New AASHTO Audit Guide Available

The final draft of the revised AASHTO Audit Guide is now available for review and downloading. It is available at:

http://audit.transportation.org/?siteid=43 & select Uniform Audit & Accounting Guide 09-11-09 (No Markup) to open the PDF file, which can be saved.

This is the version expected to be adopted, first by the AASHTO Audit Subcommittee (by the end of September), the full AASHTO group (at their October meeting) and then to be effective January 1, 2010 and applicable to all costs and audits for years starting on or after this date. FHWA is expected to proceed with rulemaking in 2010 to make this guide part of the rules applicable to federal grants.

Firms with DOT clients should pay particular attention to the chapters on timekeeping, labor costing and compensation. If the firm has their own CPA overhead audit they should have their CPA review the chapters on audit standards and the audit checklist.

The major beneficial change for firms is this manual will be adopted by all states, and will apply to all states. This will greatly reduce the individual overhead rate schedules now required because so many states have policies that require unique treatment of costs just for the individual state. The guide clearly states that any deviations from FAR (or this guide) must be based on state law.