. Responsibilities include external audits, local aid compliance reviews and single audit reviews.
- Annual audit reviews of direct and indirect costs of consultants. This involves verifying that accurate direct costs are presented in settle-up schedules per each contract and determining the reasonableness of the overhead rate submitted by the firm. Schedules must be adjusted in accordance with the Code of Federal Regulations, Title 48, Federal Acquisition Regulations Part 31, 31.1 and 31.2. Also, they must be in accordance with Generally Accepted Government Auditing Standards (GAGAS), contract payment provisions and applicable State of New Jersey Circular Letters.
- Contract implementation, oversight and evaluation of professional service agreements with Certified Public Accounting firms for utility, railroad and Emerging Small Business Enterprise audits.
- Quality Assurance Reviews of accounting firms direct cost and overhead audits.
Note: NJDOT has classifications that determine what submissions are required by each consultant.
Local aid compliance reviews:
- Perform desk reviews and provide pre-approval to local entities billing for in-house direct labor and fringe costs (federally funded).
- Contract implementation, oversight and evaluation for local entities billing for indirect in-house costs.
Single audit compliance reviews:
- Determine if sub-recipients are subject to state/federal single audits.
- Review and verify audits were performed in accordance with applicable Government Auditing Standards.
- Determine the impact of any findings and verify corrective action implementation.