04 Feb

2021 NCM Now Available

The 2021 National Compensation Matrix (NCM) is now available on the AASHTO Audit Subcommittee website.

As a reminder, you can find the link on the Resources page of aeclarity.com.  The 2021 NCM is for use in evaluating the reasonableness of A/E firm executive compensation earned in 2020.

The 2021 NCM reflects an escalation of 3% from the 2020 NCM data.  It also reflects an update based on recent DCAA guidance on the application of the Bipartisan Budget Act (BBA) limit on total compensation, which results in an upper limit of $555k being applied to 2020 compensation.  The NCM instructions, also available on the AASHTO website, were updated to reflect that change as well.

Please contact us if you have any questions about application of the NCM or any related issues.

Dan Purvine is the President of A/E Clarity Consulting and Training, a firm that specializes in helping A/E firms to navigate the complex rules and regulations applicable to state, federal, and local agency contracts. Dan brings to this role over 14 years of experience in the A/E industry as the Vice President of Finance and Accounting for a large engineering firm. Dan has been providing A/E industry training through A/E Clarity since 2012 and has trained thousands of people in architecture and engineering firms, CPA firms and public agencies. Dan is the former chair of the American Council of Engineering Companies (ACEC) National Audit Subcommittee and continues to work closely with FHWA and AASHTO in his consulting role with ACEC to achieve uniform application of FAR Part 31 and the AASHTO Audit Guide, and to better address the needs of A/E firms nationwide. He has been heavily involved in the development of the AASHTO Audit Guide and the National Compensation Matrix, and works closely with the AASHTO Audit Guide Taskforce to continually improve the Guide as a tool for A/E firms, State DOTs, and CPAs. Dan works closely with state ACEC organizations and many state DOTs on issues related to FAR compliance, audits, and reimbursement of A/E firm costs. A/E Clarity provides training and consulting services and through a related CPA firm, D. L. Purvine, CPA, PLLC, Dan and his team perform overhead audits for clients nationwide. Dan also served as the 2015-16 Chair of the North Carolina Association of CPAs and is a former member of the AICPA Council.