Specific Requirements E

Connecticut Department of Transportation

E. AUDIT OF MUNICIPAL AGREEMENTS

1. Preliminary Engineering

a. Background History

Preliminary Engineering, related to improvements of roads designated by the Federal Government as part of the federal-aid urban systems.

The work may be performed by the State, Municipality, consulting engineer and/or contractor. Costs are shared by the Federal Government, State and Municipality.

b. Purpose of the Audit

To determine the actual project costs and the sharing percentages of such costs among the Municipality, State and Federal Government. Costs incurred by the Municipality and/or consulting engineer are examined for over-statement and compliance with Federal Regulations and State Policy. All costs incurred are reviewed for compliance with the terms of the agreement(s).

c. Criteria Used in Determining Allowable Costs

Criteria used to determine allowable costs are as follows:

1. OMB Circular A-87

2. OMB Circular A-102 and The Common Rule

3. State of Connecticut, Office of Policy and Management General Letter No. 97-1

4. Section 13a-98i of the Connecticut General Statutes

5. Terms of the agreement(s)

d. Information to be Submitted with Audit Request

I. For All Projects

i. Entity name

ii. State Project Number

iii. Federal-Aid Project Number (if applicable)

iv. All agreements (i.e. State/Municipality, State Consultant, Municipality/ Consultant) 

v. FHWA Closeout date, if applicable

 d. Information to be Submitted with Audit Request (Cont'd)

II. For Projects with Municipality Costs

i. Summary of Municipality’s or Consultant’s billings and payments

ii. CLA-3’s from Municipality with supporting documentation except for copies of employee timesheets

iii. Copies of Municipality’s Single Audit and specifically the Schedule of Expenditures of Federal Awards and Schedule of Expenditures of State Financial Assistance

iv. Authorization to proceed (from State)

v. Written State approval of the Municipality/Consultant agreement

vi. All applicable DBE/SBE information (including verification of payment to DBE/SBE)

e. Office Responsibility for Requesting Audit

Financial Services

Please note that for projects WITHOUT any Municipal expenditures, where the Municipality is sharing in total project costs (submission of demand deposit or letter of credit), the responsibility for requesting an audit remains with the administrating unit. This is necessary in order to determine whether there are additional funds due to the State or a reimbursement is due the Municipality.

f. Reports

Reports are sent to the requesting office, which will then forward a copy to the Municipality.

g. Other Considerations

Please advise if projects are funded by any other State sources, such as Orphan Bridge projects being funded by Local Bridge Programs.

2. Construction

a. Background History

Construction related to improvements of roads designated by the Federal Government as part of the federal-aid urban systems.

The work may be performed by the State, Municipality, consulting engineer and/or contractor. Costs are shared by the Federal Government, State and Municipality.

b. Purpose of the Audit

To determine the actual project costs and the sharing of such costs among the Municipality, State and Federal Government.

Costs incurred by the Municipality, consulting engineer and contractor are examined for over-statement and compliance with Federal Regulations and State Policy. All costs incurred are reviewed for compliance with the terms of the agreement(s).

c. Criteria Used in Determining Allowable Costs

Criteria used to determine allowable costs are as follows:

1. OMB Circular A-87

2. OMB Circular A-102 and The Common Rule

3. State of Connecticut, Office of Policy and Management General Letter No. 80-5 and/or 97-1

4. Section 13a-98i of the Connecticut General Statutes

5. Terms of the agreement(s)

d. Information to be Submitted with Audit Request

I. For All Projects

i. Entity name

ii. State Project Number

iii. Federal-Aid Project Number (if applicable)

iv. All agreements (i.e. State/Municipality, State/Consultant, Municipality/Consultant)

v. FHWA Closeout date, if applicable

vi. Quantities and cost for sidewalk work, if the State is not participating in this work.

II. For Projects with Municipality Costs

i. Summary of Municipality’s or Consultant’s billings and payments

ii. CLA-3’s from Municipality with supporting documentation, except for copies of employee timesheets

iii. Copies of Municipality’s Single Audit and specifically the Schedule of Expenditures of Federal Awards and Schedule of Expenditures of State Financial Assistance

iv. Copy of Construction Order Con-5

v. Notice of Acceptance

vi. State approval of the Consultant’s agreement

vii. All applicable DBE/SBE information (including verification of payment to DBE/SBE)

viii. Payroll approval letters if Municipality hired outside consultant

ix. Notice of Completion of Construction work Con-58

x. Copy of Consultant’s project cost audit if required per Municipality/Consultant agreement

e. Office Responsibility for Requesting Audit

District Offices or the Office of Construction

Please note that for projects WITHOUT any Municipal expenditures where the Municipality is sharing in total project costs (submission of demand deposit), the responsibility for requesting an audit remains with the administrating unit. This is necessary in order to determine whether there are additional funds due to the State or a reimbursement is due the Municipality.

f. Reports

Reports are sent to the requesting office, which will then forward a copy to the Municipality.

g. Other Considerations

Please advise if projects are funded by any other State sources, such as Orphan Bridge projects being funded by Local Bridge Programs.

3. Rights of Way

a. Background History

Purchases of necessary Rights of Way related to improvements of roads designated by the Federal Government as part of the federal-aid urban systems.

The work may be performed by the State or Municipality. Costs are shared by the Federal Government, State and Municipality.

b. Purpose Of The Audit

To determine the actual project costs and the sharing of such costs among the Municipality, State and Federal Government.

Costs incurred by the Municipality are examined for over-statement and compliance with Federal Regulations and State Policy. All costs incurred are reviewed for compliance with the terms of the agreement(s).

c. Criteria Used In Determining Allowable Costs

Criteria used to determine allowable costs are as follows:

1. Federal Aid Policy Guide, 23 CFR Chapter 1, Subchapter H, subparts 710 through 777

2. Federal Aid Policy Guide, 49 CFR Subtitle A, Part 24, Subpart A through G

3. Federal Aid Highway Program Manual, Volume 7, Chapter 3, Section 2

4. Connecticut General Statutes, Chapter 135, Sections 8-226 through 282

5. ConnDOT Policy Statements, HWYS-11, HWYS-20, and HWYS-21

6. Public Law 91-646 (Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970)

d. Information to be Submitted with Audit Request

I. For All Projects

i. Entity name

ii. State Project Number

iii. Federal-Aid Project Number (if applicable)

iv. All agreements (State/Municipality)

v. STA-18 Certificates of Rights of Way

vi. Evidence of Completion of Final Federal Aid ROW Plans

II. For Projects with Municipality Costs

i. CLA-3’s from Municipality with supporting documentation

ii. Municipality Certification of Compliance with Uniform Relocation Assistance Act and 49 CFR, Part 24 and 23 CFR, Part 710-752

e. Office Responsibility for Requesting Audit

Office of Rights of Way

Please note that for projects WITHOUT any Municipal expenditures where the Municipality is sharing in total project costs (submission of demand deposit), the responsibility for requesting an audit remains with the administrating unit. This is necessary in order to determine whether there are additional funds due to the State or a reimbursement is due the Municipality.

f. Reports

Reports are sent to the requesting office, which will then forward a copy to the Municipality.

g. Other Considerations

Please advise if projects are funded by any other State sources, such as Orphan Bridge projects being funded by Local Bridge Programs.

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