Farebox Revenue

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Q. As a Subrecipient for Section 5311 Funds, we Subcontract with a Third Party Contractor to provide the transportation services. Our Contract is a Unit Rate Contract. When calculating Net Operating Expenses, how do we treat Farebox revenue? As the subrecipient, we do not receive the fares. Our Third Party Contract is a simple Unit Rate Contract, $16.00 for every trip provided.

A. The person you need to contact with this question is your regional FTA grant manager. 


Q. We received a congressional earmark of Section 5309 funds (about $750,000). We wish to purchase nine vans to use in a vanpool program. The amount of the purchase is $272,100. The match obligation is 20% or $54,420. We want to borrow the amount of the match from a local bank. Can we use the revenue from the vanpool fares to repay the loan to the bank?

A. The answer is "No." Farebox revenue cannot be used as local share for the project in which it is earned. Federal transit law would require us to treat such use as a refund or reduction of local share requiring a proportionate refund or reduction of the Federal share.

 

Q. Which contract should report farebox revenue? A sub recipient has a 5311 contract and JARC contract.  The buses were purchased with 5311 funds but they were being used to transport clients to and from work (JARC).

A. Please contact your regional grant representative. (Posted: October, 2010)


 

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