Current financial information, including labor rates, overhead computations and financial statements, if overhead rate is not audited, must be submitted on an annual basis.  If you are selected for a contract with MDOT, the financial review will be delayed if your financial information is more than one year old.

1. To accurately evaluate your accounting system, the following information must be supplied:

a. A description of how direct and indirect labor and other costs are recorded.
b. A description of how project costs are segregated and accumulated.
c. A sample of a completed time report.
d. A sample of a project cost report for a current project.
e. A current chart of accounts.
f. Name of the person to contact for accounting related questions.

2. To accurately evaluate the rates proposed, the following information must be supplied:

a.	A copy of a certified Auditor's Report on your overhead rate developed in accordance with the Federal Acquisition Regulation (Title 48 Code of Federal Regulation, Part 31) including any applicable Cost Accounting Standards (Title 48 CFR, Chapter 99). This would include an audit performed by any federal, state or local audit agency and any Acceptance letters from other DOT=s. If you don=t have an Auditor=s Report on overhead or Acceptance letter, you MUST submit an overhead rate computation that ties to the accompanying financial statements. The overhead rate must be based on the time period consistent with your most recently completed fiscal year.
b.	A listing of all audits performed in the last three (3) fiscal years by any federal, state, or local agency. Include the name, address, and phone number of the party performing the audit and the nature of the audit. Identify any audit that is in dispute, or has not been issued;
c.	A copy of your written bonus or incentive program.
d.	If sole proprietorship, a copy of your most recent tax return.
e.	Support for labor rates of individuals assigned to similar projects. This can be a copy of the most recent payroll register with classifications noted or a listing of the employees by name, job title and pay rate as certified by a company officer.
f.	A signed statement by owner or corporate officer attesting that all information is true and accurate, that you are aware of the federal cost eligibility and documentation requirements, and that any working papers related to your independent auditor will be made available to MDOT to review, inspect, and/or copy if MDOT deems it necessary.