Government Contract and Regulatory Compliance

Our value is manifest in the experience and expertise of our Principal and Associates in the field of compliance and oversight of payment provisions of government contracts. We provide accounting, auditing and advisory services related to all service and infrastructure procurement activities at federal, state and local government levels. We perform audits and attestations pursuant to Government Auditing Standards, and we can assist your firm in establishing and enhancing your compliance framework. Whether you are with a government agency, a not-for-profit, an educational institution, a contractor, or a professional engineering firm, we are here to help by helping you identify payment and procurement risks and providing tried and true methods to minimize risk and maximize return. We recognize that each specific service area identified, each firm, each agency  audit group, or each procurement group is unique.  Each unit operates in a unique environment with multiple ways to arrive at reasonable cost derivations and estimates. Our experience in serving the transportation contracting, engineering and fiscal offices in eight states (New York, Maryland, Connecticut, Vermont, Oregon, Kansas, Georgia and Arizona), the Federal Highway Administration, numerous not for profit entities and colleges and universities, plus a client base of several private company clients and their CPA firms is what makes us unique. We are here to help minimize your risk and compliance costs while protecting your interests in an increasingly complete environment. 


Indirect Costs Audits (FAR Audits)

Indirect cost audits include audits and attestations of compliance with contract terms and applicable cost principles. These audits are generally performed annually for various state or local agencies to support pricing, billing, and contract close out. We have worked on both the agency side and the contractor sides, in different cases, performing audits and consulting. We have provided our expertise as consultants to mediate the resolution of complex issues between engineering firms and the administering state agencies. We have helped other CPAs successfully navigate the labyrinth of Federal, state and local agency rules and regulations and contract terms. Additionally, we have assisted firms and their own professionals with appeals and findings resolution.  


Reasonableness of Compensation Studies per FARs

TGA has the tools and expertise you need to assist in evaluating the reasonableness of the compensation of your executive, administrative, and project staff that are required to meet government indirect cost (overhead) and direct cost reasonableness standards required in FAR 31.201-3. The FAR provides that, if challenged, contractors have the burden to prove reasonableness. The rules governing the assessment determination of reasonable compensation are difficult and complex. Particular focus in certain circumstances gives rise to the need for special consideration including owners of closely held corporations, members of limited liability companies, partners, sole proprietors, or members of their immediate families. Executives in larger companies are often subject to the statutory cap on the four major compensation elements. Compensation must be reasonable for the personal services rendered and not be a distribution of profits.  The categorization of compensation is important for full cost recovery.

Incurred Cost Audits (Interim and Final Contract Audits)

With the shrinkage of internal support groups to service government oversight needs it is becoming increasingly critical for engineering firms to accept some of the monitoring and oversight responsibility for their projects. Regular reviews of incurred cost compliance is a win⁴ situation (win-win-win-win) for prime consultants or contractors, their sub-consultants, the funding agencies, and the administering agencies. Regular incurred cost audits can minimize unexpected over-payment situations due to fluctuating overhead rates and can alert and lead to rectifying risks that can seriously affect reputations, work flow, and the pocketbook.   


Systems Adequacy and Pre-Award Audit Reviews per FARs 

Having an adequate accounting system and procedures to support compliance with the cost principles that you operate under (commercial organizations; state and local governments; not-for-profit organizations; educational institutions) is one of the primary elements contracting agencies look for in the selection of responsible engineers and contractors. Our principal, Thomas Goodfellow, while employed with the New York State Department of Transportation, helped to develop, implement, and administer pre-award systems reviews beginning in the mid 1970's. Our recent experience is extensive in helping companies and organizations navigate complex procurement rules and system requirements as well as performing reviews of systems adequacy on behalf of several state transportation agencies. We can help companies with the review of their accounting and invoicing systems and procedures as well as government agencies in administering the pre-award systems review function. 

 

Form I-9 Compliance

“An ounce of prevention is worth a pound of cure”

At TGA, we want to help your business comply with the Immigration Reform and Control Act of 1986 and avoid potential monetary fines. We come in before your business has been audited by the government to identify potential trouble areas and to help ensure future compliance with the Form I-9 process.

Most businesses do not give much, if any, thought to their Form I-9 compliance programs until the Department of Homeland Security shows up on their doorsteps to serve a notice of inspection. Noncompliance penalties can range from $110 to $1,100 per Form I-9. Depending on the number of employees and the number of errors, these fines can be very high! If any errors are found during an inspection, there isn’t much a businesses can do other than contact their lawyers to negotiate a settlement.

Our Senior Associate, Tessa Romita, worked as a forensic auditor for the Department of Homeland Security, Homeland Security Investigations. She has firsthand knowledge of Form I-9 compliance, having conducted the Form I-9 audits, assessed the penalties and worked with attorneys. She will walk you through the process to help your business get in compliance.