State Aid for Local Transportation

Payment process

Federal aid agreement payment process

1. Local Public Agency (LPA) prepares agreement payment request for 100 percent of eligible costs
   • Sample bill (Word)
   • Backup documentation
     • Invoices
     • Timesheets
     • Cancelled checks (right-of-way agreements only)
     • Anything that documents the amount of funds spent for the project
2. LPA signs the coversheet and sends packet to District State Aid Engineer (DSAE)
3. DSAE reviews, signs, and dates coversheet. Forwards packet to SALT.
4. SALT reviews agreement and billing documentation
   • Check date of authorization and encumbrance vs. date of billing
   • Check documentation submitted
   • Check type of work performed vs. project memo
   • Check charges, addition etc. of billing
5. SALT prepares request for payment form
6. SALT makes copies of sample bill (Word) and request for payment form to the following:
   • Originals to State Aid Finance
   • Copies to DSAE
   • Copies to LPA if a portion of payment is denied
7. SALT makes copies of all documentation submitted, including sample bill (Word) and request for
   payment form
   • SALT forward one set to MnDOT Audit
   • SALT retains one set for their file
8. If the request is a final payment, SALT requests final audit.

Preaward audit

1. For contracts for PE or CE which exceed $50,000 a preaward audit must be performed prior to
   the LPA signing the contract with the consultant providing services.
2. Send LPA preaward audit forms (PDF). LPA forwards to the prime consultant. Each subconsultant
   should fill out the forms as well.
3. Preaward forms returned to SALT agreements engineer. They copy and forward to MnDOT
   audit with information from contractors.
4. Audit reviews and shares recommendations with SALT agreements engineer. They will in turn share them with the LPA.
5. LPA and consultant modify agreement as desired and execute contracts.