Agreement payment process
By: BK Kormah, State Aid Grant Coordinator
Every federal aid agreement project is different, but the path to reimbursement for these projects is generally the same. Refer to your project specific agreement for terms and conditions of eligible work and proper justification for reimbursement. The agreement payment request process flowchart (PDF) detailing the process to reimbursement.
Pay request
Once an agreement project is authorized and the agreement between the local public agency (LPA) and MnDOT is executed, the LPA can request reimbursement for costs incurred on the project via a pay request. Pay requests are submitted to the District State Aid Engineer (DSAE) for review and signature. The DSAE then sends it on to the State Aid Federal Aid Agreements Engineer.
Documenting eligible expenses
Eligible cost and expense are agreement specific and require proper justification to be reimbursed:
- Breakdown of labor by individual, classification, dates and hours worked, including equipment charges.
- Expenditures for materials, supplies, mechanical data processing and equipment rental, limited to the actual expenditures for the purposes of the agreement.
- Accurate cost breakdown with backups.
- Example: timesheets, receipts, payments, outside services, invoices, etc.
- Summaries of cost breakouts that organize chaotic pay requests/data.
Ineligible cost and expense typically lack detail that may not suffice for a proper audit:
- Cost incurred prior to federal authorization date.
- Lack of backups, cost breakdown, receipts, timesheets, etc.
- Missing invoices from consultants and sub-consultants.
Further guidance for pay requests can be found in the federal funding for agreements (PowerPoint). It is best practice to provide as much detail and clarity on your reimbursement request and you should always refer to your agreement language before incurring cost to determine eligibility. If you have any reimbursement questions regarding federal aid projects, please feel free to contact Chris Nobach at christopher.nobach@state.mn.us or 651-366-3824.
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