FEDERAL-AID POLICY GUIDE
October 20, 1992, Transmittal 7

NS 23 CFR 630A

OPI:HNG-12/HFS-22

1. POLICY (23 CFR 630.106)

   1. The program(s) should provide for flexibility in final project selection so as to account for schedule slippage and variances between preliminary and final estimates of project costs, thereby minimizing the need to process program revisions or additions.

   2. To the maximum extent possible, State and locally developed programs are to be used to fulfill Federal programming requirements. For example, the annual elements of the transportation improvement programs (AE/TIP) promulgated by metropolitan planning organiza tions may fulfill the requirements for a portion of the program of projects.

2. PROGRAM SUBMISSIONS (23 CFR 630.108). Interstate substitute projects pursuant to 23 U.S.C. 103(e)(4) need not be included in a program.

3. AVAILABILITY OF LAPSED FEDERAL-AID HIGHWAY APPROPRIATIONS (23 CFR 630.114)

   1. Lapsed appropriations are those Federal-Aid Highway appropriations where the period of availability for new obligations has expired. Unobligated balances in these lapsed appropriations are increased through project cost underruns and/or project withdrawals. Unobligated balances created in a lapsed (expired) appropriation may only be used to finance overruns within the same appropriation.

   2. Approval is not required from the Finance Division forapportioned funds deobligated and reobligated to cover project overruns within the same fiscal year, provided the following conditions apply:

      (1) The project(s) to be modified must have been obligated prior to the date the funds were subject to lapse.

      (2) The project(s) modification must be due to a cost overrun. There can be no change in the scope of the project as originally obligated prior to the time of lapse, i.e., additional work may not be added to any project using lapsed funds.

   3. Except as provided in the previous paragraph, Finance Division approval is required when additional lapsed funds are required to cover project overruns. In either case, total obligations may not exceed the State's apportioned amount by fund.

   4. Requests for reinstatement and use of lapsed funds should be submitted in writing to the Chief of the Finance Division for approval. The project(s) to be modified, the appropriation code(s), and the exact amount(s) of the overrun must be identified. Upon receipt of written approval, the funds must be obligated and disbursed immediately.

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