Office of Regional Planning Training RTPA Workshop JANUARY 12, 2017

Agenda Legislation and Guidance OWP Development and Coordination Topics Legislation and Guidance OWP Development and Coordination Amendments Eligibility Cost Principles Invoicing Regional Planning Tools 2

Legislation and Guidance Public Utilities Code 99311 and 9311.1 Requirement to pass through the RPA funds for the completion of Gov. Code 65080. Government Code 65080 RTPAs must prepare and adopt a RTP 23 CFR 450 –Statewide Planning, Non-Metropolitan, and Metropolitan regulations (Rule-making for MAP-21 in progress) 2 CFR 200 – Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards Grant Management Basic Cost Principles Indirect Costs Allowable vs. Unallowable Establishes rules for certain types of costs Effective December 26, 2014 3

Legislation and Guidance Generally Accepted Accounting Principles (GAAP) Accounting standards issued by the Government Accounting Standards Board (GASB) and the Financial Accounting Standards Board (FASB) Very general, and some principles may not apply to government work.  Some are central, such as objectivity in financial statements and consistency in treatment of costs and revenues 2 CFR 200 references GAAP when establishing administrative requirements 23 CFR Part 420 – Administration of FHWA Planning and Research funds Policies for planning and research funds General criteria for eligibility Monitoring and reporting (quarterly reports) Fiscal requirements FTA Circular 8100.1c - Program Guidance for Metropolitan Planning and State Planning and Research Grants Program eligibility OWP requirements and procedure Rules of the Consolidated Planning Grant 4

Overview of Regional Planning Funds Oversight and monitoring of Regional Planning Transportation Funds (Section 1.04, 3 - 3.06) Consolidated Planning Grant (CPG) FHWA Metropolitan Planning (FHWA PL) FTA Metropolitan Planning (FTA 5303) Caltrans Sustainable Transportation Planning Grants FHWA Strategic Partnerships FTA 5304/SHA Sustainable Communities Rural Planning Assistance (RPA) 5

Overview of Regional Planning Agreements Regional Planning Agreements (Section 2 - 2.05) Overall Work Program (OWP) Overall Work Program Agreement (OWPA) Master Fund Transfer Agreement (MFTA) Memorandum of Understanding (MOU) 6

OWP Development and Coordination Overall Work Program (OWP) (Section 2) Annual overview of the region with a focus on transportation goals and objectives MFTA Section 1 (A) Contents of the OWP (Section 2-2.05c) Three part to an OWP Introduction/prospectus Work elements Budget Revenue Summary 7

Contents of an OWP Introduction or Prospectus (Section 2.05a) Provides context for understanding the proposed work elements and gives information on the region: Agency organizational structure and interagency agreements Decision-making process Coordination and consultation process Significant regional characteristics, issues, geography, demographics, transportation needs, priorities and goals How the PEAs and Planning Factors are addressed Progress made toward implementing the RTP and TIP

Contents of an OWP Work Element (Section 205b) Identify specific planning work to completed during a state Fiscal Year. Each major activity needs to have a separate work element that includes: Title and work element number Purpose or objective statement Identification of previous, ongoing, and future years’ work Description of tasks, completion dates and responsible entities A product associated with each task A schedule and completion date for each task and product A table showing all fund sources, uses of funds (staff, contracted and local match source

Contents of an OWP Budget Revenue Summary (Section 2.05c) All OWP fund sources and uses must be listed in a comprehensive Budget Revenue Summary table. All funds in the OWP itemized by work element and fund sources. Prior years’ unexpended RPA carryover identified separately Consistency of funding throughout the OWP documents is important: Budget Revenue Summary Work Elements OWPA

Amendments Types of Amendments 1) Administrative amendment (Section 2.19) Correction of errata Moving funds between work elements - no change in scope of work or total amount programmed 2) Formal amendment (Section 2.20) Increase/decrease in total RPA funds in the OWP Adding carryover from previous FYs Adding a grant award Change in scope of work Administrative Amendment does not require board approval, just notification to the District (district forwards to ORP) All amendments are sent to the ORP Liaison electronically 11

Amendments OWP Amendment Package ( Section 2.23) Transmittal memo Effected pages of the OWP Revised work element pages Revised Budget Revenue Summary Resolution or minutes from RTPA Board approving the amendment Amended and fully executed original OWPA (if there are RPA or Grant funding changes) Sample Amendment Package (see hand out) Deadline for OWP amendments (Section 2.24) May 1st for formal amendments June 15th for administrative budget revisions 12

Cost Principles How do you determine if a cost is allowable for reimbursement? Criteria established through regulations (2 CFR 200, 23 CFR 420, FTA circular 8100.1 c) - Must be “allowable” under 2 CFR 200 In order to be allowable, a cost must: Be necessary and reasonable Conform to limitations set forth in statute Be consistent with an agency’s policies and procedures Be treated in a consistent manner with like costs Be determined in accordance with GAAP Not be used to satisfy matching requirements for another federal award Be adequately documented Often requires a judgment; should be treated consistently Another part of the OWP monitoring is to ensure the agencies only bill for eligible and allowable cost. The difference between eligible vs. allowable is an Eligible cost is an actual planning activity and allowable cost are reflected in the cost principles and more administrative. Eligible uses are tied to 23 CFR Part 450 and 49 CFR Part 18. Allowable costs are outlined in 2 CFR 200 for the most part. Next slide goes into the definitions. 13

Cost Principles Allowable vs. Unallowable Costs Allowable Cost – Examples: Audit services, communications, compensation for indirect personnel services, depreciation, rent, and travel. Unallowable Cost – Examples: Alcoholic beverages, bad debts, contingencies, contributions and donations, entertainment, lobbying, equipment and other capital expenditures, certain advertising and public relations costs, certain memberships, and general government expenses. Examples of an allowable cost is a meeting space to conduct public outreach, travel and conference fees related to planning, training. Examples of unallowable are lobbying, extravagant prizes at public meetings or not adhering to the cost principles. All costs must be treated consistently so if an MPO has an indirect cost allocation plan that included office supplies, but then they directly billed for office supplies in one of their CPG invoices those direct costs would be unallowable. If you have a question on eligible and allowable costs you can contact your ORP liaison who can work with Audits to get clarification 14

Cost Principles Eligible vs. Ineligible Activities (Appendix A): Eligible: Approved transportation planning activities - data collection and modeling; public workshops; scenario planning; short range transit plan; unmet transit needs assessment; allowable indirect costs Ineligible: Non-approved activities, work that is beyond planning – Design and engineering; unallowable activities such as lobbying; unapproved indirect costs; transit operations; non-planning TDA; land use plans; local circulation elements An example of an eligible cost is the RTP, or a short range transit plan. An ineligible cost would be a general plan update or implementation of a plan, engineering document. Hand outs – Appendix A “Eligible and Ineligible Activities” 15

Appendix A Update Environmental document review Habitat Conservation Plans (23 CFR 450.320) MPO board meetings MPO Executive Director OWP Work Element Comingling of eligible and ineligible activities Food and beverages at meetings (2 CFR 200.432) Membership Dues and Meeting Attendance Pass-through Funds Marketing – 2 CFR 200.421 Legal Fees – are ineligible due to 23 CFR 450.306 (e).

Invoicing Frequency of invoices (Section 4.04) Risk Based Approach Maximum: monthly Minimum: quarterly Risk Based Approach Process (see hand out) Support spreadsheets (see hand outs) Hand outs – Risk Based approach process, Risk Based Approach support spreadsheets for MPOs and RTPAs Frequency of invoices is outlined in MFTA 17

Normal Invoicing Approach RFR Invoice Cover Sheet RPA $_____ SPR $_____ 5304 $_____ SHA $_____ Normal Invoicing Approach Caltrans Summary Sheets RPA $_____ 5303 $_____ 5304 $_____ SHA $_____ Invoice Payment Invoice Payment Invoice Payment Invoice Payment Risk-Based Approach

Sustainable Communities Strategic Partnerships (SPR) Invoicing Local (Non-Federal) Match (Section 3.06) Local match calculator (see hand out) Fund Type Sustainable Communities (FTA § 5304) Strategic Partnerships (SPR) Federal Grant 88.53% 80.00% Local Match 11.47% 20.00% * Hand outs – Local Match Calculator 19

Invoicing In-kind Local Match (Section 3.06a) Example: Services provided to an MPO planning work activity by a city or county staff In-kind local match – third party services TOLL CREDITS can now be used on carryover as well effective FY 15/16. 20

Invoicing OWP Year-End Package (Section 4.07) RTPA must submit the package by August 31st Contents of Year-End Package: Cover Letter (new recommendation) Certification of Expenditure Final Statement of Expenditures Sample Year-End Package (see hand out) Reconciliation and Carryover Letter (Section 4.08 – 4.10) Agencies can include carryover in the OWP and perform work, but may not program carryover in the OWPA or invoice for carryover funds until: The prior year Close-Out and Reconciliation processes have been completed and Carryover letter is signed by the agency and Caltrans * 21

Regional Planning Tools Regional Planning Handbook http://www.dot.ca.gov/hq/tpp/offices/orip/owp/index_files/2013_RPH_Final.pdf The RTP Guidelines http://www.dot.ca.gov/hq/tpp/offices/orip/rtp/index_files/2010%20RTPGuidelines_Jan2011_Technical_Change.pdf Grant Application Guide http://www.dot.ca.gov/hq/tpp/documents/2FINALGrant%20ApplicationGuide1516.pdf Regional Planning website http://www.dot.ca.gov/hq/tpp/offices/orip/index.html 22

HQ Office of Regional Planning Contacts 23

Questions? 24