FAR Audits – Chicago (IL)
Federal Acquisition Regulation (FAR) – Chicago
Chicago and Illinois government contractors, architectural and engineering firms, and other companies are often required to undergo a Federal Acquisition Regulation (FAR) audit. Organizations working on government contracts involving cost reimbursements, incentives, time and materials, and labor-hour contracts must comply with FAR 31 Regulations. This compliance ensures proper overhead rate calculations and adherence to cost accounting standards (CAS). For those bidding on government contracts, it is essential to prepare by developing a compliance strategy, optimizing indirect recovery costs, and improving financial controls. Whether your business is already subject to the requirement, or needs assistance preparing for FAR compliance, McKonly & Asbury can help.
FAR Audit Experience
McKonly & Asbury has extensive experience working with organizations subject to FAR 31 regulations, including conducting effective and efficient FAR audits and consulting with organizations that are preparing for compliance. In addition, our team publishes articles, leads learning opportunities, and actively participates in industry associations as a sign of our leadership in the industry. We view this as essential to stay current with the regulations, delivering timely insights so you can make informed decisions about the opportunities and challenges in front of your organization.
Industry Involvement
FAR Audit & Consulting Services
Our services help firms reduce risk, protect profitability, and gain a competitive advantage in government contracting:
FAR Overhead Audits
- Accounting system and internal control reviews
- Overhead rate calculation (indirect cost rates)
- Executive compensation review and analysis
- Audit preparation and support
FAR Overhead Consulting
- Policies and procedures development
- Indirect cost rate strategy
- Pre-award and incurred cost submission (ICS) reviews
- Year-round compliance support
FAR Audits - Frequently Asked Questions (FAQ)
Securing federally or state-funded contracts often requires compliance with Federal Acquisition Regulations (FAR). Failure to comply can result in disallowed costs, reduced reimbursements, or even failed prequalification, putting valuable contract opportunities at risk. Ensuring compliance through audits and consulting helps your organization avoid costly mistakes and stay eligible for government-funded projects.
A FAR overhead audit provides an independent look at your indirect cost rate calculations, accounting systems, and internal controls to ensure compliance with FAR. The audit helps ensure that overhead costs are classified correctly, allowable under FAR, and properly allocated. This process helps your firm avoid audit findings, maintain eligibility for government contracts, and optimize your cost recovery.
Our FAR consulting services provide expert guidance to help your organization develop policies and procedures that align with FAR and AASHTO. We assist with accounting process reviews, executive compensation analysis, and the creation of compliant cost allocation practices. Proactive consulting ensures you meet regulatory requirements and are always audit-ready, streamlining compliance and improving financial efficiency.
Contact our Chicago FAR Audit Team
McKonly & Asbury provides Federal Acquisition Regulation (FAR) Audits to companies and government contractors from our Pennsylvania office locations. Interested in learning more about the FAR consulting services offered to companies in Chicago and Illinois? Complete the form below and a team member will follow up with you shortly.
About the Chicago Business Community
Chicago’s business community
is a dynamic and diverse ecosystem shaped by legacy industries, bold innovation, and a strong spirit of collaboration. Anchored by a rich history as a transportation and manufacturing hub, the city has evolved into a powerhouse of finance, tech, healthcare, logistics, and professional services. Home to corporate giants like Boeing (formerly), United Airlines, McDonald’s, and Walgreens Boots Alliance, Chicago also boasts a thriving mid-sized business and startup scene that keeps the city agile and forward-looking.
At the heart of Chicago’s business landscape is its strategic location—it’s a major national and international transportation hub, with access to rail, air, and shipping routes that facilitate global commerce. This has fueled the growth of industries like logistics and distribution, with players like C.H. Robinson and UPS maintaining a major presence. Finance and professional services are also core to the city’s identity. The Chicago Mercantile Exchange (CME) and the Board of Trade are historic institutions that have modernized into global financial powerhouses, maintaining Chicago’s role as a key player in commodities and derivatives trading.