Subconsultant Confidential Documents and the Independent Office of Audits and Investigations

Financial Document Review Process & Form

Effective immediately, consultants may submit confidential financial documents directly to the Independent Office of Audits and Investigations (IOAI) as part of the Indirect Cost Rate (ICR) financial reviews performed by IOAI. Section 10.1.3 of the Local Assistance Procedures Manual (LAPM), “A&E Consultant Audit and Review Process,” outlines the audit and review process for Architectural and Engineering (A&E) contracts that use State or federal-aid highway funds at any time in furtherance of highway construction projects. As part of these procedures, prime consultants are required to provide financial documentation to local public agencies, who send this information to IOAI. The prime consultant obtains all financial documentation from subconsultants listed in the contracts that are subject to review.

Due to the confidential nature of these financial documents, the subconsultants now have the option to submit the documents directly to IOAI. If the subconsultants elect this option, the following procedures must be performed:

1. Local public agencies need to list all consultants by legal name in the Financial Document Request Form https://ig.dot.ca.gov/-/media/ig-media/documents/fdr/ig_fdr_request_form.pdf when requesting Indirect Cost Rate (ICR) Financial Document Reviews (FDR) per the instructions.
2. When transmitting the Request Form to IOAI, the local public agencies need to identify in the email sent to Conformance.Review@dot.ca.gov, which consultant(s) will send the financial documents directly to IOAI.
3. For the consultant(s) sending the confidential documents directly to IOAI, the consultant will need to include the following information in the email sent to Conformance.Review@dot.ca.gov.
   1. Local Agency Name
   2. Prime Consultant
   3. Contract Number
   4. All required documentation based on the consultant(s) category on Page 2 and 3 of the Request Form, subject to providing any necessary and required information to the agency and prime consultant for the procurement and administration of the consultant contract.

If there are any questions related to this process change, please send to Conformance.Review@dot.ca.gov.

Access the Financial Document Review (FDR) Request Form in pdf format below.