157 Incentive Guidance

    1/22/99


    Section 157 Accounting Guidance


    Process:


    Funding Requirements:

    Section 157 funds obligated and spent on projects eligible under NHTSA Sections 402, 405, 410, or 411 take on the characteristics of the program the funds are applied against as follows:

      Section 402 - Requirements:

        - Funds can be spent on any highway safety program areas.
        - Activities should be included in the State's Performance Plan and Highway Safety Plan.
        - 40% of the Federal funds are required to go to the benefit of the local entities.
        - Program funds are 80% Federally funded.
        - Up to10% can be used for Planning and Administrative costs and 50% Federally funded.

      Sections 405, 410, or 411 - Requirements:

        - Funds must be spent for occupant protection, alcohol, or data programs, respectively.
        - Activities should be included in the State's Performance Plan and Highway Safety Plan.
        - Program funds are:

          75% Federally funded for the first and second years
          50% Federally funded for the third and fourth years
          25% Federally funded for the fifth and sixth years.

    Note: New funds cannot be obligated to these areas unless the plan has been approved for the current fiscal year.


    Accounting Code:

    When States obligate and expend Section 157 funds in any of the following Sections the new applicable program area code should be used:

    Sections New Program Area Code

    402

    157PA, 157AL, 157OP, etc.
    405 157J2 Occupant protection program
    410 157J8 Alcohol program
    411 157J9 Data program

    NOTE: The J7 program area code is still used to track alcohol incentive funds prior to FY98.