A Tale of Terror and Suspense by

Dave Leighow

Well, not really. BUT, it could have been!

Consider this dialogue:“Are the feds watching you?”“I don’t know. Did I do

something wrong?”“Well, I don’t know, but if you

are using fed funds, maybe…”

Money talks—or, more importantly, money means obligations.

Why might the FHWA review or audit what an agency is doing?

1. Ensuring that federal funds are being properly used.

2. Ensuring that federal and state laws and regulations are being complied with.

3. Solving problems before they become problems.4. Solving problems after they have become

problems.5. Identifying and implementing corrective actions.6. Applying sanctions in cases of material

noncompliance.7. Identifying and sharing best practices.

23 CFR 1.9(a): Federal-aid funds shall not participate in any cost which is not incurred in conformity with applicable Federal and State law, the regulations in this title, and policies and procedures prescribed by the Administrator.

23 CFR 1.36: If (FHWA) determines that a State has violated or failed to comply with the Federal laws or the regulations … (FHWA) may withhold payment to the State of Federal funds on account of such project, withhold approval of further projects … and take such other action … appropriate under the circumstances, until compliance …has been accomplished.

Federal funds go to local agencies via the State DOT. The regulation says this:

23 CFR 710.201(H): The (State DOT) shall monitor any such real property acquisition activities to assure compliance with State and Federal law and requirements and is responsible for informing such organizations of all such requirements and for imposing sanctions in cases of material non-compliance.

How does FHWA determine if the laws and regulations are being followed?

1.Early involvement.2.Working closely with SDOTs.3.Process and quality

assurance reviews.4.Providing training and

technical assistance.5.Audits??????

What’s working well.What’s not working.What can we share.What can we enhance.Are regulations,

policies, procedures adequate.

How can we help.Focus on the process.

Typically looking at $$$$.

Was money properly spent.

Was money properly accounted for.

Are there deficiencies.

“Gotcha!”

Audits

Someone once said that if you ever have to testify before a Congressional committee, observe these three things:

1.Don’t try to be funny.2.Don’t lie.3.Don’t tell the truth.

BUT, if you are subject to a review or audit by FHWA, you should:

1.Have complete and accurate files.

2.Be sure the files give the facts (who, what, where, etc.).

3.Remember “the Almost Golden Rule”: