Questions & Answers to ARRA Lapsed Funding Guidance
|Highway Infrastructure Investment Grants|
|- Urbanized Areas over 200K Population||C230|
|- Areas with Population equal to or less than 200K||C200|
|- Rural Areas with Population under 5K||C250|
|- Available for Use in Any Area (flexible)||C240|
|Puerto Rico Highway Program||CP10|
|Territorial Highway Program||CT10|
|Construction of Ferry Boats||C950|
|Highway Surface Transportation and Technology Training||C490|
Q6. Will periodic reports be available and distributed detailing state balances? If so, how often will reports be updated and provided to the field (anticipating project actions could increase the overall balance)?
A6. Yes, summary data is provided weekly in the ARRA Weekly Summary Report. More detailed information can be obtained by generating a FMIS W10A report.
Q7. How long will it take for Divisions/HQ to review and take action on funding requests?
A7. The goal is to process funding requests within 30 days of receiving a properly completed "FHWA-1576 - ARRA Obligation Adjustment Form". Transfer requests which do not receive Division concurrence will not be forwarded to the OCFO. If Transfer requests are not approved by the OCFO, the requesting Division / State will be contacted and provided with information supporting the decision.
Q8. What are the requirements for filling out the FHWA-1576 - ARRA Obligation Adjustment form?
A8. A complete ARRA Obligation Adjustment form will include the following information:
Q9. Will State ARRA funds remain available for the State to utilize until the funds expire on 9/30/2015?
A9. Deobligated funds will remain available to the State until 9/30/2015 or until HQ is provided with information that a particular State/s will not have the ability to utilize recovered funds for a given program code. This action requires Official correspondence from the Director of the State Department of Transportation. At that time, funding will be permanently withdrawn from the State.
Q10. For approved upward adjustments requests, will the Budget Office and the FMIS Team need to re-allocate funds to the State? If so what is the impact and anticipated time needed?
A10. Yes, the OCFO will coordinate re-allocating funds for approved upward adjustments to the requesting State. The goal is to process funding requests within 30 days of receiving a properly completed FHWA-1576 - ARRA Obligation Adjustment Form. Please see A3 for detailed information..
Q11. How will Transportation Investment Generating Economic Recovery (TIGER) funds be treated?
A11. TIGER grant funds are available for obligation until September 30, 2011 and are not subject to this guidance (but may be subject to subsequent guidance).
Q12. Are there any special rules for ARRA On-the-Job Training /Supportive Services or Ferry Boat Discretionary (FBD) funding?
A12. Program funds will be managed by the respective program office. Requests for upward adjustments will need to be processed through the program office utilizing the FHWA-1576 - ARRA Obligation Adjustment Form.
Q13. What strategies can States employ before September 30 to maximize their utilization of funds in event of recoveries after September 30?
States can adjust the Federal share of ARRA funds up to 100% shortly after award (see 23 CFR 630.106).
States should research current costs compared to the engineer estimate and where appropriate decrease unneeded funds and reobligate those funds on eligible underfunded projects.
Q14. Will funds deobligated remain available for legitimate overruns throughout the life of ARRA (September 30, 2015)?
A14. Recovery Act funds deobligated after September 30, 2010 are available to make upward adjustments (increases) to recorded Recovery Act obligations that were obligated prior to September 30, 2010, until September 30, 2015, consistent with 31 U.S.C. 1553(c). Section 1553(c) excludes use of "lapsed funds" (Recovery Act funds deobligated after September 30, 2010) for adjustments to pay contract claims or contract increases associated with an escalation clause.
Q15.Does the $25M cap available for upward adjustment renew at the beginning of each fiscal year?
Q16. How will the maximum amount of funding available for upward adjustments be determined for each State within a fiscal year?
A16. Amounts available to each State will be calculated based on the State's proportion of the total amount of ARRA funding apportioned. See the attached table for each State's total upward adjustment amount and the State's percentage of the total available.
Q17. Does this guidance apply to administrative funding?
A17. No. This Guidance does not apply to ARRA administrative funding (internal management and oversight).
Q18. If a State's ARRA deobligations exceed their annual pro-rata share for upward adjustments, do the additional deobligated fund balances remain available in subsequent fiscal years?
A18.Yes. If a State deobligates an amount exceeding its annual pro-rata share in a specific program code, the amount remaining after upward adjustment will carry forward and be available for upward adjustment in subsequent years (through 2015).
Q19.When submitting an upward adjustment FHWA-1576 form, will States have to certify there has been no change in scope? Must States include an attachment to the form documenting the reasons for cost overruns?
A19. Yes. A detailed explanation documenting the specifics of the request is required (stating in detail the need for the adjustment to the amount originally obligated, include the "who, what, when, why, where and how". The State must submit documentation that demonstrates deobligated funds are available to process the upward adjustment (current FMIS W10A). The Division Office is responsible for performing the initial review of a State's supporting documentation and making the determination that the request for upward adjustment is not the result of a change in scope or increased costs due to exercising an escalation clause.