State Aid for Local Transportation

Payment process

Federal aid agreement payment process

1. Local Public Agency (LPA) prepares agreement payment request for eligible costs.
   • Sample bill (Word)
   • Backup documentation (see agreement for specific requirements)
     • Invoices
     • Timesheets, labor charges, equipment usage and rates, summary of charges
     • Cancelled checks (right-of-way agreements only)
     • Anything that documents the amount of funds spent for the project
2. LPA signs the coversheet and sends packet to District State Aid Engineer (DSAE).
3. DSAE reviews, signs, and dates coversheet. Forwards packet to SALT.
4. SALT reviews agreement and billing documentation.
   • Check date of authorization vs. date of billing and costs incurred
   • Check documentation submitted
   • Check type of work performed vs. project memo and agreement terms
   • Check charges, addition, etc. of billing
5. SALT requests payment on behalf of LPA from State Aid Finance.
• State Aid Finance pays or requests clarification and then pays when proper justification is received.
6. If the request is a final payment, SALT will review and pay out the request amount minus any retainage to be held, per the agreement. This is typically 10 percent of the contract amount.
   • SALT will then request a final audit which can take up to a couple of months.
   • Any agreement project that is less than $50,000 in total contract value is exempt from the final audit process.
   • When final audit process is complete, the retainage will be paid out in full.

Preaward audit

For Preliminary Engineering (PE) and Construction Engineering (CE) contracts which exceed $50,000, a preaward audit must be performed prior to the LPA signing the contract with the consultant providing services. See agreement overview process (PDF). Consult with Agreements Engineer.