GRANTS MANAGEMENT

Edie Lowery

Director of Grant Programs

Metropolitan Transit Authority of Harris County, Texas

August 20, 2002

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SOURCES AND ELIGIBILITY

Formula Funds– Section 5307 and 5311 Urbanized Area

Formula Funds– Section 5309 Fixed Guideway

Modernization FundsDiscretionary Funds

– Section 5309 Bus– Section 5309 New Starts

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SOURCES AND ELIGIBILITY

Miscellaneous FTA Funds– Section 5314 Planning and Research– Clean Fuels Formula Program– Job Access/Reverse Commute– Over-the-Road Bus Accessibility

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SOURCES AND ELIGIBILITY

Flexible Funding Programs– FHWA Congestion Mitigation/Air Quality– FHWA Surface Transportation Program– FHWA National Highway System– FHWA Federal Lands Highway Program– FHWA Interstate Maintenance Program

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SOURCES AND ELIGIBILITY

Flexible Funding Programs – FHWA Borders and Corridors Program– FHWA Intelligent Transportation Systems – Transportation & Community & System

Preservation Pilot Program

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THE POLITICAL PROCESS

Authorizations and AppropriationsImportance of Project SponsorshipFTA RatingCompleting the Paperwork

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MANAGING THE GRANT

Kinds of grant contracts– “Regular”– Full Funding Grant Agreement

Pre-requisites for the grant– Authorization from the governing body– Adoption of the annual Program of Projects

(for Section 5307)

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MANAGING THE GRANT

Pre-requisites for the grant– Public hearing or opportunity for public

comment– Completion of Annual Certifications and

Assurances – Project inclusion in the MTP, TIP, STIP

and SIP

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MANAGING THE GRANT

Pre-requisites for the grant– Receipt of an environmental finding for

each project– Award of a Section 13(c) from the

Department of LaborAdopting a proactive approach

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MANAGING THE GRANT

Grants Management should

– Review project description and proposed budget– Approve proposed third-party contracts to ensure contract’s

compliance with grant scope– Calculate unliquidated obligations (“unpaid contract balances”) or

verify system generated data

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MANAGING THE GRANT

Grants Management should– Approve payments proposed for grant

reimbursement – Monitor reimbursements– Track grant budgets; prepare grant budget

revisions

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MANAGING THE GRANT

Grants Management should– Ensure accounting code structure is such

that required reports can be easily produced

– Monitor project progress to ensure compliance with grant scope

– Receive and report project financial and milestone data on time

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MANAGING THE GRANT

Accounting should– Compile all expense transactions proposed

for grant reimbursement– Track reimbursements (cash) received– Correctly assign grant funded assets to fixed

asset records– Develop a chart of accounts that easily

codifies expenses into appropriate categories

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MANAGING THE GRANT

Accounting should– Develop accounts that assign costs to the

correct account, function and mode– Routinely calculate depreciation of grant-

funded assets to ensure current “book value” is known

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WHEN YOU DO “IT” WRONG

Failure to include projects in planning documents - delays grant award

Failure to obtain an environmental finding - delays grant award

Failure to file quarterly and annual reports on time - risks suspension of all reimbursements

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WHEN YOU DO “IT” WRONG

Failure to include required federal contract clauses - renders entire contract ineligible for grant reimbursement

Execution of third party contract too early - renders entire contract ineligible for grant reimbursement

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WHEN YOU DO “IT” WRONG

Reimbursement claimed for ineligible expenses - Requires refund and perhaps penalty payment to FTA

May bring on in-depth auditUltimately risks suspension of all

reimbursements until systemic problem is corrected

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TRIENNIAL REVIEWS

Mandated by Congress, part of the price of doing business with the government

22 major review areasFollow the rules throughout the entire

year!Engage the entire company - make

everyone responsible for your success

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TRIENNIAL REVIEWS

Keep thorough written recordsKeep policies and procedures up to

date

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DOS AND DON’TS

DO– Make sure environmental and other pre-

award requirements are met before exercising pre-award authority

– Make sure grant applications are complete the first time

– Make sure contracts have all required federal clauses

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DOS AND DON’TS

DO– Make sure you file quarterly and annual

reports on time– Make sure you maintain a clear audit trail

of all expenses and journal entry corrections thereto

– Make sure expenses required for reimbursement are truly grant eligible

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DOS AND DON’TS

DO– Ask FTA for help if you’re lost or unsure

about what to do– Involve FTA in unusual situations, for

clarification before proceeding with local decisions

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DOS AND DON’TS

DON’T– Forget to file Annual Certifications and

Assurances– Sign third party contracts too early– Make a land offer too early – Charge and be reimbursed for ineligible

costs

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DOS AND DON’TS

DON’T– Overdraw an individual grant line item or

project budget without considering the effects of a budget revision

– Fail to complete the required reports– Fail to notify FTA of any unusual

circumstances