Grant Management Guidance, 56892-56896 [E8-22891]
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requirements that FTA grantees are held
to in addition to the program-specific
requirements and guidance provided in
the circular. We revised this chapter to
alphabetize the provisions, and we
moved the Presidential Coin Act to this
chapter.
Two commenters asked FTA to clarify
whether the public hearing
requirements described in the section,
‘‘Public Hearing Requirements’’ apply to
projects that are categorical exclusions
under NEPA. The circular states that
NEPA public hearing requirements are
sufficient to meet the requirements of 49
U.S.C. 5323(b), which requires public
involvement for any capital project that
will ‘‘substantially affect a community
or the public transportation services of
a community.’’ Therefore, whether or
not NEPA public hearing requirements
apply, the provisions of 49 U.S.C.
5323(b) require public involvement for
most capital projects. In response to
comments, we have edited this section
to clarify the requirements.
We have revised the section,
‘‘Environmental Reviews,’’ since each
chapter contains specific information
about environmental requirements that
apply to specific types of projects, and
an extensive discussion in this chapter
is repetitive and unnecessary. One
commenter suggested that in the
section, ‘‘Clean Air Act,’’ we include as
an appendix the list of exempt transit
projects in the EPA regulation that do
not require any analysis. We decline to
include this list, but we have included
the direct regulatory citation for this
information.
We have updated the section,
‘‘Charter Bus Services’’ to reflect the
new regulation on charter service. (73
FR 2326, Jan. 14, 2008).
G. Appendices
The appendices are intended as tools
for developing a grant application.
Appendix A specifically addresses steps
and instructions for preparing a grant
application, including pre-application
and application stages. Appendix A also
includes an application checklist and
information for registering with the
Electronic Clearing House Operation’s
(ECHO’s) electronic payment system.
One commenter suggested we include
information as to where one can find the
TEAM User Guide; we have included
the hyperlink to the Web site for this
information. One commenter suggested
that FTA request planning justification
information in the ‘‘project description’’
section of TEAM. While this
information is not required in the
project description, we note that
recipients must include the date and
page number of the most recently
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approved Statewide Transportation
Improvement Plan (STIP) for the
projects listed in the application.
Appendix B provides budget
information, including several sample
budgets. Appendix C contains samples
of an Authorizing Resolution, a Fleet
Status Report, Like-Kind Transaction for
Mid-life Sale of a Transit Bus, an
Opinion of Counsel, a Project Milestone
Schedule, and Proceeds from the Sale of
Assets. Appendix D contains contact
information for all of FTA’s regional and
metropolitan offices, and a new
Appendix E contains a listing of all legal
citations found in the circular.
With the substantive exceptions noted
in the chapter-by-chapter analysis
above, as well as non-substantive and
clarifying edits, FTA adopts the final
circular as proposed.
Issued in Washington, DC, this 22nd day
of September, 2008.
James S. Simpson,
Administrator.
[FR Doc. E8–22840 Filed 9–29–08; 8:45 am]
BILLING CODE 4910–57–P
legal questions, please contact Jayme L.
Blakesley at 202–366–0304 or
jayme.blakesley@dot.gov.
SUPPLEMENTARY INFORMATION:
Availability of Final Circular
The final circular is not included with
this document. You may download an
electronic copy of the circular from
FTA’s Web site at https://
www.fta.dot.gov. From the home page,
click on ‘‘Legislation, Regulations and
Guidance’’ and on that page click on
‘‘Circulars.’’ Circulars are listed in
numerical order; the Grant Management
Circular is number 5010.1D. Paper
copies of the circular may be obtained
by calling FTA’s Administrative
Services Help Desk at 202–366–4865.
You may retrieve the circular and
comments online through the Federal
Document Management System (FDMS)
at: https://www.regulations.gov. Enter
docket number 29122 in the search
field. Instructions on using FDMS can
be found under the help section of the
Web site.
Table of Contents
DEPARTMENT OF TRANSPORTATION
Federal Transit Administration
[Docket No. FTA–2007–29122]
Grant Management Guidance
Federal Transit Administration
(FTA), DOT.
ACTION: Notice of Availability of Final
Circular.
AGENCY:
The Federal Transit
Administration (FTA) has placed in the
docket and on its Web site (https://
www.fta.dot.gov) guidance in the form
of Circular 5010.1D, Grant Management
Requirements, which circular replaces
FTA’s prior Grant Management Circular
5010.1C. Circular 5010.1D includes
information pertaining to new and
existing FTA programs; incorporates
provisions of the Safe, Accountable,
Flexible, Efficient Transportation Equity
Act: A Legacy for Users (SAFETEA–LU);
discusses the circumstances under
which a grantee may request budget
revisions and grant amendments;
identifies useful life standards for
trolleys, ferry boats, and facilities; and
increases the threshold that determines
whether FTA must approve a real estate
appraisal.
DATES: The effective date of the circular
is November 1, 2008.
FOR FURTHER INFORMATION CONTACT: For
program questions, please contact
MaryAnne Polkiewicz at 202–366–0203
or maryanne.polkiewicz@dot.gov. For
SUMMARY:
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I. Overview
II. Chapter-by-Chapter Analysis
A. Chapter I—Introduction and
Background
B. Chapter II—Circular Overview
C. Chapter III—Grant Administration
D. Chapter IV—Project Management
E. Chapter V—Oversight
F. Chapter VI—Financial Management
G. Appendices
I. Overview
This notice provides a summary of
changes to FTA’s Grant Management
Circular. The prior Grant Management
Circular was numbered C 5010.1C. This
new Grant Management Circular is
numbered C 5010.1D. This final Circular
5010.1D supersedes Circular 5010.1C.
This notice addresses comments
received in response to the September
28, 2007, Federal Register notice (72 FR
55629, Notice of Proposed Guidance
and Request for Comment on the
Federal Transit Administration’s Grant
Management Requirements FTA
Circular 5010.1D). FTA received
comments from nine parties, including
an industry association, transit agencies,
and State departments of transportation
(State DOTs).
FTA has adopted most of the
proposed formatting changes published
in the proposed circular. For example,
we changed the format to make this
circular consistent with the style of
other circulars FTA is updating while
maintaining some consistency with the
previous document. Substantive
changes in content and comments to the
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proposed circular are discussed in the
Chapter-by-Chapter Analysis heading.
One commenter noted that in the
September 28, 2007, Federal Register
notice FTA titled proposed Circular
5010.1D ‘‘Grant Management
Requirements.’’ This commenter asked
FTA to change the title to ‘‘Grant
Management Guidelines.’’ FTA
disagrees with this change. The
requirements in the circular are based
on existing regulation.
The cover page to Circular 5010.1D
includes a statement at Section (6) that
‘‘FTA reserves the right to update this
circular to reflect changes in other
revised or new guidance and regulations
that undergo notice and comment
without further notice and comment on
this circular.’’ One commenter objected
to this statement, arguing that all
changes should be subject to notice and
comment. FTA disagrees. When the
revision of a circular or regulation
includes an opportunity for notice and
comment, there is no need to duplicate
that effort for each circular affected by
such revision.
One commenter lauded FTA, noting
that the expanded narrative and
examples are positive improvements.
This commenter and one other stated
that FTA could improve Circular
5010.1D by adding more references or
Web addresses. FTA agrees with this
commenter and will include Web
addresses in the electronic version of
Circular 5010.1D.
Three commenters asked FTA to
clarify the difference between the terms
grantee, recipient, and subrecipient.
FTA has added language to Circular
5010.1D stating that it uses the terms
grantee and recipient interchangeably,
and clarifying its pass-thru policies.
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II. Chapter-by-Chapter Analysis
As a preliminary matter, some
commenters had non-substantive
comments, such as formatting
suggestions, a suggestion to remove
references to old Federal Register
notices, to include specific terms in the
index, and to do a thorough review of
the draft for typos, cross-referencing
errors, and the like. We have removed
the old Federal Register references,
made some, but not all, of the suggested
formatting changes, added terms to the
index, and we have thoroughly
reviewed the document in an effort to
remove the errors noted by commenters.
Furthermore, we have reordered the
sections of some of the chapters to
provide the material in a more
organized fashion. Some comments
were outside the scope of the proposed
circular, and we have not addressed
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those comments in either the circular or
this Federal Register notice.
A. Chapter I—Introduction and
Background
Chapter I introduces the Federal
Transit Administration (FTA) and its
authorizing legislation (49 U.S.C.
Chapter 53). It also instructs readers on
how to contact FTA and how to find out
about competitive grant opportunities
using Grants.gov. Finally, Chapter I
defines all terms-of-art used in Circular
5010.1D.
One commenter asked FTA to change
its definition of ‘‘real property’’ to
conform to certain State provisions that
define real property to include
machinery and equipment that are
fixtures. After careful consideration,
FTA has decided against changing its
definition of real property.
The same commenter asked FTA to
revise its definitions of ‘‘equipment’’
and ‘‘supplies’’ so that the dollar value
thresholds are comparable. This
commenter asked FTA to raise the
ceiling for supplies to $25,000. FTA
declines to revise its definitions of
‘‘equipment’’ and ‘‘supplies.’’ These
definitions are based on the definitions
and requirements at 49 CFR part 18—
Uniform Administrative Requirements
for Grants and Cooperative Agreements
to State and Local Governments (also
known as the Common Grant Rule).
One commenter noted that by
defining a budget revision to include the
addition or deletion of an activity line
item (ALI) in FTA’s Transportation
Electronic Award and Management
(TEAM) system, the proposed circular
appeared to contradict prior FTA
guidance. FTA notes that this change is
intentional and in the instance of any
such contradictions, Circular 5010.1D
supersedes prior versions of the
circular.
One commenter recommended that
the proposed definition for
discretionary funding should be revised
to read ‘‘grant funds distributed at the
discretion of the agency, or Congress, as
distinct from formula funding.’’ Except
for ‘‘or Congress,’’ FTA has incorporated
this language into the final version of
Circular 5010.1D.
Another commenter suggested that
FTA revise its definition of straight line
depreciation. FTA has modified its
definition accordingly.
Another commenter asked FTA to
define ECHO. FTA has added a
definition of ECHO-Electronic Clearing
House Operation.
One commenter noted discrepancies
in FTA’s use of the term ‘‘force
account.’’ This same commenter asked
FTA to add information about the
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Catalog of Federal Domestic Assistance
(CFDA). The definition of force account
has been revised and Catalog of Federal
Domestic Assistance has been added to
the definition section.
Another commenter asked FTA to
clarify whether a Native American tribe
is considered a local government
authority. FTA has edited the
introduction section to include federally
recognized Indian tribes and a
definition of Tribal Government from 43
U.S.C. 1601.
One commenter asked FTA to state
that the Common Rule (49 CFR part 18)
applies to all FTA grantees. FTA has
added language making clear the
applicability of the Common Rule.
B. Chapter II—Circular Overview
Chapter II provides an overview of
Circular 5010.1D, including applicable
program descriptions, grant
management responsibilities, and
Federal civil rights requirements.
One commenter suggested that the
applicable program descriptions should
include fewer details. FTA disagrees.
FTA is using the same program
descriptions in all of its circulars to
reduce the need for ad hoc revisions to
each circular whenever programs
change.
The same commenter asked FTA to
consider adding under its role that FTA
may utilize a Project Management
Oversight Consultant to aid in its
management of grants. FTA declines to
make this revision, noting that this is
explained in Chapter V, Oversight.
One commenter said it was redundant
for FTA to provide an introduction
under the heading ‘‘Responsibilities of
Grant Management’’ and to add another
list of specifications. FTA disagrees.
These sections are similar but not
identical.
Another commenter asked FTA to
review the list of Civil Rights
requirements to ensure that it includes
the proper thresholds. FTA has updated
Circular 5010.1D accordingly.
C. Chapter III—Grant Administration
Chapter III discusses the mechanics
and requirements for grant
administration, including the grant
application process, reporting
requirements, and grant modifications
(including budget revisions).
One commenter noted that FTA’s
TEAM system requires FTA approval on
all budget revisions. As noted, TEAM
does not recognize the difference
between budget revisions that do and do
not require FTA approval. Accordingly,
grantees may continue to make certain
budget revisions without prior FTA
approval.
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This same commenter asked FTA to
add descriptions of size and physical
characteristics to Subsection 4.a(3)(e).
FTA declines to add more detail to this
subsection, for any change in size or
physical characteristic would require
FTA approval. Even the smallest change
in the size or physical characteristic,
such as the difference between surface
or structured parking, could affect FTA
and grantee responsibilities under the
National Environmental Policy Act or
other Federal requirements.
One commenter urged FTA to enlarge
the universe of changes that may be
made without pre-approval. FTA
disagrees with this commenter. Circular
5010.1D strikes a balance between
flexibility and good stewardship. To
allow greater flexibility would risk the
misuse of Federal funds.
With respect to spare vehicles,
another commenter suggested that as
long as the spare ratio requirements are
maintained and funds are available
within the rolling stock scope or other
scopes, FTA should permit grantees to
make revisions regarding fleet number
without prior FTA approval. FTA
disagrees with this commenter. Prior
FTA approval must be obtained for
revenue rolling stock, whenever the
budget revision changes the number of
vehicles to be purchased by more than
two units (for grants with fewer than 10
vehicles) or more than 20 percent from
the quantity identified in the original
grant. The grantee must continue to
meet FTA bus spare ratio requirements
for any change in the number of revenue
rolling stock. If the change in the
number of revenue rolling stock exceeds
20 percent, the budget revision must be
supported by a Rolling Stock Status
Report.
Another commenter noted that the
addition or deletion of ALIs represents
significant changes to the purpose of a
grant and asked FTA to clarify the
difference between revisions and
amendments. This same commenter
asked FTA to establish time limits for
processing budget revisions and to
advise grantees whenever
administrative amendments are
anticipated. FTA appreciates these
suggestions. With respect to the
difference between budget revisions and
grant amendments, FTA has included
language in Circular 5010 distinguishing
between budget revisions,
administrative amendments, and grant
amendments.
A budget revision is any change
within the scope that impacts budget
allocations of the original grant. A
budget revision may be a transfer of
funds within a project scope or between
existing ALIs within an approved grant.
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It could also include the addition or
deletion of an ALI.
An administrative amendment is a
minor change in a grant agreement
normally initiated by FTA to modify or
clarify certain terms, conditions, or
provisions of a grant. A grant
amendment is the modification of a
grant that includes a change in scope
and/or a change in Federal funds. With
respect to establishing time limits for
processing budget revisions and grant
amendments, FTA agrees with the
commenter but believes that such
timeframes are best made through
internal standard operating procedures
(SOPs) and not through this circular.
FTA proposed requiring prior
approval for budget revisions for all
grants with a Federal share of more than
$100,000 and if the change in the
cumulative amount of funds allocated to
each scope from the originally approved
scope exceeds 20 percent. One
commenter asked FTA to rethink the
$100,000 threshold. This commenter
suggests applying the 20 percent rule to
all grants, regardless of whether the
Federal share exceeds $100,000. The
$100,000 threshold is based on the
Common Grant Rule requirements at 49
CFR part 18—Uniform Administrative
Requirements for Grants and
Cooperative Agreements to State and
Local Governments.
One commenter asked FTA to inform
the grantee when FTA is about to take
any unilateral action with respect to a
grant, especially if that action relates to
closing out a grant. FTA agrees.
Although it is common practice to
inform the grantee of such actions, FTA
will reemphasize the need to contact
grantees before taking unilateral action
to close out a grant.
This same commenter asked FTA to
explain why the ‘‘details’’ section in
TEAM limits text to 60 characters. FTA
instructs its grantees to use the
attachment feature if 60 characters are
insufficient.
One commenter pointed out that,
contrary to its statement in the Federal
Register, FTA did not indicate in
proposed Circular 5010.1D how it has
changed its use of the term ‘‘scope.’’
FTA agrees with this commenter and
clarified the definitions of scope and
activity line items (ALIs).
Milestone/progress reporting for all
Section 5309 grant recipients, regardless
of location and population area, has
been revised to reflect the requirement
to submit quarterly reports in TEAM
when grants include construction of a
facility.
In the records retention section of its
proposed guidance, FTA noted that
photocopies are acceptable. One
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commenter asked FTA to expand this
policy to include other formats such as
microfiche or digitally scanned
documents. FTA has examined this
comment and added language to
Circular 5010.1D that allows for other
formats.
D. Chapter IV—Project Management
Real property, equipment and
supplies, rolling stock, and facilities
purchased or constructed for project
purposes must be managed, used, and
disposed of in accordance with
applicable laws and regulations.
Chapter IV provides guidance on the
management, use, and disposition of
FTA funded real property, equipment,
supplies, rolling stock, and facilities.
One commenter asked why FTA
decided to include real property in its
Grant Management Circular and not in
its Procurement Circular. FTA notes that
it may need to include a section on real
property in its Procurement Circular,
but declines to remove it from Circular
5010.1D.
Another commenter applauded FTA’s
proposal to raise the threshold for
appraisal concurrence from $100,000 to
$500,000, but asked FTA to consider
increasing the threshold to $1,000,000.
While FTA appreciates this comment, it
is still common for FTA to discover
incorrect appraisals. For this reason,
FTA will not increase the threshold to
$1,000,000.
One commenter asked FTA to better
explain the conditions that may warrant
the use of a grantee’s own labor forces,
commonly referred to as force account.
FTA has added the following conditions
to Circular 5010.1D: (1) Cost savings, (2)
exclusive expertise, (3) safety and
efficiency of operations, and (4) union
agreement.
A commenter stated that FTA should
require its grantees to notify FTA of
excess land as soon as it becomes
excess, and asked that such notification
include a disposition proposal and
schedule for disposition. FTA does not
agree with this commenter. Grantees
must notify FTA when property is
removed from the service originally
intended. The notification must include
the anticipated disposition or action
proposed.
Previously, FTA would rely upon a
grantee’s expertise when determining
the useful life for assets other than
rolling stock. One commenter asked
FTA to continue this practice instead of
fixing a useful life for all assets. FTA
disagrees with this commenter. By
establishing a useful life for facilities,
FTA ensures consistency across projects
and regions. Where a useful life policy
has not been defined by FTA, the
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grantee, in consultation with the FTA
regional or metropolitan office shall
‘‘make the case’’ by identifying a useful
life period for all equipment and
facilities with an acquisition value
greater than $5,000 to be procured with
Federal funds. In the grant application,
the grantee shall propose and identify a
useful life for the capital asset to be
purchased with Federal funds. FTA
approval of the grant represents FTA
concurrence of the final determination
of useful life for the purpose of project
property acquisition. This in turn will
identify the useful life of the Federal
interest for the disposition of the project
property in later years. Acceptable
methods to determine useful life
include but are not limited to:
(a) Generally accepted accounting
principles.
(b) Independent evaluation.
(c) Manufacturer’s estimated useful
life.
(d) Internal Revenue Service
guidelines.
(e) Industry standards.
(f) Grantee experience.
(g) The grantee’s independent auditor
who needs to concur that the useful life
is reasonable for depreciation purposes.
(h) Proven useful life developed at a
Federal test facility.
Useful Life of a fixed guideway
electric trolley-bus with rubber tires
obtaining traction from overhead
catenary has been revised to be 15 years
from previously proposed 18 years.
One commenter stated that FTA’s
proposal concerning vehicles removed
from service because of fire, collision, or
natural disaster inappropriately shifts
risk to its grantees, noting that the
existing circular looks to the post-event
value of the vehicle to measure the
remaining Federal interest while the
proposed circular would refer to the
pre-event value. This commenter urged
FTA to maintain the existing policy.
FTA disagrees. The policy articulated in
Circular 5010.1D is consistent with
FTA’s Master Agreement and current
FTA practice. Similar to Circular
5010.1D, Section 19.h(b)(1) of FTA’s
Master Agreement states that the fair
market value of project equipment and
supplies shall be the value immediately
before the occurrence prompting the
withdrawal of the equipment or
supplies from appropriate use. In the
case of project equipment or supplies
lost or damaged by fire, casualty, or
natural disaster, the fair market value
shall be calculated on the basis of the
condition of the equipment or supplies
immediately before the fire, casualty, or
natural disaster, irrespective of the
extent of insurance coverage.
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One commenter asked FTA to
consider adopting the practice of
communicating directly with the
grantee receiving a new grant award,
perhaps by modifying TEAM to include
a facility for automatically advising
grantee contacts by e-mail when FTA
revises the grant’s status or inputs
comments. FTA is looking at improving
TEAM accordingly. In the meantime,
FTA’s regional offices will make every
effort to contact grantees when
modifying a grant application or award.
Several parties offered comments on
the reporting requirements articulated
in proposed Circular 5010.1D. Please
note that FTA has made its best effort
to avoid duplicative reporting
requirements. Moreover, FTA notes that
the reporting requirements may vary
depending on the size of the grantee, the
type of funding, or the amount of
funding a grantee receives. Please
contact the regional or metropolitan
office with questions regarding the
applicability of the reporting
requirements of Chapter III. With
respect to requiring grantees to state the
useful life of an asset in its grant
application, FTA is ensuring that it can
verify the use and disposition of that
asset throughout its useful life.
Another commenter identified several
misnumbered sections in this chapter.
FTA has corrected these errors.
A State DOT asked FTA to clarify
language regarding its Equal
Employment Opportunity programs to
apply to more than just transit agencies.
FTA has modified Chapter III
accordingly.
The same commenter noted that the
National Transit Database Safety and
Security Reporting requirement is
exclusive to urban areas. FTA agrees
and has clarified this point.
Another State DOT asked FTA to note
that there is no minimum vehicle
threshold for reporting in the
nonurbanized program. FTA agrees and
has modified Circular 5010.1D
accordingly.
One commenter stated its
understanding that 49 U.S.C.
5334(h)(1)–(3) applies to transferring
property that has not met useful life
standards, and suggested that FTA
amend the circular text to include this
statement. FTA agrees and has modified
Circular 5010.1D accordingly.
The same commenter noted that
insurance proceeds set the current fair
market value of an asset and that the
Federal share is based upon this
number. FTA refers this commenter to
the following language from FTA’s
Master Agreement: In the case of Project
equipment or supplies lost or damaged
by fire, casualty, or natural disaster, the
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fair market value shall be calculated on
the basis of the condition of the
equipment or supplies immediately
before the fire, casualty, or natural
disaster, irrespective of the extent of
insurance coverage.
One commenter identified several
inadvertent omissions from the section
on real property. FTA has updated this
section in accordance with the
Department’s Uniform Relocation Act
regulations.
Two parties asked FTA to distinguish
between rebuilding and overhauling a
vehicle or system. Accordingly, FTA has
updated Circular 5010.1D to distinguish
between overhaul and rebuild. Overhaul
is performed as a planned or
concentrated preventative maintenance
activity and is intended to enable the
rolling stock to perform to the end of its
original useful life. Rebuild is a capital
expense incurred at or near the end of
the useful life of rolling stock that
results in a new useful life for the
rolling stock that is consistent with the
extent of the rebuilding.
One commenter asked FTA to clarify
when a grantee or recipient must return
insurance money that it receives from a
subrecipient. FTA’s Master Agreement
in Section 19, Subsection i states that if
the recipient receives insurance
proceeds as a result of damage or
destruction to the project property, the
recipient agrees to: (1) Apply those
insurance proceeds to the cost of
replacing the damaged or destroyed
Project property taken out of service, or
(2) Return to the Federal Government an
amount equal to the remaining Federal
interest in the damaged or destroyed
Project property.
Another commenter asked FTA to
clarify when a grantee should submit a
Project Management Plan (PMP) to FTA
as a prerequisite to grant approval.
According to FTA’s Project Management
Oversight rule, 49 CFR part 633, for all
major capital projects, the grantee must
submit a PMP as part of its grant
application.
Several commenters expressed
concern that FTA proposes to include
useful life determination in grant
agreements and that the minimum
threshold for such determinations is
$5,000. FTA disagrees with these
commenters. According to the Common
Grant Rule, every asset over $5,000 must
be accounted for. Indirectly, this means
that every asset over $5,000 must have
a useful life.
E. Chapter V—Oversight
Chapter V discusses FTA oversight.
FTA evaluates grantee adherence to
program and administrative
requirements through a comprehensive
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oversight program. FTA’s Master
Agreement specifies these requirements.
FTA determines compliance through
self-certification, oversight review and
audits, and site visits. FTA annually
completes an individual Grantee
Oversight Assessment Questionnaire,
which serves as baseline information for
each grantee’s capacity to comply, and
the degree of the risk the grantee’s
program may represent for the Federal
program. Based on this information,
FTA makes decisions about which
grantees will receive oversight reviews
during the coming year. Regional staff
uses the information to develop regional
oversight plans and to allocate oversight
resources within the region for the
upcoming fiscal year, which may
include oversight reviews, regional
meetings, and/or regional site visits.
One commenter asked FTA to add its
Job Access Reverse Commute (JARC)
and New Freedom Programs to the list
of programs covered by State
Management Reviews. FTA only listed
programs for which it is authorized to
withhold a percentage for oversight
activities. FTA retains the right to
review any of its programs through State
Management Reviews.
ebenthall on PROD1PC60 with NOTICES
F. Chapter VI—Financial Management
Chapter VI discusses the proper use
and management of Federal funds FTA
expects from its grantees. Financial
management is one of the most
important practices in the management
of Federal funds.
One commenter asked FTA to define
the Cash Basis of Accounting and its
permissible use. Definitions have been
added.
Another commenter asked FTA to
clarify whether a specific form is
required for documenting internal
controls. FTA notes that the form
checklist provided in Circular 5010.1D
is not mandatory. FTA has provided it
to those transit properties that do not
currently do their own testing. FTA has
modified Circular 5010.1D to make clear
that this form is a tool, not a
requirement.
G. Appendices
One commenter noted that Appendix
C, Guide for Preparing an Appraisal
Scope of Work, is excellent guidance
and asked FTA to include a review
appraisal scope of work. FTA agrees
with this comment and has indicated
that the Guide for Preparing an
Appraisal Scope of work can also be
used for a review appraisal.
Appendix D, Fleet Status Report, has
been renamed and revised so as to not
be confused with the Fleet Status Report
screen in TEAM. The new name is
VerDate Aug<31>2005
15:35 Sep 29, 2008
Jkt 214001
Rolling Stock Status Report. The use of
this report is limited to disposing of a
vehicle that has met minimum useful
life and fair market value is greater than
$5,000, disposing of a vehicle before it
reaches minimum useful life, or
requesting a budget revision affecting
vehicles.
Issued in Washington, DC, this 22nd day
of September, 2008.
James S. Simpson,
Administrator.
[FR Doc. E8–22891 Filed 9–29–08; 8:45 am]
BILLING CODE 4910–57–P
DEPARTMENT OF TRANSPORTATION
Federal Transit Administration
[Docket No. FTA–2007–29125]
Third Party Contracting Guidance:
Notice of Final Circular
Federal Transit Administration
(FTA), DOT.
ACTION: Notice of Availability of Final
Circular.
AGENCY:
SUMMARY: The Federal Transit
Administration (FTA) has issued FTA
Circular 4220.1F, ‘‘Third Party
Contracting Guidance’’ to provide
comprehensive guidance to grantees and
recipients of cooperative agreements
(recipients) to implement third party
contracting requirements that apply to
FTA assisted procurements.
DATES: Effective Date: The effective date
of this circular is November 1, 2008.
ADDRESSES: A copy of this circular and
comments and material received from
the public, as well as any documents
indicated in the preamble as being
available in the docket, are part of
docket FTA–2007–29125 and are
available for inspection or copying at
the Docket Management Facility, U.S.
Department of Transportation, 1200
New Jersey Ave., SE., West Building
Ground Floor, Room W12–140,
Washington, DC between 9 a.m. and 5
p.m., Monday through Friday, except
Federal holidays.
You may retrieve the circular and
comments online through the Federal
Document Management System (FDMS)
at Web site: https://regulations.gov. Enter
the docket number FTA–2007–29125 in
the search field. The FDMS is available
24 hours each day, 365 days each year.
Electronic submission and retrieval help
and guidelines are available under the
help section of the Web site.
This notice does not include the final
circular. An electronic version of the
circular may be found on the docket:
https://regulations.gov, docket number
PO 00000
Frm 00106
Fmt 4703
Sfmt 4703
FTA–2007–29125, or on the FTA Web
site: https://www.fta.dot.gov. Paper
copies of the circular may be obtained
by contacting FTA’s Administrative
Services Help Desk, at 202–366–4865.
FOR FURTHER INFORMATION CONTACT:
James Harper, Director, Office of
Procurement, Office of Administration,
Federal Transit Administration, 1200
New Jersey Avenue, SE., East Building,
Room E42–332, Washington, DC 20590,
phone: 202–366–1127, fax: 202–366–
3808, or e-mail James.Harper@dot.gov
for issues regarding third party
contracting procedures and practices; or
Kerry L. Miller, Assistant Chief Counsel
for General Law, Office of Chief
Counsel, Federal Transit
Administration, 1200 New Jersey
Avenue, SE., East Building, Room E56–
314, Washington, DC 20590, phone:
202–366–1936, fax: 202–366–3809, or
e-mail, Kerry.Miller@dot.gov, for legal
issues.
Table of Contents
I. Background
II. Overview
III. Chapter-by-Chapter Analysis
A. Chapter I—Introduction and Role of the
Federal Transit Administration
B. Chapter II—Applicability
C. Chapter III—The Recipient’s
Responsibilities
D. Chapter IV—The Recipient’s Property
and Services Needs and Federal
Requirements Affecting Those Needs
E. Chapter V—Sources
F. Chapter VI—Procedural Guidance for
Open Market Procurements
G. Chapter VII—Protests, Changes and
Modifications, Disputes, Claims,
Litigation, and Settlements
1. Appendix A—References
2. Appendix B—FTA Regional and
Metropolitan Contact Information
3. Appendix C—Third Party Contracting
Checklists
4. Appendix D—Matrices of Third Party
Contract Provisions
I. Background
This notice provides a summary of
FTA’s Third Party Contracting Guidance
final circular, and addresses comments
received in response to the FTA’s
September 28, 2007, Federal Register
notice (72 FR 55630). FTA’s most recent
enabling legislation, the Safe,
Accountable, Flexible, Efficient
Transportation Equity Act: A Legacy for
Users (SAFETEA–LU), Public Law 109–
59, August 10, 2005, as amended by the
SAFETEA–LU Technical Corrections
Act, 2008, Public Law 110–244, June 6,
2008, added new third party contracting
requirements for FTA recipients. Other
Federal laws and regulations have also
amended certain Federal requirements
or added new Federal requirements
affecting third party procurements
E:\FR\FM\30SEN1.SGM
30SEN1
]]>Agencies
[Federal Register Volume 73, Number 190 (Tuesday, September 30, 2008)]
[Notices]
[Pages 56892-56896]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E8-22891]
-----------------------------------------------------------------------
DEPARTMENT OF TRANSPORTATION
Federal Transit Administration
[Docket No. FTA-2007-29122]
Grant Management Guidance
AGENCY: Federal Transit Administration (FTA), DOT.
ACTION: Notice of Availability of Final Circular.
-----------------------------------------------------------------------
SUMMARY: The Federal Transit Administration (FTA) has placed in the
docket and on its Web site (https://www.fta.dot.gov) guidance in the
form of Circular 5010.1D, Grant Management Requirements, which circular
replaces FTA's prior Grant Management Circular 5010.1C. Circular
5010.1D includes information pertaining to new and existing FTA
programs; incorporates provisions of the Safe, Accountable, Flexible,
Efficient Transportation Equity Act: A Legacy for Users (SAFETEA-LU);
discusses the circumstances under which a grantee may request budget
revisions and grant amendments; identifies useful life standards for
trolleys, ferry boats, and facilities; and increases the threshold that
determines whether FTA must approve a real estate appraisal.
DATES: The effective date of the circular is November 1, 2008.
FOR FURTHER INFORMATION CONTACT: For program questions, please contact
MaryAnne Polkiewicz at 202-366-0203 or maryanne.polkiewicz@dot.gov. For
legal questions, please contact Jayme L. Blakesley at 202-366-0304 or
jayme.blakesley@dot.gov.
SUPPLEMENTARY INFORMATION:
Availability of Final Circular
The final circular is not included with this document. You may
download an electronic copy of the circular from FTA's Web site at
https://www.fta.dot.gov. From the home page, click on ``Legislation,
Regulations and Guidance'' and on that page click on ``Circulars.''
Circulars are listed in numerical order; the Grant Management Circular
is number 5010.1D. Paper copies of the circular may be obtained by
calling FTA's Administrative Services Help Desk at 202-366-4865.
You may retrieve the circular and comments online through the
Federal Document Management System (FDMS) at: https://
www.regulations.gov. Enter docket number 29122 in the search field.
Instructions on using FDMS can be found under the help section of the
Web site.
Table of Contents
I. Overview
II. Chapter-by-Chapter Analysis
A. Chapter I--Introduction and Background
B. Chapter II--Circular Overview
C. Chapter III--Grant Administration
D. Chapter IV--Project Management
E. Chapter V--Oversight
F. Chapter VI--Financial Management
G. Appendices
I. Overview
This notice provides a summary of changes to FTA's Grant Management
Circular. The prior Grant Management Circular was numbered C 5010.1C.
This new Grant Management Circular is numbered C 5010.1D. This final
Circular 5010.1D supersedes Circular 5010.1C.
This notice addresses comments received in response to the
September 28, 2007, Federal Register notice (72 FR 55629, Notice of
Proposed Guidance and Request for Comment on the Federal Transit
Administration's Grant Management Requirements FTA Circular 5010.1D).
FTA received comments from nine parties, including an industry
association, transit agencies, and State departments of transportation
(State DOTs).
FTA has adopted most of the proposed formatting changes published
in the proposed circular. For example, we changed the format to make
this circular consistent with the style of other circulars FTA is
updating while maintaining some consistency with the previous document.
Substantive changes in content and comments to the
[[Page 56893]]
proposed circular are discussed in the Chapter-by-Chapter Analysis
heading.
One commenter noted that in the September 28, 2007, Federal
Register notice FTA titled proposed Circular 5010.1D ``Grant Management
Requirements.'' This commenter asked FTA to change the title to ``Grant
Management Guidelines.'' FTA disagrees with this change. The
requirements in the circular are based on existing regulation.
The cover page to Circular 5010.1D includes a statement at Section
(6) that ``FTA reserves the right to update this circular to reflect
changes in other revised or new guidance and regulations that undergo
notice and comment without further notice and comment on this
circular.'' One commenter objected to this statement, arguing that all
changes should be subject to notice and comment. FTA disagrees. When
the revision of a circular or regulation includes an opportunity for
notice and comment, there is no need to duplicate that effort for each
circular affected by such revision.
One commenter lauded FTA, noting that the expanded narrative and
examples are positive improvements. This commenter and one other stated
that FTA could improve Circular 5010.1D by adding more references or
Web addresses. FTA agrees with this commenter and will include Web
addresses in the electronic version of Circular 5010.1D.
Three commenters asked FTA to clarify the difference between the
terms grantee, recipient, and subrecipient. FTA has added language to
Circular 5010.1D stating that it uses the terms grantee and recipient
interchangeably, and clarifying its pass-thru policies.
II. Chapter-by-Chapter Analysis
As a preliminary matter, some commenters had non-substantive
comments, such as formatting suggestions, a suggestion to remove
references to old Federal Register notices, to include specific terms
in the index, and to do a thorough review of the draft for typos,
cross-referencing errors, and the like. We have removed the old Federal
Register references, made some, but not all, of the suggested
formatting changes, added terms to the index, and we have thoroughly
reviewed the document in an effort to remove the errors noted by
commenters. Furthermore, we have reordered the sections of some of the
chapters to provide the material in a more organized fashion. Some
comments were outside the scope of the proposed circular, and we have
not addressed those comments in either the circular or this Federal
Register notice.
A. Chapter I--Introduction and Background
Chapter I introduces the Federal Transit Administration (FTA) and
its authorizing legislation (49 U.S.C. Chapter 53). It also instructs
readers on how to contact FTA and how to find out about competitive
grant opportunities using Grants.gov. Finally, Chapter I defines all
terms-of-art used in Circular 5010.1D.
One commenter asked FTA to change its definition of ``real
property'' to conform to certain State provisions that define real
property to include machinery and equipment that are fixtures. After
careful consideration, FTA has decided against changing its definition
of real property.
The same commenter asked FTA to revise its definitions of
``equipment'' and ``supplies'' so that the dollar value thresholds are
comparable. This commenter asked FTA to raise the ceiling for supplies
to $25,000. FTA declines to revise its definitions of ``equipment'' and
``supplies.'' These definitions are based on the definitions and
requirements at 49 CFR part 18--Uniform Administrative Requirements for
Grants and Cooperative Agreements to State and Local Governments (also
known as the Common Grant Rule).
One commenter noted that by defining a budget revision to include
the addition or deletion of an activity line item (ALI) in FTA's
Transportation Electronic Award and Management (TEAM) system, the
proposed circular appeared to contradict prior FTA guidance. FTA notes
that this change is intentional and in the instance of any such
contradictions, Circular 5010.1D supersedes prior versions of the
circular.
One commenter recommended that the proposed definition for
discretionary funding should be revised to read ``grant funds
distributed at the discretion of the agency, or Congress, as distinct
from formula funding.'' Except for ``or Congress,'' FTA has
incorporated this language into the final version of Circular 5010.1D.
Another commenter suggested that FTA revise its definition of
straight line depreciation. FTA has modified its definition
accordingly.
Another commenter asked FTA to define ECHO. FTA has added a
definition of ECHO-Electronic Clearing House Operation.
One commenter noted discrepancies in FTA's use of the term ``force
account.'' This same commenter asked FTA to add information about the
Catalog of Federal Domestic Assistance (CFDA). The definition of force
account has been revised and Catalog of Federal Domestic Assistance has
been added to the definition section.
Another commenter asked FTA to clarify whether a Native American
tribe is considered a local government authority. FTA has edited the
introduction section to include federally recognized Indian tribes and
a definition of Tribal Government from 43 U.S.C. 1601.
One commenter asked FTA to state that the Common Rule (49 CFR part
18) applies to all FTA grantees. FTA has added language making clear
the applicability of the Common Rule.
B. Chapter II--Circular Overview
Chapter II provides an overview of Circular 5010.1D, including
applicable program descriptions, grant management responsibilities, and
Federal civil rights requirements.
One commenter suggested that the applicable program descriptions
should include fewer details. FTA disagrees. FTA is using the same
program descriptions in all of its circulars to reduce the need for ad
hoc revisions to each circular whenever programs change.
The same commenter asked FTA to consider adding under its role that
FTA may utilize a Project Management Oversight Consultant to aid in its
management of grants. FTA declines to make this revision, noting that
this is explained in Chapter V, Oversight.
One commenter said it was redundant for FTA to provide an
introduction under the heading ``Responsibilities of Grant Management''
and to add another list of specifications. FTA disagrees. These
sections are similar but not identical.
Another commenter asked FTA to review the list of Civil Rights
requirements to ensure that it includes the proper thresholds. FTA has
updated Circular 5010.1D accordingly.
C. Chapter III--Grant Administration
Chapter III discusses the mechanics and requirements for grant
administration, including the grant application process, reporting
requirements, and grant modifications (including budget revisions).
One commenter noted that FTA's TEAM system requires FTA approval on
all budget revisions. As noted, TEAM does not recognize the difference
between budget revisions that do and do not require FTA approval.
Accordingly, grantees may continue to make certain budget revisions
without prior FTA approval.
[[Page 56894]]
This same commenter asked FTA to add descriptions of size and
physical characteristics to Subsection 4.a(3)(e). FTA declines to add
more detail to this subsection, for any change in size or physical
characteristic would require FTA approval. Even the smallest change in
the size or physical characteristic, such as the difference between
surface or structured parking, could affect FTA and grantee
responsibilities under the National Environmental Policy Act or other
Federal requirements.
One commenter urged FTA to enlarge the universe of changes that may
be made without pre-approval. FTA disagrees with this commenter.
Circular 5010.1D strikes a balance between flexibility and good
stewardship. To allow greater flexibility would risk the misuse of
Federal funds.
With respect to spare vehicles, another commenter suggested that as
long as the spare ratio requirements are maintained and funds are
available within the rolling stock scope or other scopes, FTA should
permit grantees to make revisions regarding fleet number without prior
FTA approval. FTA disagrees with this commenter. Prior FTA approval
must be obtained for revenue rolling stock, whenever the budget
revision changes the number of vehicles to be purchased by more than
two units (for grants with fewer than 10 vehicles) or more than 20
percent from the quantity identified in the original grant. The grantee
must continue to meet FTA bus spare ratio requirements for any change
in the number of revenue rolling stock. If the change in the number of
revenue rolling stock exceeds 20 percent, the budget revision must be
supported by a Rolling Stock Status Report.
Another commenter noted that the addition or deletion of ALIs
represents significant changes to the purpose of a grant and asked FTA
to clarify the difference between revisions and amendments. This same
commenter asked FTA to establish time limits for processing budget
revisions and to advise grantees whenever administrative amendments are
anticipated. FTA appreciates these suggestions. With respect to the
difference between budget revisions and grant amendments, FTA has
included language in Circular 5010 distinguishing between budget
revisions, administrative amendments, and grant amendments.
A budget revision is any change within the scope that impacts
budget allocations of the original grant. A budget revision may be a
transfer of funds within a project scope or between existing ALIs
within an approved grant. It could also include the addition or
deletion of an ALI.
An administrative amendment is a minor change in a grant agreement
normally initiated by FTA to modify or clarify certain terms,
conditions, or provisions of a grant. A grant amendment is the
modification of a grant that includes a change in scope and/or a change
in Federal funds. With respect to establishing time limits for
processing budget revisions and grant amendments, FTA agrees with the
commenter but believes that such timeframes are best made through
internal standard operating procedures (SOPs) and not through this
circular.
FTA proposed requiring prior approval for budget revisions for all
grants with a Federal share of more than $100,000 and if the change in
the cumulative amount of funds allocated to each scope from the
originally approved scope exceeds 20 percent. One commenter asked FTA
to rethink the $100,000 threshold. This commenter suggests applying the
20 percent rule to all grants, regardless of whether the Federal share
exceeds $100,000. The $100,000 threshold is based on the Common Grant
Rule requirements at 49 CFR part 18--Uniform Administrative
Requirements for Grants and Cooperative Agreements to State and Local
Governments.
One commenter asked FTA to inform the grantee when FTA is about to
take any unilateral action with respect to a grant, especially if that
action relates to closing out a grant. FTA agrees. Although it is
common practice to inform the grantee of such actions, FTA will
reemphasize the need to contact grantees before taking unilateral
action to close out a grant.
This same commenter asked FTA to explain why the ``details''
section in TEAM limits text to 60 characters. FTA instructs its
grantees to use the attachment feature if 60 characters are
insufficient.
One commenter pointed out that, contrary to its statement in the
Federal Register, FTA did not indicate in proposed Circular 5010.1D how
it has changed its use of the term ``scope.'' FTA agrees with this
commenter and clarified the definitions of scope and activity line
items (ALIs).
Milestone/progress reporting for all Section 5309 grant recipients,
regardless of location and population area, has been revised to reflect
the requirement to submit quarterly reports in TEAM when grants include
construction of a facility.
In the records retention section of its proposed guidance, FTA
noted that photocopies are acceptable. One commenter asked FTA to
expand this policy to include other formats such as microfiche or
digitally scanned documents. FTA has examined this comment and added
language to Circular 5010.1D that allows for other formats.
D. Chapter IV--Project Management
Real property, equipment and supplies, rolling stock, and
facilities purchased or constructed for project purposes must be
managed, used, and disposed of in accordance with applicable laws and
regulations. Chapter IV provides guidance on the management, use, and
disposition of FTA funded real property, equipment, supplies, rolling
stock, and facilities.
One commenter asked why FTA decided to include real property in its
Grant Management Circular and not in its Procurement Circular. FTA
notes that it may need to include a section on real property in its
Procurement Circular, but declines to remove it from Circular 5010.1D.
Another commenter applauded FTA's proposal to raise the threshold
for appraisal concurrence from $100,000 to $500,000, but asked FTA to
consider increasing the threshold to $1,000,000. While FTA appreciates
this comment, it is still common for FTA to discover incorrect
appraisals. For this reason, FTA will not increase the threshold to
$1,000,000.
One commenter asked FTA to better explain the conditions that may
warrant the use of a grantee's own labor forces, commonly referred to
as force account. FTA has added the following conditions to Circular
5010.1D: (1) Cost savings, (2) exclusive expertise, (3) safety and
efficiency of operations, and (4) union agreement.
A commenter stated that FTA should require its grantees to notify
FTA of excess land as soon as it becomes excess, and asked that such
notification include a disposition proposal and schedule for
disposition. FTA does not agree with this commenter. Grantees must
notify FTA when property is removed from the service originally
intended. The notification must include the anticipated disposition or
action proposed.
Previously, FTA would rely upon a grantee's expertise when
determining the useful life for assets other than rolling stock. One
commenter asked FTA to continue this practice instead of fixing a
useful life for all assets. FTA disagrees with this commenter. By
establishing a useful life for facilities, FTA ensures consistency
across projects and regions. Where a useful life policy has not been
defined by FTA, the
[[Page 56895]]
grantee, in consultation with the FTA regional or metropolitan office
shall ``make the case'' by identifying a useful life period for all
equipment and facilities with an acquisition value greater than $5,000
to be procured with Federal funds. In the grant application, the
grantee shall propose and identify a useful life for the capital asset
to be purchased with Federal funds. FTA approval of the grant
represents FTA concurrence of the final determination of useful life
for the purpose of project property acquisition. This in turn will
identify the useful life of the Federal interest for the disposition of
the project property in later years. Acceptable methods to determine
useful life include but are not limited to:
(a) Generally accepted accounting principles.
(b) Independent evaluation.
(c) Manufacturer's estimated useful life.
(d) Internal Revenue Service guidelines.
(e) Industry standards.
(f) Grantee experience.
(g) The grantee's independent auditor who needs to concur that the
useful life is reasonable for depreciation purposes.
(h) Proven useful life developed at a Federal test facility.
Useful Life of a fixed guideway electric trolley-bus with rubber
tires obtaining traction from overhead catenary has been revised to be
15 years from previously proposed 18 years.
One commenter stated that FTA's proposal concerning vehicles
removed from service because of fire, collision, or natural disaster
inappropriately shifts risk to its grantees, noting that the existing
circular looks to the post-event value of the vehicle to measure the
remaining Federal interest while the proposed circular would refer to
the pre-event value. This commenter urged FTA to maintain the existing
policy. FTA disagrees. The policy articulated in Circular 5010.1D is
consistent with FTA's Master Agreement and current FTA practice.
Similar to Circular 5010.1D, Section 19.h(b)(1) of FTA's Master
Agreement states that the fair market value of project equipment and
supplies shall be the value immediately before the occurrence prompting
the withdrawal of the equipment or supplies from appropriate use. In
the case of project equipment or supplies lost or damaged by fire,
casualty, or natural disaster, the fair market value shall be
calculated on the basis of the condition of the equipment or supplies
immediately before the fire, casualty, or natural disaster,
irrespective of the extent of insurance coverage.
One commenter asked FTA to consider adopting the practice of
communicating directly with the grantee receiving a new grant award,
perhaps by modifying TEAM to include a facility for automatically
advising grantee contacts by e-mail when FTA revises the grant's status
or inputs comments. FTA is looking at improving TEAM accordingly. In
the meantime, FTA's regional offices will make every effort to contact
grantees when modifying a grant application or award.
Several parties offered comments on the reporting requirements
articulated in proposed Circular 5010.1D. Please note that FTA has made
its best effort to avoid duplicative reporting requirements. Moreover,
FTA notes that the reporting requirements may vary depending on the
size of the grantee, the type of funding, or the amount of funding a
grantee receives. Please contact the regional or metropolitan office
with questions regarding the applicability of the reporting
requirements of Chapter III. With respect to requiring grantees to
state the useful life of an asset in its grant application, FTA is
ensuring that it can verify the use and disposition of that asset
throughout its useful life.
Another commenter identified several misnumbered sections in this
chapter. FTA has corrected these errors.
A State DOT asked FTA to clarify language regarding its Equal
Employment Opportunity programs to apply to more than just transit
agencies. FTA has modified Chapter III accordingly.
The same commenter noted that the National Transit Database Safety
and Security Reporting requirement is exclusive to urban areas. FTA
agrees and has clarified this point.
Another State DOT asked FTA to note that there is no minimum
vehicle threshold for reporting in the nonurbanized program. FTA agrees
and has modified Circular 5010.1D accordingly.
One commenter stated its understanding that 49 U.S.C. 5334(h)(1)-
(3) applies to transferring property that has not met useful life
standards, and suggested that FTA amend the circular text to include
this statement. FTA agrees and has modified Circular 5010.1D
accordingly.
The same commenter noted that insurance proceeds set the current
fair market value of an asset and that the Federal share is based upon
this number. FTA refers this commenter to the following language from
FTA's Master Agreement: In the case of Project equipment or supplies
lost or damaged by fire, casualty, or natural disaster, the fair market
value shall be calculated on the basis of the condition of the
equipment or supplies immediately before the fire, casualty, or natural
disaster, irrespective of the extent of insurance coverage.
One commenter identified several inadvertent omissions from the
section on real property. FTA has updated this section in accordance
with the Department's Uniform Relocation Act regulations.
Two parties asked FTA to distinguish between rebuilding and
overhauling a vehicle or system. Accordingly, FTA has updated Circular
5010.1D to distinguish between overhaul and rebuild. Overhaul is
performed as a planned or concentrated preventative maintenance
activity and is intended to enable the rolling stock to perform to the
end of its original useful life. Rebuild is a capital expense incurred
at or near the end of the useful life of rolling stock that results in
a new useful life for the rolling stock that is consistent with the
extent of the rebuilding.
One commenter asked FTA to clarify when a grantee or recipient must
return insurance money that it receives from a subrecipient. FTA's
Master Agreement in Section 19, Subsection i states that if the
recipient receives insurance proceeds as a result of damage or
destruction to the project property, the recipient agrees to: (1) Apply
those insurance proceeds to the cost of replacing the damaged or
destroyed Project property taken out of service, or (2) Return to the
Federal Government an amount equal to the remaining Federal interest in
the damaged or destroyed Project property.
Another commenter asked FTA to clarify when a grantee should submit
a Project Management Plan (PMP) to FTA as a prerequisite to grant
approval. According to FTA's Project Management Oversight rule, 49 CFR
part 633, for all major capital projects, the grantee must submit a PMP
as part of its grant application.
Several commenters expressed concern that FTA proposes to include
useful life determination in grant agreements and that the minimum
threshold for such determinations is $5,000. FTA disagrees with these
commenters. According to the Common Grant Rule, every asset over $5,000
must be accounted for. Indirectly, this means that every asset over
$5,000 must have a useful life.
E. Chapter V--Oversight
Chapter V discusses FTA oversight. FTA evaluates grantee adherence
to program and administrative requirements through a comprehensive
[[Page 56896]]
oversight program. FTA's Master Agreement specifies these requirements.
FTA determines compliance through self-certification, oversight review
and audits, and site visits. FTA annually completes an individual
Grantee Oversight Assessment Questionnaire, which serves as baseline
information for each grantee's capacity to comply, and the degree of
the risk the grantee's program may represent for the Federal program.
Based on this information, FTA makes decisions about which grantees
will receive oversight reviews during the coming year. Regional staff
uses the information to develop regional oversight plans and to
allocate oversight resources within the region for the upcoming fiscal
year, which may include oversight reviews, regional meetings, and/or
regional site visits.
One commenter asked FTA to add its Job Access Reverse Commute
(JARC) and New Freedom Programs to the list of programs covered by
State Management Reviews. FTA only listed programs for which it is
authorized to withhold a percentage for oversight activities. FTA
retains the right to review any of its programs through State
Management Reviews.
F. Chapter VI--Financial Management
Chapter VI discusses the proper use and management of Federal funds
FTA expects from its grantees. Financial management is one of the most
important practices in the management of Federal funds.
One commenter asked FTA to define the Cash Basis of Accounting and
its permissible use. Definitions have been added.
Another commenter asked FTA to clarify whether a specific form is
required for documenting internal controls. FTA notes that the form
checklist provided in Circular 5010.1D is not mandatory. FTA has
provided it to those transit properties that do not currently do their
own testing. FTA has modified Circular 5010.1D to make clear that this
form is a tool, not a requirement.
G. Appendices
One commenter noted that Appendix C, Guide for Preparing an
Appraisal Scope of Work, is excellent guidance and asked FTA to include
a review appraisal scope of work. FTA agrees with this comment and has
indicated that the Guide for Preparing an Appraisal Scope of work can
also be used for a review appraisal.
Appendix D, Fleet Status Report, has been renamed and revised so as
to not be confused with the Fleet Status Report screen in TEAM. The new
name is Rolling Stock Status Report. The use of this report is limited
to disposing of a vehicle that has met minimum useful life and fair
market value is greater than $5,000, disposing of a vehicle before it
reaches minimum useful life, or requesting a budget revision affecting
vehicles.
Issued in Washington, DC, this 22nd day of September, 2008.
James S. Simpson,
Administrator.
[FR Doc. E8-22891 Filed 9-29-08; 8:45 am]
BILLING CODE 4910-57-P
