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 or direct cost audits. An engagement letter is sent to CPA firms who will be audited and an entrance briefing will be conducted with an overview of the engagement. Audit documentation is due within two (2) weeks from the receipt date of the engagement letter. After the review is complete, an exit conference will be conducted. After the exit conference, 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 overhead and direct 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.
The review programs below must be cross referenced to the audit supporting documentation and access to work papers must be provided within two (2) weeks of receipt of the engagement letter.
CPA Audit Requirements: