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Financial Plans Guidance

Attachment C -
Checklist for Financial Plan Components

Checklist for Financial Plan Components

  1. Cost Estimate
    Provide a total cost estimate for the full project. Provide an activity breakdown for feasibility studies, preliminary engineering, environmental assessment, right-of-way acquisition, construction, construction engineering and inspection, project management, contingencies, and ITS activities. Include other cost categories, as necessary. See Major Project Program Cost Estimating Guidance.

    All cost estimates should be expressed on a year-of-expenditure basis and should include a narrative describing assumptions used to arrive at such estimates.

  2. Implementation Plan
    Provide a comprehensive description of the project, including, but not limited to, project scope, termini, and interconnections. Describe any proposed phasing for the project and dependencies on other projects. Include a list of all federal, state, and local permits and approvals required for the project and a schedule for obtaining such permits and approvals.

    Include the schedule for completing the project, by year, showing estimated costs.

    It should be noted that updates to the initial financial plan should ensure consistency in project scope. If costs/schedule change, the changes must be clearly identified to ensure valid comparisons to the initial financial plan.

  3. Financing and Revenues
    Sources should include separate line items, as applicable, for Federal, state, and local funds; private investment; any other contributions; market value of right-of-way dedications; bond proceeds (general obligation, revenue, GARVEEs, and others); state infrastructure bank loans; other borrowing (specify); investment income; Federal credit assistance (TIFIA). The total of all funding sources should equal the total of the cost estimate. New funding sources developed after the Initial Financial Plan should be incorporated at the subsequent Annual Update.

  4. Cash Flow
    The cash flow pro forma should indicate the level of cash required to fund the project on an annual basis over the period of the financial plan. The pro forma should include beginning and ending balances, all sources and uses of funds, and show annual change in financial position. Total sources and uses should be equal.

  5. Risk Identification and Mitigation Factors
    The financial plan should identify risks to project completion and sufficiency of revenues. Examples of risks might include cost escalation, approvals, litigation, construction schedules, ridership/traffic levels, availability of grant funding, and dependence on future legislative action. All risk mitigation strategies should be identified and should include actions that would be taken to address revenue shortfalls including any reserves or other methods of funding which could be applied to this project. There should also be a discussion of any proposed cost containment approaches (e.g. design/build, value engineering, guaranteed maximum price or completion date warranties, or other incentive/disincentive clauses).

    The financial plan should identify any performance bonds included in the project financing plan, the level and type of insurance coverage, and any lines of credit and standby financing arrangements.