FHWA Financial Plan Guidance: Attachment C
Checklist for Financial Plan Components
- Cost Estimate
Provide a total cost estimate for the full project. Provide an activity breakdown, as applicable for feasibility studies, preliminary engineering, environmental assessment, right-of-way acquisition, construction, construction engineering and inspection, project management, contingencies, and capitalized financing costs (including reserves, capitalized interest and capital issuance costs). Include other cost categories, as necessary.
All cost estimates should be expressed on a cash (year-of-expenditure) basis and should include a narrative describing assumptions used to arrive at such estimates.
- 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.
- Funding Sources
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). For each line item, describe the status of the source (e.g. requested, committed, received) and identify if legislative or voter approval required.
- 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.
- Other 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.