Federal-aid highways : FHWA has improved its risk management approach, but needs to improve its oversight of project costs.
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2009-07-01
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Alternative Title:Federal aid highways : Federal Highway Administration has improved its risk management approach, but needs to improve its oversight of project costs;FHWA has improved its risk management approach, but needs to improve its oversight of project costs;FHWA oversight;
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Abstract:The federal-aid highway program
provides about $33 billion a year to
states for highway projects. The
federal government provides
funding for and oversees this
program, while states largely
choose and manage the projects.
As requested, GAO reviewed the
Federal Highway Administration’s
(FHWA) implementation of several
requirements in the Safe,
Accountable, Flexible, Efficient
Transportation Equity Act: A
Legacy for Users (SAFETEA-LU):
(1) oversight of states using a risk
management approach; (2) efforts
to develop minimum standards for
estimating project costs, and
periodically evaluate states’ cost
estimating practices; and
(3) reviews of states’ financial
management systems. GAO also
reviewed FHWA’s policy on
presenting an estimate of financing
costs in financial plans for major
projects (i.e., projects estimated to
cost over $500 million). GAO
reviewed FHWA plans, risk
assessments, reviews, and other
documents; visited five FHWA field
offices and reviewed financial
management reviews in an
additional five field offices; and
interviewed FHWA officials.
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