1. Rural Transit Invoice New Invoice May 15, 2007 Brett Harris, Ohio Dept of Transportation Brett.Harris@dot.state.oh.us Brett.Harris@dot.state.oh.us@dot.state.oh.us (614) 466-7440

2. Invoice Formula Calculation of Non-Fed Share Total Operating Expenses (TOE) Total Operating Expenses (TOE) Less – Fare and Incidental Charter Revenues (FICRs) Less – Fare and Incidental Charter Revenues (FICRs) Equals = Net Operating Expense (NOE) Equals = Net Operating Expense (NOE) Federal Funds Eligible (FFE) Federal Funds Eligible (FFE) –The lesser of 50% of NOE or Federal Contract Amount NOE minus FFE = Non-Federal Share (NFS) NOE minus FFE = Non-Federal Share (NFS) (no change in above formula calculation)

3. Invoice Formula Less Local Share Revenues (LSR) Except for Local Cash Other Allowable Federal Other Allowable Federal Contract Revenue Contract Revenue Advertising Revenue Advertising Revenue Contract Maintenance Revenue Contract Maintenance Revenue Investment Income Investment Income Other Revenue Other Revenue Contributed Services Contributed Services State E&D Funds State E&D Funds

4. Invoice Formula Local Share Calculation Invoice Formula Local Share Calculation Eligible State Reimbursement (ESR) Eligible State Reimbursement (ESR) –NFS minus LSR’s Less Available State Contract (ASC) Less Available State Contract (ASC) –Up to Maximum State Contract Amount = Local Cash Requirement = Local Cash Requirement –ESR minus ASC

5. Formula  TOE  Minus FICRs  = NOE  Calc FFE  NOE – FFE = NFS  Less LSRs  = ESR  Less ASC  = LCR

9. State Contract Payment Change 1/12 of State Contract Amount 1/12 of State Contract Amount Only Overpayments are Adjusted Only Overpayments are Adjusted

10. Example State Contract Amount: $12,000 State Contract Amount: $12,000 1/12 regular monthly: $1,000 1/12 regular monthly: $1,000 1 st Quarter overpayment: $500 1 st Quarter overpayment: $500 2 nd Quarter underpayment: $400 2 nd Quarter underpayment: $400 Adjustment Months: May, August, November, February (Final) Adjustment Months: May, August, November, February (Final)

11. 1 st Quarter 1 st Quarter Jan $1,000 Jan $1,000 Feb $1,000 Feb $1,000 Mar $1,000 Mar $1,000 2 nd Quarter 2 nd Quarter Apr $1,000 Apr $1,000 May $500 1 st Qtr Over Payment Adj. May $500 1 st Qtr Over Payment Adj. Jun $1,000 Jun $1,000 3 rd Quarter 3 rd Quarter Jul $1,000 Jul $1,000 Aug $1,000 2 nd Qtr Under Payment Adj. Aug $1,000 2 nd Qtr Under Payment Adj. Sept $1,000 Sept $1,000

12. State Payments Evenly Spreads State Funds Evenly Spreads State Funds Reduce Overpayments Reduce Overpayments