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XbzXXXXbzXXXbz  _0p x (#X0K_(XXK6p x (#X(#6oXXbzA133ComplianceSupplement6p x (#X(#6Q420.600  8  XbzXohttp://www.nhtsa.dot.gov_Hlt66609958_Hlt66609959#|x(O$(r$..      XoXXXXoXXXo0&d9 Z6Times New Roman RegularX0 3#37=CIQYag1.a.i.(1)(a)(i)1)a)i)N//U)!dxdx  d)!dxdxP Pd)!dxdx d)!dxdx d)! dxdx)!dxdx&0 d d)!dxdx&P d d)!dxdx&p d Pd)!dxdx&p Pd d)!dxdx3+0 d d d3+0 d d d)!dxdx d&&&&&)!dxdx&)!dxdx !..      XbzXXXXbzXXXbz  _       Y]XXXX  DEPARTMENTOFTRANSPORTATION   $   <( hp x (#X<_CFDA_Ԁ20.106 AIRPORTIMPROVEMENTPROGRAM ^  $ XH.` hp x (#  X(#HI.  PROGRAMOBJECTIVES   \   XE.` hp x (#X(#ETheobjectiveoftheAirportImprovementProgramistoassistsponsors,owners,oroperatorsof   publicuseairportsinthedevelopmentofanationwidesystemofairportsadequatetomeetthe   needsofcivilaeronautics.     XE.` hp x (#X(#E II.  PROGRAMPROCEDURES  4    XE.` hp x (#X(#EStates,counties,municipalities,U.S.Territoriesandpossessions,andotherpublicagencies, 2  includingIndiantribesorPueblos(sponsors)areeligibleforairportdevelopmentgrantsifthe   airportonwhichthedevelopmentisrequiredislistedintheNationalPlanofIntegratedAirport   Systems(_NPIAS_).ApplicationsforgrantsmustbesubmittedtotheappropriateFederal   AviationAdministration(FAA)AirportsOffice.PrimaryairportsponsorsmustnotifyFAAby z  January31oranotherdatespecifiedintheFederalRegisteroftheirintenttoapplyforfundsto `  whichtheyareentitledunderPub.L.97248(49_USC_ԀChapter31).Areminderispublished F  annuallyintheFederalRegister.Othersponsorsareencouragedtosubmitearlyinthefiscal ,| yearandtocontacttheappropriateFAAAirportsOfficeforanylocaldeadlines.Sponsorsmust b formallyacceptgrantoffersnolaterthanSeptember30forgrantfundsappropriatedforthat H fiscalyear. .  SourceofGoverningRequirements   Thisprogramisauthorizedby49_USC_ԀChapter471. :  AvailabilityofOtherProgramInformation  8 AdditionalprograminformationisprovidedinFAAOrder5100.38B,AirportImprovement  ProgramHandbook(availableontheInternetat | 4`a O  5  +  http://www2.faa.gov/% b %b % c %c % d arp%d % e %e % f %f % g /financial/a%g % h %hB % i ip/index.cfm?%i` % j ARPnav=aip#aip+:   6    7 0 )andFAAAdvisoryCirculars b  inthe150/5100series(availableontheInternetat H! 4k O  5  +  http://www2.faa.%j % l gov/arp/150acs.cfm?ARPnav=acs+  6  7 ).TheFAAalsomaintainsanAirports ."~ FederalRegisterNoticepageavailableontheInternetat #d 4m O  5  +  http://w%lH% n %n!% o ww1.faa.gov/arp/%o?% p publications/fedreg.cfm?ARPnav=fedreg+  6  7 ~. #J ProgramrelatedquestionsmaybedirectedtoKendallBall,FAAAirportsFinancialAssistance %  Division,at2022677436(direct)and2022673831(main)orbyemailat &! Kendall.Ball@faa.dot.gov.Questionsrelatedtotherevenuediversionrequirementmaybe t'" directedtoLyle_Fjermedal_,FAAAirportComplianceDivisionat2022675879(direct)and Z(#  2022673446(main)orbyemailatLyle.Fjermedal@faa.dot.gov. @)$    XE.` hp x (#X(#E&   III.  COMPLIANCEREQUIREMENTS    XE.` hp x (#X(#EIndevelopingtheauditprocedurestotestcompliancewiththerequirementsforaFederal ^ program,theauditorshouldfirstlooktoPart2,MatrixofComplianceRequirements,to D identifywhichofthe14typesofcompliancerequirementsdescribedinPart3are *z applicableandthenlooktoParts3and4forthedetailsoftherequirements.  ` A.  ActivitiesAllowedorUnallowed      E.` ` hp x (#X(#E1. ` ActivitiesAllowed' l   Grantscanbemadeforplanning,constructing,improving,orrepairingapublic j  useairportorportionthereofandforacquiringsafetyorsecurityequipment. P  Eligibleterminalbuildingdevelopmentislimitedtononrevenueproducing 6  publicuseareasthataredirectlyrelatedtothemovementofpassengersand   baggageinaircarrierandcommuterserviceterminalfacilitieswithinthe   boundariesoftheairport.Eligibleconstructionislimitedtoitemsofworkandto   thequantitieslistedinthegrantdescriptionand/orspecialconditions ~  (49_USC_ԁ47110). d  2.  ` ActivitiesUnallowed b  E. ` hp x (#` X(#Ea. Ingeneral,Federalfundscannotbeexpendedfor:   ` <% hp x (# X(#<(1)  Passengerautomobileparkingfacilities,buildingstobeusedas n hangars,andportionsofterminalsthatarerevenueproducingor T notdirectlyrelatedtothesafemovementofpassengersand : baggageattheairports,and  p (2)  Costsincurredbeforetheexecutionofthegrantagreement,unless  suchcostsareforland,necessarycostsinformulatingaproject,or  costscoveredbyaletterofintent.However,anairportdesignated  bytheFAAasaprimaryairportmayusepassengerentitlement   fundingmadeavailableunder49_CFR_Ԁsection47114(c)forcosts f! incurred:(1)priortotheexecutionofthegrantagreement;(2)in L" accordancewiththeairportlayoutplanapprovedbytheFAA;and 2# (3)accordingtoallstatutoryandadministrativerequirementsthat $h wouldhaveappliedhadworkontheprojectnotcommenceduntil $N  afterthegrantagreementhadbeenexecuted(49_USC_ %4!  47110(b)(2)(C)). &"  ` H. ` hp x (#X(#H&   b. ThefollowingareexamplesofitemsforwhichFAAfundscannotbe  expended(FAAOrder5100.38B,AirportImprovementProgram  Handbook,andFAAAdvisoryCircularsinthe150/5100series.) |   4?( hp x (# X(#?ӄ Fuelfarms. *z Є Emergencyplanning.  ( Є Decorativelandscaping,sculpture,orartworks.'!   Є Communicationsystemsexceptthoseusedforsafety/security. 4  Є Trainingfacilities,exceptthoseincludedinanotherwiseeligible 2  projectasanintegralpartofthatprojectandthatareofarelatively   minororincidentalcost,i.e.,lessthan10percentoftheprojectcost.   Anexampleofanexceptionwouldbeatrainingroomincludedaspart   ofanewAircraftRescueandFirefighting(_ARFF_)facility.Interactive z  trainingsystemsand livefire_ARFF_Ԁtrainingfacilitiesareeligible. `  Є Roadsofwhateverlength,exclusivelyforthepurposeofconnecting ^  publicparkingfacilitiestoanaccessroad. D Є Roadsservingsolelyindustrialornonaviationrelatedareasor  facilities.  Є Generalaviationterminals. 6 Є EquipmentthatisusedbyairtrafficcontrollerssuchasAirportsurface 4 detectionsystems(_ASDE_).  Є Maintenance/servicefacilitiesexceptforthoseallowedtoservice x required_ARFF_Ԁequipment. ^ Є Office/administrativeequipment,includingdataprocessing  !\ equipment,computers,recorders,etc. !B Є Projectsforthedeterminationoflatitude,longitude,andelevation # exceptasanincidentalpartofmasterplanning. $   4K.` ` hp x (#  X(#K3.  ` Exception 4&!  Foranonhubairport(onethataccountsforlessthan0.05percentoftotalU.S. '2# passengerboardings),theFAAmayapproveasallowablecoststheexpensesof ($ terminaldevelopmentinarevenueproducingareaandconstruction,repair,and )$  improvementofparkinglots(49_USC_Ԁ47110(d)(2)). *%  E.` hp x (#` X(#E& P  F.  EquipmentandRealPropertyManagement   XE.` hp x (#X(#E Underthisprogram,FAAisauthorizedby49_USC_Ԁ47107(c),asamended,toallow ^ recipientstoreinvesttheproceedsfromthedispositionofrealpropertyacquiredwith D Federalawardsfornoisecompatibilityorairportdevelopmentpurposes. *z  XE.` hp x (#X(#E G.  Matching,LevelofEffort,Earmarking  (  XE.` hp x (#X(#E1. ` Matching    XE.` ` hp x (#X(#E Thesharesofallowablecostsforaparticulargrantsupportedprojecttobeborne 4  byFAAandbyotherpartiesareestablishedinthegrantagreement.'P x- j   XE.` hp x (#` X(#E 2. ` LevelofEffort 󀄀NotApplicable    3. ` Earmarking 󀄀NotApplicable v   XE.` hp x (#X(#E L.  Reporting $t   X1. ` FinancialReporting "   X a. SF269,FinancialStatusReport󀄀Applicable   b. SF270,RequestforAdvanceorReimbursement󀄀Applicable .~    E. ` hp x (#X(#Ec. SF271,OutlayReportandRequestforReimbursementforConstruction , Programs󀄀Applicable    E.` hp x (# X(#Ed. SF272,FederalCashTransactionsReport󀄀Applicable p   E. ` hp x (#X(#Ee. FAAForm5100125,OperatingandFinancialSummary(OMBNo. n 21200557) T  Sponsorsofcommercialserviceairportsarerequiredtosubmitthisreport,   whichcapturesrevenuesandexpendituresattheairport,includingrevenue ! surplus. ~"  f. FAAForm5100126,FinancialGovernmentPaymentReport(OMBNo. ,$| 21200557) %b   Thisreportcapturesamountspaidandservicesprovidedtootherunitsof &" government.Thisreportingrequirementtechnicallyappliestoall '" sponsorsoffederallyassistedairportswhoacceptedgrantswithassurance (# no.26(d)(I)(ii);however,FAAiscurrentlyrequiringsubmissiononly r)$ fromcommercialserviceairports.Commercialserviceairportsarethe X*% airportsmostlikelytogenerateexcessrevenuethatcouldbedivertedto >+& nonairportuses. $,t'  X E.` hp x (# X(#E 2. ` PerformanceReporting 󀄀NotApplicable -")  3. ` SpecialReporting 󀄀NotApplicable   X&  N.  SpecialTestsandProvisions ^  XE.` hp x (#X(#E1. ` RevenueDiversion'^;  \ ComplianceRequirement 󀄀Thebasicrequirementforuseofairportrevenuesisthatall   revenuesgeneratedbyapublicairportmustbeexpendedforthecapitaloroperating   costsoftheairport,thelocalairportsystem,orotherlocalfacilitieswhichareownedor   operatedbytheowneroroperatoroftheairportandaredirectlyandsubstantiallyrelated l  totheactualairtransportationofpassengersorproperty.Thelimitationontheuseof R  revenuegeneratedbytheairportshallnotapplyifthegoverningstatutescontrollingthe 8  ownersoroperatorsfinancing,thatwasineffectbeforeSeptember3,1982,provided n  fortheuseofanyrevenuefromtheairporttosupportnotonlytheairportbutalsothe T  airportownersoroperatorsgeneraldebtobligationsorotherfacilities(49_USC_ :  47107(b)).   PoliciesandProceduresConcerningtheGenerationandUseofAirportRevenue,issued ~  February16,1999(64FR7695),containsdefinitionsofairportrevenueandunlawful d revenuediversion;providesexamplesofairportrevenue;anddescribespermittedand J prohibitedusesofairportrevenue.ThepolicycanbeobtainedfromFAAsAirports 0 FederalRegisterNoticesPageontheInternet f (4q KO  5  +  http://www1.faa.gov/arp/publications/fed%pm% r %r^C% s reg.cfm?ARPnav=fedreg+Beeme  6BBand  7aB). L Penaltiesimposedforrevenuediversionmaybeuptothreetimestheamountofthe  revenuesthatareusedinviolationoftherequirement(49_USC_Ԁ4603(a)(5)).   AuditObjective 󀄀Determinewhethertheairportrevenueswereusedforrequiredor > permittedpurposes. $t  SuggestedAuditProcedures  "   XE.` ` hp x (#X(#Ea. ` Reviewthepolicyforusingairportrevenue.   b. ` Performtestsofairportrevenuegeneratingactivities(e.g.,passengerfacilities ."~ charges,leases,andtelephonecontracts)toascertainthatallairportgenerated #d revenueisaccountedfor. #J c. ` Testexpendituresofairportrevenuetoverifythatairportrevenueisusedfor %  permittedpurposes. &! d. ` Performtestsoftransactionstoascertainthatpaymentsfromairportrevenuesto <(# thesponsors,relatedparties,orothergovernmentalentitiesareairportrelated, ")r$ properlydocumented,andarecommensuratewiththeservicesorproducts *X%   receivedbytheairport. *>&! e. ` Performteststoassurethatindirectcostschargedtotheairportfromthe  sponsorscostallocationplanwereallocatedinaccordancewiththeFAApolicy  oncostallocation. |   E.` hp x (#` X(#E& v IV.  OTHERINFORMATION  *z TheFederalAviation_Reauthorization_ԀActof1996,Section805(49_USC_Ԁ47107(m))requires  ( publicagenciesthataresubjecttotheSingleAuditActAmendmentsof1996(Act)thathave   receivedFederalfinancialassistanceforairportstoincludeaspartoftheirsingleauditareview   andopinionofthepublicagencysfundingactivitieswithrespecttotheirairportorlocalairport   revenuesystem.IntheFebruary16,1999,FederalRegister(64FR7675),theFAAissueda p  noticetitledPolicyandProceduresConcerningtheUseofAirportRevenue.Thisnotice V  providesthattheopinionrequiredby49_USC_Ԁ47107(m)isonlyrequiredwhentheAirport <  ImprovementProgram(_AIP_)isauditedasmajorprogramunderCircularA133andthatthe "r  auditorreportingrequirementsofCircularA133satisfytheopinionrequirement.However,the X  noticeprovidesthatthe_AIP_Ԁmaybeselectedasamajorprogrambaseduponeithertherisk >  basedapproachprescribedinCircularA133___.520ortheFAAdesignatingthe_AIP_Ԁasa $ majorprogramunder___.215(c).'v *K3p x (#X(#3    tYu]  DEPARTMENTOFTRANSPORTATION     $   E+ hp x (#X(#E _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 carriedoutbytheMPOsincooperationwiththeStateandtransitoperators,andbeincludedin  ` metropolitanplansandprograms.ProjectsinnonmetropolitanareasofaStatemustbe  F consistentwiththeStatesTransportationPlan.Allprojectsmustalsobeincludedinthe  , approvedStatewidetransportationimprovementprogram(STIP)developedaspartofthe   requiredStatewidetransportationplanningprocess.   TheADHSisacosttocompleteprogram(i.e.,sufficientfundingistobeprovidedovertimeto V  completetheapprovedinitialconstruction/upgradingofthesystem)authorizedbySection201 <  ofthAppalachianRegionalDevelopmentActof1965.TheAppalchianRegionalCommission "r  (ARC)hasprogrammaticoversightresponsibilities,whichincludeapprovalofthelocationofthe X  corridorsandofStategeneratedestimatesofthecosttocompletetheADHS.FHWAhas >  projectleveloversightresponsibilitiesfortheADHSprogram.Ifthelocation,scope,and $ characterofproposedADHSprojectsareinagreementwiththelatestapprovedcosttocomplete   estimateandallFederalrequirementshavebeensatisfied,FHWAauthorizestheworkand  disbursestheADHSfunds.FHWAoverseestheconstructionandacceptstheADHSprojects  uponsatisfactorycompletionofthework. l  SourceofGoverningRequirements j  Theprimarysourcesofprogramrequirementsare23USC(Highways).Implementing  regulationsarefoundin23CFR(Highways)and49CFR(Transportation).   AvailabilityofOtherProgramInformation \  TheFederalHighwayAdministrationmaintainsawebsitethatprovidesprogramlaws,  Z regulations,andothergeneralinformation(4vaXO  5  +  http://ww%s|C% w %wo% x w.f%x6o% y %yWo% z hwa.dot.gov/+ndde  6nntiga  7;rn). @   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 acquisitioncostspermittedunder23USC108;(b)inaccordancewiththe *z conditionscontainedintheprojectagreementandtheplans,specifications,and  ` estimates(PS&E);(c)allocabletoaspecificproject;and(d)claimedfor  F reimbursementsubsequenttothedateoftheprojectagreement(23CFRsections  , 1.9,630.106,and630.205).   2. ` Federalfundscanbeusedtoreimburseforadministrativesettlementcosts p  incurredindefendingcontractclaimproceedingsbeforearbitrationboardsor V  StatecourtsonlyifapprovedbyFHWAforFederalaidprojects.Ifspecial <  counselisused,itmustberecommendedbytheStateAttorneyorState "r  DepartmentofTransportation(DOT)legalcounselandapprovedinadvanceby X  FHWA(23CFRsection140.505).'$Is >  3. ` CostsincurredbytheStateDOTorMPOforhighwayplanningandresearch  workaresubjecttopriorapprovalbyFHWA(23CFRsection420.111).  4. ` STPfundsmaybeusedbytheStateforthecostoftuitionanddirecteducational 0 expenses(excludingsalaries)ofStateandlocaltransportationagencyemployees f (23USC504(a)(4)). L 5. ` ADHSfundsmaybeusedonlyforworkincludedintheADHScostestimate  approvedbytheARC.   XE.` hp x (#` X(#E F.  EquipmentandRealPropertyManagement  >  TheStateshallcharge,ataminimum,afairmarketvalueforthesale,lease,oruseofreal < propertyacquiredwithFederalassistancefromtheHighwayTrustFund(otherthanthe " MassTransitAccount)forthenontransportationpurposesandshallusesuchincomefor  projectseligibleunder23USC.Exceptionsmaybegrantedwhenthepropertyisusedfor   social,environmentaloreconomicpurposes(23USC156). !   G.  Matching,LevelofEffort,Earmarking 2#  XE.` ` hp x (#X(#E1. ` Matching  $0   E. ` hp x (#` X(#Ea. TheStateisgenerallyrequiredtopayaportionoftheprojectcosts. &! Portionsvaryaccordingtothetypeoffundsauthorizedandarestatedin t'" projectagreements. Z(# b. AStatesmatchingshareforaprojectmaybecreditedbycertaintoll *X%  revenuesusedtobuildorimprovehighways,bridgesandtunnels(23USC *>&!  120(j)). +$'" c. Donationsoffunds,materials,andservicesmaybecreditedtowardsa   Statesmatchingshare.Donatedmaterialsandservicesmustmeetthe  eligibilityrequirementsoftheproject.However,donationsofservicesby | unitsoflocalgovernmentcannotbecreditedagainsttheStateshareofthe b project(23USC323(c)and(e)). H d. ThefairmarketvalueoflandprovidedbyStateorlocalgovernmentsfor  F highwaypurposesiseligibleformatchingshareonaproject.Thefair  , marketvalueofdonatedlandshallnotincludeanyincreaseordecreasein   valueofdonatedlandcausedbytheproject.Thefairmarketvalueof   donatedlandshallbeestablishedasoftheearlierof(1)thedateonwhich    thedonationbecomeseffectiveor(2)thedateonwhichequitabletitleto t  thelandvestsintheState(23USC323(b)). Z  e. Fortransportationenhancement(TE)projects,fundsfromFederal X  agencies(exceptU.S.DOT)maybeusedforthenonFederalshareofthe >  project.Creditforthevalueofdonationsoffunds,materials,land,or $ services(includingthevalueoflocalandStategovernmentservices,   materialsandlandappliedtotheprojectandthecostofpreliminary  engineeringpriortoprojectapproval)maybecreditedtowardthenon  Federalshare(23USC133(e)(5)(C)). l f. FundsappropriatedtoanyFederallandmanagementagencymaybeused j topaythenonFederalshareofanyFederalaidhighwayprojectfunded P under23USC104(23USC120(k)). 6 g. FederalLandsHighwayProgramfundsmaybeusedtopaythenon  FederalshareofFederalaidhighwayprojectswhichprovideaccesstoor z withinFederalorIndianlands(23USC120(l)). `  E.` ` hp x (# X(#E 2. ` LevelofEffort 󀄀NotApplicable ^  3. ` Earmarking 󀄀NotApplicable    XE.` hp x (#` X(#E J.  ProgramIncome  j"  StateandlocalgovernmentsmayonlyusetheFederalshareofnetincomefromthesale, $h use,orleaseofrealpropertypreviouslyacquiredwithFederalfundsiftheincomeisused $N  forprojectseligibleunder23USC(23USC156). %4!   L.  Reporting  '"  XE.` ` hp x (#X(#E 1. ` FinancialReporting @)$   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 >  orprivateconsultantstocarryouttheStatesauthoritiesunder23CFRsection $t  710.201(b)inaccordancewithawrittenagreement(23CFRsection710.201(h)).'ߐ  Z   AuditObjective 󀄀Determinewhetherotherpubliclandacquisitionorganizationsor   privateconsultantsarecarryingouttheStatesauthoritiesunder23CFRsection   710.201(b)inaccordancewiththeiragreementswiththeState.   SuggestedAuditProcedures  2   XE.` ` hp x (#X(#Ea. ` Examinerecordsandascertainifotheragencieswereusedforrightofway 0 activitiesonFederalaidprojects.  b. ` Reviewasampleofrightofwayagreementswithotheragencies. t c. ` Performtestsofselectedrightofwayactivitiestootheragenciestoverifythat "r theycomplywiththewrittenagreement.  X   XE.` hp x (#` X(#E 2. ` ReplacementofPubliclyOwnedRealProperty ! ComplianceRequirement 󀄀Federalfundsmaybeusedtoreimbursethereasonable d# costsactuallyincurredforthefunctionalreplacementofpubliclyownedandpublicly J$ usedrealpropertyprovidedthatFHWAconcursthatitisinthepublicinterest.Thecost 0%  ofincreasesincapacityandotherbettermentsarenoteligibleexcept:(1)ifnecessaryto &f! replaceutilities;(2)tomeetlegal,regulatory,orsimilarrequirements;or(3)tomeet &L" reasonableprevailingstandardsforthetypeoffacilitybeingreplaced(23CFRsection '2# 710.509). ($  AuditObjective 󀄀Determinewhetherthefunctionalreplacementofrealpropertywas v*%  accomplishedwithinFHWArequirements. \+& &   SuggestedAuditProcedures     XE.` ` hp x (#X(#Ea. ` Ascertainiftherewereanyfunctionalreplacementsofpubliclyownedreal ^ property. D b. ` VerifythatFHWAconcurredintheStatesdeterminationthatthefunctional B replacementisinthepublicinterest.  ( c. ` Reviewasampleoftransactionsinvolvingfunctionalreplacementsandverify   thatthetransactionswereconsistentwiththeFHWArequirements.'  l    XE.` hp x (#` X(#E& , 3. ` ProjectExtensions  j   ComplianceRequirement 󀄀FHWAmustapproveextensionsaffectingprojectcostsor   theamountofliquidateddamages,exceptthoseforprojectsadministeredbytheState   DOTunder23USC106(c)whichallowtheStateDOTtoassumetheresponsibilitiesfor   design,plans,specifications,estimates,contractawardsandinspectionofprogress(23 z  USC106(c);23CFRsection635.121).',( `   AuditObjective 󀄀DeterminewhetherproperFHWAapprovalswereobtainedfor ^  contractextensionsaffectingprojectcostsandtheamountofliquidateddamages D assessed. *  SuggestedAuditProcedures     XE.` ` hp x (#X(#Ea. ` Reviewthesystemsformonitoringandcontrollingcontracttimeandreview 6 projectfilestodetermineiftherewereprojectextensions. l b. ` VerifythatFHWAapprovalwasobtainedfortimeextensionsaffectingproject  costand,whereapplicable,theamountofliquidateddamagesassessed.    XE.` hp x (#` X(#E 4. ` SamplingProgram  ^  ComplianceRequirement 󀄀AStateDOTorLPAmusthaveasamplingandtesting  !\ programforconstructionprojectstoensurethatmaterialsandworkmanshipgenerally !B conformtoapprovedplansandspecifications(23CFRsection637.205). "(  AuditObjective 󀄀DeterminewhethertheStateisfollowingaqualityassuranceprogram $ thatmeetsFHWAsrequirements. l%   SuggestedAuditProcedures  'j"   XE.` ` hp x (#X(#Ea. ` Obtainanunderstandingoftherecipientssamplingandtestingprogram. ($ b. ` Reviewdocumentationoftestresultsonasamplebasistoverifythattheproper v*%  numberoftestsisbeingtakeninaccordancewiththe_program. \+&   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. Identifydatesthatprojectswereadvertisedandcontractorforceaccount *X%  workwasinitiatedandcompareto_FHWA_sapprovaldates. *>&!  3p x (#` X(#3  ,'" {t|u  H.` hp x (#X(#H DEPARTMENTOFTRANSPORTATION    $   B+ hp x (#X(#B_CFDA_Ԁ20.500 FEDERALTRANSITCAPITALINVESTMENTGRANTS ^  _CFDA_Ԁ20.507 FEDERALTRANSITFORMULAGRANTS(UrbanizedArea D FormulaProgram) *z  $ K.` hp x (#  X(#KI.  PROGRAMOBJECTIVES   ( TheobjectivesoftheFederalTransitCapitalInvestmentGrants(49_USC_Ԁ5309)andFederal   TransitUrbanizedAreaFormulaGrants(49_USC_Ԁ5307)programsaretoassistinfinancingthe l  planning,acquisition,construction,preventativemaintenance,andimprovementoffacilitiesand R  equipmentinmasstransportationservices.Operatingexpensesarealsoeligibleinurbanized 8  areaswithpopulationsoflessthan200,000. n   II.  PROGRAMPROCEDURES    Grantsareawardedtopublicagenciesonapprovalofapplicationsforspecificprogramsor z  projectssubmittedtotheFederalTransitAdministration(FTA).FTAmonitorstheprogressof `  thoseprojectsthroughonsiteinspections,telephonecontacts,correspondence,andquarterly F  progressandfinancialstatusreports.FTAprovidesfundsbasedonaprojectsprogress. ,|  SourceofGoverningRequirements  * Theprogramsinthisclusterareauthorizedby49_USC_Ԁ5307and5309.Programregulationsare  at49_CFR_Ԁparts601through665. n  AvailabilityofOtherProgramInformation  l AdditionalinformationisavailableonFTAswebsiteat4}MAO  5  +  http://%zuo% ~ %~V%  %t%  w%%  %%  ww.fta.d%%  ot.gov/+ X  6տtp:/  7.FTAis  requiredtoperformreviewsandevaluationsof49_USC_Ԁ5307grantactivitiesatleasteverythree  years.FTAOrder9010.1B, TriennialReviews,datedApril5,1993,providesguidanceto  FTAstaffandrecipientsontheconductoftriennialreviews.Thesereviewsareconductedwith | specificreferencetocompliancewithstatutoryandadministrativerequirementsandconsistency b  ofactualprogramactivitieswith(1)theapprovedprogramofprojectsand(2)theplanning H! processrequiredunder49_USC_Ԁ5303.Copiesofthesetriennialreviewsareavailablefromthe ."~ regionaloffices.RegionalofficeaddressesandtelephonenumbersareavailableonFTAsweb #d sitelistedabove. #J  III.  COMPLIANCEREQUIREMENTS %  IndevelopingtheauditprocedurestotestcompliancewiththerequirementsforaFederal V'" program,theauditorshouldfirstlooktoPart2,MatrixofComplianceRequirements,to <(# identifywhichofthe14typesofcompliancerequirementsdescribedinPart3are ")r$ applicableandthenlooktoParts3and4forthedetailsoftherequirements.  *X%    XE.` hp x (#X(#E&  A.  ActivitiesAllowedorUnallowed  +'!  X XE.` hp x (#X(#ETheactivitiesallowedarespecifiedinthegrantagreement.'+ d-("  X&  F.  EquipmentandRealPropertyManagement   XE.` hp x (#X(#E AnydispositionofequipmentbeforetheendofitsusefullifeissubjecttopriorFTA ^ concurrenceinthemethodofdisposition.Unlessotherwisedeterminedinwritingby D FTA,thefairmarketvalueforrollingstockremovedfromservicebeforetheendofits *z usefullifeistheFTAshareoftheunamortizedvalueoftheremainingservicelife,based  ` onstraightlinedepreciationoftheoriginalpurchaseprice,baseduponthedatethe  F equipmentwasremovedfromrevenueserviceratherthanthedateofdisposal.FTA  , standardsfortheusefullifeofvehiclesarecontainedinFTACircular9030.1C,   UrbanizedAreaFormulaProgram:GrantApplicationInstructions,ChapterV,   Paragraph9,Buses;andFTACircular9300.1A,CapitalProgram:GrantApplication    Instructions,ChapterIII,Paragraph8,RequirementsRelatedtoBusPurchases.These t  circularsareavailableontheFTA GovernmentandLegalpageontheInternet Z  (4KO  5  +  http://w%%  %y%  ww.fta.dot.gov/le%%  %%  gal/guidance/270_ENG_HTML.htm+/X  6   7%).Recipients,withFTA @  approval,areallowedtosell,transfer,orleaseproperty,equipment,orsuppliesacquired &v  withFederaltransitfundsthatisnolongerneededfortransitpurposes.Theproceeds  \  mustbeusedtoreducethegrossprojectcostsofanotherfederallyfundedcapitaltransit B project(49_USC_Ԁ5334(g)(4)and49_CFR_Ԁsection18.32).' (   G.  Matching,LevelofEffort,Earmarking   XE.` ` hp x (#X(#E1. ` Matching  4  Theshareofallowablecostsforaparticulargrantisestablishedinthegrant 2 agreement.    2. ` LevelofEffort 󀄀NotApplicable v  3. ` Earmarking  $t  OnepercentoftheUrbanizedAreaFormulaGrantfundsapportionedtourbanized " areaswitha_polulation_Ԁofatleast200,000shallbemadeavailablefortransit  enhancementactivities(49_USC_Ԁ5307(k)(1)).Thisrequirementdoesnotapplyto   CapitalInvestmentGrantsauthorizedby49_USC_Ԁ5309. !  E.` hp x (#` X(#E I.  ProcurementandSuspensionandDebarment  2#   E.` ` hp x (#X(#E1. ` BuyAmerica󀄀TheFTAmayobligatenofundsforagrantprojectunlessallsteel, $0  iron,andmanufacturedproductsusedintheprojectaremanufacturedintheU.S., %! asdemonstratedbyaBuyAmericacertificate,ortherecipienthasobtaineda &! waiverpursuanttooneofthefollowingprovisions. '"  E. ` hp x (#` X(#Ea. TheSecretarymaygrantspecificwaiversfollowingcasebycase @)$  determinationsthat:(1)applyingtherequirementwouldbeinconsistent &*v%! withthepublicinterest;(2)thegoodsarenotproducedintheU.S.ina  +\&" sufficientandreasonablyavailablequantityandofsatisfactoryquality;or +B'#  (3)theinclusionofthedomesticallyproducedmaterialwillincreasethe ,(($ overallprojectcostbymorethan25percent(49_CFR_Ԁsections661.7(b)  through(d)).   & d b. Programregulationsprovideforapermanentwaiverforcertain D _procurements_Ԁofrollingstock.TheBuyAmericarequirementsare *z satisfiedforrollingstockpurchasesifthecostofcomponentsand  ` _subcomponents_ԀproducedintheU.S.ismorethan60percentofthecostof  F allcomponentsand_subcomponents_,andfinalassemblyofthevehicle  , takesplaceintheU.S.(49_CFR_Ԁsection661.11).'dD   c. AppendixAto49_CFR_Ԁsection661.7providespermanent,selfexecuting p  waiversforthefollowingitems: V   ` E.` hp x (# X(#E(1)  Thosearticles,materials,andsuppliesexemptedfromtheBuy T  AmericaActof1933aslistedin48_CFR_Ԁsection25.104; :  (2)  TheU.S.finalassemblyrequirementsfor15passengerChrysler   vansandwagons; ~  (3)  Microcomputerequipment,includingsoftware;and ,| (4)  All smallpurchases(under$100,000)madebyFTArecipients. *   ` E.` ` hp x (#X(#EArecipientthatpurchasesrollingstockfortransportationoffarepaying  passengersmustconduct,orcausetobeconducted,apreawardauditbefore n enteringaformalcontractforthepurchaseofrollingstock,andthatapost T deliveryauditiscompletebeforetitletotherollingstockistransferred.Pre : awardandpostdeliveryauditsverifytheaccuracyoftheBuyAmerica  p certification,purchasersrequirementscertification,andcertificationof V compliancewithorinapplicabilityofFederalmotorvehiclessafetystandards < (49_CFR_Ԁpart663). "  2. ` DisadvantagedBusinessEnterprises(_DBE_)󀄀Recipientsshallrequirethateach   transitvehiclemanufacturercertifythatithascompliedwiththerequirementsof f! 49_CFR_Ԁsection26.49,asaconditiontobidonatransitvehicleprocurementin L" whichFTAfundsareinvolved.Recipientsmay,withFTAapproval,establish 2# projectspecificgoalsfor_DBE_Ԁparticipationintheprocurementoftransitvehicles $h  thatatransitvehiclemanufacturermustmeet(49_CFR_Ԁsection26.49(d)). $N  &   3. ` ProcurementofVehiclesandFacilities󀄀Inprohibitingdiscriminationinthe  provisionoftransportationservicesagainstpersonswithdisabilities,the  AmericanswithDisabilitiesActof1990(ADA)requiresthatvehiclespurchased | orleasedafterAugust25,1990,andnewandalteredfacilitiesdesignedand b constructed(asmarkedbythenoticetoproceed)afterJanuary25,1992,must H complywiththeapplicablestandardsofaccessibilityin49_CFR_Ԁparts37and38 . ~ (42_USC_Ԁ1210112213).  d   E.` hp x (#` X(#E L.  Reporting      E.` ` hp x (#X(#E 1. ` FinancialReporting  p   E. ` hp x (#` X(#Ea. SF269A,FinancialStatusReport(ShortForm)󀄀Applicable(from n  directrecipientsonly,submittedthroughFTAselectronicgrants T  managementsystem(TEAM)). :  b. SF270,RequestforAdvanceorReimbursement󀄀Applicable(submitted   electronicallythroughFTAsgranteepaymentsystem(ECHO)).'  ~  c. SF271,OutlayReportandRequestforReimbursementforConstruction ,| ProgramsNotApplicable b d. SF272,FederalCashTransactionsReport󀄀NotApplicable   E.` ` hp x (# X(#E 2. ` PerformanceReporting 󀄀NotApplicable n  3. ` SpecialReporting  l  Reportof_DBE_ԀAwardsorCommitmentsandPayments(OMBNo.21050510)  BasedonthelevelofFTAfunding,exclusiveoftransitvehiclepurchases,  recipientsarerequiredtoimplementa_DBE_Ԁprogram.Tomonitortheprogressof  the_DBE_Ԁprogram,therecipientisrequiredtosubmitsemiannualreportsbased | ona_recordkeeping_Ԁsystem(49_CFR_Ԁsection26.11andAppendixBtopart26). b   E.` hp x (#` X(#E N.  SpecialTestsandProvisions "`  X1. ` EnvironmentalReview #  X XE.` hp x (#X(#EComplianceRequirement 󀄀TheNationalEnvironmentalPolicyAct(NEPA)(42_USC_ l%  4321etseq.)andtheFTAimplementingrule(23_CFR_Ԁpart771)requirethatthe R&! environmentaleffectsofproposedmasstransportationprojectsbedocumentedandthat 8'" environmentalprotectionbeconsideredbeforeadecisionismadetoproceedwitha (n# project.Additionally,ifthereisnofeasibleorprudentalternativetoavoidtheeffects,all )T$ reasonablestepsmustbetakentominimizeadverseenvironmentaleffects,inaccordance ):% withSection4(f)oftheDepartmentofTransportationActof1966,asamended.Itisthe * &  policyofFTAthat,amongothermatters,measuresnecessarytomitigateadverseimpacts +'! beincorporatedintoanyproposedtransportationimprovement(49_USC_Ԁ303). ,'" EnvironmentalmitigationmeasuresaredescribedinNEPAenvironmentaldocuments,  whenrequired.ForprojectsrequiringanEnvironmentalImpactStatement(_EIS_),  mitigationmeasuresaresummarizedinaRecordofDecision.Forprojectsrequiringan | EnvironmentalAssessment,mitigationmeasuresaresummarizedinaFindingofNo b SignificantImpact(_FONSI_).Forcategoricallyexcludedprojects,anymitigation H measureswillbedocumentedintheFTAapprovalmemorandumfortheproject.Inall . ~ cases,environmentalmitigationmeasuresshouldbereferencedintheconstructiongrant  d agreementwiththerecipient(23_CFR_Ԁpart771).  J  AuditObjective 󀄀Determinewhetherenvironmentalmitigationmeasuresassociated   withFTAassistedconstructionwereimplementedasreferencedintheconstructiongrant    agreement. t   SuggestedAuditProcedures  "r    XE.` ` hp x (#X(#Ea. ` IdentifyanyFTAassistanceprovidedforconstructionandreviewcopiesofthe   grantagreementand_EIS_Ԁor_FONSI_Ԁtoidentifymitigationmeasuresspecified.   b. ` Forsampleofmitigationmeasures,comparethestatusofimplementationwith d thecommitmentsmadeintheenvironmentaldocumentsorgrantagreement. J  2. ` CharterService  H   XE.` hp x (#` X(#E ComplianceRequirement 󀄀Aspartoftheannualcertificationsandassurancesrequired  bytheFTA,arecipientmustexecuteanagreementwiththeFTAwhichprovidesthat  neithertherecipientnoranyofits_subrecipients_Ԁwillprovidecharterservicethatuses r equipmentorfacilitiesacquiredwithFTAfunds,unless:(a)therearenowillingandable X privatecharterserviceoperators,or(b)oneormoreoftheexceptionslistedin49_CFR_ > part604aremetandthecharterserviceisincidentaltotheprovisionofmass $t transportation.Charterserviceisdefinedastransportation,usingbusesorvans(funded  Z inwholeorinpartbyFTA),ofagroupofpersonspursuanttoacommonpurpose,under @ asinglecontractatafixedchargeforthevehicleorservice,whichhasacquiredthe & exclusiveuseofthevehicleorservicetotraveltogetherunderanitineraryeither   specifiedinadvanceormodifiedafterleavingtheplaceoforigin.Thisdefinition ! includestheincidentaluseofFTAfundedequipmentfortheexclusivetransportationof " schoolstudents,personnelandequipment,andthehousingofchartervehiclesinFTA n# fundedfacilities. Incidentalcharterserviceisdefinedasservicethatdoesnot:(a) T$ interferewithordetractfromtheprovisionofthemasstransportationserviceforwhich :%  thefacilitiesorequipmentwerefundedundertheAct,or(b)shortenthemass  &p!  transportationlifeoftheequipmentorfacilities(49_CFR_Ԁpart604). 'V"!  AuditObjective 󀄀Determinewhethertheuseincharterserviceofequipmentand ($"  facilitiesacquiredwithFTAfundsconformedto49_CFR_Ԁpart604. )$# &   SuggestedAuditProcedures     XE.` ` hp x (#X(#Ea. ` AscertainiftherecipientprovidescharterservicewithFTAfundedequipment ^ by:(1)obtainingwrittenrepresentationfromtherecipient,(2)reviewingrevenue D accountsforindicationsofcharterbusrevenuestatements,and(3)reviewingthe *z recipientswebsiteandlocalbusiness YellowPagesforindicationsofcharter  ` serviceoperations.  F b. ` Reviewtherecipientspoliciesandproceduresforcharter,rental,orleaseofits   transitequipment.'   &  c. ` Testtransactionsthatmeetthedefinitionofcharterserviceandascertainif: 8   E. ` hp x (#` X(#E(1) FTAassistedequipmentorfacilities(e.g.,parkinglotsandmaintenance 6  garages)wereused;   (2) Documentationwasavailableevidencingtheabsenceofawillingandable z  privateoperatororanexceptionprovidedin49_CFR_Ԁpart604;'8  `  (3) Documentationwasavailableevidencingacharterfeethatrecoversthe ^  entireoperatingandcapitalcostsofequipmentused;and D (4) InventoryrecordswereadjustedtoextendtheusefullifeoftheFTA  subsidizedtransitequipmentbytheamountofcharterservice.   E.` ` hp x (# X(#E 3. ` SchoolBusOperation  6   XE.` hp x (#` X(#E ComplianceRequirement 󀄀Aspartoftheannualcertificationsandassurancesrequired 4 byFTA,arecipientmustenterintoanagreementwiththeFTAAdministratorstatingthat  therecipientwillnotengageinschoolbusoperationsexclusivelyforthetransportationof  studentsandschoolpersonnelincompetitionwithprivateschoolbusoperators,unlessit  demonstratestotheFTAAdministratoranyoneoftheexceptionslistedin49_CFR_ | section605.11andtheAdministratorconcurs.However,allrecipientscanoperate b   TripperService,whichisdefinedasregularlyscheduledmasstransportationservice H! thatisopentothepublic,anddesignedormodifiedtoaccommodatetheneedsofschool ."~ studentsandpersonnel,usingvariousfarecollectionsorsubsidysystems.Busesusedin #d  TripperServicearerequiredtobeclearlymarkedasopentothepublicandshouldnot #J carrydesignationssuchas schoolbusor schoolspecial(49_CFR_Ԁpart605). $0   AuditObjective 󀄀DeterminewhetherschoolbusserviceprovidedwithFTAfunded &! equipmentwasapprovedbyFTAorthatFTAassistedequipmentandfacilitiesusedto t'"  accommodatestudentsconformedtothedefinitionof TripperService. Z(# &   SuggestedAuditProcedures     XE.` ` hp x (#X(#Ea. ` Ascertainiftherecipientoperatesanytransitserviceexclusivelyforschool ^ childrenthrough:(1)areviewofbusschedules,publishedfares,andservice D contracts;(2)discussionswithrecipientofficials;and(3)reviewschooldistrictor *z individualschoolwebsitesforinformationonbustransportationofschool  ` students.  F b. ` AscertainifFTAfundedequipment(e.g.,busesorvans)orfacilities(e.g.,bus   maintenancegarages)wereusedtoprovideschoolservicebyreviewinginventory   records,maintenancelogs,parkingsites,namesonbusandvandestinationsigns, p  schoolfacilities,orbyperformingotherappropriateprocedures.'  V  &  c. ` Ifexclusiveschoolbusserviceisidentified: T   E. ` hp x (#` X(#E(1) ReviewdocumentationthattheservicewasapprovedbytheFTA,or   (2) Throughareviewofbusschedulesandpublishedfaresduringschool `  seasonandinquiriesofrecipientofficialsascertainiftheservice F  conformedtothedefinitionof TripperService.' ,|  3p x (# X(#3  * _{_|  H.` hp x (#X(#H DEPARTMENTOFTRANSPORTATION   $   B+ hp x (#X(#B_CFDA_Ԁ20.509 FORMULAGRANTSFOROTHERTHANURBANIZEDAREAS ^ (_Nonurbanized_ԀAreaFormulaProgram) D  $ K.` hp x (#  X(#KI.  PROGRAMOBJECTIVES  B TheobjectivesoftheSection5311formulaprogramaretoinitiate,improve,orcontinuepublic   transportationservicein_nonurbanized_Ԁareasbyprovidingfinancialassistanceforoperatingand   administrativeexpenses,andfortheacquisition,construction,andimprovementoffacilitiesand l  equipment.Inaddition,Section5311(f)specificallyprovidesforthesupportofruralintercity R  busservice.TheRuralTransitAssistanceProgram(_RTAP_),Section5311(b)(2),provides 8  additionalfundingtoprovidetraining,technicalassistance,researchandrelatedsupportservices n  tosupportruraltransitservice. T   II.  PROGRAMPROCEDURES     StateAgencies `   TheFederalTransitAdministration(FTA)annuallypublishesformulaapportionmentstothe ^  StatesinaFederalRegisterNoticepublishedwithintendaysaftertheDepartmentof D Transportation(DOT)AppropriationsActissignedintolaw.TheGovernorofeachState * designatesaStateagencytoadministertheprogram.TheStateisresponsibleforfairdistribution  ofthefundsintheState,includingIndianreservations.TheStatemayalsoprovidetransit  servicedirectlyorthroughcontractswithprivateoperators.TheStatedescribesitsprocedures  foradministeringtheprograminaStatemanagementplan.TheStateappliestoFTAfor r approvalofaprogramofprojects,usuallyannually,andreportsannuallytoFTAonfinancial X statusandrevisionstotheprogramofprojects. > FTAmonitorscompliancewithFederalrequirementsthroughadministrative StateManagement < Reviews,generallyeverythreeyears. "  _Subrecipients_    TheStateselects_subrecipients_ԀandmonitorstheircompliancewithFederalrequirements.FTA ."~ doesnotdirectlymonitorthe_subrecipients_,butcheckstheStatesproceduresformonitoring #d duringtheStateManagementReview.TheStatemayimposeprogramcriteriainadditionto #J thoseimposedbytheFTAandmayrequireadditionalreportsfrom_subrecipients_.TheseState $0  requirementsareincludedintheStateManagementPlan. %!  SourceofGoverningRequirements t'"  FederalTransitRegulationsthatapplytotheprograminclude49_CFR_Ԁparts27,37,and38(The ")r$ AmericanswithDisabilitiesAct);49_CFR_Ԁpart604(CharterService);49_CFR_Ԁpart605(School *X%  BusOperations);49_CFR_Ԁpart665(CombinedDrugandAlcoholRule);49_CFR_Ԁpart661(Buy *>&! AmericaRequirements);49_CFR_Ԁpart663(PreAwardandPostdeliveryReviewsofRolling +$'"  StockPurchases);49_CFR_Ԁpart665(BusTesting);and49_CFR_Ԁpart26(DisadvantagedBusiness , (# Enterprises(_DBE_)).Notethatcertainexceptionsordollarthresholdsintheserulesmayexclude  manyruraltransitactivities.   AvailabilityofOtherProgramInformation D  InformationabouttheprogrammaybefoundontheFTAwebsiteat4peeO  5  +  http://www.fta.dot.gov/+*.`   6--ngf  7! .. B ProgramGuidanceandApplicationInstructionsarecontainedinFTACircular9040.1Ewhich  ( maybefoundonthewebsite.TheannualTrendsReportforSection5311Programincludes   summaryinformationabouttheprogramandisalsoavailableonthewebsite.Inreferringtothe   program,FTAusestheterm ruraltoincludebothruralandsmallurbanareas(allareasnot   includedintheurbanizedareasdesignatedbytheU.S.BureauoftheCensus). p   III.  COMPLIANCEREQUIREMENTS  n   IndevelopingtheauditprocedurestotestcompliancewiththerequirementsforaFederal   program,theauditorshouldfirstlooktoPart2,MatrixofComplianceRequirements,to   identifywhichofthe14typesofcompliancerequirementsdescribedinPart3are   applicableandthenlooktoParts3and4forthedetailsoftherequirements. ~  A.  ActivitiesAllowedorUnallowed  ,|  X1. ` ActivitiesAllowed *  X E. ` hp x (#X(#Ea. Theprojectmustprovidelocaltransportationservice(transitservice  availabletothepublic)inanareaotherthananurbanizedarea(49_USC_ n 5311(d))orsupportintercitybustransportation(49_USC_Ԁ5311(f)). T Coordinationofmasstransportationassistedunderthissectionwith : transportationserviceassistedbyotherUnitedStatesGovernmentsources  p ispermittedandencouraged.(49_USC_Ԁ5311(b)) V b. _RTAP_Ԁfundsmaybeusedtoprovidetraining,technicalassistance,  researchandotherrelatedsupportservicesforprovidersofruralpublic  transitandrelatedservices.(49_USC_Ԁ5311(b)(2))    ?(` ` hp x (# X(#?2. ` ActivitiesUnallowed ."~  E. ` hp x (#` ` X(#Ea. Recipientsmaynotprovideexclusivecharterservice,exceptasprovided #, in49_CFR_Ԁpart604.Notethatthereareseveralexceptionsthatapplyonly $  toruraltransitproviders.SeeIII.N.1, SpecialTestsandProvisions %  CharterService. &! b. Recipientsmaynotprovideexclusiveschoolserviceexceptasprovidedin <(# 49_CFR_Ԁpart605.SeeIII.N.2, SpecialTestsandProvisionsSchoolBus ")r$  Operation. *X%    E.` hp x (# X(#E&   E.  Eligibility     E.` ` hp x (#X(#E 1. ` EligibilityforIndividuals 󀄀NotApplicable ^  2. ` EligibilityforGroupofIndividualsorAreaofServiceDelivery 󀄀Not  \ Applicable B  3. ` Eligibilityfor_Subrecipients_     AStateauthority,alocalgovernmentalauthority,anonprofitorganization,and N  anoperatorofmasstransitservice(49U.S.C.5311(a)). 4   E.` hp x (#` X(#E G.  Matching,LevelofEffort,Earmarking ' ; 2   X 1. ` Matching     X E.` ` hp x (#X(#EOperatingassistancerequiresa50percentmatch,halfofwhichmustbenon >  Federal.Capitalandadministrationrequirea20percentnonFederalmatch.No $t  matchisrequiredforStateadministrationor_RTAP_.Revenuesfromproviding  Z  masstransportation(e.g.,_farebox_Ԁrevenue)maynotbeusedforthematch. @  AmountsreceivedunderaserviceagreementwithaStateorlocalsocialservice &  agencyoraprivatesocialserviceorganizationarenotconsidered revenuesfrom   operationorFederalfundsandthusmaybeusedtomatchoperatingassistance  (49_USC_Ԁ5311(g)).   X E.` hp x (#` X(#E 2. ` LevelofEffort 󀄀NotApplicable 6  3.  ` Earmarking  4  X E. ` hp x (#X(#Ea. TheStatemayexpendnomorethan15percentofitsannualSection5311  apportionmentforstateadministration,includingplanningandtechnical x assistance(49_USC_Ԁ5311(e)). ^ b. AStatemustuseatleast15percentoftheannualapportionmentto  !\ supportintercitybusserviceunlesstheGovernorcertifiesthattheintercity !B busneedsoftheStateareadequatelymet(49_USC_Ԁ5311(f)). "(   E.` hp x (# X(#E H.  PeriodofAvailabilityofFederalFunds  $  XE.` hp x (#X(#EThefundsareavailabletotheStatefortheyearofapportionmentplustwoyears.Once 4&! thefundsareobligatedforanapprovedproject,theyremainavailabletotheStateuntil 'j"  expended(49_USC_Ԁ5311(c)). (P#  XE.` hp x (#X(#E&   I.  ProcurementandSuspensionandDebarment     (03""  ,E.` hp x (#X(#E   ,B+` ` hp x (#X(#BI2  1  .3   `   BuyAmericaIJ݌ ^ Ќ ' X(#` ` X(#'    E. ` hp x (#X(#Ea. TheFTAmayobligatenofundsforagrantprojectunlessallsteel,iron,  \ andmanufacturedproductsusedintheprojectaremanufacturedinthe B U.S.,asdemonstratedbyaBuyAmericacertificate,ortherecipienthas  ( obtainedawaiverpursuanttooneofthefollowingprovisions.    ` E.` hp x (# X(#E(1)  TheSecretarymaygrantspecificwaiversfollowingcasebycase l  determinationsthat:(1)applyingtherequirementwouldbe R  inconsistentwiththepublicinterest;(2)thegoodsarenot 8  producedintheU.S.inasufficientandreasonablyavailable n  quantityandofsatisfactoryquality;or(3)theinclusionofthe T  domesticallyproducedmaterialwillincreasetheoverallproject :  costbymorethan25percent(49_CFR_Ԁsections661.7(b)through   (d)).'I   (2)  Programregulationsprovideforapermanentwaiverforcertain d _procurements_Ԁofrollingstock.TheBuyAmericarequirementsare J satisfiedforrollingstockpurchasesifthecostofcomponentsand 0 _subcomponents_ԀproducedintheU.S.ismorethan60percentofthe f costofallcomponentsand_subcomponents_,andfinalassemblyof L thevehicletakesplaceintheU.S.(49_CFR_Ԁsection661.11). 2 (3)  AppendixAto49_CFR_Ԁsection661.7providespermanent,self  executingwaiversforthefollowingitems: v   ` E.h` hp x (#X(#E(a) h Thosearticles,materials,andsuppliesexemptedfromthe $t BuyAmericaActof1933aslistedin48_CFR_Ԁsection  Z 25.104; @ (b) h TheU.S.finalassemblyrequirementsfor15passenger   Chryslervansandwagons; ! (c) h Microcomputerequipment,includingsoftware;and 2# (d) h All smallpurchases(under$100,000)madebyFTA $0  recipients. %!   E. ` hp x (#hX(#Eb. Arecipientthatpurchasesrollingstockfortransportationoffarepaying t'" passengersmustconduct,orcausetobeconducted,apreawardreview Z(# beforeenteringaformalcontractforthepurchaseofrollingstock,and @)$  certifythatapostdeliveryreviewiscompletebeforetitletotherolling &*v%! stockistransferred.Preawardandpostdeliveryreviewsverifythe  +\&" accuracyoftheBuyAmericacertification,purchasersrequirements +B'# certification,andcertificationofcompliancewithorinapplicabilityof ,(($ Federalmotorvehiclessafetystandards(49_CFR_Ԁpart663). -)%  E.` ` hp x (# X(#E& $ 2. ` DisadvantagedBusinessEnterprisesRecipientsshallrequirethateachtransit  vehiclemanufacturercertifythatithascompliedwiththerequirementsof49_CFR_  section26.49,asaconditiontobidonatransitvehicleprocurementinwhichFTA | fundsareinvolved.Recipientsmay,withFTAapproval,establishproject b specificgoalsfor_DBE_Ԁparticipationintheprocurementoftransitvehiclesthata H transitvehiclemanufacturermustmeet(49_CFR_Ԁsection26.49(d)). . ~ 3. ` ProcurementofVehiclesandFacilities󀄀Inprohibitingdiscriminationinthe  , provisionoftransportationservicesagainstpersonswithdisabilities,the   AmericanswithDisabilitiesActof1990requiresthatvehiclespurchasedor   leasedafterAugust25,1990,andnewandalteredfacilitiesdesignedand    constructed(asmarkedbythenoticetoproceed)afterJanuary25,1992,must t  complywiththeapplicablestandardsofaccessibilityin49_CFR_Ԁparts37and38 Z  (42_USC_Ԁ1210112213). @    E.` hp x (#` X(#E L.  Reporting'$Z >   X1. ` FinancialReporting    X E. ` hp x (#X(#Ea. SF269A,FinancialStatusReport󀄀Applicable(fromdirectrecipients J only,submittedelectronically) 0 b. SF270,RequestforAdvanceorReimbursement󀄀NotApplicable . c. SF271,OutlayReportandRequestforReimbursementforConstruction  Programs󀄀NotApplicable r d. SF272,FederalCashTransactionsReport󀄀NotApplicable  p  E.` ` hp x (# X(#E 2.  ` PerformanceReporting 󀄀NotApplicable   3. ` SpecialReporting 󀄀NotApplicable |   E.` hp x (#` X(#E N.  SpecialTestsAndProvisions  *!z   E.` ` hp x (#X(#E 1. ` CharterService  "(   XE.` hp x (#` X(#E ComplianceRequirement 󀄀Aspartoftheannualcertificationsandassurancesrequired $ bytheFTA,arecipientmustexecuteanagreementwiththeFTAwhichprovidesthat l%  neithertherecipientnoranyofits_subrecipients_Ԁwillprovidecharterservicethatuses R&! equipmentorfacilitiesacquiredwithFTAfunds,unless:(a)therearenowillingandable 8'" privatecharterserviceoperators;or(b)oneormoreoftheexceptionslistedin49_CFR_ (n# part604aremetandthecharterserviceisincidentaltotheprovisionofmass )T$ transportation.Charterserviceisdefinedastransportation,usingbusesorvans(funded ):% inwholeorinpartbyFTA),ofagroupofpersonspursuanttoacommonpurpose,under * &  asinglecontractatafixedchargeforthevehicleorservice,whichhasacquiredthe +'! exclusiveuseofthevehicleorservicetotraveltogetherunderanitineraryeither ,'" specifiedinadvanceormodifiedafterleavingtheplaceoforigin.Thisdefinition -(# includestheincidentaluseofFTAfundedequipmentfortheexclusivetransportationof  schoolstudents,personnelandequipment,andthehousingofchartervehiclesinFTA  fundedfacilities.Incidentalcharterserviceisdefinedasservicethatdoesnot:(a) | interferewithordetractfromtheprovisionofthemasstransportationserviceforwhich b thefacilitiesorequipmentwerefundedundertheActor(b)shortenthemass H transportationlifeoftheequipmentorfacilities(49_CFR_Ԁpart604). . ~  AuditObjective 󀄀Determinewhethertheuseincharterserviceofequipmentand  , facilitiesacquiredwithFTAfundsconformedto49_CFR_Ԁpart604.    SuggestedAuditProcedures  p    XE.` ` hp x (#X(#Ea. ` AscertainiftherecipientprovidescharterservicewithFTAfundedequipment n  by:(1)obtainingwrittenrepresentationfromtherecipient,(2)reviewingrevenue T  accountsforindicationsofcharterbusrevenuestatements,and(3)reviewingthe :  recipientswebsiteandlocalbusiness YellowPagesforindicationsofcharter   serviceoperations.   b. ` Reviewtherecipientspoliciesandproceduresforcharter,rental,orleaseofits d transitequipment. J c. ` Testtransactionsthatmeetthedefinitionofcharterserviceandascertainif: H  E. ` hp x (#` X(#E(1) FTAassistedequipmentorfacilities(e.g.,parkinglotsandmaintenance  garages)wereused;  (2) Documentationwasavailableevidencingtheabsenceofawillingandable : privateoperatororanexceptionprovidedin49_CFR_Ԁpart604;  p (3) Documentationwasavailableevidencingacharterfeethatrecoversthe  entireoperatingandcapitalcostsofequipmentused;and  (4) InventoryrecordswereadjustedtoextendtheusefullifeoftheFTA b  subsidizedtransitequipmentbytheamountofcharterservice. H!  E.` ` hp x (# X(#E 2. ` SchoolBusOperation  "F   XE.` hp x (#` X(#E ComplianceRequirement 󀄀Aspartoftheannualcertificationsandassurancesrequired $ byFTA,arecipientmustenterintoanagreementwiththeFTAAdministratorstatingthat %  therecipientwillnotengageinschoolbusoperationsexclusivelyforthetransportationof p&! studentsandschoolpersonnelincompetitionwithprivateschoolbusoperators,unlessit V'" demonstratestotheFTAAdministratoranyoneoftheexceptionslistedin49_CFR_ <(# section605.11andtheAdministratorconcurs.However,allrecipientscanoperate ")r$  TripperService,whichisdefinedasregularlyscheduledmasstransportationservice *X%  thatisopentothepublic,anddesignedormodifiedtoaccommodatetheneedsofschool *>&! studentsandpersonnel,usingvariousfarecollectionsorsubsidysystems.Busesusedin +$'"  TripperServicearerequiredtobeclearlymarkedasopentothepublicandshouldnot , (# carrydesignationssuchas schoolbusor schoolspecial(49_CFR_Ԁpart605). -($  AuditObjective 󀄀DeterminewhetherschoolbusserviceprovidedwithFTAfunded  equipmentwasapprovedbyFTAorthatFTAassistedequipmentandfacilitiesusedto  accommodatestudentsconformedtothedefinitionof TripperService. |  SuggestedAuditProcedures  *z   XE.` ` hp x (#X(#Ea. ` Ascertainiftherecipientoperatesanytransitserviceexclusivelyforschool  ( childrenthrough:(1)areviewofbusschedules,publishedfares,andservice   contracts;(2)discussionswithrecipientofficials,and(3)reviewingthe   recipientswebsiteandlocalbusiness YellowPagesforindicationsoftypeof   operations. p  b. ` AscertainifFTAfundedequipment(e.g.,busesorvans)orfacilities(e.g.,bus n  maintenancegarages)wereusedtoprovideschoolservicebyreviewinginventory T  records,maintenancelogs,parkingsites,namesonbusandvandestinationsigns, :  schoolfacilities,orbyperformingotherappropriateprocedures.   c. ` Ifexclusiveschoolbusserviceisidentified: ~   E. ` hp x (#` X(#E(1) ReviewdocumentationthattheservicewasapprovedbytheFTA,or ,| (2) Throughareviewofbusschedulesandpublishedfaresduringschool * seasonandinquiriesofrecipientofficialsascertainiftheservice  conformedtothedefinitionof TripperService.   3p x (# X(#3  T   DEPARTMENTOFTRANSPORTATION    $   B( hp x (#X(#B_CFDA_Ԁ20.600 STATEANDCOMMUNITYHIGHWAYSAFETY ^ _CFDA_Ԁ20.601 ALCOHOLTRAFFICSAFETYANDDRUNKDRIVING D PREVENTIONINCENTIVEGRANTS *z _CFDA_Ԁ20.602 OCCUPANTPROTECTION  ` _CFDA_Ԁ20.603 FEDERALHIGHWAYSAFETYDATAIMPROVEMENTS  F INCENTIVEGRANTS  , _CFDA_Ԁ20.604 SAFETYINCENTIVEGRANTSFORUSEOFSEATBELTS    _CFDA_Ԁ20.605 SAFETYINCENTIVESTOPREVENTOPERATIONOFMOTOR   VEHICLESBYINTOXICATEDPERSONS     $ H.` hp x (#  X(#HI.  PROGRAMOBJECTIVES <   TheobjectiveoftheStateandCommunityHighwaySafetyProgramistoprovideacoordinated :  nationalhighwaysafetyprogramtoreducetrafficaccidents,deaths,injuries,andproperty   damage.    II.  PROGRAMPROCEDURES  d FundsareprovidedtotheStates,followingsubmissionoftheirhighwaysafetyplans,in b accordancewithapredefinedformulaandincentivegrants.Allfundingisadministeredasone H combinedprogram. .  SourceofGoverningRequirements   Thisprogramisauthorizedunder23_USC_ԀChapter4(HighwaySafety).Implementing : regulationsare23_CFR_Ԁparts1200,1225,1240,1250,1252,1313,1335,and1345.  p  AvailabilityofOtherProgramInformation   TheNationalHighwayTrafficSafetyAdministrationmaintainsawebsitethatprovidesprogram | laws,regulations,