Kentucky Association of Counties

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The Kentucky Association of Counties

First reporting deadline for county ARP funds fast approaching

The U.S. Treasury is now accepting the Interim Report for the American Rescue Plan (ARP) Recovery Funds which is due by August 31, 2021.

Treasury has released a User Guide which includes step-by-step guidance for submitting the required report through Treasury’s Portal.

  • Refer to Section II of the user guide for information on logging in and navigating Treasury’s Portal (pgs. 3-5).
  • Refer to Section IV of the user guide for guidance and instructions on how to submit the Interim Report (pgs. 7-24).

Requirements for Interim Report

  1. Verify recipient information
  2. Provide expenditure data at the summary level from the date of the award to July 31, 2021
  3. Provide revenue replacement data - note: recipients are required to calculate revenue loss regardless of whether the recipient has obligations at this time or not
  4. The Authorized Representative for Reporting must provide official certification of the submission

TOP FAQs (pgs. 27-32)

1.1. If a recipient has received funding as of July 15, 2021 but has not incurred obligations or expenditures as of the end of the reporting period, what are the reporting requirements?

Interim Report: Recipients should submit a report showing no ($0) obligations or expenditures have yet been incurred.

1.3. If a recipient has not received funding as of July 15, 2021, what are the reporting requirements?

Treasury recognizes that recipients will need sufficient time to gather the information and determine how allocate funds in accordance with the Interim Final Rule. As such, recipients that have not received funding as of July 15, 2021 must submit an Interim Report and Recovery Plan (if applicable) within 60 days of receiving funding.

Additional reporting guidance and resources:


NACo Reporting FAQs

1. WHAT ARE THE REPORTING REQUIREMENTS FOR THE FISCAL RECOVERY FUND?

Interim reports: Counties will be required to submit one interim report, which will include the county’s expenditures by category at the summary level. The interim report will cover spending from the date the county receives Recovery Funds to July 31, 2021. Interim reports are due by August 31, 2021.

Quarterly project and expenditure reports: Counties will be required to submit quarterly project and expenditure reports, which will include financial data, information on contracts and subawards over $50,000 and other information regarding utilization of funds. These reports will be similar to CARES Act Coronavirus Relief Fund. The first report will cover spending from the date the county receives Recovery Funds to September 30, 2021. First report is due by October 31, 2021.

Recovery plan performance reports: Counties will be required to submit an annual recovery plan performance report, which will include descriptions of projects funded and information on performance indicators and objectives of each award. Initial recovery plan will cover activity from the date the county receives Recovery Funds to July 31, 2021. Local governments with less than 250,000 residents are not required to develop Recovery Plan Performance Report. Recovery plan is due by August 31, 2021.

2. ARE COUNTIES REQUIRED TO REMIT INTEREST EARNED ON RECOVERY FUND PAYMENTS MADE BY TREASURY?

No. Recovery Fund payments made by Treasury to local governments and Tribes are not subject to the requirement of maintaining balances in an interest-bearing account and remit payments to Treasury.

3. WHAT PROVISIONS OF THE UNIFORM GUIDANCE FOR GRANTS APPLY TO THESE FUNDS? WILL THE SINGLE AUDIT REQUIREMENTS APPLY?

Most of the provisions of the Uniform Guidance (2 CFR Part 200) apply to this program, including the Cost Principles and Single Audit Act requirements. Recipients should refer to the Assistance Listing for detail on the specific provisions of the Uniform Guidance that do not apply to this program. The Assistance Listing will be available on beta.SAM.gov.

4. HOW WILL TREASURY RECOUP RECOVERY FUNDS?

Failure to comply with restriction on use of funds will be identified based on reporting provided by the county. The county will receive a written notice of violation, and within 60-days of the notice, a county can seek reconsideration of the violation based on supplemental information.

5. MAY COUNTIES USE FUNDS TO COVER THE COSTS OF CONSULTANTS TO ASSIST WITH MANAGING AND ADMINISTERING THE FUNDS?

Yes. Counties may use funds for administering the CSFRF/CLFRF program, including costs of consultants to support effective management and oversight, including consultation for ensuring compliance with legal, regulatory, and other requirements.

6. WHAT IS THE ASSISTANCE LISTING AND CATALOG OF FEDERAL DOMESTIC ASSISTANCE (CFDA) NUMBER FOR THE PROGRAM?

The Assistance Listing for the Coronavirus State and Local Fiscal Recovery Funds (CSLFRF) was published May 28, 2021 on SAM.gov. This includes the final CFDA Number for the program, 21.027.

The assistance listing includes helpful information including program purpose, statutory authority, eligibility requirements, and compliance requirements for recipients. The CFDA number is the unique 5-digit code for each type of federal assistance, and can be used to search for program information, including funding opportunities, spending on usaspending.gov, or audit results through the Federal Audit Clearinghouse.

To expedite payments and meet statutory timelines, Treasury issued initial payments under an existing CFDA number. If you have already received funds or captured the initial CFDA number in your records, please update your systems and reporting to reflect the final CFDA number 21.027. Recipients must use the final CFDA number for all financial accounting, audits, subawards, and associated program reporting requirements.

To ensure public trust, Treasury expects all recipients to serve as strong stewards of these funds. This includes ensuring funds are used for intended purposes and recipients have in place effective financial management, internal controls, and reporting for transparency and accountability.

7. IF A RECIPIENT HAS RECEIVED FUNDING AS OF JULY 15, 2021 BUT HAS NOT INCURRED OBLIGATIONS OR EXPENDITURES AS OF THE END OF THE REPORTING PERIOD, WHAT ARE THE REPORTING REQUIREMENTS?

Interim Report: Recipients should submit a report showing no ($0) obligations or expenditures have yet been incurred. Recovery Plan: Recipients should submit a Recovery Plan describing the planned approach to the use of funds and planned projects.

8. IF A RECIPIENT HAS RECEIVED FUNDING AS OF JULY 15, 2021 BUT HAS NOT ESTABLISHED PROJECTS AS OF THE END OF THE REPORTING PERIOD, WHAT ARE THE REPORTING REQUIREMENTS?

No project level reporting is required in the Interim Report. Recipients should submit a Recovery Plan describing the planned approach to the use of funds and planned projects.

9. IF A RECIPIENT HAS NOT RECEIVED FUNDING AS OF JULY 15, 2021, WHAT ARE THE REPORTING REQUIREMENTS?

Treasury recognizes that recipients will need sufficient time to gather the information and determine how allocate funds in accordance with the Interim Final Rule. As such, recipients that have not received funding as of July 15, 2021 must submit an Interim Report and Recovery Plan (if applicable) within 60 days of receiving funding.

10. DOES THE $5 MILLION THRESHOLD APPLY TO FUNDS RECEIVED OR THE TOTAL ALLOCATION?

The reporting threshold is based on the total allocation expected under the SLFRF program, not the funds received by the recipient as of the time of reporting. Recipient reporting tiers will be displayed in the reporting portal. If you believe there is an error with the reporting tier or application of the $5 million threshold, please email SLFRP@treasury.gov.

11. SHOULD RECIPIENTS SUBMIT A RECOVERY PLAN IF THEY ARE AWAITING APPROVAL BY LEGISLATIVE OR OTHER GOVERNANCE ENTITIES ON THE PROPOSED PROJECTS, AND SUCH APPROVAL IS NOT RECEIVED AS OF THE END OF THE REPORTING PERIOD?

Recipients should submit a Recovery Plan that includes information about any projects that are approved or authorized for release by August 31, 2021. A recipient should then submit an updated Recovery Plan within 60 days after approval by the legislature or other governance entities.

12. HOW SHOULD A RECIPIENT REPORT FUNDS IF FUNDS WERE RECEIVED AS MULTIPLE ENTITY TYPES (E.G., A COUNTY AND AN NEU, OR COUNTY AND A CITY)?

When receiving funds as multiple entity types, a recipient’s reporting tier is determined by their total allocation across both recipient types and the highest tier for which they qualify. For example, if a recipient receives funding as an NEU and a county with population under $250,000 and their total allocation across both entity types is over $5M, the recipient should report as a county with population under 250,000 and over $5M in total SLFRF funding. A recipient’s reporting tier will be available for review in the Treasury’s Portal. If you believe there is an error in consolidating or not consolidating your governmental entities for the purposes of reporting, please email SLFRP@treasury.gov.

13. WHAT REPORTING IS REQUIRED IF NO SLFRF FUNDING WAS USED FOR THE ACTIVITIES COVERED BY THE REQUIRED PERFORMANCE INDICATORS NOTED IN PART 2 C.2. OF THE REPORTING GUIDANCE RELATED TO THE RECOVERY PLAN?

A recipient only needs to report on mandatory performance indicators if funds were used for that purpose / Expenditure Category.

14. DO JURISDICTIONS NEED TO HAVE COMMITTED OR DEDICATED FUNDING RECEIVED BY THE AUGUST 31, 2021 DEADLINE FOR THE INITIAL RECOVERY PLAN?

No. Funding does not need to be committed or dedicated by the time the initial Recovery Plan is submitted. The Recovery Plan should include planned uses of funds and projects to the extent known at the time the Recovery Plan is submitted. Updates can be provided in subsequent project and expenditure reports.

15. THE GUIDANCE COVERING SUBMISSION OF THE RECOVERY PLAN INDICATES THAT IN ADDITION TO SUBMITTING A PDF VERSION OF THE RECOVERY PLAN RECIPIENTS MUST ALSO UPLOAD A PROJECT INVENTORY FILE AND INPUT OTHER PROGRAMMATIC DATA. IS THIS NO LONGER REQUIRED?

Treasury has delayed the collection of this information in Treasury’s Portal in order to streamline reporting and lessen the reporting burden for recipients. Recipients are still required to upload a PDF version of their Recovery Plan by August 31. Recipients are encouraged to use the suggested template posted in the www.treasury.gov/SLFRPReporting website when preparing the Recovery Plan template. Some data from the Recovery Plan will be required to be submitted with the first Project and Expenditure report by October 31, 2021. The User Guide for the Project and Expenditure Report will include additional information.

The population threshold is determined by Treasury at award date and will not change during the four-year reporting period. A recipient’s reporting tier will be available for review in the reporting portal.

16. CAN RECORDS BE EDITED OR UPDATED AFTER SUBMISSION? HOW DO I REPORT CHANGES?

Interim Report: No changes will be allowed after the initial submission. Any updates will be captured when the first Project and Expenditure Report is submitted.

Quarterly Project and Expenditure Reports: Updates should be provided in the next quarterly Project and Expenditure Report.

Annual Project and Expenditure Report: Recipients will have an opportunity to provide updates with next quarterly submission date, when the portal opens for quarterly submitters. Additional information will be included in the forthcoming User Guide for the Project and Expenditure Report.

Recovery Plan: Recipients will be allowed to submit updates of their Recovery Plan reflecting any significant changes. They should also provide concurrent updates to the publicly posted version.

17. HOW DO RECIPIENTS CORRECT OR EDIT PRE-POPULATED INFORMATION OR PROJECT INFORMATION IN TREASURY’S PORTAL?
In the event that information presented in Treasury’s Portal requires correction, recipients should email SLFRP@treasury.gov and provide the necessary edits.

18. IS THERE ANY POSSIBILITY OF EXTENSION FOR THE REPORTING DEADLINES FOR INDIVIDUAL RECIPIENTS?

Generally, No. The data submitted by recipients will be used internally for oversight purposes and to fulfill Treasury’s transparency and legal obligations. Late submissions undermine the efficiency and timeliness of these processes. Recipient submissions after the reporting deadline will be considered as late, and recipients will be asked to provide a date by which the delayed reporting will be submitted so that Treasury can plan for incorporating the data. Treasury’s own reporting will highlight those recipients whose reports were not received by the deadline. If there are any changes to the overall reporting deadlines, they will be communicated to the relevant impacted recipients.

19. IS THERE A PENALTY FOR NOT SUBMITTING TIMELY REPORTS?

A record of late reporting could lead to a finding of non-compliance, which could result in development of a corrective action plan, or other consequences.

20. WILL THE DATA RECIPIENTS SUBMIT BE MADE PUBLICLY AVAILABLE?

Yes, Treasury will make the data submitted by recipients publicly available. The content and timing of release is still under development. Treasury encourages recipients to make their data directly available through their own websites. States and territories are reminded that they need to post the Recovery Plan in their public website by the date the report is transmitted to Treasury.

21. WHAT IS MEANT BY DATE OF AWARD?

The Date of Award is the day the recipient certifies the funding.

22. WHEN ARE RECIPIENTS SUBJECT TO THE QUARTERLY REPORTING?

Recipients are required to provide quarterly reporting starting in the period funds were received and certified. Quarterly reporting is required for all quarters thereafter.

23. IN THE EVENT THAT SOMETHING IS FUNDED/PURCHASED USING THE RECOVERY FUNDS AND REPORTED, AND THEN SUBSEQUENTLY IT IS REALIZED THAT THE FUNDING/PURCHASE DOES NOT QUALIFY FOR USE OF THE RECOVERY FUNDS, CAN THAT REPORT BE AMENDED AND A CORRECTION BE MADE?

Yes. Recipients can make corrections to reporting to adjust for ineligible uses, and must pay for that expense using non-SLFRF funding.

24. HOW SHOULD RECIPIENTS REPORT USE OF FUNDS WHEN THE EXPENSE IS NOT LISTED OR DOES NOT FIT ONE OF THE EXPENDITURE CATEGORIES DESIGNATIONS?

Recipients should align the project to the best fit of Expenditure Category and use the project description to further describe the project as needed.

25. SHOULD EXPENDITURES BE REPORTED ON AN ACCRUAL OR CASH BASIS?

Expenditures may be reported on a cash or accrual basis, as long as the methodology is disclosed and consistently applied. Reporting must be consistent with the definition of expenditures pursuant to 2 CFR 200.1. Your organization should appropriately maintain accounting records for compiling and reporting accurate, compliant financial data, in accordance with appropriate accounting standards and principles.

26. ARE THERE TARGETS FOR THE AMOUNT OF FUNDS THAT MUST BE SPENT ON EVIDENCE BASED INTERVENTIONS?

Treasury’s Reporting Guidance requires recipients to report in their Recovery Plan on “the dollar amount of the total project spending that is allocated towards evidence-based interventions for each project” in certain Expenditure Categories (see list of Expenditure Categories in the Reporting Guidance appendix for details). While Treasury encourages all SLFRF recipients to invest funds in evidence-based interventions whenever possible and to increase these amounts over time, there are no targets or requirement to spend a specific amount of money on evidence-based interventions. Recipients are exempt from this requirement in cases where a program evaluation is being conducted.

27. WHAT EXPENSES SHOULD BE COUNTED AS EVIDENCE-BASED FOR THE PURPOSES OF REPORTING?

As outlined in the Reporting Guidance, evidence-based refers to interventions with strong or moderate evidence for the purposes of SLFRF reporting. Appendix 2 of the Reporting Guidance contains additional information on the definition of strong and moderate evidence. In addition to spending funds on evidence-based interventions, Treasury also encourages all recipients to conduct evaluations to build evidence about new or innovative programs or services they are providing with SLFRF. As a reminder, SLFRF may be used by recipients to perform evaluations, build their internal evaluation capacity, or to contract with external organizations for evaluation related activities.

28. HOW SHOULD EVIDENCE BE CONSIDERED WHEN DISBURSING FUNDS THROUGH CONTRACTS OR GRANTS?

When sub-granting SLFR funds to third parties, recipients are encouraged to include provisions related to evidence in relevant project areas. Specifically, recipients may include provisions that ask third party recipients (or prospective recipients) of SLFR funds about the level of evidence for the programs or services that they are providing. This could consist of a requirement or preference in grant or contract solicitations that ask third party sub-grantees about whether their programs or services are evidence-based according to the definition in Appendix 2 of the Reporting Guidance. Requiring third party recipients to report on whether their programs or services are evidence-based will facilitate reporting for the Recovery Plan.

Please see Treasury’s Interim Final Rule for more information. Further guidance on recipient compliance and reporting responsibilities is forthcoming.

Kentucky Association of Counties
400 Englewood Drive Frankfort, KY 40601