TBP Presentation Format

1
American Recovery and Reinvestment Act of
2009 Implementation Policy and
IssuesSeptember 1, 2009Kristine Lee
LeiphartDeputy Chief Financial Officer Federal
Transit Administration
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Outline

• Purpose of Legislation and Funding
• Implementation Strategy
• Implementation Team and Grants
• Oversight Challenges
• Accomplishments

3

Purposes of Legislation

• Recovery
• Maintain and create jobs
• Provide cash to strapped State and local
  economies
• Jobs Counting and Reporting Work with White
  House Council of Economic Advisors in developing
  a jobs counting
• Risk Management Use strategies similar to
  Federal Financial Management Integrity Act
  (FMFIA) for internal controls
• Reinvest
• Build and repair infrastructure

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ARRA Transportation Funding
5
DOTS Progress as of August 17
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Implementation Strategy

• Creation of a TIGER Team
• Secretary LaHood creates Transportation
  Investments Generating Economic Recovery (TIGER)
  Team to oversee implementation
• Co-chaired by Deputy Assistant Secretary for
  Transportation Policy Deputy Assistant
  Secretary for Budget and Programs
• Mission of the Team is to ensure
• Recovery Act funds delivered quickly and legally
• Recovery Act funds tracked and monitored
  consistently
• Progress Reports provided regularly and are
  transparent

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Making the TIGER Concept Work (cont.)

• Stewardship Groups
• Data Management Tackles all grant reporting
  issues using information from separate grant
  systems (FMIS, TEAM, SOAR)
• Financial Assistance Works with issues
  pertaining to grants, procurement, and
  contracting across the Department
• Communications and Governmental Affairs Focuses
  on announcements, events, and press releases
• Financial Management Ensures consistent
  financial reporting of all financial data from
  apportionment through final disbursement

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ARRA Transit Discretionary Programs

• Major Capital Investments (742.5M) - FTA focus
  on projects under construction or able to
  obligate funds within 150 days
• Tribal Transit (17M) - Competitive solicitation
  and selection? using existing procedures capital
  projects only
• Energy Program (100M) - Competitive solicitation
  and selection grants for capital projects that
  either
• Reduce energy consumption of the transit agency,
  or
• Reduce greenhouse gas emissions of the transit
  agency

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TIGER Discretionary Grants Program

• Notice of funding availability published in
  Federal Register June 17, 2009
• Applications due by September 15, 2009
• Recovery Act requires awards announcement by
  February 17, 2010
• FHWA, FTA, FRA,MARAD, and OST provide one member
  for Evaluation Teams

• All Recovery Act funds to be awarded to projects
  with potential to
• (i) deliver programmatic results
• (ii) achieve economic stimulus
• (iii) invest in transportation, environmental
  protection, and infrastructure
• (iv) satisfy the Recovery Act's transparency and
  accountability objectives

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TIGER Grant Reviews

• Economic Analysis Team
• Includes economic analyses for applicants seeking
  20 million
• Reviews economic analyses of projects advanced by
  Evaluation Teams
• Review Team
• Considers all applications advanced by Evaluation
  Teams, presented by Economic Analysis Team, and
  make recommendations to the Secretary
• Includes OST senior leadership and Operating
  Administrations
• Accountability Team
• Ensures quality and integrity of Evaluation
  Teams reviews and recommendations
• Randomly reviews applications from Evaluation
  Team, ensuring consistency

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GAO/OIG ARRA Activities

• April GAO report on use of funds
• Based on review of 16 States D.C.
• Focus on transparency, accountability, and
  communication improvements (directed mainly to
  OMB)
• DOT/OIG report on management challenges focuses
  on 10 areas
• DOT prepared action plan that addresses 10 key
  focus areas

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Implementation Challenges

• Constant reporting requirements (currently 8
  reports per week)
• Advancing mapping capabilities
• Web-site refreshing and posting of current
  information
• Refining jobs methodology, started in May
• Continued communication with Congress on progress
• Risk management strategy on-going
• Continued outreach both internally and externally
  on ARRA

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Oversight Challenges Facing DOT

• On March 31, the OIG issued a 10 focus areas
  where DOT must take actions to provide oversight
  to grantees receiving ARRA funding
• acquire sufficient personnel with relevant
  expertise to oversee grantees
• adhere to existing Federal requirements for
  programs funded under ARRA
• evaluate the credibility and completeness of cost
  and schedule estimates
• oversee grantees contracting management
  activities
• address internal control weaknesses and identify
  unused funds

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Oversight Challenges Facing DOT

• 10 focus areas where DOT must take actions to
  provide oversight to grantees receiving ARRA
  funding (list continued.)
• (6) implement new ARRA reporting
  requirements to promote accountability
• (7) develop criteria for new discretionary
  grant and passenger rail programs
• (8) develop appropriate oversight
  strategies for new programs created by ARRA
• (9) enhance understanding on recognizing,
  preventing, and reporting fraud
• (10) take action to suspend and debar
  firms that have defrauded the Department

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Implementation Accomplishments

• Federal Transit Administration (FTA), as of
  August 20
• Awarded 648 grants for a total obligation of 7
  billion in ARRA funds
• Reviewing 85 grants (711 million), potential for
  733 grants awards (7.7 billion)
• Received 250 million in surface flexible fund
  transfers from FHWA
• Federal Aviation Administration (FAA), as of end
  of July
• Announced cumulative airport grants, equal to
  about 1.1 billion

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Implementation Accomplishments

• Federal Highway Administration (FHWA), as of end
  of July
• FHWA Division Offices authorized 6,144 projects
  for 17.3 billion
• FHWA obligated its 6,000th ARRA project
  nationwide
• Maritime Administration (MARAD), as of end of
  July
• MARAD reevaluated small shipyard applications
  based on Secretarys guidance
• MARAD considered economic condition where the
  shipyards are located
• 100 applicants were sent letters about their
  incomplete applications