Department of Transportation

Drawdown of Federal Funds

Each year, the Department of Transportation obtains billions of dollars in Federal reimbursements for State expenditures. We examined whether the Department was obtaining these reimbursements in a timely manner and found that certain improvements could be made in the Departmentís reimbursement process. For example, if the Department submitted its reimbursement requests to the Federal Highway Administration more often during periods when reimbursable expenses were particularly high, such as construction season, it would receive hundreds of millions of dollars in reimbursements sooner. This would improve New York Stateís cash flow, increase its interest income, and better enable the State to meet its financial obligations in a timely manner. We recommended that the Department make certain improvements in its procedures for requesting Federal reimbursements, documenting the reasons such requests are disallowed, and accounting for such disallowances.

For a complete copy of Report 2009-S-52 click here.
For a copy of the 90-day response click here.