ASSESSMENT PACKAGE

FY 2011

American Recovery and Reinvestment Act (ARRA)

Management Assessment

of

Ohio Department of Transportation

(ODOT)

RECIPIENT ID: 1225

Site Visit Dates: November 16-18, 2010

Prepared for

Federal Transit Administration

Region V

200 West Adams Street

Suite 320

Chicago, IL 60606

Prepared by

John Potts

The DMP Group, LLC

2233 Wisconsin Avenue, NW

Suite 405

Washington, DC 20007

202-726-2630

Table of Contents

INSTRUCTIONS 1

TENTATIVE SITE VISIT SCHEDULE 2

REQUESTED DOCUMENTS 3

QUESTIONS FOR THE ASSESSMENT 5

0. Background 5

1. Program Management 6

2. Grant Administration 8

3. Financial Management 9

4. Procurement 12

5. Disadvantaged Business Enterprise 20

6. Buy America 22

7. Lobbying 24

8. Debarment and Suspension 25

9. Title VI 26

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INSTRUCTIONS

The Federal Transit Administration (FTA) is conducting an ARRA assessment of the Ohio Department of Transportation (ODOT). The assessment reviews management practices and program implementation of the American Recovery and Reinvestment Act (74 FR 9656), The purpose of the assessment is to ensure that the programs are administered in accordance with 49U.S.C. Chapter 53, Federal transit law provisions and FTA requirements and that program objectives are being met.

An ARRA assessment consists of two stages. The first stage is a desk review conducted at the FTA regional office. During the desk review, FTA files pertaining to the state’s ARRA projects and TEAM-Web data are reviewed and discussed with FTA staff. The desk review has been completed. The second stage is a site visit where FTA representatives and the grantee discuss outstanding issues, examine FTA-funded facilities and equipment, review necessary additional documents, and visit selected subrecipients. The site visit has been scheduled for November 16-18, 2010. John Potts of The DMP Group will assist FTA staff in conducting the assessment.

As part of FTA’s ongoing effort to minimize the use of grantee valuable staff time during the site visit and expedite the issuing of the draft report, this package contains the comprehensive list of all the items that will be needed. Please complete this package, assemble the requested documents, and send the completed package and the documents to the reviewer so that they arrive no later than November 9th. Please send an electronic version of the completed package in Microsoft Word format, not in portable document format (pdf). The reviewer will enter additional information. Electronic versions of the requested documents also are preferred.

In preparation for the site visit, please find the following items in this package:

Site Visit Schedule. The schedule lists the areas that will be discussed and the approximate time frame for discussion.

Documents. This section of the package lists the documents needed for the assessment. Some of the documents are requested to be provided in advance of the site visit. Electronic versions of the documents are preferred.

Questions for the Assessment. This section of the package lists the questions to be answered. Many of the questions require more than a yes or no answer. Written answers are required before the site visit during which the answers will be discussed. For each section, grantees are to begin responding in the table under the areas entitled “Questions.” Please note that efforts have been made to eliminate assessment areas and questions that do not appear to be applicable to ODOT and its ARRA projects. However, if issues arise during the site visit that relate to FTA requirements that were not asked, FTA reserves the right to address those requirements during the site visit.

The ARRA projects selected for site visits are those administered by the City of Marion (Marion Area Transit) and Carroll County (Carroll County Transit). Please reference the Site Visit Schedule included in this package for proposed dates and times for the subrecipient visits. Please notify the subrecipients of our scheduled Site Visit and proposed days and times we plan to visit their facilities. We will want to review relevant documentation, such as procurement solicitations, contracts, project status reports, etc., and observe any facility construction in-progress and/or inspect vehicles and equipment purchased with ARRA funds.

If you have any questions about the assessment, the discussion items, or the documentation required, please contact Cyrell McLemore of FTA Region V at 312-866-1625 or or Mr. Potts at 504-283-7661 or . We look forward to a meaningful and successful visit. Thank you.

SITE VISIT SCHEDULE

Tuesday, November 16, 2010
9:00 – 9:30 / Entrance Conference
9:30 – 10:00 / Program Management
10:00-10:30 / Grant Administration
10:30 – 11:30 / Financial Management/Review Echo Draws
11:30 – 12:00 / DBE
12:00 – 1:30 / Lunch
1:30 – 3:00 / Procurement / Buy America/ Debarment and Suspension / Lobbying / Review selected ARRA procurement records at ODOT
3:00 / Travel to Carroll County
Wednesday, November 17, 2010
9:00 – 9:30 / Carroll County Transit - Introductions
9:30 – 12:00 / Procurement/ Debarment and Suspension/ Lobbying/ Buy America/ DBE/ Title VI / Review selected ARRA procurement records at City of Marion
12:00 – 1:30 / Lunch
1:30 / Tour Facility Construction
3:00 / Travel to Marion
Thursday, November 18, 2010
9:00 – 9:30 / Marion Area Transit - Introductions
9:30 – 12:00 / Procurement/ Debarment and Suspension/ Lobbying/ Buy America/ DBE/ Title VI / Review selected ARRA procurement records at Carroll County
12:00 – 1:30 / Lunch
1:30 / Tour Facility Construction
3:00 / Travel to ODOT, if time permits
4:00 / Exit Conference with ODOT (Location to be determined)

REQUESTED DOCUMENTS

The table below details the documents needed for the assessment as follows:

·  Information to be sent in advance: Please send to the reviewer the documents indicated by an “X” in the “Provide by” column. As discussed below, please send electronic versions. If sending hard copies, please do not send original documents. Please send the documents so that they arrive no later than November 9, 2010.

·  Information to have available on site: At the site visit, please provide access to information indicated by an “X” check in the “site visit” column. The reviewer will not need to keep copies of these documents.

Grantees are encouraged to submit the requested information electronically (e.g., on CD or flash drive) whenever possible. Please organize the electronic files by assessment area, with a folder created for each assessment area and all files for that area included in each folder. Please name the files according to the list of documents in the agenda package so that both you and the reviewer can easily determine what each file includes. The following example shows the naming convention that should be used when organizing electronic responses:

Example: Folder/File Naming Convention

Assessment Area/ Document / Folder/File Name
1. Program Management / / 1 Program Management
a. Summary Listing of Oversight Activities / / 1a ARRA Oversight.doc
2. Grants Administration / / 2 Grants Administration
a.  Project status schedule for ARRA grants / / 2a ARRA Grants.doc
Assessment Area/Documentation / Provide by
11/9/2010 / Site Visit /
0.  Background
a.  Current Organizational charts with names for:
i.  ODOT Office of Transit
ii.  Marion Area Transit
iii.  Carroll County Transit / X
X
X
1.  Program Management
a.  Summary listing of oversight activities completed (reports, compliance checklists, and follow-up letters/reports) for ARRA-funded projects during the past two years. / X
b.  Force Account Plans for ARRA PM projects over $100,000 / X
2.  Grants Administration
a.  Project Status and close-out schedule for ARRA grants / X
3.  Financial Management
a.  ECHO request and payment documentation (Reviewers will review a sample of ECHO drawdown.) / X
b.  SF-SACs and, for years with findings related to the transit programs, single audit reports and management letters for FY 2009 and FY 2010 (if available) / X
c.  OIG or GAO audit reports with findings relating to FTA / X
d.  Grantee or local government audit reports of ODOT / X
4.  Procurement
a.  List of all FTA ARRA-funded procurements / X
b.  Reviewers will examine a sample of procurement files during the site visit / X
5.  DBE
a.  DBE goal due to FTA on August 1, 2010 / X
b.  Compliance monitoring reports for Marion Area Transit and Carroll County Transit, if applicable / X
c.  Uniform reports of DBE awards and commitments or payments for 2009 and 2010 / X
d.  DBE certification(s) from TVM, for ARRA-funded vehicles / X
e.  DBE complaints/protests related to ARRA-funded projects / X
6.  Buy America
a.  Waiver requests and/or approvals for ARRA-funded projects / X
b.  Reviewers will examine a sample of procurement files during the site visit / X
7.  Lobbying
a.  Reviewers will examine a sample of procurement files during the site visit / X
8.  Debarment and Suspension
a.  Reviewers will examine a sample of procurement files during the site visit / X
9.  Title VI
a.  Environmental Justice Analyses for ARRA-funded projects, if applicable / X

QUESTIONS FOR THE ASSESSMENT

0.  Background

Please provide the following background information on ARRA grants.

General ARRA Project Information
How many subrecipients received ARRA grants from ODOT?
Please provide a list of ARRA-funded subrecipients, grant amounts and brief project descriptions (below). / There are 34 rural program subrecipients that received ARRA funding.
Grant Activity
Please provide a brief description of ARRA projects completed, on-going or planned.

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1.  Program Management

Basic Requirement: The state must be able to manage the FTA funded programs in accordance with the grant application, grant agreement, and all applicable laws and regulations using sound management practices.

Reviewed / Not Applicable
Not Deficient / Deficient
DEFICIENCIES
No technical assistance provided in meeting FTA requirements
Inadequate oversight system
Lacking force account plan/justification
No cost effectiveness documentation for capital lease
No procedures for technical inspection/supervision of work in progress
Excessive delay in project implementation
Insufficient resources
Other

Questions

1.  For ARRA-funded projects, have the state or subrecipients implemented similar projects in the past three years? How is technical capacity to be maintained or increased to ensure project implementation? / Chillicothe Transit System - $1.7 M in 5311 funds for facility construction. TPC is $3.4 M.
Shelby County Transit Facility- $1.238 M in 5311 funds for facility construction. TPC $1.375 M.
Using personal service contracts to supplement technical assistance needs and QAR’s for D&A while state staff conduct oversight of ARRA. Also using District level planning staff for “in community” monitoring of projects and verifications of smaller projects.
2.  Has the state awarded ARRA funds to any subrecipient(s) that was not a previous recipient of Section 5311 funding? / YES / NO
3.  Is the state’s or a subrecipient’s work force used in the execution of ARRA grant projects? / YES / NO
a.  If the force account work equals $10,000,000 or more, was a force account plan and justification submitted to FTA? / YES / NO / N/A
b.  Is a plan on file for force account work of $100,000 or more but less than $10,000,000 / YES / NO / N/A
4.  Does the state or subrecipient have the necessary resources (this may include, but is not limited to, staff, financial, technical, etc.) to maintain its current program and implement the additional ARRA projects? If no, how does the grantee plan to acquire the resources? / YES / NO
5.  Does the state have adequate resources and procedures to provide additional necessary oversight for subrecipient ARRA projects? If no, how does the state plan to acquire the resources? / YES / NO

2.  Grant Administration

Basic Requirement: The state must certify to FTA that it will comply with applicable Federal requirements and that each subrecipient has met all statutory and program requirements before expending Federal funds on a project. The grantee must develop and implement grant administration procedures to track and report on the program of projects, expend grant funds timely, and close out projects and grants when project activity is completed.

Reviewed / Not Applicable
Not Deficient / Deficient
DEFICIENCIES
Late/incomplete program status reports/MPRs
Late FFRs
Incorrect FFR reporting
Inactive ARRA grants/untimely grant closeouts
Other

Questions

1.  Has the state amended or revised a non-ARRA grant to eliminate a project similar to one funded in an ARRA-funded grant? If yes, please explain and document. / YES / NO
2.  Has the state submitted its ARRA Reports (1512, 1201(c)) timely? Are the state’s ARRA Reports (1512, 1201) complete and accurate? / YES / NO
3.  Has the state submitted its progress reports for ARRA grants on time? / YES / NO
4.  Do the progress reports for ARRA grants contain the required information? / YES / NO
5.  Has the state submitted its FFRs for ARRA grants on time? / YES / NO
6.  Has the state correctly reported unliquidated obligations for ARRA grants? / YES / NO

3.  Financial Management

Basic Requirement: The grantee must have the financial capacity to carry out the FTA programs. The grantee expends and accounts for Federal funds in accordance with grantee laws and procedures for expending and accounting for grantee funds. The grantee must have annual single audits conducted and resolve program related findings.

Reviewed / Not Reviewed
Deficient / Not Deficient
DEFICIENCIES
Insufficient financial oversight of ARRA-funded grant(s)
Insufficient financial capacity
Grantee administration exceeds cap on ARRA grant(s)
Cost allocation plan deficiencies
Insufficient tracking of ARRA grant balances
ECHO documentation deficient for ARRA grant(s)
Excess cash problems
Ineligible expenses charged to grant
Insufficient effective control
Other

Questions

Part A: Eligible Expenditures
1.  Is the state using ARRA funds for administration? If yes, do the amounts exceed the allowable percentage of the grant? /
YES
/
NO
2.  Is the state using ARRA funds for operating assistance? If yes, do the amounts exceed the allowable percentage of the grant? /
YES
/
NO
3.  Are indirect costs charged to an ARRA grant? If yes, does the state or subrecipient have a cost allocation plan to support indirect administrative costs related to the ARRA grant program? If yes, what agency approved the plan? Has the state or subrecipient been following the plan? /
YES
/
NO
Part B: Funds Management
4.  What is the process for receiving and disbursing ARRA funds? / ODOT disburses funds from the Public Transit Assistance Program budget (established by the Office of Budget and Management) to grantees for reimbursement of approved expenses. ODOT prepares an ECHO request to reimburse the Public Transit Assistance Program budget after the disbursement is posted to the ODOT Current Bill.
a.  Do records support ECHO requests and the disbursement of funds? /
YES
/ NO
b.  Are draw requests signed by an authorized official other than the individual who requests the payment? / YES / NO
c.  Are funds disbursed within three business days of receipt? / YES / NO / Funds are expended by the state prior to requesting reimbursement through ECHO
Part C: Audits/Reviews
5.  Have the annual single audits for FY 2009 and/or FY 2010 been conducted? /
YES
/
NO
/ The SFY 2009 single audit is complete. The SFY 2010 single audit is in process.
a.  Are there any unresolved audit issues relating to FTA ARRA grants? /
YES
/
NO
b.  Has the state submitted the single audit reporting form (SF-SAC) and, if there are findings related to the FTA ARRA grants, the relevant sections of the single audit report and the management letter comments to FTA? /
YES
/
NO
/ The SF-SAC was submitted July 2010.
6.  Since the last SMR, have any Government Accountability Office (GAO) or Office of Inspector General (OIG) reports had findings related to ARRA grant requirements? If yes, have these findings been resolved? / YES / NO
7.  Since the last SMR, have any internal reviews or audits covered the ARRA transit grants? If yes, have all the findings related to ARRA transit grant requirements been resolved? / YES / NO / The Office of Budget and Management conducted a Capital Transit Assistance – Non-Urban Formula ARRA Program Audit. The final report was issued March 9, 2010. The scope of the audit included Program Planning, Application Process, Program Administration and Monitoring and Reporting. There were no observations or recommendations identified as a result of the audit.
8.  How does the state ensure that ARRA sub recipients have resolved any single audit findings related to ARRA grants? / All ARRA funds disbursed are included in the Office of Audits annual list of federal funds disbursed. The Office of Audits compares each sub recipients Schedule of Federal Expenditures to the list of federal disbursements.

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