Work Eligible for TIB Reimbursement.
Partial or progress payments for project costs.
Participation and payment of board funds to agencies shall be governed by the following:
a)   Board participation. TIB funds shall not participate in any costs that are not incurred in conformity with all applicable federal and state laws. Requests for reimbursement shall conform to all rules, regulations, guidelines, and procedures as may be prescribed by the Board promulgated in conformity with the statutes.

b)   Grant acceptance. Projects for which TIB funds are requested by the eligible agencies and for which the board has allocated funds will be the subject of a project approval process. The agencies' participation in this process demonstrates acceptance of the conditions to payment of funds, as prescribed by laws and regulations, and the amount of funds to be obligated.

c)   Payments. Eligible agencies are to submit requests for payment of funds claimed to be due on approved projects. Such requests are to be on forms prescribed by the Board. Throughout the life of a project supporting data may be requested. A complete accounting of all project charges will be required at contract completion. Requests for payment may be submitted from time to time as the work progresses. Final requests shall be signed and submitted within six months of contract completion. Payment of TIB funds shall at no time exceed the approved amount of the project costs incurred to the date of the payment request.

d)   Compliance with laws and regulations. If an eligible agency has failed to comply with laws and regulations with respect to a project, payment of funds may be withheld on such projects, or approval of additional projects may be withheld until compliance or remedial action has been accomplished by the eligible agency to the satisfaction of the board.

e)   Costs incurred prior to phase approval shall be considered ineligible.

Eligible for Reimbursement as a Direct Charge
a)   The costs must be wholly for the benefit of the project being charged (eg. Labor performed directly for that project, supplies used in the course of a project, etc). The following are examples of items in which TIB will participate:
i)   Labor – to design, survey, prepare plans, appraise right-of-way, inspect construction activities, etc.
(1)   Salaries and wages
(a)   TIB funds may participate in the cost of salaries, wages, and related payroll benefits incurred for periods of time public employees are actively engaged in project related activities.

(b)   Salaries, wages, and related payroll expenses of a local agency for maintenance, general administration, supervision, and other overhead costs are not eligible for reimbursement.

(2)   Payroll benefits – Payroll benefits are limited to forty percent of direct labor costs and are to be reported separately.
(a)   Employee Leave and Holidays
(i)   A local agency may claim reimbursement for the cost of leave, e.g. annual, sick, military, jury, etc, that is earned, accounted for and used in accordance with established procedures. The cost of such leave must be a liability of the local agency, must be equitably distributed to all activities, and the pro rata costs distributed to a TIB project must be representative of the amount that is earned and accrued while working on the project.

(ii)   Compensatory leave granted by a local agency in lieu of payment of overtime to eligible employees may be claimed for reimbursement if accrued and granted under established policies on a uniform basis.

(b)   Social Security, Retirement, and other Payroll Benefits
(i)   TIB funds may participate in allocable costs incurred for social security, retirement, group insurance premiums, and similar items applicable to salaries and wages of public employees engaged in work on TIB projects.

(3)   Costs incurred for services rendered by employees generally classified as administration may be considered eligible for reimbursement if such employees are assigned for specific identifiable periods of time to perform project-related activities in the same manner as other operating personnel.

ii)   Travel and per diem – of employees involved in any participating activity related to the project.
(1)   TIB funds may participate in the cost of commercial transportation, privately owned automobiles, and per diem or subsistence essential to the prosecution of the project and is performed in accordance with prescribed procedures.

(2)   Reimbursement may be made for use of privately owned automobiles and per diem or subsistence incurred in conformance with the established reimbursement policy of the local agency.

iii)   Material – incorporated into a TIB approved project.

iv)   Direct vehicle and equipment charges - at the actual rental cost paid for the equipment or, in the case of city or county owned equipment, at the rental rates established by the city's or county's "equipment rental and revolving fund" following the methods prescribed by the division of audit: Provided, That such costs shall be charged on a uniform basis to equipment used for all projects regardless of the source of funding. Cities that may not use this type of fund shall be allowed the same rates as used by the department of transportation.

v)   Supplies – purchased and consumed entirely on an approved project. Supplies might include: cloth tapes, drafting supplies, film (including developing and printing), hubs, paint (marking spray), stakes, long distance telephone calls identified by project, royalty on material, initial or new costs of temporary traffic control devices.

vi)   Services - for material testing, document reproduction, mapping, computer and equipment usage charges.

vii)   Miscellaneous items eligible for reimbursement:
(1)   Working meals during final presentation of a VE study up to $100.

(2)   Costs associated with a ground breaking or dedication ceremony up to $1,500 if the TIB is notified in advance and included in the event.

Allowable Indirect Costs
Indirect or overhead costs are common administrative cost objectives that cannot be easily charged to the project. Indirect costs incurred by an agency for administrative costs will be reimbursed up to a maximum of ten percent of the direct labor costs.

Not Eligible for Reimbursement
The following items are not eligible for TIB participation:
a)   General administration, supervision, and other unallowable overhead costs of a local agency are those considered necessary for the management, supervision, and administrative control of a suitably equipped, staffed, and operational agency. Examples of such unallowable costs may include, but are not limited to, the following types of personnel, and payroll related benefit costs, and other administrative or support services.
i)   Directors, department heads, legal, accounting, budget, personnel, and procurement units.

ii)   Related clerical, secretarial, and other support services for officials and personnel listed immediately above.

iii)   Management, supervision, and administrative overhead costs incurred by other units or departments of the state, local agencies, or governmental organizations.

b)   Equipment purchase and repair – examples include engineering, safety, or office equipment and supplies.

c)   Supplies – purchased and consumed on a number of projects or for the general management or operation of the organizational unit (example would be in maintenance or in administration – signs, small tools, and used temporary control devices). Books that are not needed in the development of the specific project.

d)   Office rental – including utilities and telephone service.

e)   Labor – for activities not directly related to the project. Labor activities pertaining to the general operation of an agency are not eligible for reimbursement.

f)   Travel and per diem – of employees performing activities classified as not eligible for reimbursement or unrelated to a specific TIB project.

g)   Miscellaneous items not eligible for reimbursement:
i)   Meals and/or light refreshments

ii)   Newsletters and publications for non-specific projects

iii)   Conference fees

Other allowable costs
Although some categories of expenditures are not mentioned specifically, if an agency wishes to receive reimbursement for these expenditures it must receive approval prior to billing.

Other unallowable costs
a)   Any costs not eligible for federal reimbursement.

b)   Bad debts – any losses arising from uncollectible accounts and other claims and related costs are not allowable.

c)   Contingencies – contributions to a contingency reserve or any similar provisions for unseen events are unallowable.

d)   Contributions and donations are unallowable.

e)   Entertainment – Costs of amusement, social activities, and incidental costs relating thereto, such as meals, beverages, lodging, rentals, transportation, and gratuities, are unallowable.

f)   Fines and penalties – costs associated from violations or failure to comply with federal, state, and local laws and regulations are unallowable.

g)   Interest and other financial costs – Interest on borrowing (however represented), bond discounts, cost of financing and refinancing operations, and legal and professional fees paid in connection with these types of costs are unallowable.

h)   Underrecovery of costs under grant agreements – any excess of cost over the TIB contribution under one grant agreement is unallowable under other grant agreements.