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DC .(c. 00 D/@12o1 1 1 1 12 0N)2 0w2#3UN4 % 5M&5(*5NR5^ T5w`54d5x5 mz5\  `&Times New Roman' UNITED STATES DEPARTMENT OF AGRICULTURE WEBB_T0LMI .   2[+[ 0_level1   , 8.` hp x (#823  ..   8.` hp x (#8  2[+[ 0_level2   X 8.` hp x (#823  ..   8.` hp x (#8  2[+[ 0_level3    8.4` hp x (#823  ..   8.` hp x (#8  2[+[ 0_level4    8.` ` hp x (#823  ..   8.` hp x (#8  2[+[ 0_level5    8. ` hp x (#823  ..   8.` hp x (#8  2[+[ 0_level6    8. ` hp x (#823  ..   8.` hp x (#8  2[+[ 0_level7   4 8. ` hp x (#823  ..   8.` hp x (#8  2[+[ 0_level8   ` 8.` hp x (#823  ..   8.` hp x (#8  2[+[ 0_level9    8.<` hp x (#823  ..   8.` hp x (#8  2[[ 0_levsl1   , 8.` hp x (#823  Ԁ   8.` hp x (#8  2[[ 0_levsl2   X 8.` hp x (#823  Ԁ   8.` hp x (#8  2[[ 0_levsl3    8.4` hp x (#823  Ԁ   8.` hp x (#8  2[[ 0_levsl4    8.` ` hp x (#823  Ԁ   8.` hp x (#8  2[[ 0_levsl5    8. ` hp x (#823  Ԁ   8.` hp x (#8  2[[ 0_levsl6    8. ` hp x (#823  Ԁ   8.` hp x (#8  2[[ 0_levsl7   4 8. ` hp x (#823  Ԁ   8.` hp x (#8  2[[ 0_levsl8   ` 8.` hp x (#823  Ԁ   8.` hp x (#8  2[[ 0_levsl9    8.<` hp x (#823  Ԁ   8.` hp x (#8  2[[ 0_levnl1   , 8.` hp x (#823     8.` hp x (#8  2[[ 0_levnl2   X 8.` hp x (#823     8.` hp x (#8  2[[ 0_levnl3    8.4` hp x (#823     8.` hp x (#8  2[[ 0_levnl4    8.` ` hp x (#823     8.` hp x (#8  2[[ 0_levnl5    8. ` hp x (#823     8.` hp x (#8  2[[ 0_levnl6    8. ` hp x (#823     8.` hp x (#8  2[[ 0_levnl7   4 8. ` hp x (#823     8.` hp x (#8  2[[ 0_levnl8   ` 8.` hp x (#823     8.` hp x (#8  2[[ 0_levnl9    8.<` hp x (#823     8.` hp x (#8  64 '4Heading 1  XXX     XXX6k ^4Heading 2   X 8.` hp x (#8      8.` hp x (#8  6X ]4Heading 3  X   &p x (#&        8.` hp x (#8 6L Q4Heading 4    &p x (#&       8.` hp x (#8 <:Default Para<:Footnote Ref0A .Header  (#A7X` hp x (#A0A .Footer  (#A7X` hp x (#A<OO :Body Text I1   8. ` hp x (#8   8.` hp x (#864Hyperlink    <OO :Body Text In  X 8.` hp x (#8   8.` hp x (#8<:FollowedHype      +#'..      :X7XX:XX7XX:X7  _K-(XXK (#X?XX7March2004QHighwayPlanningandConstructionCluster!!H(#DOTX7X?(2#$ 8k!..      :X9!XX:XX9!XX:X9!   d,=Thin Bottomdxd  /#)..      :X7XX:XX7XX:X7  _K0(XXK0p x (#X0?XX7A133ComplianceSupplement6p x (#X(#6Q420.205  1  6p x (#X(#6ӈ p X7X?(2#$ 8k!..      :X9!XX:XX9!XX:X9!  ,)1dxdhttp://www.fhwa.dot.gov/_Hlt64867264_Hlt64867265_Hlt66671501_Hlt66671502#|x(O$(rk$..      :X9!XX:XX9!XX:X9!0&d9 Z6Times New Roman Regular:X0 N/:i+00U 8k!..      :X7XX:XX7XX:X7  _       *.XXXX  DEPARTMENTOFTRANSPORTATION     $   ?+ hp x (#X? _CFDA_Ԁ20.205 HIGHWAYPLANNINGANDCONSTRUCTION(FederalAid ^ HighwayProgram)  D  E( hp x (#  X(#E _CFDA_Ԁ23.003 APPALACHIANDEVELOPMENTHIGHWAYSYSTEM  *z  $ H.` hp x (#  X(#H I.  PROGRAMOBJECTIVES   ( TheobjectivesoftheHighwayPlanningandConstructionClusterareto:(1)assistStatesinthe   planninganddevelopmentofanintegrated,interconnectedtransportationsystemimportantto l  interstatecommerceandtravelbyconstructingandrehabilitatingtheNationalHighwaySystem R  (_NHS_),includingInterstatehighwaysandmostotherpublicroads;(2)provideaidfortherepair 8  ofFederalaidhighwaysfollowingdisasters;(3)fostersafehighwaydesign,andreplaceor n  rehabilitatestructurallydeficientorfunctionallyobsoletebridges;and(4)toprovideforother T  specialpurposes.ThisclusteralsoprovidesfortheimprovementofroadsinPuertoRico,Guam, :  theVirginIslands,AmericanSamoa,theNorthernMarinaIslands,theAlaskanHighway,and   theAppalachianDevelopmentHighwaySystem(ADHS).TheobjectiveoftheADHSprogram   istoprovideahighwaysystemwhich,inconjunctionwithotherfederallyaidedhighways,will  openupareaswithdevelopmentpotentialwithintheAppalachianregionwherecommerceand  communicationhavebeeninhibitedbylackofadequateaccess. h  II.  PROGRAMPROCEDURES  f FederalaidhighwayfundsaregenerallyapportionedbystatutoryformulastotheStatesand  generallyrestrictedtouseonFederalaidhighways(i.e.,roadsopentothepublicandnot  functionallyclassifiedaslocal).ExceptionstotheuseonFederalaidhighwaysincludeplanning  andresearchactivities,bridgeandsafetyimprovementswhichmaybeonanypublicroad,and v theFederalLandsHighwayProgram.SomecategoriesoffundsmaybegranteddirectlytoLocal \ PublicAgencies(_LPAs_),suchascities,counties,tribalgovernments,MetropolitanPlanning B Organizations(_MPOs_),andotherpoliticalsubdivisions.Statesalsomaypassfundsthroughto (x suchagencies.Federalaidfundsmaybeusedfor:surveying;engineering;rightofway ^ acquisitionandrelocationassistance;capitalimprovementsclassifiedasnewconstructionor D reconstruction;improvementsforfunctional,geometric,orsafetyreasons;4Rprojects  * (restoration,rehabilitation,resurfacing,andreconstruction);planning;research,development, ! andtechnologytransfer;intelligenttransportationsystemsprojects;roadsidebeautification; " wetlandandnaturalhabitatmitigation;trafficmanagementandcontrolimprovements; # improvementsnecessarytoaccommodateothertransportationmodes;developmentand r$ establishmentoftransportationmanagementsystems;billboardremoval;constructionofbicycle X%  facilitiesandpedestrianfacilities;fringeandcorridorparking;carpoolandvanpoolprojects; >&!! andtransportationenhancements,suchasscenicandhistorichighwayimprovements.These $'t"" fundsgenerallycannotbeusedforroutinehighwayoperationalactivities,suchaspolicepatrols,  (Z## mowing,snowplowing,ormaintenance,unlessitispreventativemaintenance.Also,certain (@$$ authorizations(e.g.,SurfaceTransportationProgram(STP)CongestionMitigationandAir )&%% Quality(_CMAQ_)ImprovementProgram)maybeusedforimprovementstotransit;_CMAQ_ * && fundsareforprojectsandprogramsinairquality,nonattainmentandmaintenanceareasfor +&'  ozone,carbonmonoxide,andsmallparticulatematter,whichreducetransportationrelated ,'( emissions.ADHSprojectsaresubjecttothesamestandards,specifications,policies,and  proceduresasotherFederalaidhighwayprojects.   Eligibilitycriteriafortheprogramsdiffer,soprogramguidanceshouldbeconsulted.Projectsin D urbanareasof50,000ormorepopulationmustbebasedonatransportationplanningprocess *z carriedoutbythe_MPOs_ԀincooperationwiththeStateandtransitoperators,andbeincludedin  ` metropolitanplansandprograms.Projectsin_nonmetropolitan_ԀareasofaStatemustbe  F consistentwiththeStatesTransportationPlan.Allprojectsmustalsobeincludedinthe  , approvedStatewidetransportationimprovementprogram(_STIP_)developedaspartofthe   requiredStatewidetransportationplanningprocess.   TheADHSisacosttocompleteprogram(i.e.,sufficientfundingistobeprovidedovertimeto V  completetheapprovedinitialconstruction/upgradingofthesystem)authorizedbySection201 <  ofthAppalachianRegionalDevelopmentActof1965.The_Appalchian_ԀRegionalCommission "r  (ARC)hasprogrammaticoversightresponsibilities,whichincludeapprovalofthelocationofthe X  corridorsandofStategeneratedestimatesofthecosttocompletetheADHS._FHWA_Ԁhas >  projectleveloversightresponsibilitiesfortheADHSprogram.Ifthelocation,scope,and $ characterofproposedADHSprojectsareinagreementwiththelatestapprovedcosttocomplete   estimateandallFederalrequirementshavebeensatisfied,_FHWA_Ԁauthorizestheworkand  disbursestheADHSfunds._FHWA_ԀoverseestheconstructionandacceptstheADHSprojects  uponsatisfactorycompletionofthework. l  SourceofGoverningRequirements j  Theprimarysourcesofprogramrequirementsare23_USC_Ԁ(Highways).Implementing  regulationsarefoundin23_CFR_Ԁ(Highways)and49_CFR_Ԁ(Transportation).   AvailabilityofOtherProgramInformation \  TheFederalHighwayAdministrationmaintainsawebsitethatprovidesprogramlaws,  Z regulations,andothergeneralinformation(41 X7O  5  '  http://ww% 2 %2% 3 w.f%3% 4 %4 % 5 hwa.dot.gov/'8  6@7T8  7 r). @   XE.` hp x (#X(#E III.  COMPLIANCEREQUIREMENTS      XE.` hp x (#X(#E IndevelopingtheauditprocedurestotestcompliancewiththerequirementsforaFederal L" program,theauditorshouldfirstlooktoPart2,MatrixofComplianceRequirements,to 2# identifywhichofthe14typesofcompliancerequirementsdescribedinPart3are $h  applicableandthenlooktoParts3and4forthedetailsoftherequirements.  $N    XE.` hp x (#X(#E& $  A.  ActivitiesAllowedorUnallowed    XE.` ` hp x (#X(#E1. ` Federalfundscanbeusedonlytoreimbursecoststhatare:(a)incurred ^ subsequenttothedateofauthorizationtoproceed,exceptforcertainproperty D acquisitioncostspermittedunder23_USC_Ԁ108;(b)inaccordancewiththe *z conditionscontainedintheprojectagreementandtheplans,specifications,and  ` estimates(PS&E);(c)allocabletoaspecificproject;and(d)claimedfor  F reimbursementsubsequenttothedateoftheprojectagreement(23_CFR_Ԁsections  , 1.9,630.106,and630.205).   2. ` Federalfundscanbeusedtoreimburseforadministrativesettlementcosts p  incurredindefendingcontractclaimproceedingsbeforearbitrationboardsor V  Statecourtsonlyifapprovedby_FHWA_ԀforFederalaidprojects.Ifspecial <  counselisused,itmustberecommendedbytheStateAttorneyorState "r  DepartmentofTransportation(DOT)legalcounselandapprovedinadvanceby X  _FHWA_Ԁ(23_CFR_Ԁsection140.505).'$# >  3. ` CostsincurredbytheStateDOTor_MPO_Ԁforhighwayplanningandresearch  workaresubjecttopriorapprovalby_FHWA_Ԁ(23_CFR_Ԁsection420.111).  4. ` STPfundsmaybeusedbytheStateforthecostoftuitionanddirecteducational 0 expenses(excludingsalaries)ofStateandlocaltransportationagencyemployees f (23_USC_Ԁ504(a)(4)). L 5. ` ADHSfundsmaybeusedonlyforworkincludedintheADHScostestimate  approvedbytheARC.   XE.` hp x (#` X(#E F.  EquipmentandRealPropertyManagement  >  TheStateshallcharge,ataminimum,afairmarketvalueforthesale,lease,oruseofreal < propertyacquiredwithFederalassistancefromtheHighwayTrustFund(otherthanthe " MassTransitAccount)forthenontransportationpurposesandshallusesuchincomefor  projectseligibleunder23_USC_.Exceptionsmaybegrantedwhenthepropertyisusedfor   social,environmentaloreconomicpurposes(23_USC_Ԁ156). !   G.  Matching,LevelofEffort,Earmarking 2#  XE.` ` hp x (#X(#E1. ` Matching  $0   E. ` hp x (#` X(#Ea. TheStateisgenerallyrequiredtopayaportionoftheprojectcosts. &! Portionsvaryaccordingtothetypeoffundsauthorizedandarestatedin t'" projectagreements. Z(# b. AStatesmatchingshareforaprojectmaybecreditedbycertaintoll *X%  revenuesusedtobuildorimprovehighways,bridgesandtunnels(23_USC_ *>&!  120(j)). +$'" c. Donationsoffunds,materials,andservicesmaybecreditedtowardsa   Statesmatchingshare.Donatedmaterialsandservicesmustmeetthe  eligibilityrequirementsoftheproject.However,donationsofservicesby | unitsoflocalgovernmentcannotbecreditedagainsttheStateshareofthe b project(23_USC_Ԁ323(c)and(e)). H d. ThefairmarketvalueoflandprovidedbyStateorlocalgovernmentsfor  F highwaypurposesiseligibleformatchingshareonaproject.Thefair  , marketvalueofdonatedlandshallnotincludeanyincreaseordecreasein   valueofdonatedlandcausedbytheproject.Thefairmarketvalueof   donatedlandshallbeestablishedasoftheearlierof(1)thedateonwhich    thedonationbecomeseffectiveor(2)thedateonwhichequitabletitleto t  thelandvestsintheState(23_USC_Ԁ323(b)). Z  e. Fortransportationenhancement(TE)projects,fundsfromFederal X  agencies(exceptU.S.DOT)maybeusedforthenonFederalshareofthe >  project.Creditforthevalueofdonationsoffunds,materials,land,or $ services(includingthevalueoflocalandStategovernmentservices,   materialsandlandappliedtotheprojectandthecostofpreliminary  engineeringpriortoprojectapproval)maybecreditedtowardthenon  Federalshare(23_USC_Ԁ133(e)(5)(C)). l f. FundsappropriatedtoanyFederallandmanagementagencymaybeused j topaythenonFederalshareofanyFederalaidhighwayprojectfunded P under23_USC_Ԁ104(23_USC_Ԁ120(k)). 6 g. FederalLandsHighwayProgramfundsmaybeusedtopaythenon  FederalshareofFederalaidhighwayprojectswhichprovideaccesstoor z withinFederalorIndianlands(23_USC_Ԁ120(l)). `  E.` ` hp x (# X(#E 2. ` LevelofEffort 󀄀NotApplicable ^  3. ` Earmarking 󀄀NotApplicable    XE.` hp x (#` X(#E J.  ProgramIncome  j"  StateandlocalgovernmentsmayonlyusetheFederalshareofnetincomefromthesale, $h use,orleaseofrealpropertypreviouslyacquiredwithFederalfundsiftheincomeisused $N  forprojectseligibleunder23_USC_Ԁ(23_USC_Ԁ156). %4!   L.  Reporting  '"  XE.` ` hp x (#X(#E 1. ` FinancialReporting @)$   E. ` hp x (#` X(#E a. SF269,FinancialStatusReport󀄀NotApplicable *>&! b. SF270,RequestforAdvanceorReimbursement󀄀NotApplicable ,'" c. SF271,OutlayReportandRequestforReimbursementforConstruction  Programs󀄀NotApplicable  d. SF272,FederalCashTransactionsReport󀄀NotApplicable D e. PR20,VoucherforWorkUnderProvisionsoftheFederalAidand B FederalHighwayActs,asAmended(OMBNo.21250507)  (  E.` ` hp x (# X(#E 2. ` PerformanceReporting 󀄀NotApplicable    3. ` SpecialReporting 󀄀NotApplicable 4   XE.` hp x (#` X(#E&  N.  SpecialTestsandProvisions  2   XE.` ` hp x (#X(#E 1. ` UseofOtherStateorLocalGovernmentAgencies      XE.` hp x (#` X(#E ComplianceRequirement AStatemayuseotherpubliclandacquisitionorganizations >  orprivateconsultantstocarryouttheStatesauthoritiesunder23_CFR_Ԁsection $t  710.201(b)inaccordancewithawrittenagreement(23_CFR_Ԁsection710.201(h)).' D  Z   AuditObjective 󀄀Determinewhetherotherpubliclandacquisitionorganizationsor   privateconsultantsarecarryingouttheStatesauthoritiesunder23_CFR_Ԁsection   710.201(b)inaccordancewiththeiragreementswiththeState.   SuggestedAuditProcedures  2   XE.` ` hp x (#X(#Ea. ` Examinerecordsandascertainifotheragencieswereusedforrightofway 0 activitiesonFederalaidprojects.  b. ` Reviewasampleofrightofwayagreementswithotheragencies. t c. ` Performtestsofselectedrightofwayactivitiestootheragenciestoverifythat "r theycomplywiththewrittenagreement.  X   XE.` hp x (#` X(#E 2. ` ReplacementofPubliclyOwnedRealProperty ! ComplianceRequirement 󀄀Federalfundsmaybeusedtoreimbursethereasonable d# costsactuallyincurredforthefunctionalreplacementofpubliclyownedandpublicly J$ usedrealpropertyprovidedthat_FHWA_Ԁconcursthatitisinthepublicinterest.Thecost 0%  ofincreasesincapacityandotherbettermentsarenoteligibleexcept:(1)ifnecessaryto &f! replaceutilities;(2)tomeetlegal,regulatory,orsimilarrequirements;or(3)tomeet &L" reasonableprevailingstandardsforthetypeoffacilitybeingreplaced(23_CFR_Ԁsection '2# 710.509). ($  AuditObjective 󀄀Determinewhetherthefunctionalreplacementofrealpropertywas v*%  accomplishedwithin_FHWA_Ԁrequirements. \+& &   SuggestedAuditProcedures     XE.` ` hp x (#X(#Ea. ` Ascertainiftherewereanyfunctionalreplacementsofpubliclyownedreal ^ property. D b. ` Verifythat_FHWA_ԀconcurredintheStatesdeterminationthatthefunctional B replacementisinthepublicinterest.  ( c. ` Reviewasampleoftransactionsinvolvingfunctionalreplacementsandverify   thatthetransactionswereconsistentwiththe_FHWA_Ԁrequirements.'N l    XE.` hp x (#` X(#E& , 3. ` ProjectExtensions  j   ComplianceRequirement 󀄀_FHWA_Ԁmustapproveextensionsaffectingprojectcostsor   theamountofliquidateddamages,exceptthoseforprojectsadministeredbytheState   DOTunder23_USC_Ԁ106(c)whichallowtheStateDOTtoassumetheresponsibilitiesfor   design,plans,specifications,estimates,contractawardsandinspectionofprogress(23 z  _USC_Ԁ106(c);23_CFR_Ԁsection635.121).',VR `   AuditObjective 󀄀Determinewhetherproper_FHWA_Ԁapprovalswereobtainedfor ^  contractextensionsaffectingprojectcostsandtheamountofliquidateddamages D assessed. *  SuggestedAuditProcedures     XE.` ` hp x (#X(#Ea. ` Reviewthesystemsformonitoringandcontrollingcontracttimeandreview 6 projectfilestodetermineiftherewereprojectextensions. l b. ` Verifythat_FHWA_Ԁapprovalwasobtainedfortimeextensionsaffectingproject  costand,whereapplicable,theamountofliquidateddamagesassessed.    XE.` hp x (#` X(#E 4. ` SamplingProgram  ^  ComplianceRequirement 󀄀AStateDOTor_LPA_Ԁmusthaveasamplingandtesting  !\ programforconstructionprojectstoensurethatmaterialsandworkmanshipgenerally !B conformtoapprovedplansandspecifications(23_CFR_Ԁsection637.205). "(  AuditObjective 󀄀DeterminewhethertheStateisfollowingaqualityassuranceprogram $ thatmeets_FHWA_srequirements. l%   SuggestedAuditProcedures  'j"   XE.` ` hp x (#X(#Ea. ` Obtainanunderstandingoftherecipientssamplingandtestingprogram. ($ b. ` Reviewdocumentationoftestresultsonasamplebasistoverifythattheproper v*%  numberoftestsisbeingtakeninaccordancewiththeprogram. \+&   XE.` hp x (#` X(#E& ,  5. ` ContractorRecoveries    ComplianceRequirement 󀄀WhenaStaterecoversfundsfromhighwaycontractorsfor ^ projectoverchargesduetobidrigging,fraud,orantitrustviolationsorotherwise D recoverscompensatorydamages,theFederalaidprojectinvolvedshallbecreditedwith *z theFederalshareofsuchrecoveries(Tennesseev.Dole749F.2d331(6thCir.1984);57  ` Comp.Gen.577(1978);47Comp.Gen.309(1967)).',^]  F  AuditObjective 󀄀DeterminewhetherthepropercreditwasmadetotheFederalshareof   aprojectwhenrecoveriesoffundsaremade.    SuggestedAuditProcedures  8    XE.` ` hp x (#X(#Ea. ` DeterminetheextenttowhichtheStatehasrecoveredoverchargesandother 6  compensatorydamagesonFederalaidprojectsthroughappropriateinterviews   andareviewoflegal,claim,andcashreceiptrecords.   b. ` Reviewasampleofcashreceiptsandverifythatappropriatecreditisreflectedin `  billingstotheFederalGovernment. F    XE.` hp x (#` X(#E 6. ` ProjectApprovals  D  ComplianceRequirement 󀄀_FHWA_Ԁprojectapprovalandauthorizationtoproceedis  requiredbeforecostsareincurredforallconstructionprojectsotherthanthose  administeredbytheStateDOTunder23_USC_Ԁ106(c).Constructionprojects n administeredunderstandardprocedurescannotbeadvertisednorforceaccountwork T commenceduntil_FHWA_:(1)approvestheplans,specifications,andestimates;and(2) : authorizestheStateDOTtoadvertiseforbidsorapprovestheforceaccountwork(23  p _CFR_Ԁsections630.205(c),635.112(a),635.204,and635.309).Constructioncannotbegin V untilafter_FHWA_Ԁconcursinthecontractaward(23_CFR_Ԁsection635.114).This < requirementdoesnotapplytoconstructionprojectsadministeredbytheStateDOTunder " 23_USC_Ԁ106(c)whichallowtheStateDOTtoassumetheresponsibilitiesfordesign,  plans,specifications,estimates,contractawards,andinspectionofprogress(23_USC_   106(c)). !  AuditObjective 󀄀DeterminewhetherprojectactivitiesarestartedwithrequiredFederal 2# approvals. $h  SuggestedAuditProcedures  %!   XE.` ` hp x (#X(#Ea. ` Reviewasampleofprojectsandidentifydatesofthenecessaryapprovals, t'" authorizations,andconcurrences. Z(# b. ` Identifydatesthatprojectswereadvertisedandcontractorforceaccountwork *X%  wasinitiatedandcompareto_FHWA_sapprovaldates. *>&!   3p x (#` X(#3 H.` hp x (#X(#H