Historic 5311 subrecipients that operate transit service in North Carolina’s growing urbanized areas could be eligible for 5307 urbanized area funding. The Integrated Mobility Division (IMD) may take oversight of these duel 5311/5307 recipients for consistency. These transit systems are subject to increased oversight requirements by IMD.
5307 Oversight of 5311 Subrecipients: 5307 Direct Recipients may choose to suballocate a portion of their 5307 funds to other operators inside their urbanized area. IMD may take oversight of these 5307 funds on behalf of the direct recipient for transit systems. This occurs in situations in which current 5311 subrecipients are operating in both urbanized and rural areas (5311 and 5307 eligible systems). To maintain oversight, subrecipients will be required to provide and maintain deliverables specific to 5307, included below.
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Cost-Allocation Model: Subrecipients who receive both 5703 and 5311 funds are required to reimburse expenses to each grant proportionally based on the amount of service provided in rural and urban areas. This is done by determining the percentage of the system service that operates in rural/urban areas and billing that percentage of the total expenses to the respective grant.
As an example, a transit system that operates 80% of the time in rural areas would charge 80% of expenses to 5311 and the remaining 20% to 5307. This percentage is known as a cost allocation.
While FTA has stated that the method a recipient chooses to determine how their services are split between rural and urbanized areas is up to the grantee, that method must be consistent and fair. IMD provides a cost‐allocation model that analyzes trip data and provides multiple options for cost allocation to transit systems. Transit systems must choose a cost allocation method and provide IMD with the completed model.
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5307 Application Budget: 5307 applicants with IMD oversight will need to complete a budget which outlines scope and specific requirements of the 5307 programs. Specific requirements of 5307 include:
- Operating Expense Maximum: Based on fleet size and NTD data;
- 10% ADA Paratransit Maximum: 1% Safety; and,
- Security Minimum.
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Grant Administration: Transit systems will manage all 5307 grants in the EBS portal utilizing the same method that the 5311 grant is administered after satisfaction of requirements above and NCDOT Board of Transportation approval.
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STIP: 5307 projects with IMD oversight are entered in the STIP by the IMD and are not required to go through an MPO STIP amendment process.
