Note 13 - Contingencies

FHWA pre-authorizes states to establish construction budgets without having received appropriations from Congress for such projects. FHWA does not guarantee the ultimate funding to the states for these “Advance Construction” projects and, accordingly, does not obligate any funds for these projects. When funding becomes available to FHWA, the states can then apply for reimbursement of costs that they have incurred on such projects, at which time FHWA can accept or reject such requests. At September 30, 2004, $36,337,275 has been pre-authorized under these arrangements; however, no liability is reflected in the HTF financial statements at September 30, 2004 for these arrangements.