RFP_260471_Exhibit_A_SOW.pdf

RFP 260471

EXHIBIT A

SCOPE OF WORK

FEDERAL TRANSIT ADMINISTRATION (FTA)

COMPLIANCE REVIEW AND CONSULTING SERVICES

I. BACKGROUND

The Orange County Transportation Authority (OCTA or Authority) is a recipient of Federal Transit Administration (FTA) funding for Orange County and is responsible for compliance with applicable FTA requirements for funds utilized for its own projects and programs, as well as those passed through to subrecipients. Over the decades, OCTA has strived to ensure compliance with these requirements and has achieved “no findings” in two of its most recent FTA Triennial Reviews.

OCTA seeks qualified professional services experienced in performing FTA Triennial Reviews to continue this tradition of excellence and help guide the Agency through new and continually evolving federal requirements and best practices.

These services will provide FTA compliance training to OCTA staff, conduct independent and objective compliance reviews of its subrecipients, and prepare the Agency for its Triennial Review anticipated in December 2028 for Federal Fiscal Year 2029.

These reviews and OCTA staff training will cover all applicable FTA review areas in accordance with FTA’s most recent and applicable Comprehensive Review Contractor’s Manual, which is available at https://www.transit.dot.gov/funding/grantee-resources/triennial-reviews/triennial-reviews. To provide guidance on the monitoring and oversight of subrecipients, OCTA developed a FTA Subrecipient Monitoring Procedure Guide to provide guidance to staff in monitoring subrecipient agencies for FTA compliance. Attached is a copy of the plan.

II. OBJECTIVE

The objective of this effort is to provide on-going compliance support to the Authority’s Federal Compliance Office, review and evaluate whether city and agency subrecipients are administering FTA funded programs in accordance with applicable federal rules and regulations, train OCTA staff to ensure compliance with new and evolving requirements, and conduct a practice triennial review to prepare the Agency for its Triennial Review anticipated to begin in December 2028 for Federal Fiscal Year 2029.

III. SCOPE OF WORK

OCTA is seeking a qualified CONSULTANT team with a demonstrated track record of conducting FTA compliance reviews and providing compliance assistance to transit agencies. The entire work plan and all of its activities and tasks shall be https://www.transit.dot.gov/funding/grantee-resources/triennial-reviews/triennial-reviews https://www.transit.dot.gov/funding/grantee-resources/triennial-reviews/triennial-reviews performed by the CONSULTANT, and the CONSULTANT shall provide all equipment and materials needed to execute the work, unless otherwise noted in this Scope of Work. The CONSULTANT shall not commence any task until directed to do so by OCTA’s Project Manager.

The tasks below are organized as five (5) separate tasks. Some tasks may be completed simultaneously. Tasks required to be completed sequentially shall be successfully completed and accepted before any work begins on the next task.

Successful completion includes the delivery of all specified deliverables, meeting all requirements, without any omissions, errors, or other defects as determined by OCTA. Additionally, all deliveries (initial, intermediate, and final) shall be made on time and within the allocated budget according to time and price schedules agreed upon in the executed agreement resulting from this solicitation.

To conclude each task, or at any time during a task, as determined by OCTA, work activities and products shall be reviewed to evaluate their status, gauge progress, and plan next steps. OCTA will use information gained from these reviews to decide whether to continue or hold work, accept work, close out a task and move to the next task, or cancel the current task and/or the remainder of the project. Such decisions will be made solely at OCTA’s discretion. Adherence to the project schedule, work quality, and the likelihood of success will be important inputs to such decisions.

The general task descriptions below serve as an outline or examples to help Offerors formulate their proposals. The Offeror shall describe its intended approach to meeting all objectives in its proposal and demonstrate its success at executing similar previous projects.

IV. TASKS

Task 1: Work Plan and Schedule

Based on input from OCTA during the kick-off meeting, CONSULTANT shall develop a work plan and schedule to conduct staff training, compliance reviews of up to four (4) subrecipients, and a practice triennial review to help prepare for FTA’s Triennial Review anticipated to begin in December 2028 for Federal Fiscal Year 2029. The workplan should address the following:

• General approach for the review(s);

• CONSULTANT’S staff assignments for the review(s);

• CONSULTANT’S quality control and quality assurance protocols;

• Information needed from OCTA and/or subrecipients; and

• Proposed timeline for completion of all review and training activities.

Deliverables:

• Written work plan

• Timeline for tasks

Task 2: Conduct Up to Four (4) Subrecipient Compliance Reviews

1. Using the OCTA FTA Subrecipient Monitoring Procedure Guide, work plan and schedule from Task 1, the CONSULTANT shall review and determine the state of compliance of up to four (4) OCTA subrecipients on all applicable FTA review areas. For each review area, the CONSULTANT shall categorize compliance as not deficient, deficient, or not applicable. If a finding of deficiency is made, the CONSULTANT shall include a recommendation to cure the deficiency.

2. For procurement compliance, CONSULTANT shall review a sampling of federal procurements, chosen based on risk and procurement type.

3. Upon completion of the reviews, the CONSULTANT shall prepare a report that includes a full and detailed discussion of report findings, recommended corrective actions and timeline for corrections. Prior to preparation of the draft report, CONSULTANT shall meet with subrecipient representatives and OCTA staff to discuss the review, findings, and recommendations. The final report, including responses by the subrecipients, shall be submitted in both electronic and hard copy form to OCTA.

4. CONSULTANT shall review and track corrective actions within the agreed upon timeline for correction and provide a status report to OCTA for follow-up as needed.

• Draft reports (electronic copy) for review and responses by OCTA and subrecipients

• Final reports (electronic copy)

• Status report for pending and completed corrective actions (electronic copy)

• All documents submitted by the subrecipients for future OCTA use (electronic copy)

Should OCTA need to present these reports to the Board of Directors, CONSULTANT shall be available to present the reports at meetings of the Finance and Administration Committee and Board of Directors at dates to be determined.

Task 3: OCTA Staff Training

1. Using current FTA requirements and guidance documents, CONSULTANT shall conduct training to OCTA project and program management staff and subject matter experts to ensure project and program activities and the oversight of contractors and subrecipients are in keeping with current requirements and best practices.

2. Coordinated through the Project Manager, training shall be conducted virtually through Microsoft Teams to ensure all appropriate staff receive adequate training. The training curriculum shall be designed to educate staff on transit capital, operations and other related support activities over all applicable FTA review areas.

• PowerPoint presentation(s) and training handouts (electronic copy and hard copy as needed)

• Sample policies, plans, procedures or other assistive documents (electronic copy as needed)

Task 4: Preparatory Review for FTA Triennial

CONSULTANT shall develop and implement a preparatory Triennial review to prepare the Agency for its FTA Triennial Review anticipated in early 2028. The review shall be based on the most current FTA Contractors Review Manual and conducted to mimic FTA’s most current review approach. The tasks include:

1. Document requests and reviews, including follow-up sampling

2. Identify potential findings and issue corrective actions.

3. Provide guidance and assistance to staff in implementing corrections.

4. Track corrective actions.

• PowerPoint presentation and document review.

• Milestone schedule

• Tracking matrix for findings/corrective actions.

• Sample policies, plans, procedures or other assistive documents (electronic copy as needed)

Task 5: On-going Compliance Assistance

CONSULTANT shall provide on-going guidance and assistance to OCTA regarding compliance matters, including assistance with the interpretation or applicability of federal rules and regulations, and implementing corrective actions on an as-needed basis. Assistance shall also include support in updating existing documents including plans, policies, procedures, and guides, including those related to Title VI and Americans with Disabilities Act (ADA).

Deliverables:

• Assistance as requested

V. SCHEDULE

The Offeror shall include a proposed project schedule for completing the tasks in terms of elapsed weeks, based on its understanding of OCTA’s requirements and the proposed work plan. For project planning purposes, OCTA anticipates a project start date in January 2027 or earlier.

Term: Effective date of the agreement through June 30, 2029.

VI. LIMITATION ON GOVERNMENTAL DECISIONS

Nothing contained in this scope of work permits CONSULTANT’S personnel to authorize or direct any actions, vote, appoint any person, obligate, or commit OCTA to any course of action or enter into any contractual agreement on behalf of OCTA.

In addition, CONSULTANT’S personnel shall not provide information, an opinion, or a recommendation for the purpose of affecting a decision without significant intervening substantive review by OCTA personnel, counsel, and management.

FTA SUBRECIPIENT MONITORING

PROCEDURES GUIDE

Grant Compliance & Program Controls Office Government Relations Division

June 2023

RFP 260471

ATTACHMENT

Contents

1. Introduction and Purpose

2. Scope and Applicability

3. Subrecipient Definition

4. Assessing Monitoring Need and Developing The Monitoring Plan

5. Monitoring Process

5.1 Subrecipient Identification and Initial Monitoring Needs Assessment

5.2 Elaboration of FTA Requirements and Subrecipient Guidelines

5.3 Subrecipient Funding Agreement Execution

i) Pre-Award Review

ii) Entity Information

5.4 Ongoing FTA Subrecipient Monitoring

i) Active SAM Registries

i) Quarterly Reporting

i) Invoice Reviews

5.5 Formal Compliance Reviews

i) Review of Submitted Documents

ii) On-Site Review

iv) Corrective Action Monitoring

5.6 Closeout Reviews

6. Oversight after grant closeout

7. Ongoing Capital Project Oversight

8. Roles and responsibilities

9. References to Legislative and Regulatory Documents (or as revised)

10. Definitions

11. Appendices

1 | F T A S u b r e c i p i e n t M o n i t o r i n g P r o c e d u r e G u i d e

1. Introduction and Purpose

The purpose of these FTA Subrecipient Oversight Procedures is to:

• Ensure that all technical specifications and cooperative/subrecipient agreement requirements are met by FTA subrecipients

• Monitor compliance with FTA requirements for FTA-funded vehicles or facilities that are maintained by subrecipients

• Monitor compliance with FTA requirements for transit services provided by subrecipients

• Identify performance issues and non-compliance with FTA requirements, and address them in a timely manner

• Track information regarding performance quality for the purposes of evaluating subrecipients of FTA funds for future grant awards

• Maximize the risk reduction benefits of limited resources

These procedures explain methods of monitoring, persons responsible, frequency, and expected deliverables associated with managing performance and compliance monitoring systems for rolling stock, construction, ADA paratransit, JARC and New Freedom programs, and fixed route services.

2. Scope and Applicability

This procedure applies to monitoring performance and compliance for the following types of FTA funded projects/programs:

• Transit

• Planning

• Capital Projects

• JARC and New Freedom

The frequency and type of monitoring will be based upon the following: a) size of the grant or cooperative agreement, b) associated risks, c) service complexity, d) type of grant and e) availability of resources needed to implement the program.

This document has been designed for FTA subrecipient monitoring, but it can be adapted to apply to OCTA direct contractors.

3. Subrecipient Definition

A subrecipient is a state or local government authority, non-profit organization, or operator of public transportation services that receives a grant indirectly through a direct grant recipient. This guide is designed for monitoring subrecipients of FTA funds.

To distinguish a subrecipient from a contractor, the following characteristics should be considered in keeping with 2 CFR 200.330 Subrecipient and Contractor Determinations as derived from OMB Circular A-

2 | F T A S u b r e c i p i e n t M o n i t o r i n g P r o c e d u r e G u i d e

133, Section 210. It is not expected that all the subrecipient characteristics will be present, and judgment must be used in determining whether a contract represents a subrecipient or contractor relationship.

Federal Award received by a Subrecipient Payment for Goods and Services (Contractor)

A subrecipient determines the means and methods for carrying out the state or Federal Program.

Has responsibility for program decision making within the terms of the agreement.

A contractor provides the goods and services within normal business operations, to many different purchasers. The goods or services are ancillary to the operation of a State or Federal program.

Operates in a competitive environment.

Performance is measured against whether the objectives of the Federal program are met

Performance is measured against whether it meets contract specification.

Has responsibility for adherence to applicable Federal program compliance requirements. Must submit periodic progress reports.

The Grantee must monitor the subrecipient to ensure funds are property used.

Has responsibility for adherence to applicable Federal program compliance requirements, depending on the project scope. Must submit periodic progress reports.

The Grantee must monitor the contractor to ensure funds are property used

4. Assessing Monitoring Need and Developing The Monitoring Plan

A risk-based approach to monitoring will be undertaken to ensure appropriate scrutiny of FTA subrecipients while maximizing the effectiveness of limited monitoring resources. A range of risk indicators will be used to identify the level of monitoring need for the subrecipient, which in turn will determine the Subrecipient Monitoring Plan schedule. The Monitoring Plan is a living document that should be maintained and updated to reflect any changes in situation or assessment of subrecipients. The Grant Compliance Office within the Government Relations Division is responsible for developing, maintaining, and implementing the Monitoring Plan.

Assess Monitoring Need

The Grant Compliance Manager, in coordination with the Project Manager, will assess the level of risk associated with each FTA subrecipient or project that they are responsible for, based on:

• The dollar amount of the subgrant

• The project size and complexity

• The capacity of the subrecipient

• The status of the federal grant (open or closed)

The following matrix is used to develop results, based on the completion of the FTA Subrecipient Monitoring Needs Assessment.

2 | F T A S u b r e c i p i e n t M o n i t o r i n g P r o c e d u r e G u i d e

A variety of indicators should be used to assess the project complexity or subrecipient capacity. These are summarized in the table below. The Subrecipient Monitoring Needs Assessment (Appendix A) uses multiple choice questions based on these indicators to assess the project complexity and subrecipient capacity and thereby determines the level of monitoring needed.

Project Complexity Subrecipient Capacity

• Length of project

• Tight project timelines

• Large number of agencies involved that require coordination

• Changes in scope of activities

• Complexity of program funding/ match requirements

• Fixed Route

• Paratransit

• Size of subrecipients’ Federal award portfolio

• Years of experience with managing state or federal funds, and with specific grant program and/or project

• Prior findings as identified in audits, federal program monitoring, grantee monitoring

• Timeliness in document submission and response to questions

• History of non-compliance

• History of issues in delivery

• Management or staff turnover and experience

• Systems for monitoring and keeping records of funds

• Stakeholder complaints

The Subrecipient Monitoring Needs Assessment (Appendix A) should be completed by the Project Manager for each subrecipient at the start of the grant cycle when FTA subrecipients are identified, before any funding agreements are made, and/or annually on an as-needed basis. This is an internal planning document for use in assessing the frequency and approach of subrecipient monitoring activity.

3 | F T A S u b r e c i p i e n t M o n i t o r i n g P r o c e d u r e G u i d e

After compiling the questionnaire, the Project Manager will total the scores to establish the subrecipient monitoring level needed. The results will be used to determine the annual plan for recipient monitoring, formal reviews and on-site visits

Subrecipient Questionnaire Score Monitoring Need

Less than or equal to 40 Low 41-60 Medium

Greater than 60 High

Automatic High Level, regardless of overall score

A score of 5 on any of the following questions - Section II Q 1 or 4, Section V Qs 1, 2 or 3, Section VI, Q 1:

• No previous experience as FTA subrecipient

• Material Findings from previous audits

• No financial management systems in place

• Drawdown or Invoicing restrictions

• Consistently late on some or all document reporting

High

FTA subrecipients that will have a greater level of oversight and more frequent and active monitoring, as outlined in the chart below.

The intensity and frequency of the monitoring is highly dependent on availability of resources, including budgetary constraints and staffing. Detailed descriptions of these monitoring activities can be found in Section 5. Monitoring Process.

Do lla r A m ou nt o f

Su bg ra nt

High Monitoring Need (score 61 and over) On site review every 12-24 months* Review of all policies and procedures Requirement to send required materials to OCTA as necessary

Medium Need (score 41 to 60) On site review or desk audit every 24-30 months* Review of all policies and procedures

Low Need (score 40 or less) On site review or desk audit every 30-36 months* Review of procedures when changes are implemented

Project Complexity or Subrecipient Lack of Capacity

Low

High

High

* Dependent on the availability of resources.

4 | F T A S u b r e c i p i e n t M o n i t o r i n g P r o c e d u r e G u i d e

The Grants Compliance Office and Project Manager will discuss the findings of the Monitoring Needs Assessment and agree to any changes to the monitoring plan where necessary. The Project Manager will notify the FTA subrecipient of the monitoring schedule so they are aware of what is planned. The Grant Compliance Manager may notify the subrecipient upon request by the Project Manager

All Monitoring Needs Assessments will be kept with the Grant Compliance Office for tracking, reporting and historical assessment information.

Develop FTA Subrecipient Monitoring Plan

The FTA Subrecipient Monitoring Plan provides the approach and schedule for monitoring activities for all subrecipients of FTA funds. It contains:

• Policies and procedures that guide the scope and frequency of monitoring activities and corrective actions (this document)

• The total FTA subrecipient contract population, including Monitoring Need Assessment

• Monitoring schedule of desk and on-site reviews

• Monitoring checklists - Invoice Review Checklist Sample (Appendix B), Quarterly Report Sample

(Appendix C), FTA Subrecipient Review Guide (Appendix D), Capital Project Checklist Sample (Appendix M)

• Summary of findings from previous monitoring cycle and any corrective actions being implemented.

The FTA Subrecipient Monitoring Plan is managed and updated by the Grant Compliance Office, with input from the Project Managers within the Implementing Divisions. It should be reviewed and approved by the Executive Director of Government Relations.

5. Monitoring Process

The monitoring process incorporates the full cycle of grants for subrecipient monitoring. The approach emphasizes both advising the subrecipient of their responsibilities, assessing compliance, and providing guidance as needed.

The subrecipient monitoring process will consist of the following activities:

1. Subrecipient Identification and Monitoring Needs Assessment

2. Elaboration of FTA requirements and subrecipient guidelines

3. FTA subrecipient funding agreement execution

4. Ongoing FTA subrecipient monitoring including certifications, assessments and quarterly reporting requirements

5. Formal compliance reviews, which includes desk and on-site reviews

6. Closeout

The specific tasks and responsibilities for each of these activities are noted below. The frequency of the different activities depends on the assessed monitoring level needed:

5 | F T A S u b r e c i p i e n t M o n i t o r i n g P r o c e d u r e G u i d e

Monitoring Process Step Low Medium High

1 Subrecipient Identification and Initial Monitoring Needs Assessment

All Subrecipients All Subrecipients All Subrecipients

2 Elaboration of FTA Requirements and Subrecipient Guidelines

All Subrecipients All Subrecipients All Subrecipients

3 FTA Subrecipient Funding Agreement Execution

All Subrecipients All Subrecipients All Subrecipients

4 Ongoing FTA Subrecipient Monitoring, including:

4.1 SAM Registry Checks

As-needed As-needed (min. semi-annually)

As-needed (min. semi-annually)

4.2 Quarterly Report Reviews Sampling Quarterly

4.2 Invoice reviews Sampling Monthly

5 Formal Compliance Reviews

5.1 Desk review of submitted

documents

Annual Review only policies and procedures that have changed

Annual Review only policies and procedures that have changed

Annual Review only policies and procedures that have changed

5.2 On Site Review Every 30-36 months* Every 24-30 months* Every 12-24 months*

5.3 Compliance Review Report Modified version for

desktop, full for on site

Modified version for desktop, full for on site

Modified version for desktop, full for on site

5.4 Corrective Action Monitoring Where necessary Where necessary Where necessary

6 Closeout All Subrecipients at end of project

All Subrecipients at end of project

All Subrecipients at end of project

The sequencing of the Formal Compliance Reviews will depend on a number of factors:

• The level of monitoring need: High scoring projects should be prioritized within the Subrecipient Monitoring Plan.

• The duration of the subgrant or funding: Some subgrants may last less than a year. Where possible, oversight through a desk review should occur either during the grant agreement process or within the first quarter of the subgrant performance to allow sufficient time for corrective actions to be closed before the funding ends.

5.1 Subrecipient Identification and Initial Monitoring Needs Assessment

The Implementing Divisions will identify potential OCTA subrecipients and eligible projects for inclusion as needed in the Program of Projects (POP) and Program Management Plan (PMP).

With guidance from the Grant Compliance Office, a Monitoring Needs Assessment (Appendix A) will be completed by the Project Manager for each identified project and potential subrecipient. The assessment will identify the level of monitoring needed by each potential subrecipient, and any immediate action the subrecipient should undertake to enable better management of FTA funding. This can be undertaken

6 | F T A S u b r e c i p i e n t M o n i t o r i n g P r o c e d u r e G u i d e during project selection, or through information provided in solicitation responses. A desk review can be carried out by the Grant Compliance Office for medium or high scoring cases (see Section 5.5i). The Project Manager and the Grant Compliance Manager will determine whether an on-site visit will be performed. Compliance issues discovered at this stage should be addressed by the subrecipient before the funding agreement is executed.

5.2 Elaboration of FTA Requirements and Subrecipient Guidelines

The Grant Compliance Office will advise subrecipients of federal award information and compliance requirements prior to OCTA awarding or allocating FTA funds. This ensures that potential subrecipients understand the process and requirements before accepting an award of FTA funds. Information can be shared with the subrecipient through training and guidance available through FTA or OCTA resources and provided before a funding agreement is implemented.

This should be done during a call for project solicitation or during a pre-award review by the Implementing Division, with assistance from Contract Administration and Materials Management Department (CAMM) and Grant Compliance Office.

The information should include the following:

• CFDA title and number, award name, award number, and award year.

• OMB Circular No. A-133 Subpart D – Federal Agencies and Pass-Through Entities; A-

Requirements of A-122 and 2 CFR 225 on eligible costs

• Requirements imposed by Federal laws, regulations, and the provisions of contracts or grant agreements as well as any supplemental requirements imposed by OCTA

• Applicable oversight areas

• Invoice submission requirements

• Oversight and monitoring documentation requirements

5.3 Subrecipient Funding Agreement Execution

CAMM will prepare and execute subrecipient funding agreements with all OCTA subrecipients of FTA funding. FTA requirements will be stated in the agreement along with the monitoring plans in keeping with 2 CFR 200.331 Requirements for Pass-through Entities to ensure that every subaward is clearly identified to the subrecipient as a subaward along with the requirements imposed as part of the federal award. The Implementing Division and Grant Compliance Office should review the funding agreement to ensure all applicable compliance requirements are reflected. At the time of agreement execution, the subrecipient will agree to comply with all applicable FTA requirements and to be subject to ongoing monitoring by OCTA as described herein.

i) Pre-Award Review

Utilizing the DUNS identification number and/or CAGE Code of the subrecipient entity, the Grant Compliance Office shall conduct a pre-award check using the System for Award Management (SAM) System to ensure the subrecipient organization has maintained an active registration and is not

7 | F T A S u b r e c i p i e n t M o n i t o r i n g P r o c e d u r e G u i d e debarred or suspended and is free of exclusions. Should issues arise, CAMM and the project management team shall be notified.

ii) Entity Information

The Grant Compliance Office will maintain all pertinent information about each subrecipient including entity identification numbers (DUNS and/or CAGE Codes), contact information, source and amount of funds, and summary project information for inclusion into required FTA reports. All relevant information relating to the oversight of each FTA subrecipient should be maintained in such a manner as to be easily and quickly identified, complete, and readily available for use.

5.4 Ongoing FTA Subrecipient Monitoring

The Grant Compliance Office will track and provide assurance of FTA subrecipient monitoring activities through the monitoring plan. Monitoring activities will be completed by Implementing Divisions and in-house compliance experts providing support in their functional areas. These activities include reviewing and quarterly Milestone Progress Reports and Federal Financial Reports, conducting formal on-site compliance reviews, site visit certifications, and managing closeout activities. The divisions involved in different monitoring activities are outlined in the section below and summarized in Section 8 Roles and Responsibilities.

i) SAM Registry Checks

In keeping with 2 CFR Part 200, the Grant Compliance Office will ensure that subrecipients maintain an active System for Award Management (SAM) registration with current information. SAM registration checks are to be conducted every six months and on an as-needed basis to ensure active SAM registrations are maintained and free of issues. The Grant Compliance Office will maintain a database of entity information and registration expiration dates and notify subrecipients of inactive or expiring registrations through the Project Manager.

ii) Quarterly Reporting

The Project Manager will review program progress on a quarterly basis using the Quarterly Monitoring Report (Appendix C). The Project Manager will request and/or complete relevant supporting documentation as required and clarify any information with the subrecipient if necessary.

The Monitoring Quarterly Report will be reviewed by the Project manager for completeness and accuracy and sent to the Finance and Administration Division for inclusion in the required quarterly Milestone Progress Report and Federal Financial Report to be submitted to FTA.

The report should include:

• Project Schedule including original and current completion dates

8 | F T A S u b r e c i p i e n t M o n i t o r i n g P r o c e d u r e G u i d e

• Funding table, original planned allocation, current estimates, actual expenditures, and remaining allocation.Identification of potential challenges or issues associated with project delivery

PMgr Request Information from

Subrecipient

Subrecipient send Information

PMgr review information and

Complete Subrecipient

Monitoring Report

Submit Quarterly Milestone and

Federal Financial Reports to FTA

Process complete within 30 days

Finance and Administration

Division Incorporate findings into

Quarterly milestone and Federal

Financial Report

15 days after end of Quarter

Quarterly Subrecipient Monitoring Process

PMgr send Subrecipient

Monitoring Report to Government

Relations Division

iii) Invoice Reviews

The Project Manager within the Implementing Division will review all FTA subrecipient requests for reimbursement using an Invoice Review Checklist. A sample checklist is provided in Appendix B. Use of a checklist will help ensure all required supporting documents are submitted and that all requests are eligible for reimbursement using FTA funds.

All invoices will be reviewed to ensure only eligible expenses are charged to FTA grants. If indirect costs are invoiced, the subrecipient must have had prior approval and an approved Cost Allocation Plan (CAP). More detailed notes about allowable costs and CAP approval are provided within Appendix P.

Once reviewed and approved invoice requests will be sent by the Project Manager to Finance and Administration for payment processing.

Recommended Support Documentation:

• Detailed Project Description (First invoice only)

• Invoice

• Vendor/Contract Invoices

• Cancelled Checks or Proof of Payment with Payment Date

• Operating costs from Ledger in Financial system

• Council Action approving Contract (First Invoice Only)

• Cost Estimate Update (First Invoice Only)

9 | F T A S u b r e c i p i e n t M o n i t o r i n g P r o c e d u r e G u i d e

Subrecipient submits invoice and monthly status reports

PMgr reviews against check list

PMgr recommends for payment

Sent to Finance and Accounting Division

No issues

Invoice Review Process

Within 10 days of month end

PMgr requests clarification from

Subrecipient

Outstanding documents or queries

Payment processed

5.5 Formal Compliance Reviews

All FTA subrecipients shall receive a desk top review and a formal on-site compliance based on the level of risk using the Subrecipient Review Guide outlined in this Monitoring Plan. The Site visit review frequency will be based on the level of monitoring by each subrecipient or subgrant as outlined in Section 4. Subgrants operating for one year or less will receive a site visit before, or within the first quarter after commitment of the funding agreement. This ensures there is enough time for any corrective actions to be delivered during the course of the subgrant.

These reviews will consist of the following activities:

i. Desk Review of Submitted Documents

ii. On-Site Review

iii. Compliance Review Report

iv. Corrective Action Monitoring

10 | F T A S u b r e c i p i e n t M o n i t o r i n g P r o c e d u r e G u i d e

Review Team Request Documents from Subrecipient and sets up onsite meetings

Subrecipient send Information

Review Team Review information using Review Guide

Review Team send list of performance gaps to subrecipient as preparation for on site

Finance and Administration Division include findings In Next

Quarterly milestone and Federal

Financial Report

Planning and Desk Review = 30 days

Compliance Review Report submitted to

CEO

OCTA on site review with Subrecipient

(1.5 days)

Formal Review Process Desk and On Site Review

Review Team develop Compliance

Review Report indicating performance gaps and corrective actions

Review Team sends report sent to

Subrecipient for comment

Subrecipient comments on report (7-10 calendar days)

PMgr track status of corrective actions and determine when met (ongoing)

Compliance Review Report + Corrective Action Plan finalized by Review Team

Reporting = 30 days

All FTA subrecipients will be assessed in the areas of financial management, financial capacity, technical capacity, satisfactory continuing control, Title VI, procurement, drug free workplace, planning/ program of projects and DBE for compliance with FTA requirements. In some cases, the review may consider these areas due to the lack of applicability at the subrecipient. The remaining areas to be reviewed will be based on the size of the grant or cooperative agreement, service complexity, and type of subgrant as indicated in the following chart:

Compliance Area Capital Projects Transit Planning JARC and New Freedom

Financial Management and Capacity

All subrecipients All subrecipients All subrecipients All subrecipients

Legal All subrecipients All subrecipients All subrecipients All subrecipients Technical Capacity All subrecipients All subrecipients All subrecipients All subrecipients Satisfactory Continuing Control

All subrecipients All subrecipients All subrecipients All subrecipients

Title VI All subrecipients All subrecipients All subrecipients All subrecipients Procurement All subrecipients All subrecipients All subrecipients All subrecipients DBE All subrecipients with over $250K in FTA contracting opportunities

All subrecipients with over $250K in FTA contracting opportunities

All subrecipients with over $250K in FTA contracting opportunities

All subrecipients with over $250K in FTA contracting opportunities

Maintenance All subrecipients with FTA funded facilities

All Subrecipients with FTA funded rolling stock or FTA funded facilities

All subrecipients with FTA funded facilities

All Subrecipients with FTA funded rolling stock or FTA funded facilities

Executive Director

11 | F T A S u b r e c i p i e n t M o n i t o r i n g P r o c e d u r e G u i d e

Compliance Area Capital Projects Transit Planning JARC and New Freedom

ADA All subrecipients with FTA funded facilities

All subrecipients operating fixed route services

All subrecipients operating fixed route or demand response

Half Fare All subrecipients operating fixed route services

All subrecipients operating fixed route services

Charter Bus All subrecipients operating Charter services

All subrecipients operating Charter services

School Bus All subrecipients operating School bus services

All subrecipients operating School bus services

Drug free workplace and drug and alcohol program

All subrecipients with safety sensitive employees

All subrecipients with safety sensitive employees

Drug free workplace

All subrecipients with safety sensitive employees

EEO All subrecipients with 50 or more transit related employees and either requests or received in excess of $1M in capital and/or operating assistance or requests or receives in excess of $250K in planning assistance.

All subrecipients with 50 or more transit related employees and either requests or received in excess of $1M in capital and/or operating assistance or requests or receives in excess of $250K in planning assistance.

All subrecipients with 50 or more transit related employees and either requests or received in excess of $1M in capital and/or operating assistance or requests or receives in excess of $250K in planning assistance.

All subrecipients with 50 or more transit related employees and either requests or received in excess of $1M in capital and/or operating assistance or requests or receives in excess of $250K in planning assistance.

Public Comment All subrecipients operating fixed route services

All subrecipients that have potential for changes

Planning/Program of Projects

All subrecipients All subrecipients All subrecipients All subrecipients

Subrecipients will be reviewed against the FTA requirements for each area as outlined in the table below. The Subrecipient Review Guide can be found in Appendix D.

Compliance Area Basic Requirement

(Based on 2014 Triennial Review Guidance) Financial Management and Financial Capacity

The subrecipient must demonstrate the ability to match and manage FTA grant funds, cover cost increases and operating deficits, cover maintenance and operational costs for FTA funded facilities and equipment, as well as conduct and respond to applicable audits.

12 | F T A S u b r e c i p i e n t M o n i t o r i n g P r o c e d u r e G u i d e

Legal The subrecipient must comply with restrictions on lobbying requirements Technical Capacity The subrecipient must be able to implement FTA funded projects in accordance with the grant application, Master Agreement, and all applicable laws and regulations, using sound management practices.

Satisfactory Continuing Control

The subrecipient must ensure that FTA-funded property will remain available to be used for its originally authorized purpose throughout its useful life until disposition.

Title VI The subrecipient must ensure that no person shall, on the grounds of race, color, or national origin, be excluded from participating in, or be denied the benefits of, or be subject to discrimination under any program or activity receiving federal financial assistance without regard to whether specific projects or services are federally funded. The subrecipient must ensure that federally supported transit services and related benefits are distributed in an equitable manner.

Procurement Subrecipients use their own procurement procedures that reflect applicable state and local laws and regulations, provided that the process ensures competitive procurement and the procedures conform to applicable federal law, including 49 CFR Part 18 (specifically Section 18.36) and FTA Circular 4220.1F, “Third Party Contracting Guidance.”

DBE The subrecipient must comply with 49 CFR Part 26 to ensure nondiscrimination in the award and administration of DOT-assisted contracts.

Subrecipients also must create a level playing field on which DBEs can compete fairly for DOT-assisted contracts.

Maintenance Subrecipients must keep federally funded vehicles, equipment, and facilities in good operating condition. Subrecipients must keep ADA accessibility features on all vehicles, equipment and facilities in good operating order.

ADA Titles II and III of the Americans with Disabilities Act of 1990 (ADA) provide that no entity shall discriminate against an individual with a disability in connection with the provision of transportation service. The law sets forth specific requirements for vehicle and facility accessibility and the provision of service, including complementary paratransit service.

Half Fare For fixed route service supported with Section 5307 assistance, fares charged elderly persons, persons with disabilities or an individual presenting a Medicare card during off peak hours will not be more than one half the peak hour fares.

Charter Bus Subrecipients are prohibited from using federally funded equipment and facilities to provide charter service if a registered private charter operator expresses interest in providing the service. Subrecipients are allowed to operate community based charter services excepted under the regulations.

School Bus Subrecipients are prohibited from providing exclusive school bus service unless the service qualifies and is approved by the FTA Administrator under an allowable exemption. Federally funded equipment or facilities cannot be used to provide exclusive school bus service. School tripper service that operates and looks like all other regular service is allowed.

Drug free workplace and drug

All subrecipients are required to maintain a drug-free workplace for all employees and to have an ongoing drug-free awareness program.

Subrecipients receiving Section 5307, 5309 or 5311 funds that have safety-

13 | F T A S u b r e c i p i e n t M o n i t o r i n g P r o c e d u r e G u i d e and alcohol program sensitive employees must have a drug and alcohol testing program in place for such employees.

EEO The subrecipient must ensure that no person in the United States shall on the grounds of race, color, religion, national origin, sex, age, or disability be excluded from participating in, or denied the benefits of, or be subject to discrimination in employment under any project, program, or activity receiving federal financial assistance under the federal transit laws. (Note:

EEOC’s regulation only identifies/recognizes religion and not creed as one of the protected groups.)

Public Comment Section 5307 subrecipients are expected to have a written, locally developed process for soliciting and considering public comment before raising a fare or carrying out a major transportation service reduction.

Planning/Program of Projects

Planning: The subrecipient must participate in the transportation planning process in accordance with FTA requirements, MAP-21, and the metropolitan and statewide planning regulations.

Human services transportation: Subrecipients must participate in a coordinated public transit-human services transportation planning process that identifies the transportation needs of individuals with disabilities, older adults, and people with low incomes; provides strategies for meeting those local needs; and prioritizes transportation services for funding and implementation.

Program of Projects (POP): Each recipient of a Section 5307 grant shall develop, publish, afford an opportunity for a public hearing on, and submit for approval, a POP.

Formal Compliance Reviews will be undertaken by a Review Team. The Review team membership will include a Lead Reviewer from the Grant Compliance Office, the Project Manager and specialists from different Divisions as needed. The Review team members will vary between subrecipients depending on resource availability, type of project, and the level of monitoring needed. The Grant Compliance Office is to ensure that members from the relevant divisions and in-house experts are engaged appropriately.

A review team may consist of

• Grant Compliance Office Lead Reviewer

• Project Manager

• Members of F&A, Grants, Procurement/ DBE, Operations, HR/ D&A as required

• Other internal subject matter or compliance experts as required (e.g. in ADA, Title VI, DBE, Procurement, Maintenance)

14 | F T A S u b r e c i p i e n t M o n i t o r i n g P r o c e d u r e G u i d e

i) Review of Submitted Documents

The initial desk review of a new subrecipient should assess all documentation. Thereafter, only new or amended policies and procedures need to be reviewed. For medium or high monitoring requirements, FTA subrecipients, or those whose funded project lasts less than a year, the first review may occur before, or within the first Quarter after execution of the subrecipient funding agreement. For all others the first desk review would be within the first year of the funding agreement.

The level of detail will depend on the determined monitoring needed for the subrecipient, as outlined in the previous sections. For subrecipients with low levels of monitoring needed, only new or amended policies and procedures need to be reviewed. For all other subrecipients, all policies and procedures should be reviewed.

The steps are outlined below:

• Information Request: The Review Team will request the relevant documents from subrecipients, based on the Subrecipient Review Guide (Appendix D). The Compliance Review Document List (Appendix E) outlines the relevant documents. A draft letter requesting information can be found in Appendix F. The Subrecipient should be given around 2-3 weeks to collect and submit the required documents.

• Documentation Review: The Review team will review the documentation against the Subrecipient Review Guide (Appendix D). Additional documentation or clarification requests may be required.

• Compliance Review Report: The Compliance Review Report will be drafted by the Review Team Leader based on the findings, including any corrective actions required (Appendix J).

This is outlined in Section 5.5 iii.

• Updating the monitoring plan: The Monitoring Needs Assessment Questionnaire (Appendix A) should be updated by the Project Manager based on the review findings, and on an annual basis.

Before On-site Review

• Information Request: The Review Team will request relevant documentation at least 4 weeks in advance of the site visit based on the requirements listed in the Subrecipient Review Guide (Appendix D). The Compliance Review Document List (Appendix E) indicates the relevant documents for each area. The requested documents will be determined by the review areas applicable to each subrecipient. A draft letter requesting the information can be found in Appendix G. The Subrecipient should be asked to return the documents at least 2 weeks before the site visit to allow time for review.

• Review Documentation: The Review Team will review all submitted documents using the Subrecipient Review Guide (Appendix D). This can record which documents were received and if there were performance or information gaps exist in meeting the FTA requirements

15 | F T A S u b r e c i p i e n t M o n i t o r i n g P r o c e d u r e G u i d e in each area. Questions or areas to follow up on site can be indicated in the ‘comments’ sections.

Pre-visit information: At least 1 week before the site visit the Review Team should send the Subrecipient the following:

• Cover Letter (Appendix H)

• Draft Subrecipient Review Guide. This outlines the documents that were received and areas that will be further investigated onsite, a list of performance or information gaps in advance of the site visit, to allow the subrecipient to prepare for onsite discussions with OCTA staff.

• The program for the on-site review to ensure that all relevant staff members are present

• The chosen sample of procurement files, so that the Subrecipient will ensure all the documentation is ready for review on site.

• The procurement file review checklist (Appendix I) to help their preparation of the files.

ii) On-Site Review

The Review Team will coordinate the on-site reviews using the FTA Subrecipient Review Guide (Appendix D). It is expected that 2 or more staff will attend onsite to conduct the review based on the results of the desk review and resource availability. The Review team will choose the individuals that attend each review based on the skills and expertise required for that subrecipient or project. For example, an ADA subject matter expert might attend if the desk review showed missing ADA information or issues regarding ADA requirements.

The on-site reviews will concentrate on performance gaps identified during the pre-site visit documentation review, changes in policies and procedures, risk-based assessment of grant management areas, and federally funded procurements.

The on-site reviews will last approximately 1 or 2 days and will cover the following activities:

• Entrance Conference – The first meeting of the site visit between the Review team and subrecipient.

The Review team should introduce themselves, present an overview of the compliance review objectives and process, and confirm arrangements for the review (documents requested, staff interviews, projects or federally funded assets to be inspected,). The subrecipient should have the opportunity to raise any issues they would like to discuss.

Appendix N is a template for the Entrance Conference Presentation.

• Interviews and Review of Outstanding documentation - Covering any outstanding questions or gaps from the desk review.

16 | F T A S u b r e c i p i e n t M o n i t o r i n g P r o c e d u r e G u i d e

• Visit and Inspect Federally Funded Facilities, Vehicles and Other Major Assets - Including, observing the condition of facility and equipment, reviewing preventative maintenance records for a sample of federally funded revenue vehicles and facilities, verifying that the subrecipient has equipment control procedures and reviewing procurement files and other documentation to confirm that the subrecipient has effective and comprehensive oversight procedures.

• Capital projects monitoring – Where the FTA subrecipient is delivering a capital project, the Review team should investigate that the subrecipients are adequately managing and monitoring their projects and contractors, and that the required Quality Assurance controls are in place. See Section 7 ‘Ongoing Capital Project Oversight’ below.

• Preliminary findings of deficiency – During the review, the Review Team should use the FTA Subrecipient Review Guide (Appendix D) to check all FTA requirements and tabulate the findings within the Exit Conference template (Appendix O). This will help to identify the preliminary findings and ensure all areas are covered while on site.

• Exit Conference – the site visit will conclude with an exit conference during which the Review Team will debrief the subrecipient team.

At the exit conference, the…