What is meant by authorization, obligation, and allocation?
[Top] A: Prior to beginning reimbursable work, the project (or project phase) eligible for reimbursement from federal funds must be formally authorized (approved) by the Federal Highway Administration (FHWA) or by Caltrans for exempt project. Following authorization, FHWA obligates federal funds. However, both terms have been used interchangeably. On the other hand, allocation of funds is an approval process by which California Transportation Commission (CTC) votes on State-funded project. Non-regional TEA federal program, however, also requires a CTC vote. This CTC vote should precede the E-76 request of federal funds for federal/state-funded project.
