List and Sell Your Equipment  /  Dealer Login  /  Create Account

Report Asserts FHWA Does Not Properly Account for Preliminary Engineering Funds

Weak enforcement, lack of oversight, inaccurate tracking, and other factors are highlighted in a new report.

Thu September 01, 2016 - National Edition
Construction Equipment Guide


The Federal Highway Administration (FHWA) authorizes billions of dollars in Federal-aid funding for preliminary engineering (PE) to assist States in the design and related ground work needed before a highway or bridge project advances to physical construction or acquires right-of-way.
The Federal Highway Administration (FHWA) authorizes billions of dollars in Federal-aid funding for preliminary engineering (PE) to assist States in the design and related ground work needed before a highway or bridge project advances to physical construction or acquires right-of-way.

A new report by the Office of the Inspector General shows that FHWA does not effectively account for Federal highway and bridge funds used for preliminary engineering, and as a result billions of dollars are missing.

The Federal Highway Administration (FHWA) authorizes billions of dollars in Federal-aid funding for preliminary engineering (PE) to assist States in the design and related ground work needed before a highway or bridge project advances to physical construction or acquires right-of-way. To achieve program efficiency, Federal law requires States to repay the Highway Trust Fund the full amount of Federal-aid expended on PE when a project does not acquire right-of-way or start construction within 10 years after Federal funds expended on PE were first made available.

The audit showed that the four FHWA Division Offices under review do not effectively assess whether States' systems and processes accurately account for PE projects, as required by FHWA Order 5020.1.

For example, a Division Office determined that a State lacked processes for monitoring whether PE requirements were followed at the 10-year limit; however, the Division Office did not follow up on these findings for 5 years, contributing to the State's PE expenditures that have yet to be repaid.

The report also goes on to list other factors, such as enforcement, lack of oversight, inaccurate tracking, and others contributing to the problem.

The full report can be viewed here.


Today's top stories

Michigan Paving & Materials, MDOT Use Design-Build Approach for $210M I-69 Rebuild

John Deere Expands Upon Precision Technology Suite With SmartGrade Remote Support

Is Your Equipment Fleet Ready for Winter?

CM Labs' Heavy Equipment Simulators Provide Innovative Solution for Addressing Construction Skilled Labor Shortage

OTR Introduces NDX Tire, Wheel System Featuring 'Tire That Never Goes Flat'

Kansas DOT Launches Statewide Survey to Explore Future Transportation Funding

Illinois Tollway Approves $332.2M for Construction, Professional Contracts

Central Power Hosts Celebratory Open House to Show Off Its Newest Facility


 






ceg-logo ceg-logo ceg-logo ceg-logo ceg-logo