“Show Me the Money” Observations and Recommendations

1. “Show Me the Money”Observations and Recommendations

2. Show Me the Money IT IS ALL ABOUT THE MONEY.

3. Show Me the Money IT IS ALL ABOUT THE MONEY. Unfortunately FEDERAL FUNDS are not free! They have strings attached (Rules, Regulations, Procedures and Processes).

4. Show Me the Money So what do you need to do to help insure that you get all of the money available to you?

5. Show Me the Money So what do you need to do to help insure that you get all of the money available to you? Eliminate common problems

6. Common Problems Internal payment and billing processes not documented (Insures consistency even when people change) Process descriptions note the individual’s name and not the positions. (Use positions not people.) Documentation of the processes followed are incomplete. (Follow a single invoice/payment through your system, documenting the process with copies of internal records, reports and approvals that track its progress through your system)

7. Common Problems Reviews and approvals not documented (Sign the document with your initials and the date of the approval or review. This documents that the review was done or the approval given and when) One person performs all or most of a single process. (Limit, to a minimum, the number of functions in a single process that any one person can perform. Check on each other and each other’s work)

8. Common Problems Costs incurred prior to federal authorization or NDOR notice to proceed dates. (Do not incur any costs prior to these key dates. These costs will not be reimbursed.)

9. Common Problems Project records – including accounting records are not retained long enough. Keep all project records for three years after the project has been given final approval by FHWA. The date this three year period starts will be stated in a letter from the Controller Division. (It is not when the project is physically complete or NDOR acceptance)

10. Common Problems

11. Common Problems Recently added: “Please retain all project and accounting records pertaining to this project for a period of three years from the date of this letter.”

12. Common Problems Work done before additional federal funds are requested and approved IN ADVANCE. Additional federal funds need to be requested and approved BEFORE the costs are incurred --- not after the work is done. Proper approval of change orders not requested. (If the project is a federal-aid project, NDOR approval is always needed on all change orders and sometimes FHWA approval is also needed.)

13. Common Problems All project records not retained at political subdivision offices . (Keep all project records (including load tickets) at your offices (at least at the end of project) Consultant selection not properly documented. (If you use a consultant for PE or CE, document the selection process (votes, by whom, date, and criteria), you may be asked to provide copies for compliance with the Brooks Act – quality based selection criteria (If you don’t follow the act, none of these costs will be reimbursed)

14. Common Problems Total project costs not always billed. (Document the “total” costs, not just federal share.) Verbal discussions and email not always documented or retained. (Follow up conversations with email and retain a copy in the files)

15. Recommendations If you are going to do this work yourself, be ready to document your actual time (time sheets), pay rates (payroll records) and overheads fees, if charged. (Basis for overhead rate – detailed calculations – must be documented and reviewed annually).

16. Recommendations If you are charging the project for vehicle usage, make sure you have detailed records that support the time and rates charged. Keep vehicle usage documents and method for charging the miles to the project versus some other activity. [You can use FEMA rates, but have to use them consistently – internally and externally]

17. Recommendations Keep copies of cancelled checks issued that are related to the project. Costs must be identifiable to this project versus another activity Keep the appropriate supporting documents with the payment or invoice Don’t stop keeping records or getting approvals or notices to proceed just because the maximum federal funds limit has been reached.

18. SUMMARY Records tell the story. (Make the story as complete as possible) When in doubt ASK

19. Questions?