***Questions & Answers***

**Elderly Individuals & Individuals with Disabilities (Section 5310),**

**JARC & New Freedom Programs**

**Last Updated January 26, 2009**

***[All Programs]{.underline}*:**

**1.** Q. Do applicants have to list the source of non-U.S. DOT funds
for the local match?

> A. As a general rule, applicants do not have to list the source of a
> non-U.S. DOT local match. However, FTA grant representatives reserve
> the right to ask for more detailed information from the grantee such
> as the source of local match.

**2.** Q. Are contributions of funds from human service agencies
eligible to be used as local match? How are these applied as local
match?

A. Local funds and non-U.S. DOT federal funds may be used as local match
for these programs.  If human service agencies are using other federal
funds as a source of local match, the grantee should verify that those
funds are eligible to match transportation projects and are being used
for eligible costs of the project. 

**3**. Q. Can revenue from human service transportation contracts be
used as local match?

> A. Income from contracts to provide human service transportation may
> be used either to reduce the net project cost (treated as revenue) or
> to provide local match for New Freedom or JARC operating assistance. 
> In either case, the cost of providing the contract service is included
> in the total project cost.  FTA program funds may not be used as a
> source of local match for other FTA programs, even when used to
> contract for service.  For example, if a Section 5310 subrecipient has
> a service contract to buy service from a Section 5311 provider, the
> Section 5311 provider may not use the revenue from the Section 5310
> service contract as local match for other FTA grants.

**4.** Q: Can fare-box revenue be used as local match?

> A: Fare box revenue cannot be used as local match, however it can be
> used to reduce the net project cost of a project.

**5**. Q: Can Federal Lands Highway Program Funds be used as local match
for JARC and New Freedom projects?

> A: Yes. While matching funds generally must come from non U.S. DOT
> funding sources, there is an exception for the Federal Lands Highway
> Program. According to, 23 USC - Section 120*(l),*"Notwithstanding any
> other provisions of law, the funds authorized to be appropriated to
> carry out the Federal lands highways program under section 204 may be
> used to pay the non-Federal share of the cost of any project that is
> funded under this title or chapter 53 of title 49 and that provides
> access to or within Federal or Indian Lands.\"
>
> 49 U.S.C. §5310 contains language permitting Federal Lands Highway
> Program funds to be used as match, and FTA has determined that this
> program can be used as match for the Section 5316 (JARC) and 5317 (New
> Freedom) programs as well. Programs funded through the Federal Lands
> Highway Program, such as the Indian Reservation Roads program, can
> only be used as match for those JARC and New Freedom projects that
> serve the populations for whom Federal Lands Highways Program funds
> were also intended to serve.

 

**6.** Q. Who is responsible for determining that matching funds are
allowable for transportation purposes?

A. The grantee is responsible for ensuring that non-U.S. DOT federal
funds may be used to match transportation projects and that the funds
are available for the project.

**7.** Q. If the MPO, State DOT or other designated recipient had a JARC
plan in place prior to the passage of SAFETEA-LU, what else do they need
to do to be in compliance with the coordinated planning requirements to
receive JARC, New Freedom, or Section 5310 funds for FY 2007?

> A. In order to receive program funds for FY 2007 the MPO, State DOT,
> or other designated recipient must 1) make an assessment of available
> services; 2) make an assessment of needs; 3) develop strategies to
> address gaps for target populations; and 4) the lead agency developing
> the plan should also include the needs of elderly individuals and
> individuals with disabilities in the coordinated plan, unless they do
> not plan to apply for Section 5310 or New Freedom funding. 

**8.** Q. If the MPO, State DOT, or other designated recipient did not
have a coordinated plan prior to the passage of SAFETEA-LU, will they
need to have a completed plan in place to receive JARC, New Freedom,
and/or Section 5310 funds for fiscal year 2007?

> A. Yes, and the coordinated plan should be consistent with the program
> circulars for fiscal year 2007 planning requirements. These
> requirements are outlined in Chapter V of the program circulars.

**9.** Q. Beginning in fiscal year 2008, must MPOs, State DOTs, and
other designated recipients have a completed coordinated public
transit-human service transportation plan in place in accordance with
the JARC, New Freedom, and Section 5310 programs before they can be
awarded any program funds?

> A. Yes. FTA expects plans developed for FY 2008 and beyond to include
> more information than plans developed for FY 2007. Please see Chapter
> V of the program circulars for the required elements of coordinated
> plans.

***[JARC (Section 5316) and New Freedom (Section 5317)
Programs]{.underline}:***

**10.** Q. Can a Small Urbanized Area be a designated recipient?

> A. No. Please see Chapter III, Section 4, [ELIGIBLE DIRECT
> RECIPIENTS,]{.underline} in the JARC and New Freedom circulars,
> stating, "The State is the designated recipient and may apply directly
> to FTA for grant funds for itself and its subrecipients." This is
> consistent with the language found in 49 U.S.C. 5316 and 5317.

**11.** Q: Can New Freedom funds be transferred between the
non-urbanized portion of the governor's apportionment to and the
small-urbanized apportionment, or to or from a large urbanized
apportionment?

> A: No. With the exception of consolidating grants to insular areas,
> Congress did not provide States and Designated Recipients with the
> authority to transfer New Freedom funds into or out of the areas in
> which they were apportioned. Accordingly, funds apportioned to
> non-urbanized areas, small-urbanized, and large-urbanized areas must
> be used for projects in those areas. New Freedom funds can be
> transferred to Section 5307 or 5311 recipients provided that they are
> used for projects that are eligible under the New Freedom program.

**12.** Q. When the State is transferring funds from JARC or New Freedom
to Section 5307 or Section 5311, is a certification or declaration
needed to assure JARC and New Freedom needs are met?

> A. No. Please see Chapter III, Section 8 of the circulars:

-   Transfer to Other FTA Programs. A State may transfer funds
    apportioned to it for rural or small urbanized areas to
    apportionments under Section 5311(c) or 5307, or both. The purpose
    of the transfer provision, however, is not to supplement the
    resources available under the State's Section 5311 or Section 5307
    apportionments. Transfer to Section 5311 or Section 5307 is
    permitted, but not required. Transferred funds must be used for JARC
    and New Freedom projects. A State may make the transfer only after
    consulting with local officials and publicly owned operators of
    public transportation. The period of availability for the
    transferred funds is not changed by the transfer.

-   Notification of Transfers. The State must notify the FTA regional
    administrator of the State's intent to have funds transferred so
    that FTA can initiate the transfer. For transfers of JARC or New
    Freedom funds into the Section 5307 program for urbanized areas
    (UZAs) under 200,000 in population or Section 5311(c), and for
    transfers of flexible funds, the notification must indicate the
    amount of funds transferred, the recipient of transferred funds, and
    the program to which they are being transferred.

**13.** Q. How do we differentiate State administration for each program
at the time of draw down if funds are transferred to Section 5307? How
will we know if they are JARC or New Freedom funds?

> A. JARC, New Freedom, and Section 5307 funds should not be combined in
> a single grant. Grantees should have individual Section 5307 grants
> for each program. A Section 5307 grant that contains JARC or New
> Freedom funds should use the appropriate scope code in TEAM (646-00
> for JARC and 647-00 for New Freedom.)

**14.** Q. What is the difference between a "direct" and a "designated"
recipient?

> A. The "designated recipient" is the entity designated, pursuant to 49
> U.S.C. 5302(a)(2), by the Governor of a State to receive FTA funds.
> Under the JARC and New Freedom programs, the designated recipient is
> responsible for competitively allocating JARC or New Freedom funds to
> itself and subrecipients in an area. The "direct recipient" is an
> entity that can apply directly to FTA for grant funding they have
> received through the designated recipient's competitive selection
> process.

-   The designated recipient may be the direct recipient for all funds
    on behalf of itself and all subrecipients

> For example:

-   **In Small UZAs** (50,000 -- 200,000 population) an entity receiving
    Section 5307 funds directly from FTA can be the direct recipient for
    JARC and New Freedom funds if the State (the designated recipient)
    transfers the funds to Section 5307 after consultation with
    responsible local officials and publicly owned operators of public
    transportation.

-   **In a large UZA** (over 200,000 in population) a public entity that
    is a designated recipient for Section 5307 can be the direct
    recipient of a JARC and New Freedom grant if it is selected for
    funding through the designated recipient's competitive selection
    process.

-   **In nonurbanized areas** (areas under 50,000 in population) tribes
    can be direct recipients for JARC and New Freedom funds if the funds
    are transferred to the Section 5311 program and applied for in a
    Section 5311 grant. The appropriate scope codes 646-00 and 647-00
    should be used in TEAM.

-   **In all other cases**, the entity selected to receive JARC and New
    Freedom funds will be a sub-recipient of the designated recipient.

    -   Private non-profits

    -   Private for profit operators

    -   Public transportation providers in nonurbanized areas.

**15.** Q: Can a Section 5307 recipient in a small urbanized area apply
directly to FTA for JARC and New Freedom funds or does the application
need to come from the State?

> A: The 5307 recipient can apply directly to FTA for funds provided the
> State has competitively awarded the funds to small urbanized areas and
> that the State transfers the funds to the Section 5307 recipient. The
> state must notify FTA of the amount of funds transferred, the program
> to which they are transferred, and the specific projects to be
> implemented under JARC and New Freedom.

**16.** Q. Does the designated recipient have to be a public agency?

> A. Yes, consistent with FTA's interpretation of 49 U.S.C. 5307(a)(2).

**17.** Q. Can the title for vehicles purchased using JARC or New
Freedom funds pass from a designated recipient through to a
subrecipient?

> A. Yes. Please refer to Chapter VI, Section 6 "[TITLE TO VEHICLES" and
> Section 7 "SATISFACTORY CONTINUING CONTROL]{.underline}" in the
> circulars. The designated recipient is encouraged to either hold title
> or record a lien against the title to vehicles. This is not mandatory,
> however. What is mandatory is that the designated recipient establish
> continuing control over the vehicles and accept the responsibility for
> continued public transit use of the vehicles, and more particularly
> use for New Freedom purposes, whether by itself or a subrecipient.
> When capital equipment or facilities are acquired, built, or improved,
> provisions must be made to assure satisfactory continuing control of
> that capital equipment and facilities. While the designated recipient
> may delegate these responsibilities to a subrecipient, the designated
> recipient is ultimately responsible for compliance with this
> requirement.
>
> This means that designated recipients responsible for administering
> JARC or New Freedom funds may hold title to vehicles purchased with
> Section 5316 or Section 5317 funds, or title may be held by a
> subrecipient.

**18.** Q. Which activities are capital and which are operating? Where
can grantees find guidance on determining the difference? Is there a
more detailed listing of eligible capital and operating expenses for
JARC and New Freedom grants? Specifically, are insurance costs
associated with some of the New Freedom projects, costs associated with
car loan programs, and costs associated with voucher programs operating
or capital expenses?

> A. The basic definition of an operating cost is something that does
> not have a useful life of more than one year.  In contrast, a capital
> item is usually a tangible item that has a useful life of more than
> one year. For example, vouchers are considered an operating expense,
> consistent with FTA program requirements; insurance is considered an
> operating expense; a guaranteed loan fund or a revolving fund used
> to make loans are capital expenses; and funds used to pay the
> administrative costs of loan programs are operating expenses. The
> construction of bus stops, installation of elevators, or the purchase
> of buses are examples of capital expenses. Also, mobility management
> is defined by law as an eligible capital expense. Chapter III of each
> program circular contains a list of eligible activities for the
> program.

**19**. Q:  Are private, for-profit taxicab companies that seek to
purchase accessible taxis eligible subrecipients under the New Freedom
program?

>  
>
> A:  In some cases, yes.  FTA considers private taxi companies that
> provide [shared-ride]{.underline} taxi service to the public or to
> special categories of users (such as older adults or persons with
> disabilities) on a regular basis to be operators of public
> transportation, and therefore eligible subrecipients.  "Shared-ride"
> means two or more passengers in the same vehicle who are otherwise not
> traveling together.  Similar to general public and ADA demand response
> service, every trip does not have to be shared-ride in order for a
> taxi company to be considered a shared-ride operator, but the general
> nature of the service must include shared rides.
>
>  
>
> Local (municipal/State) statutes or regulations, or company policy,
> will generally determine whether a taxi company provides shared-ride
> or exclusive-ride service.  For example, if the local regulation
> permits the driver to determine whether or not a trip may be shared,
> the service is not shared-ride.  Similarly, if the regulation requires
> the consent of the first passenger to hire a taxi be obtained before
> the taxi may take on additional riders, the service is not
> shared-ride.  In essence, services which can be reserved for the
> exclusive use of individuals or private groups, either by the operator
> or the first passenger's refusal to permit additional passengers, is
> exclusive-ride taxi service, and is not shared-ride taxi service.  A
> recipient passing funds through to a taxi company subrecipient should
> request documentation from the taxi company to assure the company is
> providing shared-ride service.
>
> [ ]{.underline}
>
> Taxi companies that provide only exclusive-ride service are not
> eligible subrecipients; however, they may participate in the New
> Freedom program.  Exclusive-ride taxi companies can receive New
> Freedom funds to purchase accessible taxis under contract with a
> State, designated recipient or eligible subrecipient such as a local
> government or non-profit organization.  The taxi company may hold
> title to the accessible vehicle(s) as long as the agreement between
> the State, designated recipient or subrecipient and the taxi company
> is sufficient to establish satisfactory continuing control. 
> Acceptable means of establishing satisfactory continuing control could
> include a State, designated recipient or subrecipient's lien on the
> vehicle, or contract provisions that require the accessible taxi to be
> used to provide transportation to people with disabilities, and that
> the vehicle may not be removed from service or disposed of prior to
> the end of its useful life without the express written consent of the
> FTA recipient or subrecipient.

**20.** Q Can New Freedom funds be used to expand service hours and days
for existing fixed route or demand responsive services (other than ADA
complementary paratransit), and (2) Can NF funds be used to fund public
transportation services where they currently do not exist? 

> A: On January 23, 2008, FTA issued a Notice of Proposed Policy
> Statement for Eligible New Freedom projects in the Federal Register
> (See Federal Register volume 74, No.14) proposing to expand the type
> of projects it considers to be \`\`beyond the ADA\'\' and thus
> increase the types of projects eligible for funding under the New
> Freedom program. FTA proposes that new or expanded fixed route service
> and new or expanded demand response service would be eligible for New
> Freedom funding provided that:
>
> \(1\) The service is identified in the locally developed, coordinated
> public transit-human services transportation plan;

\(2\) The service is designed to meet the needs of individuals with
disabilities;

> \(3\) The service removes barriers to transportation and assists
> persons with disabilities with transportation;
>
> \(4\) The service was not operational on August 10, 2005, and did not
> have an identified funding source as of August 10, 2005, as evidenced
> by inclusion in the Transportation Improvement Program (TIP) or the
> State Transportation Improvement Program (STIP); and
>
> \(5\) The service is not designed to allow an agency to meet its
> obligations under the ADA or the DOT ADA implementing regulations at
> 49 CFR parts 37 and 38.
>
> This policy change retains the existing requirement that services
> under the program be "new" services and adopts the interpretation
> voiced by transportation providers that transit services other than
> those that are required to be implemented under the ADA go "beyond the
> ADA." Examples of newly eligible projects would be fixed route service
>
> extended to serve a congregate living facility or a workplace serving
> large numbers of individuals with disabilities; new or expanded demand
> responsive service, including new hours or days of operation, or
> increased geographic coverage, to meet the needs of individuals with
> disabilities.
>
> FTA will consider finalizing this policy change after reviewing
> comments submitted to the docket during the 30-day comment period.

**21** Q: Can New Freedom program funds be used to purchase new vehicles
designed to accommodate oversized wheelchairs or that include multiple
securement areas, for use on fixed route or demand response service?

 

            A: Yes. While the New Freedom circular lists the acquisition
of vehicles designed to accommodate oversized wheelchairs and installing
additional securement locations within the context of enhancing
paratransit services beyond the minimum requirements of the ADA, these
vehicles can also be put into service on fixed routes and demand
response service, provided that the service is targeted towards people
with disabilities. New Freedom funds can be used to acquire the vehicle
and fund the labor costs of aids to help drivers assist passengers with
over-sized wheelchairs.

**22** Q: Can a human service transportation provider use New Freedom
funds to reduce the cost of fares paid by their clients?

> A: No. Although New Freedom program funds can be used to support
> voucher programs offered by human service providers, the vouchers are
> intended to supplement existing services and expand the number of
> providers available or the number of passengers receiving
> transportation services. Offering reduced fares on an existing service
> does not meet the New Freedom program goal of expanding services.
> Other Federal funding is available for transit passes.

**23.** Q: Are there limits on what constitutes an "employment support
service" for the purposes of the JARC program?

> A: FTA considers job training and childcare to be employment support
> services because access to these services can help low-income persons
> attract and retain employment. Applicants who are considering
> providing service to destinations other than job training or child
> care locations should contact FTA to determine whether these
> destinations constitute employment support service. Projects that
> transport children of low-income parents to and from school or after
> school locations do not constitute transportation to employment
> support services under the JARC program and would not be eligible for
> JARC funds.

**24.** Q: Can mobility management projects be funded and implemented
over multiple years?

> A: Yes. Although mobility management refers to "short term":
> management activities to plan and implement coordinated services these
> activities can occur on a multi-year basis.

**25.** Q: Is sidewalk construction an eligible activity under the JARC
and New Freedom programs?

> A. Sidewalk construction is not an eligible activity under the JARC
> program and may be an eligible activity under the New Freedom program,
> provided two conditions are met.
>
> First, the sidewalk must be constructed in order to provide an
> accessible path to a bus stop that is currently inaccessible.
> Secondly, the recipient should determine whether Federal highways or
> other funds are available for pedestrian improvements before applying
> for New Freedom funds for this purpose.

**26.** Q: Is bus shelter construction an eligible activity under the
JARC and New Freedom programs.

> A: Grantees may use JARC funds to construct shelters provided that the
> shelters are located in predominantly low-income areas and along
> transit routes that connect low-income persons to employment or
> employment-related activities. Shelters can also be installed along
> routes that provide reverse commute service. JARC funds can also be
> used to make existing shelters accessible for people with
> disabilities, provided that the above conditions apply.
>
> Grantees may also use New Freedom funds to construct accessible bus
> shelters or to modify existing bus shelters to make them accessible.

**27**. Q: Is travel training considered a capital expense on an
operating expense under the New Freedom program?

> A: The New Freedom program circular treats travel training as a
> component of mobility management, which is considered a capital
> expense and is eligible for up to an 80 percent Federal match.

***[Planning Process:]{.underline}***

**28.** Q. Do the FTA regional offices have to verify that projects are
derived from coordinated plans?

A. Yes, in coordination with the grant application. Direct and
designated recipients must certify that projects to be funded are
derived from a coordinated plan and the grant application should include
a page reference to the plan. In reviewing the application the FTA
Regional Office needs to ensure that the grantee provides this
information in the program of projects (POP). Appendix A of the
circulars includes the following language: "Project activities shall be
sufficiently described to assist the reviewer in determining eligibility
under the program and shall include the page number of the coordinated
plan from which the project was derived, as well as the date the plan
was adopted."

**29.** Q: Are applicants required to attach their coordinated plan to
their application in TEAM?

> A: No. FTA regional offices will not review coordinated plans as a
> part of their review of an application for Section 5310, JARC, or New
> Freedom funding. Rather, FTA will rely on:
>
> (1)The applicant\'s certification in the grant that a project is
> derived from a coordinated plan; and
>
> (2)The \"paper clipped\" Program of Projects that contains the name of
> the applicable plan and the page number where the project or strategy
> is located within the plan.

**30.** Q. Does the State have to have its own coordinated plan or can
it rely on local plans?

> A. There is no requirement for a State plan, just a local coordinated
> plan. However, the community will define "local" and in some cases the
> planning area may be defined as statewide. Please reference Chapter V,
> Section 2 of the circulars.

**31.** Q. Do projects have to be in both the STIP/TIP?

> A: If the project is within the planning boundary of a Metropolitan
> Planning Organization (MPO), the project has to be in both the TIP and
> the STIP. Projects in nonurbanized areas only have to be in the STIP.
> Depending on State or local requirements, the projects may show on the
> aggregate (program level) or be listed on the individual project level
> listing. TIP and STIP listings must be consistent with the
> metropolitan and statewide transportation plans.

**32.** Q: Can an applicant hold a competitive selection and apply to
FTA for funding for projects that a re derived from draft coordinated
public transit human services transportation plans?

> A: Designated recipients can hold a competitive selection for projects
> that are derived from a draft coordinated plan and can place those
> projects that were selected e in Category B of their application to
> FTA. Projects in Category B are those projects the designated
> recipient anticipates approving during the current year, but have not
> yet met all of the Federal statutory or administrative requirements.
> Grant money for projects derived from a draft coordinated plan can be
> obligated by FTA but may not be expended by the designated recipient
> until the plan is finalized.

***[Competitive Selection Process:]{.underline}***

**33.** Q. For projects or needs that cross UZA and rural or small
urbanized boundaries, whose coordinated plans or competitive selection
process should we compete in?

A. This is a local decision. If the service is completely located within
an urbanized area, providers should compete for those funds in the
urbanized area; and in a rural competition if the area is rural. If the
service is targeted to serve the residents of the rural area (even if
the provider is located within the urbanized area) the service is
eligible for rural funding.  Ideally in this situation the coordinated
plan boundaries could include services in urbanized, rural, and small
urban areas; however, this does not have to be the case.

**34.** Q. May a stakeholder or transportation provider that meets the
criteria of both urban and rural compete within both categories?

A. A transportation provider that provides services in rural, small
urban, and/or large urbanized areas can compete and therefore receive
funding in any area to provide services. 

**35.** Q. May a transportation provider bid on projects if it
participated in the coordinated planning process?

A. Yes.

**36.** Q. Is a transportation provider required to participate in the
coordinated planning process in order to bid on projects?

A. No.

**37.** Q. Is it acceptable to compete different project
components/costs in each of the categories, urban and rural?

A. Yes, This is acceptable.

**38.** Q. Do projects have to be specifically listed or can they be
"generally" consistent with the coordinated plan?

> A. Projects do not have to be listed specifically, but they have to be
> consistent with and derived from the coordinated plan. Chapter IV of
> the circulars contains examples of different types of competitive
> selection processes. These examples also illustrate how projects may
> be derived from the coordinated plan without being specifically listed
> in the plan.

**39.** Q. Can the State ask for projects regardless of specific program
and then determine under which program the project will be funded?

A.  Yes, the State may have an open call for projects which meet the
    objectives of the various programs. However, the State must use
    developed criteria to competitively select projects funded by JARC
    or New Freedom program funds.

**40.** Q: In response to a designated recipient's request for
proposals, can a potential subrecipient propose to pass through the
funds to another subrecipient, or must an applicant conduct a
third-party procurement before passing through funds to the
subrecipient?

> A: States or designated recipients can, in some cases, choose to grant
> Section 5310, JARC, or New Freedom assistance to a subrecipient
> through an intermediary subrecipient. For example, a state could pass
> funds to a non-profit organization through a local government
> authority. The arrangement between the first tier and second tier
> subrecipient is not a third party contract if the ultimate
> subrecipient would otherwise be eligible under Section 5310, JARC, or
> New Freedom to receive funds directly from the State or Designated
> recipient. If the ultimate subrecipient is not otherwise eligible, the
> intermediary subrecipient would need to conduct a procurement,
> consistent with FTA guidelines in Circular 4220.1

***[General Questions/Suggestions:]{.underline}***

**41.** Q. If a project includes purchase of a vehicle for a specific
program and the program ceases to exist before useful life of the
vehicle is achieved, what happens to the vehicle?

> A. Grantees must follow the requirements of the Common Rule (49 CFR
> Part 18 or Part 19, depending on the nature of the grantee). This
> information is also referenced in Chapter VI, Section 5 in the program
> circulars.

**42.** Q. Has oversight for JARC and New Freedom been established?

A. For States and Section 5307 direct recipients of JARC and New Freedom
funds, FTA will incorporate additional questions into the State
Management and Triennial Reviews. FTA is in the process of exploring
oversight options for direct recipients that are not States or Section
5307 direct recipients.

**43.** Q. If the State does not want to be responsible for implementing
the JARC or New Freedom program can the Governor designate a large
metropolitan/urban area to be responsible for the programs?

> A. No, the State is the designated recipient for rural and small
> urbanized areas. For JARC and New Freedom the Governor may designate
> any state agency to manage the program.

**44**. Q. Can the State be a designated recipient for a large urbanized
area?

A. Yes, if the designation is in accordance Section 5307(a)(2).

**45.** Q. Large UZA -- If a traditional grantee that is not a
designated recipient of New Freedom is allowed to apply directly, do
they need to apply in a Section 5317 ("57") application or can the funds
be added to their regular Section 5307 ("90") application for
administrative purposes?

A. A traditional grantee in a large UZA could apply directly to FTA for
the Section 5317 funds allocated to them through the designated
recipient\'s competitive selection process. However, the grantee must
make an application for a Section 5317 (57) grant in TEAM because there
is no transfer provision that allows transfer to Section 5307 for large
urbanized areas. A supplemental agreement will need to be executed
between the designated recipient and the traditional Section 5307
recipient. This would also be the process if the funds being applied for
were JARC funds: the direct recipient would apply for a Section 5316
(37) grant.

**46.** Q. Small UZA -- If the state transfers funds to Section 5307 so
traditional grantees can apply directly, is a supplemental agreement
with the state necessary?

A. No, the transfer also removes the oversight responsibility for those
funds from the designated recipient to the grant recipient under Section
5307. The State will only be responsible for the program requirements
(such as competitive selection and ensuring projects are derived from a
coordinated plan) and data collection for annual reporting purposes.
Although the funds can be applied for in a Section 5307 grant, the grant
should only contain funding and activities for the New Freedom project.
New Freedom, JARC, and Section 5307 funds cannot be combined in a single
grant because disbursements cannot be recorded to the appropriate
program.

**47.** Q. If different funding programs administered by the State
(JARC, New Freedom, 5310, 5311) are included in one application, what
grant number is used (37, 57, 16, 18) or does it matter as long as the
separate scopes are used?

> A. The State will use the grant number for Section 5311 (18); separate
> scopes would still be used within the project budget to distinguish
> between the funds used. States may combine funds from multiple
> programs in a consolidated Section 5311 grant, but the State must
> track, manage, and report on each program's funds separately within
> the consolidated grant.  

**48.** Q. If a grantee submits one grant for the program administration
(10%) for all three programs, how is the grant coded/numbered?

A. Administrative funds may not be combined into a single section 5307
grant. However, Chapter III of the program circulars specifies the
following: "FTA will allow all or a  portion of the administrative funds
for JARC, New Freedom, and Section 5310 to be combined to support
activities (such as coordinated planning) that are common to all three
programs.  Recipients may combine program administration funds into one
administrative account, so long as the recipient uses the funds for
costs associated with administering the Section 5310, JARC, and New
Freedom programs.  However, FTA must still track the funds attributable
to each program at the accounting classification code, Activity Line
Item (ALI), and Financial Purpose Code (FPC) Level in respective
grants.  As a recipient incurs expenses against the pooled funds for
program administration, it can draw down the reimbursement against any
grant that has undisbursed program administration funds."  If the funds
for multiple programs are combined in a Section 5311 grant, there could
be one line item for state administration, equaling the total of state
administration obligated using FPC 06 for all the programs included in
the grant.