Kootenai County to seek FTA OK to recover indirect transit costs

Chad Engel, presenting a transit report to the Kootenai County Board of County Commissioners on Feb. 10, said federal rules (2 CFR 200) require indirect costs be identified and approved in advance through formal planning and budgeting documents and that final approval rests with the Federal Transit Administration.

Engel told the commissioners that adding indirect costs to grants already open is not recommended by FTA because the Statewide Transportation Improvement Program (STIP) amendment and FTA approval process can take longer than the remaining life of some grants. He said the county plans to incorporate indirect costs into transit grants currently under development through an upcoming STIP amendment, pending FTA concurrence.

Engel also said CARES Act grants follow a separate approval process and ‘‘may be amended directly with FTA to include indirect costs once approved by FTA.’’ He said the county is preparing a statement or memo, to be reviewed by legal and presented to the board, to notify FTA that the Board of County Commissioners intends to designate use of the de minimis indirect cost rate for FTA grants.

‘‘This will position the county to begin recovering indirect costs as early as the fiscal year 2027,’’ Engel said. He estimated the STIP/FTA amendment process could take roughly eight to 10 months, which informed the decision to include indirect costs in grants that are still under development rather than amending grants that are near exhaustion.

Commissioners asked for clarification on timing and whether CARES funds could be amended to recover indirect costs; Engel replied that CARES funds could be amended directly with FTA. The board directed staff to work with legal, prepare the memo for FTA, and bring it back for board consideration as soon as possible.

Next steps: Engel said staff will meet with FTA the following day to discuss rolling any remaining grant funding into new applications and will return a draft memo for board review and potential action at an upcoming business meeting.