CONSULTANT SERVICES MANUAL 2021
An audit will consist of review of the negotiated overhead and/or labor rates and the direct costs established
in the contract. The Office of Audits conducts an audit to determine the allowable costs incurred by the
Consultant, which then allows the financial closure of the contract.
The final payment should be accompanied by a DOT-996 Work Order Closure Form as shown in Appendix O.
When audits receives the last voucher marked as final, accompanied by the DOT 996 form, all previous
payments will be verified to ensure the final payment is correct and contains any remaining fixed fees. Note
that remaining fixed fees must be requested with an invoice by the consultant. Once final payment is entered,
the work order will be closed by audits.
A new 996 form MUST be completed for EACH consultant, sub-consultant and project associated with the
contract/work order. If your work order spans more than one contract, a separate form is needed for each
contract it spans.
If the final payment comes to Audits without the Work Order Closure form because of instances such as
construction miscellaneous, all payments will be verified but the work order will not be closed until the Work
Order Closure form is received from the originating office. A retainer contract is not closed by Audits until all
work order close out forms for final payments and indirect cost forms for the true ups have been received.
Once closed, Finance will be notified.
SDDOT has the right to require supporting documentation for every dollar billed. For example, labor hours and
rates require time sheets, progress reports, job costing reports, etc. Direct costs such as travel, meals,
products, and services need invoices or receipts. Sub-consultant costs also require supporting documentation,
including the contract with the Consultant, invoices, and payment records.
Upon reasonable notice, the Consultant will allow the Department, the Federal Highway Administration
(FHWA), the United States Department of Transportation’s Inspector General, the Comptroller of the United
States, or any authorized representative, to have access to and the right to examine and copy all records,
books, papers, or documents related to services rendered. The Consultant will keep these records clearly
identified and readily accessible for a period of three years from the approval date of the final voucher with
FHWA for the final work order under each retainer contract, and all other pending matters are closed. The
SDDOT will also keep all records regarding a contract on file for not less than three years from the approval
date of the final voucher with FHWA for the final work order under each retainer contract.
SDDOT and sub-recipients will comply with procurement requirements established in State and local laws,
regulations, policies, and procedures that are not addressed by or are not in conflict with applicable Federal
laws and regulations, as specified in 2 CFR Part 1201
.
When State and local procurement laws, regulations, policies, or procedures are in conflict with applicable
Federal laws and regulations, a contracting agency shall comply with Federal requirements to be eligible for
federal reimbursement of the associated costs of the services incurred following FHWA authorization, as
specified in 2 CFR 200.102
(c).