Guidance and Compliance
U.S. Treasury Guidance
ARPA SLFRF: Updated Treasury Guidance on Reporting
On February 28, 2022, Treasury provided updated guidance on reporting requirements for recipients of ARPA SLFRF funds. Key changes are noted below and include a new requirement for quarterly reporting for jurisdictions receiving over $10 million in ARPA funds. The new guidance also includes clarification of Eligible Use categories and shows how recipients should code expenditures in a revised Appendix 1 of the document.
Additional highlights from the National League of Cities are below. Please contact Becky Taylor of the GMA staff at firstname.lastname@example.org or 404-402-6110 for any questions.
NLC conducted a deeper dive into the U.S. Department of Treasury’s Compliance and Guidance Reporting document released on February 28. Many of the items listed are new. Some are refreshers that NLC thought would be useful to reiterate for State Leagues as they educate their members ahead of the April 30, 2022, NEU reporting deadline.
- The Treasury Department rearranged the reporting tiers in the Compliance and Guidance Reporting document from six to five. Starting after April 30, 2022, NEUs with a grant of more than $10 million will have to report on a quarterly basis instead of yearly. NLC estimates that this could affect 163 NEUs. Additionally, NLC caught an interesting line that appears in the document. “The total SLFRF allocations across all sources for a given jurisdiction will be used to identify that jurisdiction’s Reporting Tier, beginning in April of 2022. Treasury may reach out to jurisdictions to update Reporting Tiers.” NLC has asked for clarity on exactly what Treasury means and if a local government receives SLFRF monies from a county or state above their initial allocation if that could change their reporting tier.
- In the final rule, local governments can make an irrevocable decision as to whether it will take the $10 million standard allowance or use the lost revenue calculation. Municipalities must decide in their April 30, 2022, report which option it is electing.
- Consolidated governments (city/county governments) are only required to file once per reporting period, and such reports will cover the total SLFRF allocations received by the jurisdiction. This includes non-entitlement units of local government and/or Units of general local government within counties that are not units of general local government (Non-UGLGs).
- To facilitate reporting, each NEU will need a NEU Local government Number. This is a unique identification code for each NEU assigned by the State or territory to the NEU as part of its request for funding.
- For municipalities that must file quarterly reports, quarterly reports will cover one calendar quarter and must be submitted to the Treasury by the last day of the month following the end of the period covered. This is a change from the Treasury's previous position. Under the old rules, a quarterly filer had 30 calendar days after the end of each calendar quarter to file a report.
- The Treasury added a new piece of required information that applies to all local governments. Local governments should report the program income earned and expended to cover eligible project costs, if applicable.
- This is in older versions of the Compliance and Reporting Guidance but is worth repeating. Local governments do not need to submit separate monthly subaward reports to FSRS.gov as required pursuant to the 2 CFR Part 170, Appendix A.
- Local governments should also note that subrecipients do not include individuals and organizations that received SLFRF funds as end users. Such individuals and organizations are beneficiaries and not subject to audit pursuant to the Single Audit Act and 2 C.F.R. Part 200, Subpart F.
- A local government must provide detailed information to the Treasury if aid is provided to impacted industries other than tourism, and hospitality.
- Describe if the industry experienced at least 8 percent employment loss from pre-pandemic levels, or if the industry is experiencing comparable or worse economic impacts than national tourism, travel, and hospitality industries as of the date of the final rule, and rationale for providing aide to the industry.
- For each subaward, the local government will need to provide the sector of the employer (Note: additional detail, including list of sectors, to be provided in the user guide posted to www.treasury.gov/SLFRP
- Purpose of funds (e.g., payroll support, safety measure implementation)
- The Treasury Department will require local governments that pursue water and sewer projects to provide additional reporting data once the project starts.
- If a local government chooses a water and sewer project listed in expenditure categories 5.1-5.18 (a list of 5.1-5.18 can be found in the Appendix 1, seen below), it will need to provide:
- Median Household Income of service area (Collection to begin in April 2022)
- Lowest Quintile Income of the service area (Collection to begin in April 2022)
Water and Sewer
Clean Water: Centralized Wastewater Treatment 5.1
Clean Water: Centralized Wastewater Collection and Conveyance 5.2
Clean Water: Decentralized Wastewater 5.3
Clean Water: Combined Sewer Overflows 5.4
Clean Water: Other Sewer Infrastructure 5.5
Clean Water: Stormwater 5.6
Clean Water: Energy Conservation 5.7
Clean Water: Water Conservation 5.8
Clean Water: Nonpoint Source 5.9
Drinking water: Treatment 5.10
Drinking water: Transmission & Distribution 5.11
Drinking water: Lead Remediation, including in Schools and Daycares 5.12
Drinking water: Source 5.13
Drinking water: Storage 5.14
Drinking water: Other water infrastructure 5.15
Water and Sewer: Private Wells 5.16
Water and Sewer: IIJA Bureau of Reclamation Match 5.17
Water and Sewer: Other 5.18
Reporting Guidance for ARPA SLFRF NEU Recipients
The Coronavirus State and Local Fiscal Recovery Funds (SLFRF), established by the American Rescue Plan Act of 2021, provides $350 billion in emergency funding for eligible state, local, territorial, and Tribal governments. Almost $20 billion of these funds were allocated to support non-entitlement units of local government (NEUs), which are local governments typically serving a population under 50,000. These funds are being delivered to eligible NEUs by states and territories in accordance with the guidelines established by Treasury.
This is a reminder that Treasury released the Treasury Portal that NEUs who have requested funding from their state will use for reporting and compliance. All NEU cities have been notified by email from Treasury of your government’s requirements to use this portal to confirm its accounts, designate reporting roles, and submit the required agreements and supporting documentation to Treasury for reporting and compliance. This email also provides additional information about reporting requirements and what to expect from the SLFRF program.
Online System Access
As a first step, you must set up your online account. To access Treasury’s Portal for the first time and be designated for any reporting roles, new users must first register with Login.gov. New users should use the following link: https://portal.treasury.gov/compliance/s/
Users who have previously registered through ID.me may continue to access Treasury’s Portal through that method. The following link should be used if you have already registered through ID.me https://portal.treasury.gov/cares/s/slt.
If you have not previously registered with ID.me, you should register through Login.gov. The following link provide additional information for Login.gov registration.
Second, after your account has been created and verified, you will be redirected to Treasury’s State, Local, and Tribal Support portal to log in, confirm your roles and provide your SLFRF information. For best site performance, it is recommended that you use Google Chrome.
Third, as part of SLFRF award administration, each SLFRF recipient must designate individuals to serve as its official points of contact for SLFRF reporting to Treasury. As a recipient you will need to designate individual(s) in your organization for each of the following three roles:
- Account Administrator;
- Point of Contact for Reporting;
- Authorized Representative for Reporting.
Section II of the User Guide (described below) provides additional details as to how to designate roles.
As an NEU, once a year, you are required to submit Project and Expenditure reports, which includes project, obligation, and expenditure data, project demographics, subaward data, required programmatic data, and Civil Right compliance information.
The first reporting deadline for NEUs to submit the Project and Expenditure Report is April 30, 2022 and will cover the period between March 3, 2021 and March 31, 2022.
You can start taking steps to prepare for the first Project and Expenditure Report now. Treasury encourages all NEU recipients to access the Treasury Portal as soon as possible in order to confirm their accounts, designate SLFRF reporting roles, and submit the required agreements and supporting documentation to Treasury prior to the submission of the first Project and Expenditure Report (see additional details on how to do this above).
To assist recipients with login into Treasury’s Portal, an NEU User Guide is posted to assist NEUs to confirm their reporting roles and provide the required documentation to Treasury.
Below is a list of the most up to date resources that are available for your review:
- Compliance and Reporting Guidance: The guidance explains all the required reports in detail and is the best resource for any reporting questions.
- Reporting guidance technical assistance webinars: These webinars covered broad reporting requirements, beyond the items required of NUEs. These webinars provide a good overview of the basic reporting requirements. Please note that these webinars are in the process of being updated based on the recently released Reporting Guidance.
- General FAQs and NEU-specific FAQs: The FAQs are the best resource for any policy related questions related to eligible uses of State and Local Fiscal Recovery Funds.
Treasury recently adopted the final rule of the Coronavirus State and Local Fiscal Recovery Funds program. Recipients should review the final rule and the Overview of the Final Rule, which provides a summary of major provisions of the final rule in a brief, simplified user guide. The final rule takes effect on April 1, 2022, though recipients can choose to take advantage of its flexibilities and simplifications now. Recipients should also review the Statement Regarding Compliance with the SLFRF Interim Final Rule and Final Rule to understand how the final rule and interim final rule apply during this transition period.
In addition to these resources listed above, Treasury intends to hold NEU specific webinars later in the spring that will go over the basics of managing SLFRF funds, including reporting requirements. Invitations will be provided to all NEU recipients and no previous knowledge or expertise will be necessary to join.
Recipients may send any questions that are not answered in these materials to SLFRP@treasury.gov.
For More Information
To access the Reporting Guidance and learn more about the Coronavirus State and Local Fiscal Recovery Funds, authorized by the American Rescue Plan Act, please visit Treasury’s Coronavirus State and Local Fiscal Recovery Funds website.
Treasury looks forward to working with you to ensure the continued success of the program.
If you have questions or need additional information, please send an email via SLFRP@treasury.gov.
Office of Recovery Programs
U.S. Department of the Treasury
ARPA SLFRF: Treasury Releases Final Rule
The Treasury Department issued the final rule implementing the Coronavirus State and Local Fiscal Recovery Funds (SLFRF) program under the American Rescue Plan. The final rule provides more flexibility for ARPA SLFRF recipients and will go into effect on April 1, 2022.
Information About the Treasury’s SLFRF Final Rule
Coronavirus State and Local Fiscal Recovery Funds for Non-entitlement Units of Local Government
The Coronavirus Local Fiscal Recovery Fund will provide $861.8 million to support hundreds of non-entitlement units of local government in Georgia, which are local governments typically serving a population under 50,000.
Non-entitlement Guidance Treasure Guidance, Fact Sheets, and FAQs for NEUs
Coronavirus State and Local Fiscal Recovery Funds
On Monday, May 10, the U.S. Department of the Treasury (Treasury) announced the launch of the American Rescue Plan Act’s Coronavirus State and Local Fiscal Recovery Funds program, which provides $350 billion in emergency funding for eligible state, local, territorial, and Tribal governments to help turn the tide on the pandemic, address its economic fallout, and lay the foundation for a strong and equitable recovery.
On January 6, 2022, the Treasury Department issued the final rule implementing the Coronavirus State and Local Fiscal Recovery Funds (SLFRF) program under the American Rescue Plan. The final rule provides more flexibility for ARPA SLFRF recipients and will go into effect on April 1, 2022.
Treasury Guidance, Fact Sheets and FAQs
The Interim Final Rule (IFR) remains in effect until the final rule takes effect on April 1, 2022; however, recipients can choose to take advantage of the flexibilities and simplifications of the final rule now. Recipients should consult the Statement Regarding Compliance with the Coronavirus SLFRF Interim Final Rule and Final Rule for more information on compliance with the IFR and Final Rule.
Sign up for direct email updates from Treasury
Cities in the Non-Entitlement Unit of Local Government Category (generally, those under 50,000 population) will receive your ARPA Local Fiscal Recovery funds via a pass-through from the state. The Governor’s Office of Planning and Budget is administering the portal for NEU’s to receive their grant funds. Allocation amounts for each NEU jurisdiction, additional guidance for NEUs, NEU checklist for payment request, and Terms and Conditions are available on the OPB website.
National League of Cities' American Rescue Plan Act of 2021 Summary of Provisions
The National League of Cities developed a searchable summary of provisions offered to municipalities and local leaders by the American Rescue Plan Act of 2021.
View the NLC's ARP Dashboard
NLC Webinar ARPA Compliance Session 1 – Coronavirus Local Fiscal Recovery Funds Compliance: Audit Readiness
The U.S. Treasury has stated that the Single Audit Act of 1984 and its current implementing regulation will apply to Coronavirus Local Fiscal Recovery Fund (CLFRF) awards authorized under the American Rescue Plan Act (ARPA) of 2021. Authoritative estimates are that as many as 10,000 municipalities and other organizations that were not previously required to arrange for a single audit will now be required to do so. This webinar highlights what auditors will be looking for and how municipalities with limited experience administering federal awards can prepare for the single audit process and ensure that they utilize this historic funding opportunity appropriately. Municipalities with FRF allocations are encouraged to view this session.
Watch the Presentation and Download the Slides
2021 Matrix of Compliance Requirements
Treasury SLFRF Compliance Supplement Addendum
NLC’s Letter to U.S. Treasury
The National League of Cities wrote a letter to the U.S. Treasury on March 25, urging that guidance on the American Rescue Plan be in agreement with the principles central to municipal leadership and recovery. This includes requests regarding broadband, infrastructure and other critical allowable uses for ARP funds. The letter additionally shared many of our cities' most pressing questions.
Read the Letter to the U.S. Treasury