Department of Transportation

audit graphic

Quality Assurance Reviews

Quality Assurance Reviews (QAR) are performed as an independent assessment of compliance with New Jersey Department of Transportation (NJDOT) policies and regulations, American Association of State Highway and Transportation Officials (AASHTO) Uniform Audit and Accounting guidelines, Generally Accepted Government Auditing Standards(GAGAS) and Federal Acquisition Regulations (FAR) Part 31.

NJDOT reviews Certified Public Accountant (CPA) firms who perform indirect cost audits of consulting firms. An engagement letter and QAR notification is sent to CPA firms who will be reviewed. Audit documentation and the signed engagement letter are due from the CPA firm within two (2) weeks from receipt date of the NJDOT initial QAR notification. An entrance briefing will be conducted with an overview of the engagement and CPA firms can transmit all documentation via our encrypted online portal, MOVEit. The AASHTO Review Program for CPA Audits of Consulting Engineers' Indirect Cost Rates must be cross referenced to audit supporting documentation. After the review is complete, an exit conference will be conducted and the consultant must submit a signed exit conference form response within five business days of the exit conference date. A final determination letter will be sent to the CPA firm with a rating of "Acceptable", "Acceptable with Recommendations" or "Unacceptable". If the QAR rating is "Unacceptable", the consultant will be required to correct all deficiencies impacting indirect cost schedules within 30 days. Any additional costs related to correcting the deficiencies will not be eligible for reimbursement. If the consultant fails to resolve QAR deficiencies within the allowable timeframe, the consultant will not be in compliance with NJDOT's audit requirements, and will not be eligible for reimbursement on any NJDOT contracts until all cited deficiencies are properly corrected.

Last updated date: April 29, 2022 10:36 AM