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The External Audit Branch consists of the Consultant Section and the Utilities/Rails Section.  The External Audit Branch performs audits of overhead rates, consultant contracts, utility/railroad companies and miscellaneous audits as requested. The audits are performed in accordance with Generally Accepted Governmental Auditing Standards (GAGAS).
The External Audit Branch also uses the AASHTO Uniform Audit and Accounting Guide.
Both GAGAS and the AASHTO Uniform Audit and Accounting Guide are available online.

The Consultant Section is primarily responsible for performing audits of overhead rates and engineering consultant contracts. The audits are performed in accordance with 48 Code of Federal Regulations (CFR) Chapter 1 Part 31 and 600 Kentucky Administrative Regulations (KAR) 6:080, 6:070, and 6:040.

Per 600 KAR 6:040 Section 3 (1) (b), all consultants prequalified to perform work for the Kentucky Transportation Cabinet must submit an indirect cost rate package to the External Audit Branch within 5 months of the consultant’s fiscal year end.  The indirect cost rate package must include:

1. Schedule of Indirect Costs for the audit period
2. Schedule of Employees, Pay Rates, and Job Classifications for the current year
3. Payroll register for the current year
4. Detailed general ledger for the audit period
5. Certified or audited financial statements for the audit period

Forms are available online to assist Consulting Firms in submitting the Schedule of Indirect Costs and the Schedule of Employees, Pay Rates, and Job Classifications.

The Utilities/Rails Section is primarily responsible for performing audits of utility/ railroad company contracts.  The audits are performed in accordance with 23 CFR Chapter I Parts 140, 645, and 646.  Part 645 applies specifically to utilities and Part 646 to railroads.

The American Association of State Highway and Transportation Officials (AASHTO) Audit Subcommittee, which is comprised of chief auditors from State Departments of Transportation and highway departments prepared the AASHTO Uniform Audit and Accounting Guide.  The Southern Resource Center of the Federal Highway Administration (FHWA) and the American Council of Engineering Consultants (ACEC) also provided consultation and coordination in the development of the guide.  The purpose of the guide is to provide a uniform reference for all interested parties about auditing consulting firms and developing overhead rates.  This guide only provides assistance in determining allowability of costs and applicable Federal Acquisition Regulations, not a standard, specification, or regulation.

CONTACT US

Kentucky Transportation Cabinet
External Audit Branch
200 Mero Street
Frankfort, KY 40601
Phone:  502-564-6830
Fax:      502-564-4422