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Home / MAP-21 / Guidance / Application of Reimbursable Authority to Non-Federal Agencies

Application of Reimbursable Authority to Non-Federal Agencies Under the Federal Lands and Tribal Transportation Programs


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U.S. Department of
Transportation
Federal Highway
Administration

Memorandum

Subject: Information: Application of Reimbursable Authority to Non-Federal Agencies Under the Federal Lands and Tribal Transportation Programs Date: November 20, 2012
From: Joyce A. Curtis
Associate Administrator for Office of Federal Lands Highway
In Reply Refer To: HFL-1
To: Federal Lands Highway
Division Engineers

Prior to enactment of the “Moving Ahead for Progress in the 21st Century Act” (MAP-21), the Office of Federal Lands Highway (FLH) had the ability to provide services to other Federal agencies before their funds were transferred to FHWA pursuant to authority in the “Economy Act.” An Interagency Agreement was signed by both agencies to ensure FHWA was reimbursed. The Office of the Chief Financial Officer (OFCO) issued reimbursable budget authority using a unique code. This process allowed FHWA to respond quickly to provide engineering services and to deliver non-title 23 funded construction projects for Federal partners.

Section 1119 of MAP-21 extends this authority to non-Federal entities under 23 U.S.C. 201(d):

(d) REIMBURSABLE AGREEMENTS – In carrying out work under reimbursable agreements with any State, local, or tribal governments under this title, the Secretary –

(1) may, without regard to any other provision of law (including regulations), record obligations against accounts receivable from the entity; and

(2) shall credit amounts received from the entity to the appropriate account, which shall occur not later than 90 days after the date of the original request by the Secretary for payment.

Effective October 1, 2012, this provision will be implemented as follows:

  1. The Directors of Program Administration have previously been delegated the authority to approve Federal Lands agreements. Because advancing authority based on promises of certain non-Federal entities in “provider” agreements carries additional risk, the Division Engineer must approve agreements using reimbursable authority with local and tribal entities. The authority may not be further delegated. The Directors of Program Administration will continue to have the authority to approve “provider” agreements with Federal agencies and will now also have the authority to approve them with State entities. The Directors of Program Administration will continue to approve use of all agreements in which we are requesting services from a Federal, State, local, or tribal entity (“receiver” agreements), for which reimbursable authority is not needed. As with all agreements, the Division should ensure legal review and concurrence for any agreement over $500,000.

  2. FLH, in coordination with the OCFO, will establish a new program code designation for requesting reimbursable authority for non-Federal entities. The process for requesting budget authority from the headquarters Budget Office will be similar to the process used currently with Federal agencies. This process is documented in the “FLH Funds Transfer Guide” dated June 2010.

  3. Reimbursable authority should generally not be used for Federal-aid funds that can be withdrawn from the State DOT and allocated directly to the Federal Lands Division.

  4. Reimbursable authority may be used with a State, local, or tribal government. It may not be used to advance utility company, railroad, or other private entity work.

We look forward to implementing this important MAP-21 provision, which will enable FHWA to be more responsive to existing and prospective partners. Please contact Terry Haussler at 202-366-9478 if you have any questions.

Page last modified on September 12, 2013.
Federal Highway Administration | 1200 New Jersey Avenue, SE | Washington, DC 20590 | 202-366-4000