FHWA/MoDOT Partnering Agreements

FINANCIAL 1

March 2011

I. Purposes of this Agreement

The purpose of this Agreement is to set forth the general terms and conditions for collaboration in financing between the FHWA and MoDOT for the purpose of enhancing the quality and effectiveness of the existing FHWA/MoDOT partnership so that partners can work better at achieving mutual transportation priorities. This Agreement applies to the MoDOT staff and the staff of the FHWA Missouri Division Office responsible for the management/oversight of financial activities.

II. Agreement Focus Area

The FHWA and MoDOT shall carry out the terms indicated in this Agreement resulting in improved communication and streamlined financial decision making for Federal projects and programs.

III. Ground Rules

The following ground rules apply to the development and execution of each element of this agreement. We agree to concentrate efforts in improving our joint work by following these ground rules.

• We will implement activities covered by the agreement in a mutually supportive manner between MoDOT and FHWA.
• We will strive to ensure adherence to required planning processes and product time frames.
• We will respect each other by valuing the opinions of others and maintaining an open mind to suggestions.
• We will communicate with each other directly by telephone, mail, and email and more importantly, in face-to-face discussions.
• We will make decisions following a thorough discussion of the issue using appropriate communication methods. Timely decisions should be made following discussion.
• We will meet quarterly to address issues relating to financial management and oversight.
• We will actively participate in scheduled meetings and add value to the discussion and refrain from personal agenda.
• We will promote good financial practices and make current best practices our method of conducting business.
• We will make decisions by evaluation of data consistent with applicable laws.
• We will recognize the timeliness and quality of our cooperative effort to deliver finance document reviews and approvals as reliable and measurable performance "output" indicators.
• We will revisit and revise this agreement as deemed necessary. At a minimum the agreement will be revised yearly.
• We will strive to meet all deadlines and provide timely feedback to stakeholders
• We will collaborate to achieve mutual objectives, goals and initiatives.
• We will ensure internal controls exist within MoDOT and FHWA to properly manage federal funds.
• We will work together to ensure policies are clear and concise.

IV. Roles and Responsibilities

Project Management

• MoDOT and FHWA will manage active project expenditures and report project status as needed.
• MoDOT and FHWA will submit rate updates annually.

Federal-aid Billing

• MoDOT will charge costs related to federal projects and programs in accordance with state and federal laws and regulations.
• MoDOT will accumulate eligible costs and request reimbursement from FHWA on a weekly basis.
• FHWA will process payments to MoDOT on a weekly basis in accordance with federal laws and regulations while implementing FHWA's Performance Plan and required stewardship and oversight.
• FHWA will complete billing reviews and spot checks.

Project Closure

• MoDOT and FHWA will close projects on a timely basis. The timelines below are contingent on availability of funds and other documented unique factors impacting the project.
  • Construction (STIP) projects will be submitted to FHWA three months afterthe project is finalized in Site Manager.
  • Projects audited internally, other than railroads, will be submitted to FHWA within one month of receiving the audit report.
  • Railroads will be submitted to FHWA within one month of receiving the audit report on the final crossing in the project.
  • FHWA will approve final vouchers within 30 days or provide an explanation of why the final voucher was not approved.
• MoDOT will respond to final voucher inquiries within 14 days.

Oversight

• FHWA will provide oversight as it relates to Financial Integrity Review and Evaluation (FIRE) Program through risk assessments and related process reviews, spot checks or other practiced methods.
• MoDOT will provide oversight to the state administered federal-aid program through risk assessment and related process reviews, spot checks or other practiced methods.
• FHWA will provide MoDOT with reports to verify staff's access to FMIS and RASPS.

V. Conflict Management

Historically, FHWA and MoDOT have benefited from an excellent working relationship. This Agreement intends to build upon this history by establishing a framework to further promote the existing partnership. This Agreement establishes the following procedures to resolve conflict, streamline processes and build a team spirit to achieve maximum success.

• We will confer on a regular basis. If there is a major programmatic issue the party bringing the concern to the table shall communicate the concern by e-mail or letter
• We agree each agency will maintain and up-to-date "lead contact" list of the individuals at each agency responsible for overseeing various areas of the finance activities
• We agree, to the maximum extent possible, that issues involving the two agencies shall be resolved at the staff level.
  • When issues arise that cannot be resolved within one week at this staff level, we agree resolution of the issue will be sought at the staff manager's level.
  • When resolution of the issue cannot be realized at this management level, we agree the issue will be elevated to the MoDOT Resource Management Director or Controller/FHWA Financial Manager level. Issues unresolved within one week at the second level will be elevated to the MoDOT Chief Financial Officer and the FHWA Assistant Division Administrator.
  • If issues are still unresolved, they will be elevated to the MoDOT Director and FHWA Division Administrator.

VI. Performance Evaluation

We will measure our paterning progress and success by the following performance indicators:

Project Closure

• Final vouchers responded to or approved within one month.
  • FHWA approves or returns 80% of Final Vouchers within 5 days.
  • FHWA approves or returns 90% of Final Vouchers within 10 days.
• MoDOT will monitor the aude of Audit Inventory.
• MoDOT will manage active projects without expenditures for one year.

Federal-aid Billing

• Performance measure to be developed.

VI. Communication with Management

We will keep senior management informed of our activities and how our partnering is working quarterly through verbal conversations. If issues have not been resolved and require action of senior management, a written communication regarding the issue will be shared with senior management and members of the FHWA and MoDOT Finance Teams. This communication will include:

• Issues that require resolution
• Successes, challenges and new projects.
• Our efforts to enhance communications and better working relationships between Finance and other focus area teams.
• Progress reports on activities and accomplishments.