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DPW tops territories in FHWA financial management
The CNMI Department of Public Works has been commended for managing inactive Federal Highway Administration projects in fiscal year 2017.
The Federal Highway Administration’s Hawaii Federal Aid Division lauded the CNMI for attaining a minimal percentage rating of 0.1 percent for inactive obligations.
In contrast, the ratings for Guam and American Samoa stood at 14.9 and 2.5 percent, respectively.
The performance indicator of 0.1 percent for the CNMI is well below the expected percentage of inactive obligations, targeted at 2 percent nationally.
DPW receives territorial funding from the Federal Highway Administration, or FHWA, for transportation improvement projects. To improve efficiency in the administration of highway programs, the department is required to review expenditure activities on FHWA funded projects. Projects without active charges or expenditures for 12 months are flagged as inactive. State and territory recipients of FHWA funds are expected to report inactive projects as being within the allowable 2 percent of the total annual federal obligation received.
States and territories with greater than 2 percent of the total annual federal aid obligation authority authorized on projects with 12 months of inactive charging may have federal funds reduced, may withhold funding or divert funding to other territories, or may withhold approval of new federal funds. (DPW-TSD, Highway)
