CVTA approves retrospective reimbursement to PlanRVA and uses interest income to cover the payment

The Central Virginia Transportation Authority on June 5 approved retrospective reimbursements to PlanRVA for administrative fees and indirect costs incurred during fiscal years 2023 through 2026 and voted to use CVTA interest income to make the payment.

Staff explained that PlanRVA performed administrative and managed services under an October 2022 memorandum of understanding that includes a 10% managed services fee and an indirect cost allocation. After PlanRVA’s financial records were reviewed and CVTA’s financial management system was updated, staff discovered that certain indirect and administrative costs tied to CBTA‑specific staff time had not been invoiced and paid in prior years. Finance committee recommended approval of retrospective remuneration to align prior years with the contract terms.

Members discussed auditability and asked for itemized supporting records. PlanRVA representatives (and the CBTA treasurer) said detailed cost categories are available: 15 indirect cost expense codes are bundled into the indirect cost pool and annual audits and federal/state reviews cover the indirect allocation process. Board members directed that quarter‑to‑quarter reporting and improved billing clarity be implemented going forward.

The authority first approved the retrospective remuneration on a roll‑call vote and then approved a separate motion to fund the reimbursement from CVTA interest income so the payment could be completed before fiscal year end. Members said the authority intends to keep future accounting and reporting clearer so invoicing omissions do not recur.

Next steps: staff will coordinate invoices and reconciliation with PlanRVA, apply interest income per the vote, and provide quarterly reconciliations to the finance committee.