collapse Title : 00 - INTRODUCTION ‎(3)
collapse Title : 001 - Communication ‎(1)
collapse Title : 002 - Required Documents, Plans, Policies and Reporting  ‎(2)
collapse Title : 003 - Postings ‎(1)
collapse Title : 0100 - Funding Applications ‎(4)
collapse Title : 0200 - Project Administration ‎(5)
collapse Title : 0300 - Finance ‎(3)
collapse Title : 0400 - Vehicles ‎(9)
collapse Title : 0500 - Transit Services ‎(3)
collapse Title : 0600 - Safety and Security ‎(1)
collapse Title : 0700 - Training ‎(1)
collapse Title : 0800 - Coordination, Regionalization, and Connectivity ‎(1)
collapse Title : 0900 - Reserved for Future Revisions ‎(1)
collapse Title : 1000 - Technology ‎(1)
collapse Title : 1100 - Planning ‎(1)
collapse Title : 1200 - Civil Rights ‎(5)
collapse Title : 1300 - Compliance ‎(7)
collapse Title : 1400 - Oversight ‎(3)
collapse Title : 1500 - Other ‎(1)
collapse Title : 2000 - Director Guidance ‎(1)
collapse Title : 2100 - Management Practices ‎(2)
collapse Title : 3000 - Doing Business ‎(4)
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  • 0100 - Funding Applications

  • 102 - Project Budgeting

  • ​A project budget should demonstrate that the applicant understands the cost of transit management and operations and is prepared to produce program income. Each applicant requests the subsidies and local matches that are necessary to operate transit services to meet the prioritized needs of the transit ridership in their service area.

    Need-Based or Allocation-Based Budgeting: Depending on the funding program, a project budget may be based on need or based on an allocation amount that was predetermined and designated for each applicant. In addition, the applicant may be given a choice of whether to request capital, operating or administrative funds.

    Cost Allocation/Indirect Cost Plan: If the applicant intends to include indirect overhead costs in the funding request, a Cost Allocation Plan/Indirect Cost Plan approved by the governing board must be submitted along with a signed and notarized Cost Allocation Plan/Indirect Cost Plan (CAP) to NCDOT with the administrative grant application. Documentation to support the indirect cost rate must be submitted to IMD no later than October 31st each year. The documentation needed includes the Signed Certification page from the Cost Allocation Plan (CAP), page(s) from the CAP showing indirect costs allocated to the Transportation Department, page(s) from the transit system’s financial report showing total salaries & fringes paid to the entire Transportation Department staff and an official statement verifying the Cognizant Agency. Requests for the 10% De‐Minimis rate will be approved if FTA requirements are met. 

    NOTE: Indirect Overhead Costs are only allowable under administrative grants.

    State Match: The Federal transit programs do not require the State to provide any match to the appropriated Federal funds. However, the amount of local matching funds needed to receive a Federal transit grant may be reduced if state funds are available to assist subrecipients. The Integrated Mobility Division (IMD) will determine when state funds are available and the amount of state assistance that will be provided for each program.

    Budget Forms and Eligible Expenses: The application budget forms will not allow an applicant to enter a request for funding in a line item of the budget unless it is an eligible expense. An ineligible expense line item will have a locked cell in the budget form. IMD will determine which expenses are eligible based on Federal program guidance and state priorities. Eligible expenses will be listed in the application guidance.

    Joint Rural-Urban Cost Allocation: Applicants providing transit service jointly in rural and urban areas should prepare a cost allocation for their administrative costs, including indirect costs if requested, so that all the applicant’s funding sources are supporting a fair share of the overhead.

    Eligible Budget Categories for Each Grant

    ​Grant Program
    ​             Capital

    5307 GA

    5307 Large
    ​                  X
    Urban State Match
    ​                  X
    ​                  X
    ​                  X
    ​                  X
    ​                  X
    ​                  X
    ​                  X
    ​                  X
    Traveler's Aid
    Urban Technology​

    Cost Sharing Allocations for Budget Categories

    ​              Federal
    ​               State
    ​                 80%
    ​                 ​5%
    ​​                 15%
    ​                 ​50%
    ​                 ​0%
    ​​                 50%
    ​​                 80%
    ​​                 10%
    ​​                 10%

    ​                Local
    Urban Technology​
    ​​                 90%
    ​​                 10%
    Urban State Match
    ​            ​                 ​          ​​​TBD

    ​                 ​90%
    ​​                100%
    ​                ​100%
    ​​                100%
    5307 Operating
    ​                 ​50%
    ​​                 50%
    5307 Capital
    ​                 ​80%
    ​​                 ​20%

    Local Share: The applicant must certify that funding for the local match has been budgeted and it will be available for the duration of the project from allowable sources. The local match cannot come from fares. Depending on the availability of State funds, the local match required for some Federal programs may be lower if the State can provide a matching component. The vendor may request a local share of a vehicle at time of order.

    In-Kind Match: IMD chooses not to allow in‐kind matching unless the project is intercity service.

    Program Income: Includes, but is not limited to, the following income:

    • Fees for services performed;
    • The use or rental of real or personal property acquired under its Award;
    • The sale of commodities or items fabricated under its Award;
    • License fees and royalties on patents and copyrights;
    • Advertising/concessions specifically required by the Federal Award, and pertaining to specific activities or accomplishments which result from performance of the Federal Award; or
    • Payments of principal and interest on loans made with Federal assistance. Interest earned on advances of Federal assistance is NOT program income. Except as otherwise provided in Federal statutes, regulations, or the terms and conditions of the Federal Award, program income does not include rebates, credits, discounts, taxes, special assessments, levies, and fines raised by a recipient and subrecipient, and interest earned on any of them.
    Required Budget Items: Applicants may be required to request funding for marketing in their project budget. Applicants may also be required to submit a list of potential marketing/materials along with estimated price quotes for each. This requirement may be described as a percentage of the proposed project budget or presented as a required expense to be included without limits. Attachment 102‐2 includes information about this requirement by program.

    Budget Items with Conditions: Some line items in the budget form will include an amount that must be budgeted if funding for that line item is desired. Other line items will automatically calculate a maximum amount that can be requested. Applicants should also note the limits on the following line items: 
    • The amount requested for Promotional Items cannot be more than 25% of the amount requested for marketing costs.
    • A request for vehicle insurance funding cannot exceed the current cost of liability coverage for revenue vehicles.  Refer to application guidance for more details.
    • Before an applicant can request funding for indirect costs, they must submit a cost allocation plan that will be used to determine the indirect cost rate allowed.
    • Funding for indirect costs cannot be transferred to another line item.
    • Funding for marketing cannot be transferred to another line item.
    • Funding for insurance cannot be transferred to another line item unless the grantee can show that the vehicles were insured for the entire year at a lower cost than approved.
    • Applicants must use the amounts provided in the capital budget form as the budgeted cost. Excess funds in any category of the final capital project budget cannot be transferred to another capital expense category without the Regional Grant Specialist approval.​
    Retail Estimates: Some applications may require the applicant to provide retail estimates for any capital purchase or service included in the budget to guide IMD’s review of the amount requested. Applicants may submit pages from catalogs, quotes from online stores, or estimates from local vendors. If IMD approves funding for the purchase or service based on the estimate, the grantee is still required to follow a federally compliant procurement process to acquire the item or service after the grant agreement is finalized.

    Eligible Reimbursements: Any eligible reimbursement item must include a contract that ensures services are procured. For example: office space rent and copiers.


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