Sponsor Reimbursement Requests for LDSA Projects – What You Need to Know

July 28, 2021

Lack of knowledge of the detailed process and documentation requirements of Sponsor Reimbursement Requests for LDSA projects can significantly impact cash flow. Failure to file timely and accurate requests may delay reimbursement. Inaccurate or noncompliant reimbursement requests may be kicked back to the sponsor to be amended, requiring resubmittal to the New York State Department of Transportation (NYSDOT) before payment is made.

Navigating Sponsor Reimbursement Requests

Sponsor Reimbursement Requests are important to local governments to maintain cash flow throughout the duration of the project. The LDSA program is a reimbursement program, not a grant program. Sponsors must pay their vendors (i.e., engineers, contractors, etc.) directly using their own funds. The Sponsor must then seek reimbursement for the federal portion of funding (typically 80%) from the NYSDOT. For jurisdictions with lean capital budgets, this may pose an issue with resources. One way to ease this financial burden and guarantee steady cash flow is to process reimbursement requests at regular monthly intervals, rather than waiting until the completion of the project. The process can be confusing.  Having a consultant, like Fisher Associates, who will review your Sponsor Reimbursement Requests for accuracy and completeness prior to submission, or better yet, who will assist you in preparing your reimbursement requests is a valuable asset that ensures reimbursement dollars are available throughout your project thereby minimizing the use of municipal budgets. 

“Schedule A” The Fisher Way

Schedule A, part of the State Local Agreement (SLA) between the Sponsor and the NYSDOT, allocates dollars per phase and is required to be followed by each Sponsor. Fisher knows the importance of Schedule A and reconciling it with invoices and proofs of payment relevant to each phase of the project. Fisher, serving as an extension of the Sponsor’s team, can prepare the required Sponsor Reimbursement Requests creating the following value for our clients:

• Compliant reimbursement requests are submitted on a monthly basis to maintain a regular flow of reimbursement dollars to fund your project
  • Errors are minimized by not having Sponsor staff navigate unfamiliar paperwork and a confusing process. 
  • Sponsor resources can focus on their typcial daily responsibilities
  • Efficiencies for all team members are realized
  • Your reimbursement dollars arrive sooner by having those knowledgeable in the process prepare and submit your reimbursement requests

The Fisher Difference

A knowledgeable, experienced, and dedicated team can guide clients through the Sponsor Reimbursement Request process, avoiding pitfalls and critical mistakes in paperwork and processing that might delay your reimbursement and place the Sponsor in a financially challenging position, possibly even resulting in an inability to pay contractors for work completed to date. Having managed federally funded projects from inception through construction for over 25 years, the Fisher Team is experts in the rules, processes, requirements, and compliance documents that govern them.  We handle this paperwork every day.  And we stay up-to-date on all the revisions that are routinely implemented by the NYSDOT to refine the process. We are the experts so you don’t have to be. The Fisher Difference can be summarized as follows:

• Fisher’s knowledgeable and dedicated team has the experience and expertise to guide you through the LDSA Sponsor Reimbursement Request process so you receive your funding reimbursements in a timely manner.
• Fisher’s attention to detail and comprehensive understanding of the overall process ensures your project’s funding isn’t put at risk.
• Fisher’s knowledgeable team ensures all critical guidelines and submittal dates are adhered to.

For more information about the Fisher Difference and how to make Sponsor Reimbursement Requests hassle-free on your next project, contact Emily Smith, P.E., Vice President, Director of Transportation at Fisher Associates at esmith@fisherassoc.com.