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Lesson 2.2 State Administration of FHWA funds

Lesson 2.2.1 Responsibility in Administering FHWA funds

Learning Objective 2:
Describe the State's and Indian tribe's responsibility in administering FHWA funds.

States have a primary responsibility in administering National Scenic Byways Program funds

There are many Federal requirements that the State must meet in order to receive funds. Many of these are laid out in Titles 23 and 49 of the Code of Federal Regulations. States are responsible for meeting all of these and many other Federal and State laws and regulations. For example, States must comply with the UNIFORM ADMINISTRATIVE REQUIREMENTS FOR GRANTS AND COOPERATIVE AGREEMENTS TO STATE AND LOCAL GOVERNMENTS in Part 18 of Title 49 CFR and with the ENVIRONMENTAL IMPACT AND RELATED PROCEDURES in Part 771 of Title 23 CFR. Other Federal requirements may also apply, such as the COST PRINCIPLES in Part 225 of Title 2 CFR.

A stewardship and oversight agreement clarifies the roles and responsibilities of both Federal Highway Administration (FHWA) and each State in implementing the Federal-aid Highway Program, which includes the National Scenic Byways Program. Specific procedures and responsibilities may vary from State to State.

Specific responsibilities include:

Specific links to supporting websites for this area are:

Indian tribes have a primary responsibility in administering National Scenic Byways Program funds awarded directly to them

There are many Federal requirements that the Indian tribes must meet in order to receive funds. Many of these are laid out in Titles 23 and 49 of the Code of Federal Regulations. Indian tribes are responsible for meeting all of these and many other Federal and Indian tribe laws and regulations. For example, Indian tribes must comply with the UNIFORM ADMINISTRATIVE REQUIREMENTS FOR GRANTS AND COOPERATIVE AGREEMENTS in Part 18 of Title 49 CFR and with the ENVIRONMENTAL IMPACT AND RELATED PROCEDURES in Part 771 of Title 23 CFR. Other Federal requirements may also apply, such as the COST PRINCIPLES in Part 225 of Title 2 CFR.

Specific project responsibilities for Indian tribes will be laid out in a project agreement between the Indian tribe and FHWA.

Specific responsibilities include:

Specific links to supporting websites for this area are:

National Scenic Byways Program Projects and transportation planning requirements

All grant projects awarded to the State are subject to the transportation planning regulations in 23 CFR Part 450 and must be reflected in the State Transportation Improvement Plan (STIP) and projects in metropolitan areas should be in the metropolitan Transportation Improvement Plan (TIP). More information on transportation planning can be found at: Planning - HEP - FHWA

Grants awarded to Indian tribes should be consistent with tribal transportation planning regulations in 25 CFR Part 170 Subpart D. Projects may be included in the Tribal Transportation Improvement Program (TTIP). Projects that utilize Indian Reservation Roads Program as part of the project and/or for matching National Scenic Byways Program funds must be in the Indian Reservation Roads Transportation Improvement Program (IRRTIP). More information on the Tribal Transportation Program can be found at Federal Lands Highway Tribal Transportation Program.

Specific links to supporting websites for this area are:

Sign off on the Project Agreement for reimbursement and administering the Notice To Proceed

A project agreement must be approved by the appropriate State or Indian tribe and FHWA (Division Office) before costs for any work on the project will be reimbursed for eligible expenses. Costs incurred prior to the execution of a project agreement and authorization-to-proceed are not eligible for reimbursement.

States and Indian tribes should insure that sub-recipients do not start work prior to authorization.

Specific links to supporting websites for this area are:

Contracting

In general, States and Indian tribes must follow 49 CFR 18.36 when procuring with National Scenic Byways Program grant funding. States must follow the same policies and procedures it uses for procurements from its non-Federal funds. States must ensure that every purchase order or other contract includes any clauses required by Federal statutes and executive orders and their implementing regulations. Indian tribes must follow the procurement procedures outlined in 49 CFR 18.36.

In addition, as part of the Federal-aid Highway Program, other requirements may also apply. These include, but are not limited to, specific requirements for construction projects within the highway right-of-way, prevailing wage requirements, and Buy America requirements. More information can be found on FHWA's contract administration page: Contract Administration - Construction - FHWA.

Specific links to supporting websites for this area are:

Reimbursement of Funds

The National Scenic Byways Program is a reimbursable program. States are not apportioned cash but rather are notified that a balance of Federal funds is available for their use, meaning that the State can incur obligations, begin projects, and then later be reimbursed for eligible costs incurred. The project need not be completed, however, before a State begins to receive reimbursement. Depending upon the type of the project, the time elapsing from obligation to reimbursement can vary from a few days to several years.

The normal sequence of events for reimbursement is:

  1. Work is done by a contractor.
  2. The contractor sends a bill to the State and the bills for all work done throughout the State are processed by the State.
  3. Vouchers for the bills are sent electronically by the State to the FHWA for review and approval.
  4. The FHWA certifying officer certifies the State transportation department's claim for payment.
  5. Certified schedules are submitted to the Treasury Department.

The Federal share of the cost for all projects on the vouchers is transferred directly from the Treasury Department to the State's bank account by electronic fund transfer.

Updated: 09/03/2013
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