The Uniform Administrative Requirements for Grants and Cooperative Agreements
known as the Common Grant Rule, are the general administrative requirements
pertaining to all Department of Transportation grants and sub-grants,
including those awarded to State,
local and Federally recognized Indian Tribal governments.
You should recognize that administrative requirements differ from the
programmatic requirements of the project grant.
Programmatic requirements, which include items such as how the project must be
designed, built
and carried out
are specific to a project or program.
Administrative requirements address items such as financial management
standards,
reporting and records retention.
These administrative requirements are broken down into four main sections in
the Common Grant Rule: general,
pre-award, post-award,
and after-the-grant requirements
let's take a look at each sections requirements
the first section deals with the general rules regarding grants
for local public agencies for LPA's, it is especially important to know
that statutory requirements supersede general requirements of the Common
Grant Rule. This means that
if Title23 , the U.S law that governs the Federal-aid Highway Program
has a requirement that differs from the Common Grant Rule,
then Title 23 takes precedence and must be followed.
For example, the Federal-aid Highway Program generally does not use the
standard forms used by other grant programs that fall under the
Common Grant Rule
For many Federal programs, State and local agencies must meet pre-award
requirements.
Usually, the first of these requirements is the submission of a grant
application to request Federal funds.
However, the Federal-aid Highway Program generally does not require State
Departments of Transportation, or DOTs,
to apply for Federal funds.
The reason is because the funds are automatically distributed to the States
based on a formula established in the federal aid highway program legislation.
However, there are some discretionary programs administered by the Federal
Highway Administration, or FHWA, that do require applications.
While no application is required, planning requirements of the Federal-aid
Highway Program dictate that States program projects to the funds they
receive in an FHWA-approved State Transportation Improvement Program,
or STIP.
This planning document is a prioritized, statewide listing of transportation
projects expected to receive Federal funding within the next four years.
The STIP
must include an assurance
that the State will comply with all applicable Federal statutes and
regulations.
Only projects in an approved STIP are eligible for funds administered by FHWA,
and FHWA must approve any amendments to the STIP
proposed by the state.
Typically, State DOTs develop their own process for LPAs to get a
project into the STIP and to seek authorization for project funding.
Prior to awarding subgrants or agreements for projects to an LPA,
the State DOT has the responsibility to ensure that the LPA is responsible,
financially stable, and has adequate management systems.
Once these pre-award requirements are satisfied,
the State DOT may enter into a subgrant with the LPA,
establishing authorization and funding for the project.
After a project is authorized, your agency must meet the post-award
requirements of the Common Grant Rule.
The State, as grantee,
and the LPA, as subgrantee, must have controls and procedures in place
to support financial management, financial reporting,
and tracking and accounting of grant funds.
All cash, assets, real
and personal property must be tracked and protected. Fiscal control and
accounting procedures must be adequate to permit production of necessary reports,
trace the source of funds to a particular expenditure or expenditures, and
demonstrate compliance with applicable Federal laws and regulations.
Your agency needs to properly document project activity, grant access to the
records,
and maintain these records for three years after the final expenditure report
is submitted,
unless the regulations state otherwise.
Some additional post-award requirements are important for LPAs to know. If your
agency expends $750,000 or more in Federal awards in a
fiscal year,
it will need to hire an independent auditor to perform a single audit in
accordance with generally accepted government auditing standards. Your
agency must also maintain a written code of ethics,
which governs employee performance for award and administration of contracts.
In addition,
in order to make any changes to the scope or objectives of a project, your
agency must obtain approval from the State DOT.
Because the Federal-aid Program is a reimbursable program,
project costs must be incurred before you can submit claims for their
reimbursement.
Additionally, most FHWA-administered grants or projects include
a non-Federal matching requirement.
This matching requirement may be met through either the project costs
incurred by grantees, subgrantees, or contractors,
by the value of third party in-kind contributions of property or services,
or through a combination of both.
Before using a third party in-kind contribution as a cost-sharing or
matching requirement,
contact your State DOT for eligibility guidance.
Once the work on the project is completed, the after-the-grant
requirements apply.
After-the-grant requirements include the project closeout once the final voucher
has been submitted.
You should know the submission date of the final voucher
because this date marks the beginning of the records retention period.
Some projects slip into an inactive status because they are not closed out in
a timely manner.
It is important to close out the project so it doesn't get labeled as inactive,
as this will bring about additional reporting requirements.
Closing out a project also has the benefit of releasing any remaining funds, which
can be used to authorize new projects.
Finally,
the awarding Federal agency has the right to disallow costs and recover
funds based on an audit or other review.
The State DOT is responsible for administering and monitoring subgrants.
However,
as subgrantees, LPAs are required to ensure that they are meeting all
Federal requirements, including the Common Grant Rule.
Contact your State DOT for more information and guidance.