Audit & Regulatory Reporting – (Engineering FAR 31.2)
Challenge
An engineering client with over $100 million in revenue was under review by a state agency and multi million-dollar state were at state.
How we helped
F&A acted as a liaison between the state agency, the client and the original auditor who consolidated the client's overhead rates. This rate, which is used to determine the billable rates of the company to the state agencies, had a direct impact on revenue. We redeveloped the rate and audit report to be compliant with the state agency's requirements and we also developed and implemented a training program to enable the client to properly capture costs in order to avoid future issues with state agencies.
Outcome
The client was able to continue to do business within the state and the prior audits were accepted with minimal changes to the original rates and revenues. Also, the training program produced significant savings within the accounting department and in audit fees.