Executive Director's Report - Convention Issue 2003

Eight Counties Forfeit Portion of Federal Funds

The State of Alabama Department of Transportation (SDOT) annually allocates $500,000 in federal transportation funds to each county. This $33.5 million is made available to counties to be used on eligible road and bridge projects.

In April of 1999, in response to urging from the ACCA Board of Directors, the SDOT adopted Procedures for Distribution of Federal Aid Funds to Counties. The procedures were previously published in the July/August 1999 issue of The County Commissioner. The procedures were adopted so that county commission members and county engineers would be aware of when federal transportation funds would be made available and the time frame within which the funds must be expended or obligated in order that they not be forfeited.

Included in the procedures is a provision that the SDOT inform the Association of all counties that forfeited the allotted federal funds. The ACCA Board of Directors instructed the Association to publish the names of any such county and the amount forfeited.

Eight counties forfeited federal funds in 2003. Listed below are the names of the counties and the amount forfeited because the money was not spent or obligated by the appropriate date.

Chilton County
Fayette County
Greene County
Madison County
Marengo County
Perry County
Pickens County
Wilcox County

$453,091.78
$76,058.99
$177,265.95
$837,656.59
$65,040.14
$1,022,750.58
$231,123.23
$180,537.68

While it is disappointing that some counties did not use all of the allocated funds, it is gratifying to note that only $3.8 million out of $33.5 million was not either expended or obligated within the allotted time. In all likelihood the remaining funds have already been, or will be allocated for use by other counties.
It is the desire of the Association that all counties fully utilize the federal funds made available to them. With that in mind, the procedures are reprinted below.

Procedures for Distribution of Federal Aid Funds to Counties
Federal funds for each Alabama county will be allocated by the Alabama Department of Transportation on October 1 of each year. Each county will have until May 1 of the following fiscal year (a total of 19 months) to deliver completed plan assemblies to the Bureau of County Transportation to utilize at least 90 percent of the funds allocated. Any county not meeting the May 1 deadline will forfeit that allocation, but will continue to be eligible for the allocation of federal funding made on October 1 of each year.

Allocation and expenditure of federal funding will follow the annual schedule set out below:

October 1: Federal funds are allocated in each county.

November 1: Department of Transportation notifies each county engineer and county commission chairman of the total federal funds available for the county, with the time frame for
spending each portion.

May 1: A county forfeits its funding for the previous fiscal year unless it has delivered a completed plan assembly to the Bureau of County Transportation to expend at least 90 percent of its allocation of these funds or received written approval from the Transportation Director based on legitimate reasons for not having completed plans. This forfeited federal funding is returned to a reallocation pool to be used at the Director's discretion on other county projects.

June 1: Department of Transportation notifies the Association of County Commissions of Alabama the balance of funding remaining in the account for each county and the list of the counties which forfeit their funding on the May 1 deadline.

A county may "carry over" its federal funds under the following guidelines:

Provide a completed plan assembly, along with a letter requesting a "carry over" of federal funds by May 1 to the Bureau of County Transportation for a project that will require a level of federal fund - ing that exceeds the balance available in the county's account. Once a completed plan assem- bly is received, the request to carry over the year's allocation will be forwarded to the Director of the Department of Transportation for written approval. This approval may be for a project that requires funding from the allocations in two or more years. Counties will not be allowed to carry over funds without a completed plan assembly or without written approval by the Transportation Director based on legitimate reasons for not hav- ing completed plans.

A “completed plan assembly” is defined as a complete set of plans ready for review and forwarding to the Office Engineer for letting to contract along with all supporting documentation required by the Procedural Guidelines for County Projects as published by the Bureau of County Transportation.

The members of the Association's Board of Directors feel it is incumbent upon every county commission to use every means to utilize the federal funds allocated.


Association of County Commissions of Alabama

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