DEPARTMENT
OF TRANSPORTATION
CFDA 20.106 AIRPORT
IMPROVEMENT PROGRAM
I. PROGRAM OBJECTIVES
The objective of
the Airport Improvement Program is to assist sponsors, owners, or operators
of public-use airports in the development of a nationwide system of airports
adequate to meet the needs of civil aeronautics.
II. PROGRAM PROCEDURES
States, counties,
municipalities, U.S. Territories and possessions, and other public agencies,
including Indian tribes or Pueblos (sponsors) are eligible for airport
development grants if the airport on which the development is required
is listed in the National Plan of Integrated Airport Systems (NPIAS).
Applications for grants must be submitted to the nearest Federal Aviation
Administration (FAA) Airports Field Office. Primary airport sponsors must
notify FAA by January 31 or another date specified in the Federal Register
of their intent to apply for funds which they are entitled to under Public
Law 97-248 (49 USC Chapter 31). A reminder is published annually in the
Federal Register. Other sponsors are encouraged to submit early
in the fiscal year and to contact the appropriate FAA Airports Field Officer
for any local deadlines. Sponsors must formally accept grant offers no
later than September 30 for grant funds appropriated for that fiscal year.
III. COMPLIANCE
REQUIREMENTS
In developing the
audit procedures to test compliance with the requirements for a Federal
program, the auditor should first look to Part 2, Matrix of Compliance
Requirements, to identify which of the 14 types of compliance requirements
described in Part 3 are applicable and then look to Parts 3 and 4 for
the details of the requirements.
A. Activities
Allowed or Unallowed
Grants can be made
for planning, constructing, improving, or repairing a public-use airport
or portion thereof and for safety or security equipment. Eligible terminal
building development is limited to nonrevenue-producing public-use areas
that are directly related to the movement of passengers and baggage
in air carrier and commuter service terminal facilities within the boundaries
of the airport. Eligible construction is limited to items of work and
for the quantities listed in the grant description and/or special conditions.
In general, Federal
funds cannot be expended for:
- Passenger
automobile parking facilities, buildings to be used as hangars, and
portions of terminals that are revenue-producing or not directly related
to the safe movement of passengers and baggage at the airports, and
- Costs incurred
before execution of the grant, unless such costs are for land, necessary
costs in formulating a project, or costs covered by a letter of intent.
The following are
examples of items for which FAA funds cannot be expended:
- Fuel farms.
- Emergency
planning.
- Decorative
landscaping, sculpture, or art works.
- Communication
systems, except those used for safety/security.
- Training facilities,
except those included in an otherwise eligible project as an integral
part of that project and that are of a relatively minor or incidental
cost, i.e., less than 10 percent of the project cost. An example of
an exception would be a training room included as part of a new Aircraft
Rescue and Firefighting (ARFF) facility.
- Roads of whatever
length, exclusively for the purpose of connecting public parking facilities
to an access road.
- Roads serving
solely industrial or non-aviation-related areas or facilities.
- General aviation
terminals.
- Airport surface
detection systems (ASDE).
- Maintenance/service
facilities except for those allowed to service required ARFF equipment.
- Office/administrative
equipment, including data processing equipment, computers, recorders,
etc.
- Projects for
the determination of latitude, longitude, and elevation except as an
incidental part of master planning.
Program guidance
is provided in FAA Order 5100.38A, Airport Improvement Program Handbook,
and FAA Advisory Circulars in the 150/5100 series.
F. Equipment
and Real Property Management
Under this program,
FAA is authorized by 49 USC 47107(c), as amended, to allow recipients
to reinvest the proceeds from the sale of real property acquired with
Federal awards for noise compatibility or airport development purposes.
G. Matching,
Level of Effort, Earmarking
1. Matching
The share of
allowable costs for a particular grant to be borne by FAA and other
parties is established in the grant agreement.
2. Level
of Effort - Not Applicable
3. Earmarking
- Not Applicable
L. Reporting
1. Financial
Reporting
a. SF-269,
Financial Status Report - Applicable
b. SF-270,
Request for Advance or Reimbursement - Applicable
c. SF-271,
Outlay Report and Request for Reimbursement for Construction Program
- Applicable
d. SF-272,
Federal Cash Transactions Report - Applicable
e. FAA Form
5100-125, Operating and Financial Summary (OMB No. 2120-0557)
Sponsors of
commercial service airports are required to submit this report which
reports revenues and expenditures at the airport, including revenue
surplus.
f. FAA Form
5100-126, Financial Government Payment Report (OMB No. 2120-0557)
This reports
amounts paid and services provided to other units of government.
This reporting requirement technically applies to all sponsors of
Federally assisted airports who accepted grants with assurance no.
26(d)(I)(ii), however, FAA is currently requiring submission only
from commercial service airports. Commercial service airports are
the airports most likely to generate excess revenue that could be
diverted to non-airport uses.
2. Performance
Reporting - Not Applicable
3. Special
Reporting - Not Applicable
N. Special Tests
and Provisions
1. Revenue Diversion
Compliance Requirement
- The basic requirement for use of airport revenues is that all revenues
generated by a public airport must be expended for the capital or operating
costs of the airport, the local airport system, or other local facilities
which are owned or operated by the owner or operator of the airport
and are directly and substantially related to the actual air transportation
of passengers or property. The limitation on the use of revenue generated
by the airport shall not apply if the governing statutes controlling
the owner's or operator's financing, that was in effect before September
3, 1982, provided for the use of any revenue from the airport to support
not only the airport but also the airport owner's or operator's general
debt obligations or other facilities (49 USC 47107(b)).
Policies and
Procedures Concerning the Generation and Use of Airport Revenue,
issued February 16, 1999 (64 FR 7695), contains definitions of airport
revenue and unlawful revenue diversion, provides examples of airport
revenue and describes permitted and prohibited uses of airport revenue.
The policy can be obtained from FAA's Airports Federal Register Notices
Page on the Internet (http://www.faa.gov/arp/fedreg.htm).
Penalties imposed
for revenue diversion may be up to three times the amount of the revenues
that are used in violation of the requirement (49 USC 4603(a)(5)).
Audit Objective
- Determine whether the airport revenues were used for required or permitted
purposes.
Suggested Audit
Procedures
a. Review the
policy for using airport revenue.
b. Perform tests
of airport revenue generating activities (e.g., passenger facilities
charges, leases, and telephone contracts) to ascertain that all airport
generated revenue is accounted for.
c. Test expenditures
of airport revenue to verify that airport revenue is used for permitted
purposes.
d. Perform tests
of transactions to ascertain that payments from airport revenues to
the sponsors, related parties, or other governmental entities are airport-related,
properly documented, and are commensurate to the services or products
received by the airport.
e. Perform tests
to assure that indirect costs charged to the airport from the sponsor's
cost allocation plan were allocated in accordance with the FAA policy
on cost allocation.
IV. OTHER INFORMATION
The Federal Aviation
Reauthorization Act of 1996, Section 805 (49 USC 47107(m)) requires public
agencies that are subject to the Single Audit Act Amendments of 1996 (Act)
that have received federal financial assistance for airports to include
as part of their single audit a review and opinion of the public agency's
funding activities with respect to their airport or local airport revenue
system. In the February 16, 1999, Federal Register (64 FR 7675)
the FAA issued a notice titled Policy and Procedures Concerning the
Use of Airport Revenue. This notice provides that the opinion required
by 49 USC 47107(m) is only required when the Airport Improvement Program
(AIP) is audited as major program under Circular A-133 and that the auditor
reporting requirements of Circular A-133 satisfy the opinion requirement.
However, the notice provides that the AIP may be selected as a major program
based upon either the risk-based approach prescribed in Circular A-133
'___ .520 or the FAA designating the AIP as a major program under '___
.215(c).
DEPARTMENT
OF TRANSPORTATION
CFDA 20.205 HIGHWAY
PLANNING AND CONSTRUCTION (Federal-Aid Highway Program)
I. PROGRAM OBJECTIVES
The objectives of
the Highway Planning and Construction Program are to: (1) assist States
in constructing and rehabilitating the National Highway System (NHS) including
Interstate highways and building or improving other Federal-aid roads
and streets; (2) provide aid for repairing the system, roads, and streets
following disasters; (3) foster safe highway design; and, (4) replace
or rehabilitate unsafe bridges.
II. PROGRAM PROCEDURES
Funds are provided
to State Departments of Transportation (DOTs) to pay for a defined portion
of the planning, research, and construction costs of approved projects.
Funds can also be made available through State DOTs to Local Public Agencies
(LPAs), such as cities, counties, tribal governments, Metropolitan Planning
Organizations (MPOs), and other political subdivisions. Projects authorized
under 23 USC 115, Advance Construction, must meet all Federal Highway
Administration (FHWA) requirements in effect on the date of project authorization,
even though no Federal funds may have been committed to the project. In
some cases, projects may be administered by the State DOT under special
rules procedures of 23 USC 106(c), under an agreement with the FHWA, which
allows the State DOT to assume the responsibilities for design, plans,
specifications, estimate, contract award, and inspections of projects.
III. COMPLIANCE
REQUIREMENTS
In developing the
audit procedures to test compliance with the requirements for a Federal
program, the auditor should first look to Part 2, Matrix of Compliance
Requirements, to identify which of the 14 types of compliance requirements
described in Part 3 are applicable and then look to Parts 3 and 4 for
the details of the requirements.
A. Activities
Allowed or Unallowed
1. Although
State-owned lands may be used for highway purposes, Federal funds may
not reimburse for more than the fair market value of the land required
for highway purposes plus damages. This is computed as the lesser of
either the sum of: the fair market value of the land required for highway
purposes plus damages, or the sum of: (1) the fair market value of the
State-owned land; (2) any additional cash payments made; and, (3) the
cost of construction features to mitigate damages (23 CFR section 710.304).
2. Federal funds
can be used only to reimburse costs that are: (1) incurred subsequent
to the date of authorization to proceed; (2) in accordance with the
conditions contained in the project agreement and the plans, specifications,
and estimates (PS&E); (3) allocable to a specific project; and,
(4) claimed for reimbursement subsequent to the date of the project
agreement (23 CFR sections 1.9, 630.106, 630.205, and 630.303).
3. Federal funds
can be used to reimburse for administrative settlement costs incurred
in defending contract claim proceedings before arbitration boards or
State courts only if approved by FHWA for Federal-aid projects. If special
counsel is used, it must be recommended by the State Attorney or State
DOT legal counsel and approved in advance by FHWA (23 CFR section 140.505).
4. Costs incurred
by the State DOT or MPO for highway planning and research work are subject
to a work program approved by FHWA (23 CFR section 420.111).
5. Payments
for damages from right-of-way acquisitions for personal property, loss
of business or goodwill, circuity of travel, diversion of traffic, and
other items of damage not generally compensable in eminent domain are
not eligible for Federal participation (23 CFR section 710.304(h)).
6. Federal funds
may be used to reimburse for tuition and direct educational costs of
continuing highway-related education of State DOT and LPA employees,
but not for travel, subsistence, or salaries of students (23 CFR section
260.407).
F. Equipment and
Real Property Management
The Federal share
of proceeds from the sale of real property shall be used by the State
for projects eligible under 23 USC. (23 USC 156).
G. Matching, Level
of Effort, Earmarking Requirements
1. Matching
a. The State
is generally required to pay a portion of the project costs. Portions
vary according to the type of funds authorized and are stated in project
agreements.
b. A State's
matching share for a project may be credited by the fair market value
of donated private land incorporated in the project, and certain toll
revenues used to build or improve highways, bridges and tunnels (23
USC 120 and 23 USC 323).
c. Third party
donations of funds, materials, and services may be used as a State's
matching share on or after November 28, 1995. Donations must be made
by the third party after the date the project is approved by FHWA
and prior to approval of the final voucher (i.e., before the final
request for payment). Donated materials and services must meet the
eligibility requirements of the project. However, third party donations
of services by units of local government cannot be credited against
the non-Federal share of the project (23 USC 323).
d. The fair
value of land donated by State or local governments for highway purposes
is eligible for matching share on a project. The fair market value
shall not include any increase or decrease in value of donated land
caused by the project. The fair market value of donated land shall
be established as of the earlier of (1) the date on which the donation
becomes effective or (2) the date on which equitable title to the
land vests in the State (23 USC 323(b).
e. For transportation
enhancement projects, funds from Federal agencies (except U.S. DOT)
may be used for the non-Federal share of the project. Funds appropriated
to any Federal land management agency may be used to pay the non-Federal
share of any Federal-aid highway project funded by section 104. Federal
Lands Highway Program funds may be used to pay the non-Federal share
of Federal-aid highway projects which provide access to or within
Federal or Indian Lands (23 USC 120 (j) and 133(e)).
2. Level
of Effort - Not Applicable
3. Earmarking
- Not Applicable
J. Program Income
State and local
governments may only use the Federal share of net income from the sale,
use, or lease of property previously acquired with Federal funds if
the income is used for projects eligible under 23 USC (23 USC 156).
L. Reporting
1. Financial
Reporting
a. SF-269,
Financial Status Report - Not Applicable
b. SF-270,
Request for Advance or Reimbursement - Not Applicable
c. SF-271,
Outlay Report and Request for Reimbursement for Construction Program
- Not Applicable
d. SF-272,
Federal Cash Transactions Report - Not Applicable
e. PR-20,
Voucher for Work Under Provisions of the Federal-Aid and Federal
Highway Acts, as Amended (OMB No. 2125-0507)
2. Performance
Reporting - Not Applicable
3. Special
Reporting - Not Applicable
N. Special Tests
and Provisions
1. Use of Other
State or Local Government Agencies
Compliance Requirement
- Other State or local government agencies may be used for acquiring
rights-of-way and are reimbursed based on a written agreement (23 CFR
section 710.203).
Audit Objective
- Determine whether other State or local government agencies acquire
rights-of-way in accordance with their agreement with the State.
Suggested Audit
Procedures
a. Examine records
and ascertain if other agencies were used for acquiring rights-of-way
on Federal-aid projects.
b. Review a
sample of right-of-way acquisition agreements with other agencies.
c. Perform tests
of selected payments to other agencies to verify that they comply with
the written agreement.
2. Cooperative
acquisition of rights-of-way
Compliance Requirement
- When funds are reimbursed for the acquisition of rights-of-way in
coordination or cooperation with other Federal programs, the acquisition
and cost-sharing responsibilities of State DOTs and the other agencies
shall be set forth in an agreement (23 CFR section 710.304).
Audit Objective
- Determine whether rights-of-way acquired in coordination or cooperation
with other Federal programs are accomplished in accordance with an agreement.
Suggested Audit
Procedures
a. Ascertain
through a review of the agreement if rights-of-way were acquired in
coordination or cooperation with other Federal programs.
b. Test the
transaction records and verify that they comply with the agreement.
3. Replacement
of publicly owned real property
Compliance Requirement
- Federal funds may be used to reimburse the reasonable costs for the
functional replacement of publicly-owned real property, provided that
FHWA concurs that it is in the public interest. The cost of increases
in capacity and other betterments are not eligible except if: (1) necessary
to replace a utility; (2) required by existing codes, laws, and zoning
regulations; or (3) related to reasonable prevailing standards for the
type of facility being replaced (23 CFR sections 712.604 and 712.605).
Audit Objective
- Determine whether the functional replacement of real property was
accomplished within FHWA requirements.
Suggested Audit
Procedures
a. Ascertain
if there were any functional replacements of publicly-owned real property.
b. Verify that
FHWA concurred in paying the reasonable costs of the functional replacements.
c. Review a
sample of transactions involving replacement costs and verify that the
costs charged to the Federal-aid project were consistent with the FHWA-approved
agreement between all parties which sets forth how the costs of the
facility are to be shared.
4. Project extensions
Compliance Requirement
- FHWA must approve extensions affecting project costs or the amount
of liquidated damages, except those for projects administered by the
State DOT under 23 USC 106(c) which allow the State DOT to assume the
responsibilities for design, plans, specifications, estimates, contract
awards and inspection of progress (23 USC 106(c); 23 CFR section
635.121).
Audit Objective
- Determine whether proper FHWA approvals were obtained for contract
extensions affecting project costs and the amount of liquidated damages
assessed.
Suggested Audit
Procedures
a. Review the
systems for monitoring and controlling contract time and review project
files to determine if there were project extensions.
b. Verify that
FHWA approval was obtained for time extensions affecting project cost
and, where applicable, the amount of liquidated damages assessed.
5. Sampling
program
Compliance Requirement
- A State DOT or LPA must have a sampling and testing program for projects
to ensure that materials and workmanship generally conform to approved
plans and specifications (23 CFR section 637.205).
Audit Objective
- Determine whether the State is following a quality assurance program
that meets FHWA's requirements.
Suggested Audit
Procedures
a. Obtain an
understanding of the recipient's sampling and testing program.
b. Review documentation
of test results on a sample basis to verify that the proper number of
tests are being taken in accordance with the program.
6. Contractor
recoveries
Compliance Requirement
- When a State recovers funds from highway contractors for project overcharges
due to bid-rigging, fraud, or anti-trust violations or otherwise recovers
compensatory damages, the Federal-aid project involved shall be credited
with the Federal share of such recoveries (Tennessee v. Dole 749 F.2d
331 (6th Cir. 1984); 57 Comp. Gen. 577 (1978); 47 Comp. Gen. 309 (1967)).
Audit Objective
- Determine whether the proper credit was made to the Federal share
of a project when recoveries of funds are made.
Suggested Audit
Procedures
a. Determine
the extent to which the State has recovered overcharges and other compensatory
damages on Federal-aid projects through appropriate interviews and a
review of legal, claim, and cash receipt records.
b. Review a
sample of cash receipts and verify that appropriate credit is reflected
in billings to the Federal Government.
7. Project Approvals
Compliance Requirement
- Construction projects administered under standard procedures cannot
be advertised nor force account work commenced until FHWA: (1) approves
the plans, specifications, and estimates; and, (2) authorizes the State
DOT to advertise for bids or approves the force account work. Construction
cannot begin until after FHWA concurs in the contract award (23 CFR
sections 630.205, 635.112, 635.204, and 635.309). This requirement does
not apply to construction projects administered by the State DOT under
23 USC 106(c) which allow the State DOT to assume the responsibilities
for design, plans, specifications, estimates, contract awards and inspection
of progress (23 USC 106(c); 23 CFR section 640.113).
Audit Objective
- Determine whether project activities are started with required Federal
approvals.
Suggested Audit
Procedures
a. Review
a sample of projects and identify dates of the necessary approvals,
authorizations, and concurrences.
b. Identify dates
that projects were advertised and contract or force account work was
initiated and compare to FHWA's approval dates.
DEPARTMENT OF TRANSPORTATION
CFDA 20.500 FEDERAL
TRANSIT CAPITAL IMPROVEMENT GRANTS
CFDA 20.507 FEDERAL
TRANSIT CAPITAL AND OPERATING ASSISTANCE FORMULA GRANTS
I. PROGRAM OBJECTIVES
The objective of
the Capital Improvements Grants Program (49 USC 5307) and the Capital
and Operating Assistance Formula Grants Program (49 USC 5309) is to assist
in financing the planning, acquisition, construction, preventative maintenance
and improvement of facilities and equipment in mass transportation services.
Operating expenses are also eligible in urbanized areas with populations
of less than 200,000.
II. PROGRAM PROCEDURES
Grants are awarded
to public agencies on approval of applications for specific programs or
projects submitted to the Federal Transit Administration (FTA). Progress
is monitored by FTA through on-site inspections, telephone contacts, correspondence,
and quarterly progress and financial status reports. FTA provides funds
based on a project's progress.
FTA is required to
perform reviews and evaluations of 49 USC 5307 grant activities at least
every 3 years. FTA Order 9010.1B, "Triennial Reviews," dated April 5,
1993, provides guidance to FTA staff and recipients on the conduct of
triennial reviews. These reviews are conducted with specific reference
to compliance with statutory and administrative requirements and consistency
of actual program activities with (1) the approved program of projects,
and (2) the planning process required under 49 USC 5303.
III. COMPLIANCE
REQUIREMENTS
A. Activities
Allowed or Unallowed
The activities
allowed are specified in the grant agreement.
F. Equipment and
Real Property Management
Any disposition
of equipment before the end of its useful life is subject to prior FTA
concurrence in the method of disposition. Unless otherwise determined
in writing by FTA, the fair market value for rolling stock removed from
service before the end of its useful life is the FTA share of the unamortized
value of the remaining service life, based on straight line depreciation
of the original purchase price, based upon the date the equipment was
removed from revenue service rather than the date of disposal. FTA standards
for the useful life of vehicles are contained in FTA Circular 9030.1C,
Urbanized Area Formula Program: Grant Application Instructions,
Chapter V, Paragraph 9, Buses; and FTA Circular 9300.1A, Capital
Program: Grant Application Instructions, Chapter III, Paragraph
8, Requirements Related to Bus Purchases. These circulars are available
on the FTA National Transit Library page on the Internet (http://www.fta.dot.gov/ntl/index.html).
Recipients, with FTA approval, are allowed to sell, transfer or lease
property, equipment, or supplies acquired with federal transit funds
that is no longer needed for transit purposes. The proceeds must be
used to reduce the gross project costs of another federally funded capital
transit project (49 USC 5334(g)(4) and 49 CFR section 18.32).
I. Procurement
and Suspension and Debarment
1. Buy America
All procurements
for all steel, iron, and manufactured products in excess of $100,000
require, as a condition of responsiveness, a Buy America certificate,
documentation of general waiver, per Appendix A to 49 CFR section
661.7, or documentation of specific waiver. A manufactured product
is domestic if all of the manufacturing processes for the product
took place in the United States and if all items or material used
in the product are of United States origin. Four types of waivers
that must be obtained through a request to the FTA are if: (a) the
materials and products are not produced in the United States in sufficient
and reasonably available quantities and of a satisfactory quality;
(b) inclusion of domestic material will increase the overall project
contract by more than 25 percent; (c) FTA finds that the application
of the Buy America requirements is not in the public interest (except
for those items already listed in 49 CFR section 661.7, Appendix A)
(Buses and other rolling stock (including train control, communication,
and traction power equipment) are exempted from the Buy America requirements
if the cost of their components produced in the United States is more
than 60 percent of all their components and final assembly takes place
in the United States); or (d) the procurement of buses or other rolling
stock fails to meet the component and final assembly test as required
in 49 CFR section 661.11 (49 CFR part 661).
A recipient which
makes purchases of rolling stock for transportation of fare-paying
passengers, must conduct or will cause to be conducted a pre-award
audit before entering a formal contract for the purchase of rolling
stock, and that a post-delivery audit is complete before title to
the rolling stock is transferred. Pre-award and post-delivery audits
verify the accuracy of the Buy America certification, purchaser's
requirements certification, and certification of compliance with or
inapplicability of Federal motor vehicles safety standards (49 CFR
part 663).
2. Disadvantaged
Business Enterprises (DBE)
Recipients shall
require that each transit vehicle manufacturer, as a condition to
bid on transit vehicle procurement in which FTA funds are involved,
certify that it has an overall DBE goal approved by the FTA Administrator
or that it has submitted an overall DBE goal and it has not been disapproved
by the FTA Administrator (49 CFR section 23.67).
3. Procurement
of Vehicles and Facilities
In prohibiting
discrimination in the provision of transportation services against
persons with disabilities, the Americans with Disabilities Act of
1990 (ADA) requires that vehicles purchased or leased after August
25, 1990, and new and altered facilities designed and constructed
(as marked by the notice to proceed) after January 25, 1992, must
comply with the appropriate standards in 49 CFR parts 37 and 38 (42
USC 12101-12213).
L. Reporting
1. Financial
Reporting
a. SF-269,
Financial Status Report - Applicable
b. SF-270,
Request for Advance or Reimbursement - Applicable
c. SF-271,
Outlay Report and Request for Reimbursement for Construction
Program - Not Applicable
d. SF-272,
Federal Cash Transactions Report - Not Applicable
2. Performance
Reporting - Not Applicable
3. Special Reporting
Report of
DBE Awards and Commitments (OMB No. 2105-0510) - Based on the
level of FTA funding, exclusive of transit vehicle purchases, recipients
are required to implement a DBE program. To monitor the progress of
the DBE program, the recipient is required to submit quarterly reports
based on a recordkeeping system (49 CFR section 23.49).
N. Special Tests
and Provisions
1. Environmental
Review
Compliance
Requirement - The National Environmental Policy Act (NEPA) (42
USC 4321 et seq.) and the FTA implementing rule (23 CFR part 771)
require that the environmental effects of proposed mass transportation
projects be documented and that environmental protection be considered
before a decision is made to proceed with a project. Additionally,
if there is no feasible or prudent alternative to avoid the effects,
all reasonable steps must be taken to minimize adverse environmental
effects, in accordance with Section 4(f) of the Department of Transportation
Act of 1966, as amended. It is the policy of FTA that, among other
matters, measures necessary to mitigate adverse impacts be incorporated
into any proposed transportation improvement (49 USC 303).
Environmental
mitigation measures are described in NEPA environmental documents,
when required. For projects requiring an Environmental Impact Statement
(EIS), mitigation measures are summarized in a Record of Decision.
For projects requiring an Environmental Assessment, mitigation measures
are summarized in a Finding of No Significant Impact (FONSI). For
categorically excluded projects, any mitigation measures will be documented
in the FTA approval memorandum for the project. In all cases, environmental
mitigation measures should be referenced in the construction grant
agreement with the recipient (23 CFR part 771).
Audit Objective
- Determine whether environmental mitigation measures associated with
FTA assisted construction were implemented as referenced in the construction
grant agreement.
Suggested Audit
Procedures
a. Identify
any FTA assistance provided for construction and review copies of
the grant agreement and EIS or FONSI to identify mitigation measures
specified.
b. For sample
of mitigation measures, compare the status of implementation with
the commitments made in the environmental documents or grant agreement.
2. Charter Service
Compliance Requirement
- Recipients must execute a one-time agreement with FTA which provides
that neither the recipient nor any of its subrecipients will provide
charter service that uses equipment or facilities acquired with FTA
funds, unless there are no willing and able private charter service
operators or one or more of the exceptions listed in 49 CFR part 604
are met and the charter service is incidental to the provision of mass
transportation. Charter service is defined as transportation, using
buses or vans (funded in whole or in part by FTA), of a group of persons
pursuant to a common purpose, under a single contract at a fixed charge
for the vehicle or service, which has acquired the exclusive use of
the vehicle or service to travel together under an itinerary either
specified in advance or modified after leaving the place of origin.
This definition includes the incidental use of FTA-funded equipment
for the exclusive transportation of school students, personnel and equipment,
and the housing of charter vehicles in FTA-funded facilities. Incidental
charter service is defined as service which does not: (a) interfere
with or detract from the provision of the mass transportation service
for which the facilities or equipment were funded under the Act; or
(b) does not shorten the mass transportation life of the equipment or
facilities (49 CFR part 604).
Audit Objective
- Determine whether the use in charter service of equipment and facilities
acquired with FTA funds conformed to 49 CFR part 604.
Suggested Audit
Procedures
a. Ascertain
if the recipient provides charter service with FTA-funded equipment
by obtaining written representation from recipient, and reviewing revenue
accounts for indications of charter bus revenue statements.
b. Review the
recipient's policies and procedures for charter, rental, or lease of
its transit equipment.
c. Test transactions
which meet the definition of charter service and ascertain if:
(1) FTA-assisted
equipment or facilities (e.g., parking lots and maintenance garages)
were used;
(2) Documentation
was available evidencing the absence of a willing and able private
operator or an exception provided in 49 CFR part 604;
(3) Documentation
was available evidencing a charter fee that recovers the entire operating
and capital costs of equipment used; and
(4) Inventory
records were adjusted to extend the useful life of the FTA subsidized
transit equipment by the amount of charter service.
3. School Bus
Operation
Compliance Requirement
- The recipient, as a condition of eligibility, must enter into an agreement
with the FTA Administrator stating that the recipient will not engage
in school bus operations exclusively for the transportation of students
and school personnel in competition with private school bus operators
unless it demonstrates to the FTA Administrator any one of the exceptions
listed in 49 CFR section 605.11 and the Administrator concurs. However,
all recipients can operate "Tripper Service" defined as mass transportation
service, open to the public, and designed or modified to accommodate
the needs of school students and personnel, using various fare collections
or subsidy systems. Buses used in "Tripper Service" are required to
be clearly marked as open to the public and should not carry designations
such as "school bus" or "school special" (49 CFR part 605).
Audit Objective
- Determine whether school bus service provided with FTA funded equipment
was approved by FTA or that FTA-assisted equipment and facilities used
to accommodate students conformed to the definition of "Tripper Service."
DEPARTMENT
OF TRANSPORTATION
20.600 STATE
AND COMMUNITY HIGHWAY SAFETY
20.601 ALCOHOL
TRAFFIC SAFETY AND DRUNK DRIVING PREVENTION INCENTIVE GRANTS
I. PROGRAM OBJECTIVES
The objective of
the State and Community Highway Safety Program is to provide a coordinated
national highway safety program to reduce traffic accidents, deaths, injuries,
and property damage.
II. PROGRAM PROCEDURES
Funds are provided
to the States, following submission of their highway safety plans, in
accordance with a predefined formula. Each State distributes at least
40 percent of the funds to political subdivisions of the State, to be
expended on local projects.
III. COMPLIANCE
REQUIREMENTS
A. Activities
Allowed or Unallowed
Funds must be expended
as specified in the grantee's highway safety plan. Certain specific
costs which will not be approved or that require prior approval have
been identified in Highway Safety Grant Funding Policy for NHTSA/FHWA
Field-Administered Grants and are listed below (23 CFR section 1200.20).
1. The following
costs are allowable or allowable with specific conditions:
a. Equipment
- Major equipment (tangible, nonexpendable, personal property having
a useful life of more than one year and an acquisition cost of $5000
or more per unit) purchases for new and replacement equipment must
be pre-approved.
b. Installation
- The purchase and installation of regulatory and warning signs and
supports and field reference markers are allowable for roads off the
Federal aid system.
c. Travel
- Travel for out-of-state individuals benefiting the host State's
highway safety program is allowable.
d. Training
- The cost of training personnel and the development of new training
curricula and materials is allowable. However, training costs for
Federal employees, with the exception of Department of the Interior
personnel assigned Section 402 responsibility, are unallowable.
e. Program
Administration - The costs for consultant services, promotional activities,
alcoholic beverages to support police "sting" operations, and meetings
and conferences are allowable.
2. The following
costs are unallowable:
a. Facilities
and Construction: highway construction, maintenance or design, construction
or reconstruction of permanent facilities, highway safety appurtenances,
office furnishings and fixtures, and land.
b. Equipment:
truck scales, traffic signal preemption systems.
c. Training:
individual's salary, and training employees of Federal agencies, excepted
as noted above.
d. Public
Communications: advertising space.
e. Program
Administration: research costs, expenses to defray activities of Federal
agencies, and commercial drivers' compliance requirements.
G. Matching, Level
of Effort, Earmarking
1. Matching
a. The State
shall pay at least 20 percent, or the applicable sliding scale rate,
as stated in the grant award, of the total cost of the program. The
State shall pay at least 50 percent of the costs for planning and
administration (23 CFR section 1252.4; 23 USC 120(b), 402(d), and
406(c)).
b. The Highway
Safety Act requires that those States that qualify for special incentive
programs under Section 410 (CFDA 20.601) must match Federal funds
at 25 percent the first year, 50 percent the second year, and
75 percent the third year (23 USC 408 and 410).
c. Additional
matching requirements may be specified in the grantee's highway safety
plan to limit the maximum Federal share of an ambulance, helicopter,
or aircraft to 25 percent.
2. Level
of Effort - Not Applicable
3. Earmarking
a. At least
40 percent of Federal funds apportioned to a State for any fiscal
year shall be expended by or for the political subdivisions of the
State in carrying out local highway safety programs (23 CFR section
1250, 23 USC 402(b)(1)(C)).
b. The costs
for planning and administration shall not exceed 10 percent of the
funds received by the State (23 CFR section 1252.4).
L. Reporting
1. Financial
Reporting
a. SF-269,
Financial Status Report - Not Applicable
b. SF-270,
Request for Advance or Reimbursement - Not Applicable
c. SF-271,
Outlay Report and Request for Reimbursement for Construction Program
- Not Applicable
d. SF-272,
Federal Cash Transactions Report - Not Applicable
e. HS-217,
Highway Safety Plan Cost Summary (OMB No. 2127-0003)
f. Federal-Aid
Reimbursement Voucher (OMB No. 2127-0003)
2. Performance
Reporting - Not Applicable
3. Special
Reporting - Not Applicable