FHWA/MoDOT Partnering Agreements
FINANCIAL 2
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 Resource Management 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 related 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 annually.
- We will strive
to meet all deadlines and provide timely feedback to stakeholders.
- 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.
- We will collaborate
to achieve mutual objectives, goals and initiatives.
IV. Roles and Responsibilities
Funds Management
- MoDOT and
FHWA will manage active and inactive projects and report project status
by established deadlines.
- MoDOT and
FHWA will ensure full utilization of available funds.
- MoDOT and
FHWA will ensure no lapsing of funds.
- MoDOT will
report to FHWA annually the list of PE & ROW payback projects including
any requests for extension.
Obligate
Funds
-
MoDOT
will obligate funds in accordance with state and federal laws and
regulations while implementing MoDOT's Tangible Results priorities
and goals.
-
All
Federal-aid Agreements received by FHWA from MoDOT will be fully funded,
and have the appropriate program approvals (e.g., PSE, ROW, force
account, NEPA).
-
Projects
authorized but not awarded within 6 months will be deobligated.
- FHWA will approve project agreements within 14 days or provide an explanation
of why the obligation was not approved.
-
MoDOT
will respond to project agreement inquiries within 14 days. Returned
agreements will be unsigned by MoDOT if a resolution can not be completed
within 24 hours.
Innovative
Finance
-
FHWA
will advise MoDOT of new innovative financing tools to advance
and complete transportation projects. MoDOT will consider new
and innovative financial solutions offered by FHWA.
-
FHWA
and MoDOT will work together to continuously search for possible
sources to identify new highway financing tools.
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 be responsible for administering the federal aid
program for the state and will use a risk based approach
to implementing adequate controls to ensure compliance
with federal laws and regulations.
-
FHWA
will provide MoDOT with reports to verify staff's access
to FMIS.
V. Conflict Resolution
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 and audit 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 the 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
or Audits and Investigations Unit Directors 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:
Funds Management
- Obligation
of all available federal aid funds by the program deadline.
- Percent
of Federal-aid obligated in relation to FHWA annual obligation limitation. (quarterly)
- Percent
of local program funds obligated (quarterly)
- MoDOT's
desired trend is to reduce the percentage of inactive projects to
4% or less of the state's apportionment.
- MoDOT
will submit an inactive project detail report quarterly.
Obligate Funds
- FMIS transactions
will be processed timely and accurately.
- FHWA approves
or returns 80 %of FMIS actions within 5 days.
- FHWA approves
or returns 90% of FMIS actions within 10 days.
- Percent
of MoDOT submitted FMIS actions approved with first submittal (separate
State and LPA).
- MoDOT returns
80% of corrected FMIS actions within 5 days.o MoDOT returns 90% of corrected
FMIS actions within 10 days.
- MoDOT will
submit 95% of all letting projects 14 days prior to advertisement (separate
State and LPA).
- Percent
of MoDOT LPA obligation requests worked within 5 business days by MoDOT.
Innovative Finance
- Utilization
of innovative financing on transportation projects.
- Age of Advance
Construction
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 and MoDOT AI. 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.