industry alert
January 10, 2014

Architecture & Engineering Industry Alert: PA Turnpike Commission Overhead Verification & New Invoicing Procedure

David E. Shaffer, Director, Audit & Accounting

The Pennsylvania Turnpike Commission would like to inform you of the following procedure that is a result of forensic audits completed by the Commission and will be enforced immediately:

Effective immediately for Cost Plus Fee contracts, the Pennsylvania Turnpike Commission is requesting consultants to include with monthly invoice(s) the following information: backup documentation showing proof of Overhead Rate approval in the form of a printout from ECMS or documentation of previous Commission approval of the consultant’s FAR audited overhead rate for the consultant’s previous fiscal year. This procedure will allow for efficient verification of overhead rates by our project managers.

This applies to Cost Plus Fee contracts only unless the Agreement says otherwise and applies to prime consultants as well as their subconsultants.

Should you have any questions, contact Donald Klingensmith, PE, Director of Contract Administration for the Pennsylvania Turnpike Commission at 717.939.9551, x5850 or dklingen@paturnpike.com.

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If you have any questions or comments about these topics, please don’t hesitate to reach out to David E. Shaffer, Director, Audit & Accounting, at dshaffer@kmco.com or 215-441-4600.

Information contained in this alert should not be construed as the rendering of specific accounting, tax, or other advice. Material may become outdated and anyone using this should research and update to ensure accuracy. In no event will the publisher be liable for any damages, direct, indirect, or consequential, claimed to result from use of the material contained in this alert. Readers are encouraged to consult with their advisors before making any decisions.