Source: https://www.fhwa.dot.gov/legsregs/directives/orders/50202b.cfm
Timestamp: 2020-08-12 01:44:28
Document Index: 669967785

Matched Legal Cases: ['art 1', 'art 172', 'art 2', '§18', '§635', '§ 225', '§ 225', '§635', '§653', '§635', '§635', '§635', '§635', '§635', '§18', 'art 3']

Attachment B - FHWA Order 5020.2 - Stewardship and Oversight of Federal-Aid Projects Administered by Local Public Agencies (LPA) | Federal Highway Administration
Stewardship and Oversight of Federal-Aid Projects Administered by Local Public Agencies (LPA)
5020.2 August 14, 2014 HIPA-40
Order 5020.2 - Attachment A | B | C
Program Assessment of State Transportation Agency (STA) Stewardship and Oversight of Local Public Agency (LPA) Administered Projects
Part 1: Overview Assessment of STA Oversight Framework for LPA-Administered Federal-Aid Projects (Context and Attributes)
I. STA's LPA Program Demographics:
A. Does the STA provide Federal-aid funds for projects administered at least in part by an LPA?
If your answer is no, you do not need to proceed any further with this questionnaire.
1. If the answer to A is yes, approximately what dollar amount does this represent?
2. If the answer to A is yes, what percentage of the STA's overall Federal-aid program funds does this represent?
3. What is the approximate number of different LPAs receiving sub-allocations of Federal funds on LPA-administered projects (i.e., projects administered at least in part by an LPA during any given year)?
Numeric or NA
4. What is the current number of LPA projects for the fiscal year (FY) under review? (See below for the LPA projects administered in your State as determined by the 5 following established Fiscal Management Information System (FMIS) project oversight designations)
• Local Projects: Fully State Administered, with FHWA retaining authority for some project approval actions -- Federal-aid projects for the FY under review, administered by the STA on behalf of the LPA for which FHWA has retained project approval decisionmaking authority to review and approve actions, in identified high risk areas, pertaining to environment, design, plans, specifications, estimates, right-of-way (including utility and railroad) certification statements, contract awards, contract changes, inspections and final acceptance on a project-by-project basis. (State Administered Projects of Division Interest (PoDI))
Need to conduct information search in FMIS with using both the project oversight and functional system parameters.
• Local Projects: Fully State Administered; with FHWA taking only required (non-assumable) project approval actions -- Federal-aid projects for the FY under review, administered by the STA on behalf of the LPA for which the STA has assumed FHWA's authority to review and approve actions pertaining to environment, design, plans, specifications, estimates, right-of-way (including utility and railroad) certification statements, contract awards, contract changes, inspections and final acceptance on a project-by-project basis. (State Administered non-PoDI)
• Locally Administered Projects with FHWA retaining authority for some project approval actions -- Federal-aid projects for the FY under review, administered, at least in part, by an LPA for which FHWA has retained project approval decisionmaking authority to review and approve actions, in identified high risk areas, pertaining to environment, design, plans, specifications, estimates, right-of-way (including utility and railroad) certification statements, contract awards, contract changes, inspections and final acceptance on a project-by-project basis. (Locally Administered PoDI)
Numeric of NA
• Locally Administered Projects with FHWA taking only required (non-assumable) project approval actions -- Federal-aid projects for the FY under review, administered, at least in part, by an LPA for which the STA has assumed FHWA's authority to review and approve actions pertaining to environment, design, plans, specifications, estimates, right-of-way (including utility and railroad) certification statements, contract awards, contract changes, inspections and final acceptance on a project-by-project basis. (Locally Administered non-PoDI)
• Other -- There may be situations that do not fit the previous four categories. Examples could include non-STA direct recipients.
II. General Operational Questions: (See Page 23 for Answer Choice "Key.")
A. Does the STA allow LPAs to administer different phases of a Federal-aid project?
B. If yes, what phases of the project development/implementation process are LPAs allowed to administer? (Select all that are appropriate for Environment, PE (Design), ROW, Utilities, Lettings, or Construction.)
[ ] PE (Design)
[ ] ROW
[ ] Lettings
C. Has the STA established internal detailed direction and expectations (i.e., holding staff accountable for performance, setting timeframes, requesting certain reporting mechanisms on a regular basis, etc.) from the leadership level regarding program commitment and accountability as it relates to its LPA project administration?
[ ] Firmly Yes
[ ] Mostly Yes
[ ] Mostly No
[ ] Firmly No
D. Has the STA established internal written business measures (i.e., timely delivery of projects, compliance with Federal requirements, timely billing and reimbursement, timely project closeouts, etc.) for its LPA-administered projects?
E. Does the STA have a documented certification process that identifies qualified LPAs to administer Federal-aid projects?
Certification is not required, but is considered a creditable practice.
1. If the answer to E is yes, does this certification process address the LPA's capacity (i.e., staffing knowledge and experience with Federal-aid program requirements, project management knowledge and experience, financial controls, etc.)?
F. Is there a "Program Agreement" (similar to the Stewardship and Oversight Agreement between the STA and FHWA) between the STA and the LPAs prior to receipt of Federal-aid funds?
1. If the answer to F is yes, does the "Program Agreement" delineate STA and LPA responsibilities (i.e., program management, project development, project implementation, etc.) during key project delivery phases (environment, right-of-way, design, construction, etc.)?
G. Does the STA require a "Project Agreement" between the State and LPA that identifies commitments (i.e., designation of "responsible charge," STA's oversight role, project scope, financial information, project schedule, etc.) between each agency before an LPA can proceed with a Federal-aid project?
H. Does the STA have written processes that allow for program improvements resulting from feedback from LPAs?
III. STA Organizational Structure and Staffing for Overseeing LPA-Administered Projects:
A. Does the STA's organizational structure identify all units responsible for the administration and oversight of locally administered projects?
B. Where is the STA staff administering the LPA program located?
[ ] Central Office
[ ] District/Resident
C. Has the STA established an LPA Program Manager Position?
D. Are the STA's organizational responsibilities documented and assigned?
E. Is the "Delegation of Authority" documented?
1. If the answer to E is yes, does the document clearly designate STA individuals responsible for key program and project decisions?
F. Is there established, documented collaboration within divisions of the STA (i.e., "points of contact") and LPA organizations?
G. Does the STA LPA program staff have knowledge and experience with Federal-aid requirements?
H. Does the STA provide training to STA staff for the administration of the LPA program?
1. If the answer to H is yes, does the STA track its staff's training in a learning management system or by other means? (i.e., who needs training? is it time for refresher training? etc.)
IV. Consultant Procurement Process Used on LPA-Administered Projects:
A. Can LPAs contract with consultant firms to provide services on Federal-aid projects?
If your answer is no, you do not need to proceed any further in this section.
If your answer is yes, the following questions assume that Federal-aid funds are being used to cover the cost of services.
B. Do LPAs use the STA's consultant procurement procedures, their own consultant procurement procedures, or a combination of both?
[ ] STA Procedures
[ ] LPA Procedures
C. If the LPAs use their own consultant procurement procedures, have they been approved by the STA to comply with Federal requirements? [Brooks Act, 49 CFR 18.36, 23 USC 112(b)(2), 23 CFR Part 172]
D. Do both the STA's and the LPA's policies and procedures address conflict of interest?
E. Does the STA prequalify consultants for LPAs?
F. Does the STA maintain oversight of the LPA's consultant procurement process?
G. Does the STA require and document the verification of the LPA's review and approval of the consultant's work performance?
H. Are invoiced fees for consultant services reviewed by the STA per the Federal cost principles, terms of the contract, and status/progress of the work completed?
V. STA's LPA Policy, Procedures, Program Guidance, and Training:
A. Does the STA have documented guidance for LPAs to develop, implement, and administer Federal-aid projects in accordance with all appropriate Federal requirements?
B. Is the documented guidance readily available to all stakeholders (LPAs, STA employees, consultants, and FHWA)?
C. Is this documented guidance regularly updated?
D. Are changes/revisions to the documented guidance communicated to all appropriate stakeholders and/or users?
E. Does the STA's documented guidance provide a distinction between State and Federal requirements?
F. Does the STA have a training program to educate LPAs on the policies and procedures, including State and Federal requirements? If yes,
1. Is the training an ongoing STA commitment (i.e., meets the needs of new LPA staff, refresher training, etc.)?
2. Does the FHWA division office have a role in the training program?
3. Are LTAP resources utilized in the training efforts?
4. Is there a clearinghouse for training information and materials that is accessible to LPAs and consultants?
VI. STA's Stewardship and Oversight of LPA-Administered Projects:
A. Are the oversight roles and responsibilities for LPA-administered projects addressed and documented per the STA/FHWA Division Stewardship Agreement?
B. What level of oversight does the STA maintain over its LPA program? (Select all that are appropriate.)
[ ] Periodic Evaluations
[ ] Monitor with reviews and approval actions,
[ ] Process Reviews
C. Does the STA have a documented plan for oversight of LPA-administered projects?
D. Does the STA conduct a "risk assessment" of its LPA-administered projects?
E. Does the STA evaluate the capabilities and qualifications of the staff of each LPA that administers Federal-aid projects?
F. Does the STA conduct oversight reviews and project inspections on LPA-administered projects for compliance with Federal requirements? If yes,
1. Does the STA periodically review the LPA-administered projects for effectiveness and efficiency?
2. Does the STA have a process to address deficiencies disclosed by these reviews?
3. Are there documented procedures that address the frequency and level of project inspection?
4. Does the STA have a checklist for compliance with Federal, State, and local requirements on LPA projects?
5. Are the results of the STA's project oversight reviews and inspections of the LPA documented?
6. Does the FHWA division participate in STA's LPA program reviews?
VII. Financial Management – Accounting Systems, Procurement, Billing Controls, and Auditing:
A. Does the STA assure LPAs have accounting systems that meet Federal requirements?
B. Are the accounting systems between the STA and LPAs interfaced?
C. Is there separation of responsibilities in the accounting process?
D. Is there an STA process or system for coordinating and reconciling records?
E. Are STA accounting system reports prepared for management review?
F. Are financial reports and statements reconciled with FHWA's accounting records?
G. Is the accuracy of these reports verified or pre-audited before release?
H. Do the source and workflow of documents provide evidence for accountability of Federal funds?
I. Are project records maintained for 3 years after FHWA final acceptance/voucher – closeout?
[49 CFR 18.42]
A. Is the STA reviewing LPA procurement practices for compliance with Federal procurement regulations?
B. Are there documented compliance processes and practices for conducting routine evaluations of the procurement process?
Billing Controls:
A. Do progress payments for LPA projects go through the STA's financial system?
B. Is there documented guidance for the LPAs regarding the progress payment process?
C. Are progress payments reviewed by the STA for completeness, sufficiency, and accuracy?
D. Is there documentation to support progress payments for completed work?
E. Do agreements between the STA and LPA include terms about the frequency of progress payments?
Reimbursements to LPAs:
A. Is there a documented process identifying time required to process reimbursements to LPAs?
B. Does the STA review LPA invoices or progress payments?
C. Does the STA have documented procedures for project close out?
D. Are projects closed out within an established period of time?
A. Do the STA and/or LPAs have a process for audits to review final invoices for LPA-administered Federal-aid projects?
B. Are the final project invoices supported by these audit results?
C. Are the delegations of authority in place for the STA staff to take action when they receive the audit results?
D. Does the STA have a documented process to address the STA's and/or LPA's significant findings that impact the expenditure of Federal funds?
E. Is there a quality assurance program for the LPA audits?
Part 2: Oversight Assessment of LPA-Administered Federal-aid Projects – Program Compliance Overview:
I. FHWA Division Office LPA Program Oversight: (See Page 23 for Answer Choice "Key.")
A. Does the Division Risk Assessment address LPA-administered Federal-aid projects?
B. Does the Division Unit Plan include LPA-related activities/initiatives?
C. Does the division office delegation of authority address oversight of the STA's LPA program?
II. STA Stewardship and Oversight of LPA-Administered LPA Projects:
A. Is the STA providing oversight of subrecipients, including oversight of LPAs with delegated responsibilities?
[49 CFR §18.40 – superseded by 2 CFR 200.331(d) ]
B. Is the STA assuming its LPA oversight responsibilities in accordance with 23 U.S.C. 106(g)(4)?
C. Does the STA acknowledge its responsibility for LPA compliance with Federal requirements (i.e., through communication, documentation, training, etc.)? [23 CFR §635.105(a)]
D. Does the STA have a determination process that assesses whether an LPA has adequate project delivery systems and sufficient accounting controls to properly manage projects?
[2 CFR § 225.5; 2 CFR § 225.20; 23 U.S.C. 106(g)(4)(A)]
E. Does the STA have a determination process that assesses whether an LPA:
- Has staff that is knowledgeable about Federal requirements;
- Is equipped to perform work effectively; and
- Can manage Federal-aid projects?
[23 CFR §635.105(c)(3)]
F. Does the STA have a determination process that can assess:
- Whether LPA projects are receiving adequate project inspection;
- Assurances that a contractor's work is properly completed in conformance with approved plans and specifications: and
- That materials used are sampled and tested per STA-approved processes?
[23 CFR §653.120]
G. Does the STA ensure each LPA designates a representative to be in responsible charge of Federal-aid projects it administers, as defined by 23 CFR §635.105(c)(4)? [also see FHWA Office of Program Administration memorandum dated August 4, 2011]
H. Is the STA in compliance with LPA reporting requirements in accordance with the Federal Funding Accountability and Transparency Act of 2006?
I. Has the STA established how project actions, including approval and oversight actions, will be administered in accordance with Federal laws and regulations? Project actions include:
- Consultant selection and management,
- Civil rights,
- Project development and implementation process phases – [environment, right-of-way (including utilities and railroads), design, construction, etc.]
[23 CFR §635.172.9(d); 23 CFR §635.118;
23 CFR §635.122; 23 CFR §635.123]
J. Does the STA document its oversight activities for LPA-administered Federal-aid projects?
[49 CFR §18.42]
K. Is the STA's documentation, when requested, shared with the FHWA division office?
Part 3: Division's Conclusions
III. Concluding Questions (Based on the above responses as supporting documentation):
A. Do you believe LPAs have an adequate delivery system for Federal-aid projects?
B. Do you believe LPAs have sufficient accounting controls to properly manage Federal funds?
C. Does your STA perform monitoring and periodic review of LPA-administered projects?
D. How would you rate the level of risk for the LPA program in your State?
[ ] Moderate-high
[ ] Moderate-low
High: major systemic issues of compliance and effectiveness.
Moderate-high: systemic issues of compliance and effectiveness.
Borderline: programmatically not fatal. Non-compliance issues reoccur in isolated program areas but are not ssystemic.
Moderate-low: in good shape but may need minor improvements. Non-compliance issues are not systemic but more incidental.
Low: fully compliant and operating effectively by the STA/LPAs
Answer Choice "Key"
Description of Responses to Questions in Questionnaire Set
Firmly Yes – Element in question is considered fully compliant and operating effectively by the STA/LPAs. The LPA S&O program is considered exceptional at the "state-of-the-art" level.
Mostly Yes – Element in question is determined to be in good shape but may be found in need of some minor improvements or show opportunities for program enhancements. Non-compliance issues are not systemic but more project specific. The LPA S&O program is generally considered state-of-the-practice.
Borderline – Element in question needs attention but has not been found to be programmatically fatal. Non-compliance issues reoccur in multiple projects but are not statewide. Corrective action is required and may warrant its inclusion in a formal action plan.
Mostly No – Significant issues need to be addressed. Problems may be systemic. Initiatives/action steps will need strong consideration to be included as part of an overall formal corrective action plan.
Firmly "No" – Major systemic issues of compliance and effectiveness need to be addressed. Further authorization of federally funded LPA projects may be under consideration for suspension. Initiative/action steps are to be included as part of an overall formal corrective action plan.
Needs Reviewing (NR) – Do not have sufficient information or knowledge to answer question confidently. This requires action steps to be included as part of an overall action plan.
Not Applicable (NA) – Element in question is not a part of an LPAs designated administrative responsibilities as established by the STA.