Revised Memorandum of Understanding
Iowa Department of Transportation
Federal Highway Administration
Current Billing Program
The initial memorandum of understanding governing current billing was effective July 1, 1967. Since that time many changes and improvements have been made in the accounting, automatic data processing, the method of billing, auditing, and procedures related to the control and classification of costs. In recognition of the many advancements that have occurred since the initial memorandum of understanding was refused in 1978, further changes are warranted. Due to the main frame to main frame billing and the use of electronic signatures, and additional revision to the current billing memorandum of understanding is hereby executed.
The purpose of this revision is to state the major responsibilities of both parties in the continued successful operation of the current billing program.
In recognition of the need to assure effective fiscal control of costs through an integrated system of accounting, the following agreements have been reached:
- The Iowa Department of Transportation agrees:
- That it is in their inherent responsibility to establish and maintain sound accounting systems and internal controls in order to assure itself and the Federal Highway Administration of the integrity of costs submitted for reimbursement.
- To review its established policies and procedures of operation and fund control on a continuing basis to assure itself of the reliability of claims presented to the Federal Highway Administration.
- To continue to upgrade its accounting and billing operation through adoption of new improved techniques as they are developed.
- To promptly implement such additions or revisions in its procedures which are agreed to by the State and the Federal Highway Administration.
- The Federal Highway Administration agrees:
- To promptly pay the State's claims.
- To consult with and assist the State with policy and procedural changes affecting claims for Federal-aid reimbursements.
- The Iowa Department of Transportation and the Federal Highway Administration mutually agree:
- That the detailed procedures r elated to the current billing program now in effect (including accounting and related internal control systems, and reconciliating billings) are as stated in accounting manuals, operating procedures manuals, computer programs, and other forms of documentation. Any future changes which will have e an effect on the current billing program will be implemented only with the concurrence of FHWA and such concurrence will be documented in writing through individual correspondence.
- That day-to-day procedural problems will be resolved at the operating level of the state and the Federal Highway Administration.
This revised Memorandum of Understanding is effective July 15, 1994.