1. GRANTS MANAGEMENT Edie Lowery Director of Grant Programs Metropolitan Transit Authority of Harris County, Texas August 20, 2002

2. 2 SOURCES AND ELIGIBILITY Formula Funds –Section 5307 and 5311 Urbanized Area Formula Funds –Section 5309 Fixed Guideway Modernization Funds Discretionary Funds –Section 5309 Bus –Section 5309 New Starts

3. 3 SOURCES AND ELIGIBILITY Miscellaneous FTA Funds –Section 5314 Planning and Research –Clean Fuels Formula Program –Job Access/Reverse Commute –Over-the-Road Bus Accessibility

4. 4 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

5. 5 SOURCES AND ELIGIBILITY Flexible Funding Programs –FHWA Borders and Corridors Program –FHWA Intelligent Transportation Systems –Transportation & Community & System Preservation Pilot Program

6. 6 THE POLITICAL PROCESS Authorizations and Appropriations Importance of Project Sponsorship FTA Rating Completing the Paperwork

7. 7 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)

8. 8 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

9. 9 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 Labor Adopting a proactive approach

10. 10 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

11. 11 MANAGING THE GRANT Grants Management should –Approve payments proposed for grant reimbursement –Monitor reimbursements –Track grant budgets; prepare grant budget revisions

12. 12 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

13. 13 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

14. 14 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

15. 15 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

16. 16 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

17. 17 WHEN YOU DO “IT” WRONG Reimbursement claimed for ineligible expenses - Requires refund and perhaps penalty payment to FTA May bring on in-depth audit Ultimately risks suspension of all reimbursements until systemic problem is corrected

18. 18 TRIENNIAL REVIEWS Mandated by Congress, part of the price of doing business with the government 22 major review areas Follow the rules throughout the entire year! Engage the entire company - make everyone responsible for your success

19. 19 TRIENNIAL REVIEWS Keep thorough written records Keep policies and procedures up to date

20. 20 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

21. 21 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

22. 22 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

23. 23 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

24. 24 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