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Managing Nebraska’s Roads and Streets

TTC-18048-B. Managing Nebraska’s Roads and Streets. Overview of One- and Six-Year Planning and Budgeting, Accounting and Inventory Systems. Status. Rulemaking NBCS Strategic Plan (next slides). Status. Status of 428 NAC 3 (OneAndSix Reporting to NBCS). REPORTING TO NBCS ELIMINATED!

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Managing Nebraska’s Roads and Streets

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  1. TTC-18048-B Managing Nebraska’s Roads and Streets Overview of One- and Six-Year Planning and Budgeting, Accounting and Inventory Systems

  2. Status • Rulemaking • NBCS Strategic Plan (next slides) Status

  3. Status of 428 NAC 3 (OneAndSix Reporting to NBCS) REPORTING TO NBCS ELIMINATED! Requirement to report OneAndSix Plan to NBCS annually has been eliminated Status

  4. Status of 428 NAC 4 (SSAR reporting to NBCS ) REPORTING TO NBCS ELIMINATED! Requirement to report budgets, expenditures, inventory and equipment operations data to NBCS annually has been eliminated Status

  5. Certification of Program Compliance

  6. Why Transparency? • Trust in Government • Compare spending to accomplishments • Good management • Certify that the law has been followed Why?

  7. Managing Nebraska’s Roads and Streets One- and Six-Year Plans for Highways, Roads and Streets Statutes Chapter 39 Article 21

  8. Why is One- and Six-Year Planning Necessary? • Good Program Management • Disclosure to the Public Importance

  9. Why Plan Works and Projects? • Manage assets in an orderly way • Evidence of using public funds wisely • Plan expenditures • Communicate with the public • Evidence of addressing safety issues • Measure performance • Cooperate with other jurisdictions • Take advantage of opportunities Why?

  10. Videos Questions? Training Course

  11. Quiz • Card • Assigned to you • Hold so your answer is at the top • Hold card directly toward instructor • Keep card raised until instructor’s scan is confirmed Short Review

  12. Example – NDOT’s Program Example One- and Six-Year Plan

  13. Example – NDOT’s Program

  14. Example – NDOT’s Program Example One- and Six-Year Plan

  15. Example – NDOT’s Program Example One- and Six-Year Plan

  16. Example – NDOT’s Program Example One- and Six-Year Plan

  17. Example – NDOT’s Program Example One- and Six-Year Plan

  18. Slide 18

  19. 428 NAC Chap 3 OneAndSix Selecting Projects - Considerations • Previous One- and Six-Year Plan • Condition of assets - preservation • Safety – crash history, trends, “hot” spots • Traffic volumes – trends, development/growth • Hierarchy – classification, school routes, bus routes • Coordination – other works and projects • Public demand – citizens, elected officials • Cost – of works/projects; material availability • Funding availability – inflation (YOE) Slide 19

  20. Managing Nebraska’s Roads and Streets Budgeting, Accounting, Inventory Statutes Chapter 39 Article 21

  21. Financial and Accounting System

  22. Accounting • System of Accounting is required (§39-2120 ) • Must meet the principles of accounting • Records management system • Cash basis is the most common • Track work/project expenses – additional measures? • Internal controls, segregation of duties • Annual audit report to State Auditor • Independent audit for Federal-aid projects Not NBCS or BEX Policy

  23. Not NBCS or BEX Policy

  24. Financial Management Systems Accounting and RetentionCounty Roads/City Streets Projects Expectations for Road and Street Departments: • Systematically account and report all financial transactions • Using sound financial administration and accounting principles and • Meeting State statutes and regulations Not NBCS or BEX Policy

  25. Accounting Methods Can use any method • Accrual • Modified Accrual • Cash Basis (the most common) Not NBCS or BEX Policy

  26. Cash Basis Method May need additional measures to identify and keep track of project expenses Allows tracking project expenses owed to outside parties and billings that have not been reimbursed  Not NBCS or BEX Policy

  27. System of Internal Controls Ensures that • transactions are properly reported within their accounting framework • assets are properly safeguarded and used solely for authorized purposes • expenditures comply with applicable laws, regulations, restrictions Not NBCS or BEX Policy 

  28. Segregation of Duties No one person should be able to complete or control all aspects of an accounting transaction or process Road and Street Dept.’s should have a different individual review and approve transactions These measures reduce errors, misstatements and potential abuse or fraud  Not NBCS or BEX Policy 

  29. If Accounting System Is Incapable of Tracking Project Costs Then: Could utilize a ledger or spreadsheet system which • accumulates a record of costs incurred • compares budgeted/estimated amounts • shows total costs accumulated to date • tracks submitted reimbursement requests and payments  Not NBCS or BEX Policy

  30. Tracking Project Costs Each month compare actual costs to budget by line item to • monitor progress • address budgetary needs • assessment if quantities are increasing or decreasing • allow modifications to budget in timely fashion • Identify errors or mis-use of funding Not NBCS or BEX Policy 

  31. Annual Budget Report to: All Political Jurisdictions Required to File Annually by September 20 ALL REPORTS AVAILABLE ONLINE! Filed for Mill Levy Purposes Not NBCS or BEX Policy http://auditors.nebraska.gov/Budget_Info.html http://www.auditors.nebraska.gov/Budget_Info/Budget_FAQ.html

  32. Annual Audit Annual Audit Requirement Exception: smaller political jurisdictions can apply for a waiver Financial and Accounting System 

  33. Independent Audits Federal-aid Projects • Need to arrange for an independent audit for agency’s financial reports. • Audit reports for Federal-aid projects need to be sent to NDOT per the project agreement • All project documentation must be available at the county or city office for State or Federal audit inspections  Not NBCS or BEX Policy 

  34. Financial Records Retention Retain project-related cost documentation and transactions • Until approved record retention requirements have been met • Federal requirements may be different than State or Local requirements • Assign unique project identifiers for each project • Project Number, Control Number, Agreement Number, Work Order Number, etc. • Label or include unique project identifiers on all project-related documents including financial transactions (invoices, etc.). Require contractors and consultants to do the same. • Prevents confusion or re-use on other projects  Not NBCS or BEX Policy 58-1234

  35. Consultants, Contractors and Vendors Costs and Invoices • Need supporting documentation, • with the unique project identifiers assigned (previous slide) • Documentation in accordance with the terms of the project contract or agreement • Copies of time sheets, labor rates, payroll reports, vehicle logs, weigh tickets, etc. • Invoices should be valid, necessary and within the scope of the authorized work • Invoices need to have documented approval by appropriate officials Not NBCS or BEX Policy

  36. Payments  Review to ensure that • invoices are for the proper project • invoice computations are verified • construction contractor progress estimates vs. the percentage of project completion are reasonable • invoiced construction units vs. bid quantities and prices are per the contract • Individuals reviewing and/or authorizing payment sign and date reviewed documents • Check that quantities, unit prices and rates are per the contract or agreement. Check weigh tickets against invoice, contractual labor rates vs. invoiced labor rates, etc. Not NBCS or BEX Policy

  37. Direct and Indirect Costs • Direct Expenses – specific to the project • must be supported by appropriate cost documentation and marked with the project’s I.D number • Indirect Costs – such as office overhead • may be reimbursable if the counties and cities have developed an indirect costs allocation plan Not NBCS or BEX Policy

  38. Direct and Indirect Costs • Labor hours charged to project • must be supported by individual time sheets reports • must show on time sheets the distribution of hours to all activities on a daily basis for the entire pay period • must be approved by proper supervisory personnel on the documentation • must show project hours, project’s proper I.D. number and appropriate work phase on the supporting documentation • must be billed at the actual rates in accordance with terms of the project agreement • Labor fringe benefit items and employer taxes will be allowed • method of allocating these costs to project labor must be approved by NDOT and FHWA. Not NBCS or BEX Policy

  39. Direct and Indirect Costs • Vehicle and Equipment Use • hours billed must be supported by documentation • reports should account for all hours on a daily basis with project hours • reports should show who used the equipment and on what work phase • must show project hours, project’s proper I.D number and appropriate work phase on the supporting documentation • reimbursement rates must be billed at established rates in accordance with the terms of the project agreement Not NBCS or BEX Policy

  40. Financial and Accounting System

  41. Financial and Accounting System

  42. Financial and Accounting System

  43. Questions? Wrap Up

  44. TTC-18048-B Managing Nebraska’s Roads and Streets OneAndSix and Budgeting, Accounting and Inventory Systems Questions?

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