Reimbursement Procedures section of this website.
i. Reimbursement Program - The Redevelopment Assistance Capital Program will use a reimbursement system to fund projects. Grantees will apply for periodic project payments to cover a portion of
paid eligible and reimbursable project expenses. Expenses must be paid prior to submission to the commonwealth for reimbursement.
This reimbursement will be limited by: a) total funds available through the Funding Accumulation Schedule; b) the factor of the matching funds expended to date versus RACP grant expenditures; c) a proportionate amount of matching fund expenditures actually expended; and d) those other limitations that the Office of the Budget may deem necessary.
ii. Funding Accumulation Schedule (36-month minimum) - The approved Funding Accumulation Schedule for a project shows the RACP amounts that will be accumulated for the project during the months indicated on the schedule. Generally, total funding will be accumulated in equal installments over a 36-month period unless the Secretary of the Budget authorizes a shorter period.
The use of a Funding Accumulation Schedule may contribute to the Applicant’s need to obtain interim or bridge financing to fund the project. Exceptions to this requirement will be made on a case-by-case basis by request. Month one (1) for the period will be the first month after the execution of the Grant Agreement. Commonwealth reimbursements will be limited by the amount of funds accumulated for the project at the time the Payment Request is reviewed. The approved schedule is shown in Appendix C of the Grant Agreement.
The approved funding accumulation does not show a monthly reimbursement that the Grantee will automatically receive for the project. The schedule shows the funds that are available for the project in any month during the 36-month accumulation period. The reimbursement that the Grantee is eligible to receive is also subject to the distribution factor.
iii. Proportional reimbursement - To ensure that RACP funds are not fully disbursed prior to the completion of a project, RACP grants will be reimbursed on a proportional basis for direct land, building acquisition, construction and other eligible reimbursable expenses. The proportion funded by RACP funds will be defined by the distribution factor. The distribution factor will be the local non-state funding amount divided by the RACP grant. Eligible match costs are not reimbursable but are included in the factor. The proportional reimbursement may contribute to the Applicant’s need to obtain interim or bridge financing to fund the project.
Distribution factor. The distribution factor is a measure of the match participation with respect to RACP participation. The factor is calculated as follows:
Distribution Factor = Local Match Funds / RACP Grant
A distribution factor of 2 indicates that for every $2 of match participation, there will be $1 of commonwealth participation. In other words, the commonwealth is providing $1 of grant for every $3 of total project cost.
The purpose of the distribution factor is to assure that the Grantee is contributing the required match components to the project as reimbursements are being provided. Generally, the distribution factor will control the amount of reimbursement, if there are sufficient funds accumulated per the funding accumulation schedule.
F. COMMONWEALTH’S RESPONSIBILITIES
1. GENERAL COMMONWEALTH RESPONSIBILITES
- The commonwealth's role is to provide guidance, review the project and provide reimbursement.
- The commonwealth provides guidance concerning requirements of the Redevelopment Assistance Capital Program. The commonwealth will advise the Applicant in areas related to the requirements of the Redevelopment Assistance Capital Program, including clarifications of the governing legislation, preparation of Applications, and preparation of Payment Requests.
- The commonwealth or the commonwealth's designated representative will review any information or aspect of the project to determine if the project meets financial and program requirements.
- The Redevelopment Assistance Capital Program provides reimbursement from the commonwealth for the Applicant's project. The funding is a partial reimbursement of expended amounts. Expenses must be paid before they are submitted to the commonwealth for reimbursement.
2. SPECIFIC COMMONWEALTH RESPONSIBILITIES
a. Facilitation Meetings - Facilitation meetings are conducted at the request of the Grantee to the Office of Budget and are highly encouraged. During these meetings, the Grantee will be able to ask questions concerning administration of the program and its effects on the project. The Grantee/Sub-grantee/project representatives are eligible to attend a facilitation meeting at no cost to the Grantee. These meetings are informational only.
b. Monitoring of Projects - Projects will be monitored by the Office of the Budget or its representatives throughout the funding and construction phase. All projects will be subject to review. Approval of reimbursements of state funds will depend on financial and program compliance. The intent of monitoring is to review financial and program compliance with the Redevelopment Assistance Capital Program. During monitoring, the commonwealth will not be approving any actions related to the grantee's execution of the project. Prior to the initiation of monitoring, the Grantee will be notified, a monitoring schedule will be established, and procedures will be explained.
c. Close-Out Audit - A close-out audit will be performed by the Office of the Budget or its representative for all projects. The Grantee will not be required to pay for this audit. A portion of the final grant proceeds shall be retained by the Office of the Budget until the completion of the statutorily-required final close out audit. The commonwealth may withhold up to 10% of the grant value from the last Payment Request. This percentage may be reduced at the discretion of the Office of Budget.