In a letter addressed to Local Agencies today, the Division of Local Assistance Chief (Denix Anbiah) described how inactive projects will be managed differently to better address future FHWA policy changes . To manage inactive obligations more proactively, Caltrans will:

  1. Identify a project as “inactive” if an invoice is not received for more than six months. Local Agencies will be notified and the project will be posted on the Inactive Project List.
  2. If an invoice is not received within the next six months (i.e. 12 months without invoicing), unexpended balances will be deobligated.

The new process will begin July 1, 2013 and provides Local Agencies three months of transition before any potential deobligations.

So how do you stay off the Inactive Projects List?

Invoice, Invoice, Invoice.  The best way to avoid inactivity is to invoice reimbursable costs on a regular basis.

In addition to Denix Anbiah’s letter, visit the Inactive Project Information page on the Division of Local Assistance site for more information.