SUBCHAPTER 5B ‑ FISCAL
SECTION .0100 ‑ ADMINISTRATION
19A NCAC 05B .0101 FISCAL SECTION OPERATIONS
The fiscal section operates under the Executive Budget Act,
the Budget Manual of the Office of State Budget and Management (OSBM), and the
Administrative Policies and Procedures Manual of the Office of State Controller
(OSC). These guidelines and any subsequent amendments or editions of the same
are incorporated herein by reference pursuant to G.S. 150B-21.6 as rules of the
North Carolina Department of Transportation. The rules filed by OSBM and OSC
control the operations of the fiscal section, except to the extent that the
following rules within this Subchapter supplement those rules. Copies of the
manuals or excerpts may be obtained from the Director of Administration at no
cost.
History Note: Authority G.S. 143‑1; 143‑28;
143B‑10; 143B‑348; 143B-426.35 through 143B-426.39
Eff. July 1, 1978;
Amended Eff. April 1, 1995; December 1, 1993; November 1,
1991;
Pursuant to G.S. 150B-21.3A, rule is necessary without
substantive public interest Eff. October 24, 2015.
19A NCAC 05B .0102 DEFINITIONS
History Note: Authority G.S. 143B‑10(j); 143B‑348;
143‑2;
Eff. July 1, 1978;
Amended Eff. December 1, 1993;
Transferred and Recodified to 19A NCAC 5B .0209 Eff. May
1, 1994.
19A NCAC 05B .0103 DAILY INTEREST FORMULA
History Note: Authority G.S. 143‑2; 143B‑10(j);
143B‑348;
Eff. July 1, 1978;
Amended Eff. December 1, 1993; July 1, 1982;
Expired Eff. November 1, 2015 pursuant to G.S.
150B-21.3A.
19A NCAC 05B .0104 FORM OF REMITTANCE
All remittances for monies due the North Carolina Department
of Transportation shall be made payable to the North Carolina Department of
Transportation and shall include the division to which the monies are to be
credited. For example, monies due the Division of Highways shall be drawn
payable to the "North Carolina Department of Transportation ‑‑
Division of Highways."
History Note: Authority G.S. 143B‑10(j); 143‑2;
Eff. July 1, 1978;
Amended Eff. December 1, 1993;
Pursuant to G.S. 150B-21.3A, rule is necessary without
substantive public interest Eff. October 24, 2015.
19A NCAC 05B .0105 REMITTANCE FOR GROUP HEALTH INSURANCE
COVERAGE
History Note: Authority G.S. 143‑2; 143B‑10(j);
Eff. July 1, 1978;
Amended Eff. November 1, 1991;
Repealed Eff. December 1, 1993.
SECTION .0200 ‑ AUDITS OF CONTRACTING PARTIES
19A NCAC 05B .0201 PRE‑AWARD AUDIT: FINANCIAL
CAPABILITIES
All contracting firms, agencies, or recipients of grants or
loans, except those whose contract was awarded as a result of the bidding
process, state purchasing procedures, and local governments reporting under the
Single Audit Act (Office of Management and Budget Circular A-128, "Audits
of State and Local Governments"), who are entering into a contract or
agreement with the Department of Transportation shall submit, if requested, to
the External Audit Branch of the Department of Transportation their current
balance sheet, income statement, chart of accounts, and any other data that may
be determined to be necessary by the auditors, in order that the auditors may
render an opinion as to whether the firm is financially capable of fulfilling
the terms of the contract or agreement. The auditor's findings will be
reported to the appropriate contracting officer.
History Note: Authority G.S. 143‑2; 143B‑10(j);
Eff. July 1, 1978;
Amended Eff. December 1, 1993; November 1, 1991;
Pursuant to G.S. 150B-21.3A, rule is necessary without
substantive public interest Eff. October 24, 2015.
19A NCAC 05B .0202 PRE‑AWARD AUDIT: ACCOUNTING SYSTEM
All contracting firms, agencies, or recipients of grants,
except those whose contract was awarded as a result of the bidding process,
state purchasing procedures, and those classified as local governments
reporting under the Single Audit Act (Office of Management and Budget Circular
A-128, "Audits of State and Local Governments"), shall allow their
accounting systems to be reviewed by the External Audit Branch of the
Department of Transportation in order that the auditors may determine that the
accounting system is capable of segregating and maintaining costs applicable to
the contract or agreement.
History Note: Authority G.S. 143‑2; 143B‑10(j);
Eff. July 1, 1978;
Amended Eff. December 1, 1993; November 1, 1991;
Pursuant to G.S. 150B-21.3A, rule is necessary without
substantive public interest Eff. October 24, 2015.
19A NCAC 05B .0203 PRE-AWARD AUDIT: PROPOSED COSTS
Before a contract or agreement is executed, a pre-award
audit may be performed by the External Audit Branch utilizing the historical
costs of the proposing party to ascertain that the proposed charges are valid,
reasonable, and allowable.
History Note: Authority G.S. 143B‑10(j); 143‑2;
Eff. July 1, 1978;
Amended Eff. December 1, 1993;
Pursuant to G.S. 150B-21.3A, rule is necessary without
substantive public interest Eff. October 24, 2015.
19A NCAC 05B .0204 DESK OR FIELD AUDIT
The determination as to whether an audit will be a
"desk" audit or a "field" audit will be at the discretion
of the auditor. The auditor's decision will be based on the complexity of the
contract or agreement, prior experience with the firm, agency or recipient and
the amount of information concerning the contracting firm that is available in
the external audit branch's audit file.
History Note: Authority G.S. 143B‑10(j); 143‑2;
Eff. July 1, 1978;
Amended Eff. December 1, 1993;
Pursuant to G.S. 150B-21.3A, rule is necessary without
substantive public interest Eff. October 24, 2015.
19A NCAC 05B .0205 WAIVER OF AIRPORT PRE‑AUDIT
19A NCAC 05B .0206 INFORMATION IN LIEU OF AIRPORT PRE‑AUDIT
History Note: Authority G.S. 143B‑10(j); 113‑28.10;
Eff. July 1, 1978;
Repealed Eff. November 1, 1991.
19A NCAC 05B .0207 PARTIAL: INTERIM: OR FINAL AUDIT: DESK
OR FIELD
19A NCAC 05B .0208 PERFORMANCE OF PARTIAL AND FINAL AUDITS
History Note: Authority G.S. 143B‑10(j); 143‑2;
Eff. July 1, 1978;
Repealed Eff. December 1, 1993.
19A NCAC 05B .0209 DEFINITIONS
The following terms are defined to mean:
(1) "Audit" is used to describe the following
services performed in accordance with Government Auditing Standards of the U.S.
General Accounting Office (GAO Yellow Book);
(a) A final audit of completed actual cost
projects to determine that costs claimed by the contractor or grantee are
allowable in accordance with governing regulations and the terms of the
contract or agreement.
(b) An interim audit during the life of a
project as the needs for such are determined by the Fiscal Section or the
Contracting Officer.
(c) An overhead audit to determine what amount
or rate of indirect costs may be included with direct charges to a project or
grant.
(d) A post audit on completed lump-sum cost
projects to determine a company's actual labor, overhead, non-salary direct
cost and fee as compared to negotiated cost elements.
(e) A pre-award audit of the proposed costs
included in a contract or agreement to determine that the rates for labor,
material, equipment, and overhead are reasonable and allowable. A pre-award
audit may also be performed to evaluate a company's accounting system or its
financial capability.
(2) "Desk" is used to describe an audit which
is performed by an auditor of the External Audit Branch in the branch's
office. Information submitted by the auditee, prior audits, and information in
the branch's files are utilized to perform the audit.
(3) "Field" is used to describe an audit
which is performed at the office or job site of the contracting party and
utilizes all accounts, records, journals, and documents that the auditee has
maintained for the work.
(4) "Historical Costs" means the costs or
expenses that have been incurred in prior years by a contractor or grantee.
History Note: Authority G.S. 143B‑10(j); 143B‑348;
143‑2;
Eff. July 1, 1978;
Amended Eff. December 1, 1993;
Transferred and Recodified from 19A NCAC 5B .0102 Eff.
May 1, 1994;
Pursuant to G.S. 150B-21.3A, rule is necessary without
substantive public interest Eff. October 24, 2015.
SECTION .0300 ‑ ADOPTION OF FEDERAL POLICIES
19A NCAC 05B .0301 ADOPTION OF FEDERAL CONTRACT GUIDELINES
(a) In order to provide consistency and uniformity in the
administration of all contracts, these the following guidelines including any
subsequent amendments or editions of the same are hereby incorporated by
reference as rules of the North Carolina Department of Transportation to be
used as contract guidelines on non‑federally funded projects. Policies
in effect on the date a contract is entered into will govern the contract for
the duration of the contract. Copies of the below listed items are available
for inspection in the Office of the DOT Controller.
(b) The guidelines hereby incorporated are:
(1) Federal‑Aid Highway Program Manual
which is available at no cost from the N.C. DOT Design Services Branch, P.O.
Box 25201, Raleigh, NC 27611:
Volume Chapter Section Subsection
1 4
3 Reimbursement for
railroad
work
‑ Issued 8‑5‑88
1 4
5 Payroll and related
expense of
public
employees; general administration and other overhead; and cost accumulation
centers and distribution methods ‑ Issued 1‑26‑81
1 7
2 Administration of
negotiated
contracts
– Issued 1‑21‑80
4 1
2 Administration of
highways
planning projects ‑ Issued
11‑5‑86
6 6
3 1 Utility relocations,
adjustments
and
reimbursements ‑ Issued 11‑11‑88
(2) Code of Federal Regulations which is
available from the US Government Printing Office, Washington, DC 20402. The
cost for Title 48 Part 31.2 is thirty one dollars ($31.00). The cost for Title
49 Part 18 is twenty dollars ($20.00). The cost for Title 23 Part 172 is
eighteen dollars ($18.00):
Title 48 Part
31.2 Contracts
with commercial organizations – Issued 4‑28‑89
Title 49 Part
18 Uniform
administrative requirements for grants and cooperative agreements with state
and local governments (USDOT Common Rule) ‑ Issued 3‑11‑88
Title 23 Part
172 Administration
of Engineering and Design related services contracts -- Issued 4‑30‑91
(3) Office of Management and Budget Circulars
which are available from OMB Publications Office, Washington, DC 20503 at no
cost:
OMB Circular A‑21 Cost
principles for educational institutions -- Issued 3‑6‑79
OMB Circular A‑87 Cost
principles for state and local governments -- Issued 1‑1‑81
OMB Circular A‑102,
Attachment A‑O Uniform
administrative requirement for grants‑in‑aid to state and local
governments -- Issued 1‑1‑81
OMB Circular A‑102
(Revised) Grants
and cooperative agreements with state and local governments -- Issued 3‑11‑88
OMB Circular A‑110 Grants
and agreements with institutions of higher education, hospitals and other non‑profit
organizations -- Issued 7‑1‑76
OMB Circular A‑122 Cost
principles for non‑profit organizations ‑ Issued 7‑80
OMB Circular A‑128 Audits
of state and local governments ‑ Issued 4‑12‑85
OMB Circular A‑133 Audits
of institutions of higher education and other non‑profit organizations --
Issued 3‑8‑90
OMB Compliance
Supplements USDOT
Programs only ‑ Issued 9‑90
(4) Federal Transportation Administration
Circulars which are available from FTA Publications Office, Washington, DC
20590 at no cost:
FTA C
4220.1B Third
party contracting guidelines ‑ Issued 5‑5‑88
FTA C
5700.1 Requirements
and responsibilities indirect cost proposals/cost allocation plans for
technical studies and capital grants-- Issued 5‑24‑83
FTA C
7005.1 Documentation
of private enterprise participation required for Section 3 & 9 programs ‑
Issued 12‑5‑86
FTA C
7010.1 Capital
cost of contracting ‑ Issued 12‑5‑86
(5) Department of Treasury Circular which is
available at no cost from the N.C. DOT External Audit Branch, P.O. Box 25201,
Raleigh, NC 27611:
Circular 1075.1
Part 205 Withdrawal
of cash from the Treasury for advances under Federal grant and other programs ‑
Issued 10‑14‑77
(6) Federal Single Audit Act issued 10‑11‑84
(P.L. 98-502), which is available from GAO Document Center, Washington, DC
20548 at no cost.
History Note: Authority G.S. 143B‑10; 143B‑348;
Eff. July 1, 1978;
Amended Eff. December 1, 1993; November 1, 1991;
Pursuant to G.S. 150B-21.3A, rule is necessary without
substantive public interest Eff. October 24, 2015.
19A NCAC 05B .0302 ADOPTION OF FEDERAL AUDIT GUIDELINES
19A NCAC 05B .0303 ADOPTION OF U.M.T.A AUDIT GUIDELINES
History Note: Authority G.S. 143B‑10(j);
Eff. July 1, 1978;
Repealed Eff. November 1, 1991.
SECTION .0400 ‑ PL 112 FUNDS CERTIFICATION
19A NCAC 05B .0401 PL 112 FUNDS: CERTIFICATION OF ANNUAL
BUDGETS
19A NCAC 05B .0402 PL 112 FUNDS: CERTIFICATION OF
EXPENDITURES
History Note: Authority G.S. 143B‑10(j); 136‑18(12);
Eff. July 1, 1978;
Repealed Eff. December 1, 1993.
SECTION .0500 ‑ MOVING PROCEDURES
19A NCAC 05B .0501 MOVING POLICY
History Note: Authority G.S. 143‑2; 143B‑10(j);
Eff. July 1, 1978;
Amended Eff. November 1, 1991;
Repealed Eff. December 1, 1993.
19A NCAC 05B .0502 MOVING POLICY: MOVING PACKET
19A NCAC 05B .0503 MOVING POLICY: AUTHORIZATION TO MOVE
FORM (601‑EXP)
History Note: Authority G.S. 143‑2; 143B‑10(j);
Eff. July 1, 1978;
Repealed Eff. November 1, 1991.
19A NCAC 05B .0504 MOVING POLICY: MOVING QUOTATION FORM
(602‑EXP)
History Note: Authority G.S. 143B‑10(j); 143‑2;
Eff. July 1, 1978;
Repealed Eff. December 1, 1993.
