Project Closeout is the process that closes out the financial award for a local
public agency Federal-aid highway project.
As the local public agency,
the LPA,
you will initiate the request for final payment to be reimbursed for expenses
incurred for the project.
During the Project Closeout process, the oversight agency agrees that a
project has been completed in accordance with the project authorization criteria
as specified in the approved plans and specifications including any authorized
changes.
Through this process, the oversight agency confirms that the completed
project meets all engineering, financial, and other requirements that are tied to
the use of federal funding.
The three major steps in the Project Closeout process are
Final Acceptance,
Final Voucher, and Records Retention.
Completing these steps assures the oversight agency that the work
authorized on a federal-aid construction project has been
satisfactorily completed.
These steps confirm that
all required documentation is in place,
and a final payment for allowable project costs can be reimbursed.
Final acceptance is the first step of the Project Closeout process.
Using existing documentation,
final acceptance is the stage where the oversight agency reviews your records
and determines if there are any outstanding claims still lingering,
unfinished work, or other contract administration issues.
As the LPA,
you are responsible for notifying the oversight agency when your local federal-aid
project is completed
and ready for Final Acceptance.
A significant part of your project oversight and contract administration
responsibilities is to maintain project records that support the oversight
agencie's decision to accept a project.
Supporting project documents are source records such as project inspector
diaries, inspection reports, materials testing results, and project management
paperwork developed throughout the life of the project.
Some of the most typical documents the oversight agency will review to
prepare the Final Acceptance Report are:
Final Cost Data to account for all project costs.
In addition to the typical construction contract costs, your supporting
documentation should also include accurate values for donated right of way,
agency force account labor,
and any additional costs incurred during the life of the project.
expenses that are claimed art checked to verify that all costs incurred on
the construction project have been appropriately billed and are allowable
based on federal regulations.
A statement that construction has been completed.
Most often this is supported by a letter releasing
the contractor from obligation for the contract.
A material certification, when appropriate,
for projects constructed on a National Highway System route
This document certifies that all materials used in the construction of
the project have been appropriately tested and inspected,
and meets the quality requirements specified in the contract. It is
imperative that detailed, accurate, and complete records are maintained to
enable a quick final acceptance review
in advance of the next step, Final Voucher.
The second step of the Project Closeout process is completion of the Final
Voucher.
In this step, the oversight agency initiates the final financial
transaction to reimburse your agency for project related expenses.
Similar to the Final Acceptance step,
processing the Final Voucher is the responsibility of the oversight agency.
Oversight agency decisions are based on the project records and paperwork that
you submit.
In this step it is important that accurate and complete supporting project
documentation has been submitted to the oversight agency.
This expedites the process
and contributes to the successful completion of the final voucher.
Final Voucher transactions are processed and approved by the local FHWA
division office.
Usually,
the date you receive payment for project costs processed under the final voucher
is that date the third and final step, Records Retention begins.
Records Retention is the third and final step in the Project Closeout process.
This step is just as important as the first two.
The project records you've collected and developed during project construction and
contract administration have to be retained.
Supporting documentation for your project must be securely filed
and available upon request for audits or reviews
by the FHWA or other government officials.
Federal regulation requires the retention of all federal-aid project
records for a minimum of three years following the last "action" on the project
by the local agency.
In most cases,
the last action is when you accept the final reimbursement payment.
An exception to this general statement is the closing of a warranty on a
project. This also constitutes an "action" that will restart the three year
retention timeframe.
However, check your local and state statutes to determine if longer
retention periods apply.
As an LPA, for the Project Closeout Process to work effectively,
maintain accurate and complete records and reports throughout the life of the
local federal-aid project
so that the agency can complete final acceptance,
initiate a final payment request following the completion of project
construction to the oversight agency.
Retain supporting project documentation for a minimum of three years to allow
time for audits.
When good supporting documentation is created and maintained throughout the
life of the project and these steps are followed, it will help to ensure a smooth
Project Closeout process and the successful reimbursement of costs.