HomeMy WebLinkAboutRFP for ARPA Sub RecipientPage 1 of 11
REQUEST FOR PROPOSALS (RFP)
SUBRECIPIENT OF AMERICAN RESCUE LOCAL
GOVERNMENT FUNDING, UP TO $500,000– TO
ADDRESS NEGATIVE ECONOMIC IMPACTS CAUSED BY THE
PUBLIC HEALTH EMERGENCY TO WORKERS AND
HOUSEHOLDS.
CITY OF BOZEMAN
Bozeman, MT
City of Bozeman
PO Box 1230
Bozeman, MT 59771-1230
September 2021
NOTICE IS HEREBY given that the City of Bozeman (City) is seeking proposals from firms to be a
grant subrecipeient of the American Rescue Plan funding in an amount of up to $500,000 with
a focus on addressing negative economic impacts caused by the public health emergency,
including economic harms to City of Bozeman workers and households.
Copies of the Request for Proposals are available on the City’s website at
https://weblink.bozeman.net/WebLink/DocView.aspx?id=254530&dbid=0&repo=BOZEMAN
All proposals must be in the format specified, and transmitted via email to
Agenda@bozeman.net with the subject line “ARPA Subrecipient RFP”.
Deliver RFPs to the City Clerk by Wednesday, September 29, 2021 at 3:00 p.m. MST. It is the sole
responsibility of the proposing party to ensure that proposals are received prior to the closing
time as late submittals will not be accepted and will be returned unopened.
NON-DISCRIMINATION AND EQUAL PAY
The City of Bozeman is an Equal Opportunity Employer.
Discrimination in the performance of any agreement awarded under this RFQ on the basis of
race, color, religion, creed, sex, age, marital status, national origin, or actual or perceived sexual
orientation, gender identity or disability is prohibited. This prohibition shall apply to the hiring
and treatment of the awarded entity’s employees and to all subcontracts.
As such, each entity submitting under this notice shall include a provision wherein the submitting
entity, or entities, affirms in writing it will not discriminate on the basis of race, color, religion,
creed, sex, age, marital status, national origin, or because of actual or perceived sexual
orientation, gender identity or disability and which also recognizes the eventual contract will
contain a provision prohibiting discrimination as described above and that this prohibition on
discrimination shall apply to the hiring and treatment of the submitting entity’s employees and
to all subcontracts.
In addition, pursuant to City Commission Resolution 5169, the entity awarded a contract under
this RFQ and any subcontractors must abide by the Equal Pay Act of 1963 and Section 39-3-104,
MCA (the Montana Equal Pay Act), and affirm it will abide by the above and that it has visited the
State of Montana Equal Pay for Equal Work “best practices” website, https://wayback.archive-
it.org/499/20210701223409/https:/equalpay.mt.gov/, or equivalent “best practices publication
and has read the material.
Any administrative questions regarding proposal procedures should be directed to: Mike Maas,
City Clerk (406) 582-2321, agenda@bozeman.net.
Questions relating to the RFP should be directed to: Anna Rosenberry, Assistant City Manager,
406-582-2306, arosenberry@bozeman.net
DATED at Bozeman, Montana, this September 9, 2021.
Mike Maas
City Clerk
City of Bozeman
For publication on:
Sunday, September 12, 2021
Sunday, September 19, 2021
I. INTRODUCTION
The City of Bozeman (Owner), is seeking proposals from firms to undertake being a grant
subrecipeient of the American Rescue Plan funding in an amount of up to $500,000 with a focus
on addressing negative economic impacts caused by the public health emergency, including
economic harms to workersand households living within the Bozeman city-limits. The City may
enter into one or more grant subrecipient agreements as a result of this proposal process, at its
sole discretion..
The Owner intends to enter into a contract with a selected firm, or firms, that will include
administering a program that addresses negative economic impacts caused by the public health
emergency, including economic harms to workers and households, while compliing with all
Federal guidance. This also includes requirements in the subreciepient grant agreement for the
City to report on the program and to allow the City and its representatives audit the program in
accordance with the Single Audit Act.
This RFP shall not commit the Owner to enter into an agreement, to pay any expenses incurred
in preparation of any response to this request, or to procure or contract for any supplies, goods
or services. The Owner reserves the right to accept or reject all responses received as a result of
this RFP if it is in the Owner’s best interest to do so.
This procurement is governed by the laws of the State of Montana and venue for all legal
proceedings shall be in the 18th Judicial District Court, Gallatin County. By offering to perform
services under this RFP, all Submitters agree to be bound by the laws of the State of Montana
and of the Owner, including, but not limited to, applicable wage rates, payments, gross receipts
taxes, building codes, equal opportunity employment practices, safety, non-discrimination, etc.
II. PROJECT BACKGROUND AND DESCRIPTION
On March 10, 2021, the House of Representatives approved a Senate-amended version of
President Biden's $1.9 trillion COVID-19 relief package - the American Rescue Plan. The package
includes $350 billion in aid for state and local governments, along with additional funding for
other areas like education, rental assistance and transit. Per the United States Department of
Treasury the objectives of this funding include:
• Support urgent COVID-19 response efforts to continue to decrease spread of the virus
and bring the pandemic under control
• Support immediate economic stabilization for households and businesses
• Address systemic public health and economic challenges that have contributed to the
inequal impact of the pandemic
The Coronavirus State and Local Fiscal Recovery Funds provide substantial flexibility for each
government to meet local needs—including support for households, and the communities
hardest hit by the crisis.
During its annual budget-setting hearings, the City of Bozeman allocated up to $500,000 of this
funding to be awarded to one or more subrecipients that could deliver assistance to households
and workers effected by the pandemic. Based on the proposals received, the City may enter
into one or multiple subrecipient agreemetns as a result of this proposal process.
III. SCOPE OF SERVICES
Administering a program as a subrecipient of the City of Bozeman for American Rescue Plan
Funding, that addresses negative economic impacts caused by the public health emergency,
including economic harms to workers and households, while compiling with all Federal guidance.
This also includes requirements in the subreciepient grant agreement for the City to report on
the program and to allow the City and its representatives audit the program in accordance with
the Single Audit Act.
IV. PROPOSAL REQUIREMENTS
Firms interested in providing the services described above are requested to submit the following
information. Responses to each item should appear in the same order as in this RFP and should
identify the item to which the responses applies.
• Executive Summary of the Program
• Firm/Individual Profile
• Most recent Financial Statement Audit report and Management letter and most recent
Single Audit report if one has been performed in the last 4 years
• Related Experience with Projects Similar to the Scope of Services
• Detail description of the program:
o How the program addresses the negative economic impacts caused by the public
health emergency, including economic harms to workers and households.
o How much funding is being requested ($500,000 or less, inclusing of
administrative fees.)
o How the funding will be distributed to households andor workers.
o What, if any, administrative fees will be charged to the program
o How it will comply with Federal Requirements
o How it will comply with requirements for City reporting.
o How the program (or firm?) addresses equity and the intersectional impacts of
COVID-19 for any or all of the following: households below poverty level, people
of color, people with disabilities, LGBTQ+ individuals, and people with limited
English proficiency
• Proposed Schedule for program and funding distribution (must be fully distributed before
July 31, 2024.)
a) Reporting Requirements:
See attached sub recipient agreement.
b) Affirmation of Nondiscrimination (see Appendix A)
Non-completion of the Affirmation of Nondiscrimination is cause for disqualification of
firms.
V. TIMELINES, DELIVERY DEADLINE, AND INSTRUCTIONS
EVENT DATE/TIME
Publication dates of RFP Sunday, September 12, 2021
Sunday, September 19, 2021
Deadline for receipt of proposals Wednesday, September 29, 2021 at 3:00 p.m.
MST
Evaluation of proposals October 2021
Interviews (if necessary) and Selection of
consultants
October 2021
With the exception of the advertising dates and advertised due date, the City reserves the right
to modify the above timeline.
Deliver RFPs via email to the City Clerk (agenda@bozeman.net) by Wednesday, September 29,
2021 at 3:00 p.m. MST. It is the sole responsibility of the proposing party to ensure that
proposals are received prior to the closing time as late submittals will not be accepted and will
be returned unopened. All proposals must be provided as a single, searchable PDF document
file and be submitted digitally as an email attachment to the RFP Recipient email address
agenda@bozeman.net. Respondents are advised that Recipient’s email attachment size limit is
25MB and that only one PDF file will be allowed per response. The subject line of the
transmittal email shall clearly identify the RFP title, company name and due date/time. File
sizes greater than 25MB in size may be uploaded to bzncloud.bozeman.net upon special
arrangement of the Recipient; however, it is the respondent’s sole responsibility to ensure the
file upload is completed, and that the Recipient is separately notified via email of same, prior to
the given deadline.
VI. AMENDMENTS TO SOLICITATION
Any interpretation or correction of this request will be published on the City’s webpage. The
deadline for questions related to this document is 12:00 PM MST on September 14, 2021.
VII. CONTACT INFORMATION
Any administrative questions regarding proposal procedures should be directed to: Mike Maas,
City Clerk, (406) 582-2321, agenda@bozeman.net
Questions relating to scope of services should be directed to: Anna Rosenberry, Assistant City
Manager, 406-582-2306, arosenberry@bozeman.net
VIII. SELECTION PROCEDURE
A review committee will evaluate all responses to the RFP that meet the submittal requirements
and deadline. Submittals that do not meet the requirement or deadline will not be considered.
The review committee will rank the proposals and may arrange interviews with the finalist(s) prior
to selection. Selection may be made directly based on the written RFP submission.
If interviews occur, the selection of finalists to be interviewed will be made by a selection
committee representing the City of Bozeman. The selection of interview candidates will be based
on an evaluation of the written responses to the RFPs.
All submitted proposals must be complete and contain the information required as stated in the
"Request for Proposals.”
IX. SELECTION CRITERIA
Proposals will be evaluated based on the following criteria:
• Executive Summary
• Qualifications of the Firm for Scope of Services
• Proposal Requirements, including Amount and Administrative Fee (if any)
• Equity Impacts
• Program scope and timeline to distribute
• Ability to comply with reporting and audit requirements
X. FORM OF AGREEMENT
The Contractor will be required to enter into a contract with the City in substantially the same
form as the professional services agreement attached as Attachment B.
XI. CITY RESERVATION OF RIGHTS / LIABILITY WAIVER
All proposals submitted in response to this RFP become the property of the City and public
records and, as such, may be subject to public review.
A SUBMISSION IN RESPONSE TO THIS REQUEST FOR QUALIFICATIONS CONFERS NO RIGHTS
UPON ANY RESPONDENTS AND SHALL NOT OBLIGATE THE CITY IN ANY MANNER
WHATSOEVER. THE CITY RESERVES THE RIGHT TO MAKE NO AWARD AND TO SOLICIT
ADDITIONAL REQUEST FOR QUALIFICATIONS AT A LATER DATE.
A. This RFP may be canceled or any or all responses may be rejected in whole or in part, as
specified herein, when it is in the best interests of the City. If the City cancels or revises
this RFP, all Respondents who submitted will be notified using email.
B. The City reserves the right to accept or reject any and all proposals; to add or delete
items and/or quantities; to amend the RFP; to waive any minor irregularities,
informalities, or failure to conform to the RFP; to extend the deadline for submitting
proposals; to postpone award for up to 60 days; to award one or more contracts, by
item or task, or groups of items or tasks, if so provided in the RFP and if multiple awards
or phases are determined by the City to be in the public interest.
C. The City of Bozeman reserves the right to reject the proposal of any person/firm who
previously failed to perform properly to the satisfaction of the City of Bozeman, or
complete on time agreements of similar nature, or to reject the proposal of any
person/firm who is not in a position to perform such an agreement satisfactorily as
determined by the City of Bozeman.
D. The City of Bozeman reserves the right to determine the best qualified Contractor and
negotiate a final scope of service and cost, negotiate a contract with another Contractor
if an agreement cannot be reached with the first selected Contractor, or reject all
proposals.
E. The professional services contract between the City of Bozeman and the successful
Contractor will incorporate the Contractor's scope of service and work schedule as part
of the agreement (see Appendix B for form of professional services agreement. The
professional services agreement presented to the Contractor may differ from this form
as appropriate for the scope of services).
F. This RFP does not commit the City to award a contract. The City assumes no liability or
responsibility for costs incurred by firms in responding to this request for proposals or
request for interviews, additional data, or other information with respect to the
selection process, prior to the issuance of an agreement, contract or purchase order.
The Contractor, by submitting a response to this RFP, waives all right to protest or
seek any legal remedies whatsoever regarding any aspect of this RFP.
G. The City reserves the right to cancel, in part or in its entirety, this RFP including, but not
limited to: selection procedures, submittal date, and submittal requirements. If the City
cancels or revises this RFP, all Contractors who submitted proposals will be notified
using email.
H. Projects under any contract are subject to the availability of funds.
XII. NONDISCRIMINATION AND EQUAL PAY POLICY
The City of Bozeman requires each entity submitting under this notice shall affirm, on a
separate form provided, that it will not discriminate on the basis of race, color, religion, creed,
sex, age, marital status, national origin, or because of actual or perceived sexual orientation,
sexual preference, gender identity, or disability in fulfillment of a contract entered into for the
services identified herein and that this prohibition on discrimination shall apply to the hiring
and treatment of the submitting entity’s employees and to all subcontracts it enters into in
the fulfillment of the services identified herein. Failure to comply with this requirement shall
be cause for the submittal to be deemed nonresponsive.
The City also requires each entity submitting under this notice shall affirm it will abide by the
Equal Pay Act of 1963 and Section 39-3-104, MCA (the Montana Equal Pay Act), and has visited
the State of Montana Equal Pay for Equal Work “best practices” website,
https://wayback.archive-it.org/499/20210701223409/https:/equalpay.mt.gov/, or
equivalent “best practices publication and has read the material.
XIII. MISCELLANEOUS
A. No Oral Agreements. No conversations or oral agreements with any officer, employee, or
agent of the City shall affect or modify any term of this solicitation. Oral communications
or any written/email communication between any person and City officer, employee or
agent shall not be considered binding.
B. No Partnership/Business Organization. Nothing in this solicitation or in any subsequent
agreement, or any other contract entered into as a result of this solicitation, shall
constitute, create, give rise to or otherwise be recognized as a partnership or formal
business organization of any kind between or among the respondent and the City.
C. Employment Restriction and Indemnity. No person who is an owner, officer,
employee, contractor, or consultant of a respondent shall be an officer or employee of
the City. No rights of the City’s retirement or personnel rules accrue to a respondent,
its officers, employees, contractors, or consultants. Respondents shall have the
responsibility of all salaries, wages, bonuses, retirement, withholdings, worker’s
compensation and occupational disease compensation, insurance, unemployment
compensation other benefits and taxes and premiums appurtenant thereto concerning
its officers, employees, contractors, and consultants. Each Respondent shall save and
hold the City harmless with respect to any and all claims for payment, compensation,
salary, wages, bonuses, retirement, withholdings, worker’s compensation and
occupational disease compensation, insurance, unemployment compensation other
benefits and taxes and premiums in any way related to each respondent’s officers,
employees, contractors and consultants.
D. Accessibility. Upon reasonable notice, the City will provide assistance for those persons
with sensory impairments. For further information please contact the ADA Coordinator
Mike Gray at 406-582-3232 or the City’s TTY line at 406-582-2301.
E. Procurement. When discrepancies occur between words and figures in this solicitation,
the words shall govern. No responsibility shall attach to a City employee for the
premature opening of an RFP not properly addressed and identified in accordance with
these documents.
F. Governing Law. This solicitation and any disputes arising hereunder or under any future
agreement shall be governed and construed and enforced in accordance with the laws
of the State of Montana, without reference to principles of choice or conflicts of laws.
XIV. ATTACHMENTS
The following exhibits are incorporated in this RFP:
Appendix A: Non-Discrimination Affirmation
Appendix B: Form of Subrecipient Grant Agreement
END OF RFP
Attachment A
NONDISCRIMINATION AND EQUAL PAY AFFIRMATION
____________________________________(name of entity submitting) hereby affirms it will
not discriminate on the basis of race, color, religion, creed, sex, age, marital status, national
origin, or because of actual or perceived sexual orientation, gender identity or disability and
acknowledges and understands the eventual contract will contain a provision prohibiting
discrimination as described above and this prohibition on discrimination shall apply to the
hiring and treatments or proposer’s employees and to all subcontracts.
In addition, ____________________________________(name of entity submitting) hereby
affirms it will abide by the Equal Pay Act of 1963 and Section 39-3-104, MCA (the Montana
Equal Pay Act), and has visited the State of Montana Equal Pay for Equal Work “best practices”
website, https://wayback.archive-it.org/499/20210701223409/https:/equalpay.mt.gov/, or equivalent
“best practices publication and has read the material.
______________________________________
Name and title of person authorized to sign on behalf of submitter
FY 2022/2023 Subrecipient Grant Agreement – ARPA Household
Efforts Page 1
GRANT SUBRECIPIENT AGREEMENT
AMERICAN RESCUE PLAN HOUSEHOLD EFFORTS SUB AWARD
THIS AGREEMENT is made and entered into this ____ day of __________, 20__ by and between
the City of Bozeman, Montana, a self-governing municipal corporation located at 121 N. Rouse
Ave., Bozeman MT 59771 (“City”) as GRANTOR and [entity name], a [entity type] located at
[entity address] as SUBRECIPIENT.
WHEREAS, on October 17, 2005 the Bozeman City Commission adopted Resolution No. 3866
establishing policies for the granting of funds from the City of Bozeman to a requesting entity;
and
WHEREAS, [entity name] submitted a proposal to the City for a program that complies with the
term of the American Rescue Plan for household assistance efforts for $xxx,xxx; and
THE PARTIES AGREE:
1.The Sub Award. The City will award and release to SUBRECIPIENT a sum of up to [grant
amount, spelled out] dollars ($xxx,xxx) from its American Result Plan Act (ARPA) award
[name of fund] Fund, (the “Grant”) pursuant to the payment terms in Section 3.
2.Use of Funds. Grant funds in the amount of up to [grant amount, spelled out] dollars
($xxx,xxx) will be used by SUBRECIPIENT for the sole purpose of [describe purpose]
which is a permissible use of ARPA funds, as described in the proposal submitted by
Subrecipient, attached hereto as Exhibit A and by this reference incorporated herein.
3.Term. Program and expenditures must be performed during the term of the date of
execution of this agreement through June 30, 2022 (FY23).
4.Payment of Funds
a.The agrees to reimburse Subrecipient for costs actually incurred and paid by
Subrecipient in accordance with the Approved Budget attached hereto as Exhibit
B and for the performance of the Approved Services under this Agreement in an
amount not to exceed $[_] (the “Total Agreement Funds”).
b.The amount of Total Agreement Funds, however, is subject to adjustment by City
if a substantial change is made in the Approved Services that affects this
Agreement or if this Agreement is terminated prior to the expiration of the
Agreement as provided in Section 3 above. Program funds shall not be
Appendix B
FY 2022/2023 Subrecipient Grant Agreement – ARPA Household
Efforts Page 2
expended prior to the Effective Date, or following the earlier of the expiration or
termination of this Agreement.
c. Costs incurred shall only be as necessary and allowable to carry out the purposes
and activities of the Approved Services and may not exceed the maximum limits
set in the Approved Budget.
d. Expenses charged against the Total Agreement Funds shall be incurred in
accordance with the American Rescue Plan and the Federal Treasury’s guidance,
Office of Budget and Management Guidance, and City purchasing policies.
e. Invoices. On or before the twentieth (20th) day of each month and in any event
no later than thirty (30) days after the earlier of the expiration or termination of
this Agreement, Subrecipient shall submit invoices, in a form supplied by City, for
the most recent month ended, to City, setting forth actual expenditures of
Subrecipient in accordance with this Agreement. Within ten (10) working days
from the date it receives such invoice, City may disapprove the requested
compensation. If the compensation is so disapproved, City shall notify
Subrecipient as to the disapproval. If payment is approved, no notice will be
given.
f. Subrecipient may request the Grant funds during the fiscal year ending June 30,
2022 and June 30, 2023 as needed by providing proof of expenses paid.
Acceptable forms of proof of payment shall be as determined in the sole
discretion of the City’s Director of Finance.
g. Any funds from the sub award not awarded during the fiscal year ending June
30, 2023 will remain in the City’s ARPA Fund and will be available for other
appropriation.
5. Subrecipient Representations
a. SUBRECIPIENT has familiarized itself with the nature and extent of this
Agreement and with all local conditions and federal, state and local laws,
ordinances, rules, and regulations that in any manner may affect Subrecipient’s
performance under this Agreement. Specific Treasury Guidance attached in
Exhibit C.
b. SUBRECIPIENT represents and warrants to City that it has the experience and
ability to perform its obligations under this Agreement; that it will perform said
obligations in a professional, competent and timely manner and with diligence
and skill; that it has the power to enter into and perform this Agreement and
grant the rights granted in it; and that its performance of this Agreement shall
FY 2022/2023 Subrecipient Grant Agreement – ARPA Household
Efforts Page 3
not infringe upon or violate the rights of any third party, whether rights of
copyright, trademark, privacy, publicity, libel, slander or any other rights of any
nature whatsoever, or violate any federal, state and municipal laws. The City will
not determine or exercise control as to general procedures or formats necessary
for SUBRECIPIENT to meet this warranty.
c. SUBRECIPIENT represents and warrants to City that the Grant funds are
necessary to accomplish the financial requirements of the [Project/Services].
d. SUBRECIPIENT shall maintain a financial management system and financial
records and shall administer funds received pursuant to this Agreement in
accordance with all applicable federal and state requirements. Subrecipient
shall adopt such additional financial management procedures as may from time
to time be prescribed by City if required by applicable laws, regulations or
guidelines from its federal and state government funding sources. Subrecipient
shall maintain detailed, itemized documentation and records of all income
received and expenses incurred pursuant to this Agreement.
e. Any item of expenditure by Subrecipient under the terms of this Agreement
which is found by auditors, investigators, and other authorized representatives
of City, the City’s external Auditor, the U.S. Government Accountability Office or
the Comptroller General of the United States to be improper, unallowable, in
violation of federal or state law or the terms of the Notice of Prime Award or this
Agreement, or involving any fraudulent, deceptive, or misleading
representations or activities of Subrecipient, shall become Subrecipient’s
liability, to be paid by Subrecipient from funds other than those provided by City
under this Agreement or any other agreements between City and Subrecipient.
This provision shall survive the expiration or termination of this Agreement.
f. In any fiscal year in which Subrecipient expends $750,000 or more in federal
awards during such fiscal year, including awards received as a subrecipient,
Subrecipient must comply with the federal audit requirements contained in the
Uniform Guidance, [45 CFR Part 75], including the preparation of an audit by an
independent Certified Public Accountant in accordance with the Single Audit Act
Amendments of 1996, 31 U.S.C. 7501-7507, and with Generally Accepted
Accounting Principles. If Subrecipient expends less than $750,000 in federal
awards in any fiscal year, it is exempt from federal audit requirements, but its
records must be available for review by City and appropriate officials.
Subrecipient shall provide City with a copy of Subrecipient’s most recent audited
financial statements, federal Single Audit report, if applicable (including financial
statements, schedule of expenditures of federal awards, schedule of findings and
FY 2022/2023 Subrecipient Grant Agreement – ARPA Household
Efforts Page 4
questioned costs, summary of prior audit findings, and corrective action plan, if
applicable), and management letter within thirty (30) days after execution of this
Agreement and thereafter within nine (9) months following the end of
Subrecipient’s most recently ended fiscal year.
g. Final payment request(s) under this Agreement must be received by City no later
than thirty (30) days from the earlier of the expiration date or termination date
of this Agreement. No payment request will be accepted by City after this date
without authorization from City. In consideration of the execution of this
Agreement by City, Subrecipient agrees that acceptance of final payment from
City will constitute an agreement by Subrecipient to release and forever
discharge City, its agents, employees, representatives, affiliates, successors and
assigns from any and all claims, demands, damages, liabilities, actions, causes of
action or suits of any nature whatsoever, which Subrecipient has at the time of
acceptance of final payment or may thereafter have, arising out of or in any way
relating to any and all injuries and damages of any kind as a result of or in any
way relating to this Agreement. Subrecipient’s obligations to City under this
Agreement shall not terminate until all closeout requirements are completed to
the satisfaction of City. Such requirements shall include, without limitation,
submitting final reports to City and providing any closeout-related information
requested by City by the deadlines specified by City. This provision shall survive
the expiration or termination of this Agreement.
6. Cooperation in Monitoring and Evaluation.
a. City Responsibilities. City shall monitor, evaluate and provide guidance and
direction to Subrecipient in the conduct of Approved Services performed under
this Agreement. City has the responsibility to determine whether Subrecipient
has spent funds in accordance with applicable laws, regulations, including the
federal audit requirements and agreements and shall monitor the activities of
Subrecipient to ensure that Subrecipient has met such requirements. City may
require Subrecipient to take corrective action if deficiencies are found.
b. Subrecipient Responsibilities.
i. Subrecipient shall permit City to carry out monitoring and evaluation
activities, including any performance measurement system required by
applicable law, regulation, funding sources guidelines or by the terms and
conditions of the applicable Notice of Prime Award, and Subrecipient
agrees to ensure, to the greatest extent possible, the cooperation of its
agents, employees and board members in such monitoring and
FY 2022/2023 Subrecipient Grant Agreement – ARPA Household
Efforts Page 5
evaluation efforts. This provision shall survive the expiration or
termination of this Agreement.
ii. Subrecipient shall cooperate fully with any reviews or audits of the
activities under this Agreement by authorized representatives of City, the
U.S. Government Accountability Office or the Comptroller General of the
United States and Subrecipient agrees to ensure to the extent possible
the cooperation of its agents, employees and board members in any such
reviews and audits. This provision shall survive the expiration or
termination of this Agreement.
7. Reports/Accountability/Public Information. SUBRECIPIENT must allow the City, its
auditors, and other persons authorized by the City to inspect and copy its books and
records for the purpose of verifying that monies provided to SUBRECIPIENT pursuant to
this Agreement were used in compliance with this Agreement and all applicable
provisions of federal, state, and local law. SUBRECIPIENT will retain such records for
seven years after receipt of final payment under this Agreement unless permission to
destroy them is granted by the City. SUBRECIPIENT shall not issue any statements,
releases or information for public dissemination without prior approval of the City.
8. Permits and Compliance With Laws. Subrecipient will obtain, in a timely manner, all
required permits, licenses and approvals, and will meet all requirements of all local,
state and federal laws, rules and regulations which must be obtained or met in
connection with construction of the Project
9. Independent Contractor Status. The parties agree that SUBRECIPIENT, its agents,
employees, contractors, or subcontractors, are independent contractors for purposes of
this Agreement and are not to be considered employees or agents of the City for any
purpose. SUBRECIPIENT and its agents, employees, contractors, or subcontractors, are
not subject to the terms and provisions of the City’s personnel policies handbook and
may not be considered a City employee for workers’ compensation or any other
purpose. SUBRECIPIENT, its agents, employees, contractors, or subcontractors, are not
authorized to represent the City or otherwise bind the City in any way.
10. Default and Termination. If SUBRECIPIENT fails to comply with any condition of this
Agreement at the time or in the manner provided for, the City may terminate this
Agreement if the default is not cured within fifteen (15) days after written notice is
provided to SUBRECIPIENT. The notice will set forth the items to be cured. If this
FY 2022/2023 Subrecipient Grant Agreement – ARPA Household
Efforts Page 6
Agreement is terminated pursuant to this Section, SUBRECIPIENT will repay to the City
any Grant funds already delivered to SUBRECIPIENT for the {Project/Services].
11. Limitation on SUBRECIPIENT’s Damages; Time for Asserting Claim
a. In the event of a claim for damages by SUBRECIPIENT under this Agreement,
SUBRECIPIENT’s damages shall be limited to contract damages and
SUBRECIPIENT hereby expressly waives any right to claim or recover
consequential, special, punitive, lost business opportunity, lost productivity, field
office overhead, general conditions costs, or lost profits damages of any nature
or kind.
b. In the event SUBRECIPIENT wants to assert a claim for damages of any kind or
nature, SUBRECIPIENT must first provide City with written notice of its claim, the
facts and circumstances surrounding and giving rise to the claim, and the total
amount of damages sought by the claim, within ninety (90) days of the facts and
circumstances giving rise to the claim. In the event SUBRECIPIENT fails to
provide such notice, SUBRECIPIENT shall waive all rights to assert such claim.
12. Representatives
a. City’s Representative. The City’s Representative for the purpose of this
Agreement shall be Kristin Donald or such other individual as City shall designate
in writing. Whenever approval or authorization from or communication or
submission to City is required by this Agreement, such communication or
submission shall be directed to the City’s Representative and approvals or
authorizations shall be issued only by such Representative; provided, however,
that in exigent circumstances when City’s Representative is not available,
SUBRECIPIENT may direct its communication or submission to other designated
City personnel or agents and may receive approvals or authorization from such
persons.
b. SUBRECIPIENT’s Representative. SUBRECIPIENT’s Representative for the
purpose of this Agreement shall be [Subrecipient representative’s name] or such
other individual as SUBRECIPIENT shall designate in writing. Whenever direction
to or communication with SUBRECIPIENT is required by this Agreement, such
direction or communication shall be directed to SUBRECIPIENT’s Representative;
provided, however, that in exigent circumstances when SUBRECIPIENT’s
Representative is not available, City may direct its direction or communication to
other designated SUBRECIPIENT personnel or agents.
FY 2022/2023 Subrecipient Grant Agreement – ARPA Household
Efforts Page 7
13. Indemnity/Waiver of Claims/Insurance. To the fullest extent permitted by law,
SUBRECIPIENT agrees to defend, indemnify and hold the City and its agents,
representatives, employees, and officers (collectively referred to for purposes of this
Section as the City) harmless against all third party claims, demands, suits, damages,
losses, and expenses, including reasonable defense attorney fees, which arise out of,
relate to or result from SUBRECIPIENT’s (i) negligence, or (ii) willful or reckless
misconduct.
Such obligations shall not be construed to negate, abridge, or reduce other rights or
obligations of indemnity that would otherwise exist. The indemnification obligations of
this Section must not be construed to negate, abridge, or reduce any common-law or
statutory rights of the indemnitee(s) which would otherwise exist as to such
indemnitee(s). SUBRECIPIENT’s indemnification obligations under this Section shall be
without regard to and without any right to contribution from any insurance maintained
by City.
Should any indemnitee described herein be required to bring an action against
SUBRECIPIENT to assert its right to defense or indemnification under this Agreement or
under SUBRECIPIENT’s applicable insurance policies required below the indemnitee shall
be entitled to recover reasonable costs and attorney fees incurred in asserting its right
to indemnification or defense but only if a court of competent jurisdiction determines
SUBRECIPIENT was obligated to defend the claim(s) or was obligated to indemnify the
indemnitee for a claim(s) or any portion(s) thereof.
In the event of an action filed against City resulting from the City’s performance under
this Agreement, the City may elect to represent itself and incur all costs and expenses of
suit.
SUBRECIPIENT also waives any and all claims and recourse against the City or its officers,
agents or employees, including the right of contribution for loss or damage to person or
property arising from, growing out of, or in any way connected with or incident to the
performance of this Agreement except “responsibility for his own fraud, for willful injury
to the person or property of another, or for violation of law, whether willful or
negligent” as per 28-2-702, MCA.
These obligations shall survive termination of this Agreement.
In addition to and independent from the above, SUBRECIPIENT shall at SUBRECIPIENT’s
expense secure insurance coverage through an insurance company or companies duly
FY 2022/2023 Subrecipient Grant Agreement – ARPA Household
Efforts Page 8
licensed and authorized to conduct insurance business in Montana which insures the
liabilities and obligations specifically assumed by SUBRECIPIENT in this Section. The
insurance coverage shall not contain any exclusion for liabilities specifically assumed by
SUBRECIPIENT in this Section unless and to the extent coverage for such liability is not
reasonably available.
The insurance shall cover and apply to all claims, demands, suits, damages, losses, and
expenses that may be asserted or claimed against, recovered from, or suffered by the
City without limit and without regard to the cause therefore and which is acceptable to
the City and SUBRECIPIENT shall furnish to the City an accompanying certificate of
insurance and accompanying endorsements in amounts not less than as follows:
• Workers’ Compensation – statutory;
• Employers’ Liability - $1,000,000 per occurrence; $2,000,000 annual aggregate;
• Commercial General Liability - $1,000,000 per occurrence; $2,000,000 annual
aggregate
The City of Bozeman, its officers, agents, and employees, shall be endorsed as an
additional or named insured on a primary non-contributory basis on the Commercial
General Liability policy. The insurance and required endorsements must be in a form
suitable to City and shall include no less than a thirty (30) day notice of cancellation or
non-renewal. The City must approve all insurance coverage and endorsements prior to
delivery of Grant funds to SUBRECIPIENT. SUBRECIPIENT shall notify City within two (2)
business days of SUBRECIPIENT’s receipt of notice that any required insurance coverage
will be terminated or SUBRECIPIENT’s decision to terminate any required insurance
coverage for any reason.
14. Nondiscrimination and Equal Pay. SUBRECIPIENT agrees that all hiring by Subrecipient
of persons performing this Grant Agreement shall be on the basis of merit and
qualifications. SUBRECIPIENT will have a policy to provide equal employment
opportunity in accordance with all applicable state and federal anti-discrimination laws,
regulations, and contracts. SUBRECIPIENT will not refuse employment to a person, bar a
person from employment, or discriminate against a person in compensation or in a
term, condition, or privilege of employment because of race, color, religion, creed,
political ideas, sex, age, marital status, national origin, actual or perceived sexual
orientation, gender identity, physical or mental disability, except when the reasonable
demands of the position require an age, physical or mental disability, marital status or
sex distinction.
FY 2022/2023 Subrecipient Grant Agreement – ARPA Household
Efforts Page 9
SUBRECIPIENT represents it is, and for the term of this Agreement will be, in compliance
with the requirements of the Equal Pay Act of 1963 and Section 39-3-104, MCA (the
Montana Equal Pay Act). SUBRECIPIENT must report to the City any violations of the
Montana Equal Pay Act that Contractor has been found guilty of within 60 days of such
finding for violations occurring during the term of this Agreement.
SUBRECIPIENT shall require these nondiscrimination terms of its subcontractors
providing services under this Grant Agreement.
15. Public Meetings and Access to Public Records
a. Meetings of SUBRECIPIENT that pertain to the receipt or expenditure of Grant funds
from the City are subject to the open meeting requirements of Montana law,
including those set forth in Title 7, Chapter 1, Part 41, MCA and Title 2, Chapter 3,
MCA. To ensure compliance, SUBRECIPIENT will provide agendas for meetings that
pertain to the receipt or expenditure of Grant funds covered by this Agreement to
the City Clerk’s office no later than 72 working hours prior to meeting for notice on
the City’s official posting board and any other sites deemed reasonable by the
Clerk’s office. In addition, meeting minutes will be kept by SUBRECIPIENT and
provided to the City Clerk’s office no later than 90 days after the meeting. These
minutes shall be posted and made available to the public by the City Clerk’s office
except for those minutes taken during a closed meeting in accordance with 2-3-203,
MCA. Minutes taken during a closed meeting shall also be provided to the City
Clerk’s office but shall be handled in accordance with the City Clerk’s regular
executive session protocol and kept private in a secured cabinet.
b. In accordance with 7-1-4144, MCA and subject to any applicable legal obligation to
protect and preserve individual confidential or private information, upon reasonable
request and at reasonable times during normal business hours, SUBRECIPIENT shall
make such records available for inspection and copying by members of the public.
SUBRECIPIENT may charge for such copying in accordance with the policies of the
City, which SUBRECIPIENT hereby adopts for such purposes.
c. To determine whether a meeting or part of a meeting may be closed to the public
and to determine whether information contained in SUBRECIPIENT documents is
protected by law from disclosure, SUBRECIPIENT may seek a determination of the
City Attorney at no cost to SUBRECIPIENT. Such request and determination shall not
create an attorney-client relationship between SUBRECIPIENT and the City.
FY 2022/2023 Subrecipient Grant Agreement – ARPA Household
Efforts Page 10
16. Attorney’s Fees and Costs. In the event it becomes necessary for a party to this
Agreement to retain an attorney to enforce any of the terms or conditions of this
Agreement or to give any notice required herein, then the prevailing party shall be
entitled to reasonable attorney’s fees and costs, including fees, salary, and costs of in-
house counsel to include City Attorney.
17. Integration and Modification. This document contains the entire agreement between
the parties and no statements, promises or inducements made by either party or agents
of either party not contained in this written Agreement may be considered valid or
binding. This Agreement may not be modified except by written agreement signed by
both parties.
18. Dispute Resolution
a. Any claim, controversy, or dispute between the parties, their agents, employees,
or representatives shall be resolved first by negotiation between senior-level
personnel from each party duly authorized to execute settlement agreements.
Upon mutual agreement of the parties, the parties may invite an independent,
disinterested mediator to assist in the negotiated settlement discussions.
b. If the parties are unable to resolve the dispute within thirty (30) days from the
date the dispute was first raised, then such dispute may only be resolved in a
court of competent jurisdiction in compliance with the Applicable Law provisions
of this Agreement.
19. No Assignment. SUBRECIPIENT may not subcontract or assign SUBRECIPIENT’s rights,
including the right to Grant payments, or any other rights or duties arising hereunder,
without the prior written consent of City.
20. No Third Party Beneficiary. The terms and provisions of this Agreement are intended
solely for the benefit of each party and their respective successors and assigns. It is not
the parties’ intent to confer third party beneficiary rights upon any other person or
entity.
21. Choice of Law. This Agreement shall be governed and construed in accordance with the
laws of the State of Montana without regard to conflict of law provisions. The Parties
agree to submit to the personal and exclusive jurisdiction of the courts located within
Gallatin County, Montana.
FY 2022/2023 Subrecipient Grant Agreement – ARPA Household
Efforts Page 11
22. Non-Waiver. A waiver by either party of any default or breach by the other party of any
terms or conditions of this Agreement does not limit the other party’s right to enforce
such term or conditions or to pursue any available legal or equitable rights in the event
of any subsequent default or breach.
23. Severability. If any portion of this Agreement is held to be void or unenforceable, the
balance of the Agreement shall continue in effect.
24. Counterparts. This Agreement may be executed in counterparts, which together
constitute one instrument.
25. Consent to Electronic Signatures. The Parties have consented to execute this Agreement
electronically in conformance with the Montana Uniform Electronic Transactions Act,
Title 30, Chapter 18, Part 1, MCA.
IN WITNESS WHEREOF, the parties hereto have executed this instrument the day and year
indicated below.
_______________________ Date: __________
Jeff Mihelich, City Manager
City of Bozeman
_______________________ Date: __________
Print name and Title:___________________________
SUBRECIPIENT
Approved as to form:
_______________________ Date: __________
Greg Sullivan, City Attorney
City of Bozeman
FY 2022/2023 Subrecipient Grant Agreement – ARPA Household Efforts
Exhibit
Exhibit A
Program Proposal
FY 2022/2023 Subrecipient Grant Agreement – ARPA Household Efforts
Exhibit
Exhibit B
Award Budget
FY 2022/2023 Subrecipient Grant Agreement – ARPA Household Efforts
Exhibit
Exhibit C
Treasury Guidance
(Attach PDF of Gudiance)
June 24, 2021
Version: 1.1
State and Local Fiscal Recovery Funds
Coronavirus State and Local Fiscal Recovery Funds Compliance and Reporting Guidance 2
Coronavirus State and Local Fiscal Recovery Funds
Guidance on Recipient Compliance and Reporting
Responsibilities
On March 11, 2021, the American Rescue Plan Act was signed into law, and established the
Coronavirus State Fiscal Recovery Fund and Coronavirus Local Fiscal Recovery Funds, which together make up the Coronavirus State and Local Fiscal Recovery Funds (“SLFRF”) program. This program is intended to provide support to State, territorial, local, and Tribal governments in responding to the economic and public health impacts of COVID-19 and in their efforts to contain impacts on their communities, residents, and businesses. This guidance provides additional detail and clarification for each recipient’s compliance and reporting responsibilities under the SLFRF program, and should be read in concert with the
Award Terms and Conditions, the authorizing statute, the SLFRF implementing regulation, and other regulatory and statutory requirements, including regulatory requirements under the Uniform Guidance (2 CRF Part 200). Please see the Assistance Listing in SAM.gov under
assistance listing number (formerly known as CFDA number), 21.027 for more information. Please Note: This guidance document applies to the SLFRF program only and does not
change nor impact reporting and compliance requirements for the Coronavirus Relief Fund (“CRF”) established by the CARES Act.
This guidance includes two parts: Part 1: General Guidance
This section provides an orientation to recipients’ compliance responsibilities and the U.S.
Department of the Treasury’s (“Treasury”) expectations and recommends best practices where appropriate under the SLFRF Program.
A. Key Principles……………………..……………………………………………………. P. 3
B. Statutory Eligible Uses…………………………………………………………………. P. 3
C. Treasury’s Rulemaking……………………………………………………….………… P. 4
D. Uniform Guidance (2 CFR Part 200)……………..…………………………………… P. 6
E. Award Terms and Conditions………………………………...………………………... P. 10
Part 2: Reporting Requirements
This section provides information on the reporting requirements for the SLFRF program.
A. Interim Report…...…………………………………………………………………...…. P. 13
B. Project and Expenditure Report…………….…………………………………...……. P. 15
C. Recovery Plan Performance Report..………………..……………………….….…… P. 23
Appendix 1: Expenditure Categories…………………………………………………….…… P. 31
Appendix 2: Evidenced-Based Intervention Additional Information…………………….…. P. 33
Coronavirus State and Local Fiscal Recovery Funds Compliance and Reporting Guidance 3
Part 1: General Guidance
This section provides an orientation on recipients’ compliance responsibilities and Treasury’s expectations and recommended best practices where appropriate under the SLFRF program. Recipients under the SLFRF program are the eligible entities identified in sections 602 and 603 of the Social Security Act as added by section 9901 of the American Rescue Plan Act of 2021 (the “SLFRF statute”) that receive a SLFRF award. Subrecipients under the SLFRF
program are entities that receive a subaward from a recipient to carry out the purposes (program or project) of the SLFRF award on behalf of the recipient.
Recipients are accountable to Treasury for oversight of their subrecipients, including ensuring their subrecipients comply with the SLFRF statute, SLFRF Award Terms and Conditions, Treasury’s Interim Final Rule, and reporting requirements, as applicable.
A. Key Principles
There are several guiding principles for developing your own effective compliance regimes:
• Recipients and subrecipients are the first line of defense, and responsible for ensuring the
SLFRF award funds are not used for ineligible purposes, and there is no fraud, waste, and abuse associated with their SLFRF award;
• Many SLFRF-funded projects respond to the COVID-19 public health emergency and meet urgent community needs. Swift and effective implementation is vital, and recipients must balance facilitating simple and rapid program access widely across the community
and maintaining a robust documentation and compliance regime;
• SLFRF-funded projects should advance shared interests and promote equitable delivery
of government benefits and opportunities to underserved communities, as outlined in Executive Order 13985, On Advancing Racial Equity and Support for Underserved Communities Through the Federal Government; and
• Transparency and public accountability for SLFRF award funds and use of such funds are critical to upholding program integrity and trust in all levels of government, and SLFRF
award funds should be managed consistent with Administration guidance per Memorandum M-21-20 and Memorandum M-20-21. B. Statutory Eligible Uses As a recipient of an SLFRF award, your organization has substantial discretion to use the
award funds in the ways that best suit the needs of your constituents – as long as such use fits into one of the following four statutory categories:
1. To respond to the COVID-19 public health emergency or its negative economic impacts; 2. To respond to workers performing essential work during the COVID-19 public health emergency by providing premium pay to such eligible workers of the recipient, or by providing grants to eligible employers that have eligible workers who performed essential work; 3. For the provision of government services, to the extent of the reduction in revenue of such
recipient due to the COVID–19 public health emergency, relative to revenues collected in the most recent full fiscal year of the recipient prior to the emergency; and 4. To make necessary investments in water, sewer, or broadband infrastructure.
Coronavirus State and Local Fiscal Recovery Funds Compliance and Reporting Guidance 4
Treasury adopted an Interim Final Rule to implement these eligible use categories and other restrictions on the use of funds under the SLFRF program.1 It is the recipient’s responsibility to ensure all SLFRF award funds are used in compliance with these requirements. In addition, recipients should be mindful of any additional compliance obligations that may apply – for
example, additional restrictions imposed upon other sources of funds used in conjunction with SLFRF award funds, or statutes and regulations that may independently apply to water, broadband, and sewer infrastructure projects. Recipients should ensure they maintain proper
documentation supporting determinations of costs and applicable compliance requirements, and how they have been satisfied as part of their award management, internal controls, and subrecipient oversight and management.
C. Treasury’s Rule
Treasury’s Interim Final Rule details recipients’ compliance responsibilities and provides additional information on eligible and restricted uses of SLFRF award funds and reporting requirements. Your organization should review and comply with the information contained in
Treasury’s Interim Final Rule, and any subsequent final rule when building appropriate controls for SLFRF award funds. 1. Eligible and Restricted Uses of SLFRF Funds. As described in the SLFRF statute and summarized above, there are four enumerated eligible uses of SLFRF award funds. As a recipient of an award under the SLFRF program, your organization is responsible for complying with requirements for the use of funds. In addition to determining a given project’s eligibility, recipients are also responsible for determining subrecipient’s or
beneficiaries’ eligibility and must monitor use of SLFRF award funds. To help recipients build a greater understanding of eligible uses, Treasury’s Interim Final
Rule establishes a framework for determining whether a specific project would be eligible under the SLFRF program, including some helpful definitions. For example, Treasury’s Interim Final Rule establishes:
• A framework for determining whether a project “responds to” a “negative economic impact” caused by the COVID-19 public health emergency;
• Definitions of “eligible employers”, “essential work,” “eligible workers”, and “premium pay” for cases where premium pay is an eligible use;
• A definition of “general revenue” and a formula for calculating revenue lost due to the COVID-19 public health emergency;
• A framework for eligible water and sewer infrastructure projects that aligns eligible uses with projects that are eligible under the Environmental Protection Agency’s Drinking Water and Clean Water State Revolving Funds; and
• A framework for eligible broadband projects designed to provide service to unserved or underserved households, or businesses at speeds sufficient to enable users to generally meet household needs, including the ability to support the simultaneous use of work, education, and health applications, and also sufficiently robust to meet increasing household demands for bandwidth. Treasury’s Interim Final Rule also provides more information on four important restrictions
on use of SLFRF award funds: recipients may not deposit SLFRF funds into a pension fund; recipients that are States or territories may not use SLFRF funds to offset a reduction in net tax revenue caused by the recipient’s change in law, regulation, or administrative
1 Treasury’s Interim Final Rule is effective as of May 17, 2021, and public comments are due July 16, 2021. This guidance may be clarified consistent with the final rule. https://www.govinfo.gov/content/pkg/FR-2021-05-17/pdf/2021-10283.pdf
Coronavirus State and Local Fiscal Recovery Funds Compliance and Reporting Guidance 5
interpretation; and, recipients may not use SLFRF funds as non-Federal match where prohibited. In addition, the Interim Final Rule clarifies certain uses of SLFRF funds outside the scope of eligible uses, including that recipients generally may not use SLFRF funds directly to service debt, satisfy a judgment or settlement, or contribute to a “rainy day” fund. Recipients should refer to Treasury’s Interim Final Rule for more information on these
restrictions. 2. Eligible Costs Timeframe. Your organization, as a recipient of an SLFRF award, may
use SLFRF funds to cover eligible costs that your organization incurred during the period that begins on March 3, 2021 and ends on December 31, 2024, as long as the award funds for the obligations incurred by December 31, 2024 are expended by December 31, 2026.
Costs for projects incurred by the recipient State, territorial, local, or Tribal government prior to March 3, 2021 are not eligible, as provided for in Treasury’s Interim Final Rule.
Recipients may use SLFRF award funds to provide assistance to households, businesses, and individuals within the eligible use categories described in Treasury’s Interim Final Rule for costs that those households, businesses and individuals incurred
prior to March 3, 2021. For example,
a. Public Health/Negative Economic Impacts: Recipients may use SLFRF award funds to provide assistance to households – such as rent, mortgage, or utility assistance – for costs incurred by the household prior to March 3, 2021, provided that the recipient State, territorial, local or Tribal government did not incur the cost of providing such assistance prior to March 3, 2021. b. Premium Pay: Recipients may provide premium pay retrospectively for work performed at any time since the start of the COVID-19 public health emergency.
Such premium pay must be “in addition to” wages and remuneration already received and the obligation to provide such pay must not have been incurred by the recipient prior to March 3, 2021. c. Revenue Loss: Treasury’s Interim Final Rule gives recipients broad latitude to use funds for the provision of government services to the extent of reduction in revenue. While calculation of lost revenue begins with the recipient’s revenue in the last full
fiscal year prior to the COVID-19 public health emergency and includes the 12-month period ending December 31, 2020, use of funds for government services must be forward looking for costs incurred by the recipient after March 3, 2021. d. Investments in Water, Sewer, and Broadband: Recipients may use SLFRF award funds to make necessary investments in water, sewer, and broadband. Recipients may use SLFRF award funds to cover costs incurred for eligible projects planned or started prior to March 3, 2021, provided that the project costs covered by the SLFRF award funds were incurred after March 3, 2021. Any funds not obligated or expended for eligible uses by the timelines above must be returned to Treasury, including any unobligated or unexpended funds that have been
provided to subrecipients and contractors. For the purposes of determining expenditure eligibility, Treasury’s Interim Final Rule provides that “incurred” has the same meaning given to “financial obligation” in 2 CFR § 200.1.
3. Reporting. Generally, recipients must submit one initial interim report, quarterly or annual Project and Expenditure reports which include subaward reporting, and in some cases
annual Recovery Plan reports. Treasury’s Interim Final Rule and Part 2 of this guidance provide more detail around SLFRF reporting requirements.
Coronavirus State and Local Fiscal Recovery Funds Compliance and Reporting Guidance 6
D. Uniform Administrative Requirements
The SLFRF awards are generally subject to the requirements set forth in the Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, 2 CFR Part 200 (the “Uniform Guidance”). In all instances, your organization should review the Uniform Guidance requirements applicable to your organization’s use of SLFRF funds, and SLFRF-funded projects. Recipients should consider how and whether certain aspects of the Uniform Guidance apply.
The following sections provide a general summary of your organization’s compliance responsibilities under applicable statutes and regulations, including the Uniform Guidance, as described in the 2020 OMB Compliance Supplement Part 3. Compliance Requirements
(issued August 18, 2020). Note that the descriptions below are only general summaries and all recipients and subrecipients are advised to carefully review the Uniform Guidance requirements and any additional regulatory and statutory requirements applicable to the
program. 1. Allowable Activities. Each recipient should review program requirements, including
Treasury’s Interim Final Rule and the recipient’s Award Terms and Conditions, to determine and record eligible uses of SLFRF funds. Per 2 CFR 200.303, your organization must develop and implement effective internal controls to ensure that funding decisions under the SLFRF award constitute eligible uses of funds, and document determinations. 2. Allowable Costs/Cost Principles. As outlined in the Uniform Guidance at 2 CFR Part 200, Subpart E regarding Cost Principles, allowable costs are based on the premise that a recipient is responsible for the effective administration of Federal awards, application of sound management practices, and administration of Federal funds in a manner consistent with the program objectives and terms and conditions of the award. Recipients must implement robust internal controls and effective monitoring to ensure compliance with the
Cost Principles, which are important for building trust and accountability.
Assistance Listing
The Assistance Listing for the Coronavirus State and Local Fiscal Recovery Funds
(CSLFRF) was published May 28, 2021 on SAM.gov under Assistance Listing Number
(“ALN”), formerly known as CFDA Number, 21.027.
The assistance listing includes helpful information including program purpose, statutory
authority, eligibility requirements, and compliance requirements for recipients. The ALN
is the unique 5-digit number assigned to identify a federal assistance listing, and can be
used to search for federal assistance 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 ALN, 21.019, assigned to the CRF. If you have already received funds
or captured the initial number in your records, please update your systems and reporting
to reflect the new ALN 21.027 for the SLFRF program. Recipients must use ALN
21.027 for all financial accounting, subawards, and associated program reporting
requirements for the SLFRF awards.
Coronavirus State and Local Fiscal Recovery Funds Compliance and Reporting Guidance 7
SLFRF Funds may be, but are not required to be, used along with other funding sources for a given project. Note that SLFRF Funds may not be used for a non-Federal cost share or match where prohibited by other Federal programs, e.g., funds may not be used for the State share for Medicaid.2
Treasury’s Interim Final Rule and guidance and the Uniform Guidance outline the types of costs that are allowable, including certain audit costs. For example, per 2 CFR 200.425,
a reasonably proportionate share of the costs of audits required by the Single Audit Act Amendments of 1996 are allowable; however, costs for audits that were not performed, or not in accordance with 2 CFR Part 200, Subpart F are not allowable. Please see 2 CFR
Part 200, Subpart E regarding the Cost Principles for more information. a. Administrative costs: Recipients may use funds for administering the SLFRF
program, including costs of consultants to support effective management and oversight, including consultation for ensuring compliance with legal, regulatory, and other requirements.3 Further, costs must be reasonable and allocable as outlined in 2
CFR 200.404 and 2 CFR 200.405. Pursuant to the SLFRF Award Terms and Conditions, recipients are permitted to charge both direct and indirect costs to their SLFRF award as administrative costs. Direct costs are those that are identified specifically as costs of implementing the SLFRF program objectives, such as contract support, materials, and supplies for a project. Indirect costs are general overhead costs of an organization where a portion of such costs are allocable to the SLFRF award such as the cost of facilities or administrative functions like a director’s office.45 Each category of cost should be treated consistently in like circumstances as
direct or indirect, and recipients may not charge the same administrative costs to both direct and indirect cost categories, or to other programs. If a recipient has a current Negotiated Indirect Costs Rate Agreement (NICRA) established with a
Federal cognizant agency responsible for reviewing, negotiating, and approving cost allocation plans or indirect cost proposals, then the recipient may use its current NICRA. Alternatively, if the recipient does not have a NICRA, the recipient may elect
to use the de minimis rate of 10 percent of the modified total direct costs pursuant to 2 CFR 200.414(f). b. Salaries and Expenses: In general, certain employees’ wages, salaries, and covered benefits are an eligible use of SLFRF award funds. Please see Treasury’s Interim Final Rule for details. 3. Cash Management. SLFRF payments made to recipients are not subject to the requirements of the Cash Management Improvement Act and Treasury’s implementing regulations at 31 CFR part 205 or 2 CFR 200.305(b)(8)-(9).
As such, recipients can place funds in interest-bearing accounts, do not need to remit interest to Treasury, and are not limited to using that interest for eligible uses under the SLFRF award.
4. Eligibility. Under this program, recipients are responsible for ensuring funds are used for eligible purposes. Generally, recipients must develop and implement policies and
procedures, and record retention, to determine and monitor implementation of criteria for
2 See 42 CFR 433.51 and 45 CFR 75.306.
3 Recipients also may use SLFRF funds directly for administrative costs to improve efficacy of programs that respond to the COVID-19 public health emergency. 31 CFR 35.6(b)(10).
4 2 CFR 200.413 Direct Costs. 5 2 CFR 200.414 Indirect Costs.
Coronavirus State and Local Fiscal Recovery Funds Compliance and Reporting Guidance 8
determining the eligibility of beneficiaries and/or subrecipients. Your organization, and if applicable, the subrecipient(s) administering a program on behalf of your organization, will need to maintain procedures for obtaining information evidencing a given beneficiary, subrecipient, or contractor’s eligibility including a valid SAM.gov registration. Implementing risk-based due diligence for eligibility determinations is a best practice to augment your
organization’s existing controls. 5. Equipment and Real Property Management. Any purchase of equipment or real
property with SLFRF funds must be consistent with the Uniform Guidance at 2 CFR Part 200, Subpart D. Equipment and real property acquired under this program must be used for the originally authorized purpose. Consistent with 2 CFR 200.311 and 2 CFR 200.313,
any equipment or real property acquired using SLFRF funds shall vest in the non-Federal entity. Any acquisition and maintenance of equipment or real property must also be in compliance with relevant laws and regulations.
6. Matching, Level of Effort, Earmarking. There are no matching, level of effort, or earmarking compliance responsibilities associated with the SLFRF award. SLFRF funds
may only be used for non-Federal match in other programs where costs are eligible under both SLFRF and the other program and use of such funds is not prohibited by the other program. 7. Period of Performance. Your organization should also develop and implement internal controls related to activities occurring outside the period of performance. For example, each recipient should articulate each project’s policy on allowability of costs incurred prior to award or start of the period of performance. All funds remain subject to statutory
requirements that they must be used for costs incurred by the recipient during the period that begins on March 3, 2021, and ends on December 31, 2024, and that award funds for the financial obligations incurred by December 31, 2024 must be expended by December
31, 2026. Any funds not used must be returned to Treasury. 8. Procurement, Suspension & Debarment. Recipients are responsible for ensuring that
any procurement using SLFRF funds, or payments under procurement contracts using such funds are consistent with the procurement standards set forth in the Uniform Guidance at 2 CFR 200.317 through 2 CFR 200.327, as applicable. The Uniform Guidance
establishes in 2 CFR 200.319 that all procurement transactions for property or services must be conducted in a manner providing full and open competition, consistent with standards outlined in 2 CFR 200.320, which allows for non-competitive procurements only
in circumstances where at least one of the conditions below is true: the item is below the micro-purchase threshold; the item is only available from a single source; the public exigency or emergency will not permit a delay from publicizing a competitive solicitation; or after solicitation of a number of sources, competition is determined inadequate.6 Recipients must have and use documented procurement procedures that are consistent
with the standards outlined in 2 CFR 200.317 through 2 CFR 200.320. The Uniform Guidance requires an infrastructure for competitive bidding and contractor oversight, including maintaining written standards of conduct and prohibitions on dealing with
suspended or debarred parties. Your organization must ensure adherence to all applicable local, State, and federal procurement laws and regulations. 9. Program Income. Generally, program income includes, but is not limited to, income from fees for services performed, the use or rental or real or personal property acquired under Federal awards and principal and interest on loans made with Federal award funds.
Program income does not include interest earned on advances of Federal funds, rebates, credits, discounts, or interest on rebates, credits, or discounts. Recipients of SLFRF funds
6 2 CFR 200.320(c)(1)-(3) and (5)
Coronavirus State and Local Fiscal Recovery Funds Compliance and Reporting Guidance 9
should calculate, document, and record the organization’s program income. Additional controls that your organization should implement include written policies that explicitly identify appropriate allocation methods, accounting standards and principles, compliance monitoring checks for program income calculations, and records.
The Uniform Guidance outlines the requirements that pertain to program income at 2 CFR 200.307. Treasury intends to provide additional guidance regarding program income and the application of 2 CFR 200.307(e)(1), including with respect to lending programs.
10. Reporting. All recipients of federal funds must complete financial, performance, and compliance reporting as required and outlined in Part 2 of this guidance. 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.
In addition, where appropriate, your organization needs to establish controls to ensure completion and timely submission of all mandatory performance and/or compliance reporting. See Part 2 of this guidance for a full overview of recipient reporting responsibilities. 11. Subrecipient Monitoring. SLFRF recipients that are pass-through entities as defined under 2 CFR 200.1 are required to manage and monitor their subrecipients to ensure compliance with requirements of the SLFRF award pursuant to 2 CFR 200.332 regarding
requirements for pass-through entities. First, your organization must clearly identify to the subrecipient: (1) that the award is a
subaward of SLFRF funds; (2) any and all compliance requirements for use of SLFRF funds; and (3) any and all reporting requirements for expenditures of SLFRF funds.
Next, your organization will need to evaluate each subrecipient’s risk of noncompliance based on a set of common factors. These risk assessments may include factors such as prior experience in managing Federal funds, previous audits, personnel, and policies or
procedures for award execution and oversight. Ongoing monitoring of any given subrecipient should reflect its assessed risk and include monitoring, identification of deficiencies, and follow-up to ensure appropriate remediation.
Accordingly, your organization should develop written policies and procedures for subrecipient monitoring and risk assessment and maintain records of all award agreements identifying or otherwise documenting subrecipients’ compliance obligations. 12. Special Tests and Provisions. Treasury has set a deadline of July 16, 2021, for receipt of public comment on its Interim Final Rule and will adopt a final rule responding to these comments. In addition, Treasury may add clarifications to the implementing guidance.
Across each of the compliance requirements above, Treasury described some best practices for development of internal controls. The table below provides a brief description and example
of each best practice.
Coronavirus State and Local Fiscal Recovery Funds Compliance and Reporting Guidance 10
Table 1: Internal controls best practices
Best Practice Description Example
Written policies and procedures Formal documentation of recipient policies and procedures
Documented procedure for determining worker eligibility for premium pay
Written standards of conduct Formal statement of mission, values, principles, and professional standards
Documented code of conduct / ethics for subcontractors
Risk-based due diligence Pre-payment validations
conducted according to an assessed level of risk
Enhanced eligibility review of
subrecipient with imperfect performance history
Risk-based compliance monitoring Ongoing validations conducted according to an assessed level of risk
Higher degree of monitoring for projects that have a higher risk of fraud, given program characteristics Record maintenance and retention Creation and storage of financial and non-financial
records.
Storage of all subrecipient payment information.
E. Award Terms and Conditions
The Award Terms and Conditions of the SLFRF financial assistance agreement sets forth the compliance obligations for recipients pursuant to the SLFRF statute, the Uniform Guidance,
and Treasury’s Interim Final Rule. Recipients should ensure they remain in compliance with all Award Terms and Conditions. These obligations include the following items in addition to those described above:
1. SAM.gov Requirements. All eligible recipients are also required to have an active registration with the System for Award Management (SAM) (https://www.sam.gov). To
ensure timely receipt of funding, Treasury has stated that Non-entitlement Units of Government (NEUs) who have not previously registered with SAM.gov may do so after receipt of the award, but before the submission of mandatory reporting.7 2. Recordkeeping Requirements. Generally, your organization must maintain records and financial documents for five years after all funds have been expended or returned to Treasury, as outlined in paragraph 4.c. of the Award Terms and Conditions. Treasury may request transfer of records of long-term value at the end of such period. Wherever
practicable, such records should be collected, transmitted, and stored in open and machine-readable formats.
Your organization must agree to provide or make available such records to Treasury upon request, and to any authorized oversight body, including but not limited to the Government Accountability Office (“GAO”), Treasury’s Office of Inspector General (“OIG”), and the
Pandemic Relief Accountability Committee (“PRAC”). 3. Single Audit Requirements. Recipients and subrecipients that expend more than
$750,000 in Federal awards during their fiscal year will be subject to an audit under the Single Audit Act and its implementing regulation at 2 CFR Part 200, Subpart F regarding audit requirements.8 Recipients and subrecipients may also refer to the Office of
7 See flexibility provided in https://www.whitehouse.gov/wp-content/uploads/2021/03/M_21_20.pdf. 8 For-profit entities that receive SLFRF subawards are not subject to Single Audit requirements. However, they are subject to other audits as deemed necessary by authorized governmental entities, including Treasury, the GAO, the PRAC and the Treasury’s OIG.
Coronavirus State and Local Fiscal Recovery Funds Compliance and Reporting Guidance 11
Management and Budget (OMB) Compliance Supplements for audits of federal funds and related guidance and the Federal Audit Clearinghouse to see examples and single audit submissions. 4. Civil Rights Compliance. Recipients of Federal financial assistance from the Treasury
are required to meet legal requirements relating to nondiscrimination and nondiscriminatory use of Federal funds. Those requirements include ensuring that entities receiving Federal financial assistance from the Treasury do not deny benefits or services,
or otherwise discriminate on the basis of race, color, national origin (including limited English proficiency), disability, age, or sex (including sexual orientation and gender identity), in accordance with the following authorities: Title VI of the Civil Rights Act of 1964
(Title VI) Public Law 88-352, 42 U.S.C. 2000d-1 et seq., and the Department's implementing regulations, 31 CFR part 22; Section 504 of the Rehabilitation Act of 1973 (Section 504), Public Law 93-112, as amended by Public Law 93-516, 29 U.S.C. 794; Title
IX of the Education Amendments of 1972 (Title IX), 20 U.S.C. 1681 et seq., and the Department's implementing regulations, 31 CFR part 28; Age Discrimination Act of 1975, Public Law 94-135, 42 U.S.C. 6101 et seq., and the Department implementing regulations
at 31 CFR part 23. In order to carry out its enforcement responsibilities under Title VI of the Civil Rights Act, Treasury will collect and review information from recipients to ascertain their compliance with the applicable requirements before and after providing financial assistance. Treasury’s implementing regulations, 31 CFR part 22, and the Department of Justice (DOJ) regulations, Coordination of Non-discrimination in Federally Assisted Programs, 28 CFR part 42, provide for the collection of data and information from recipients (see 28 CFR
42.406). Treasury may request that recipients submit data for post-award compliance reviews, including information such as a narrative describing their Title VI compliance status.
Coronavirus State and Local Fiscal Recovery Funds Compliance and Reporting Guidance 12
Part 2: Reporting Guidance
There are three types of reporting requirements for the SLFRF program.
• Interim Report: Provide initial overview of status and uses of funding. This is a one-time report. See Section A, page 13.
• Project and Expenditure Report: Report on projects funded, expenditures, and contracts and subawards over $50,000, and other information. See Section B, page 15.
• Recovery Plan Performance Report: The Recovery Plan Performance Report (the “Recovery Plan”) will provide information on the projects that large recipients are
undertaking with program funding and how they plan to ensure program outcomes are achieved in an effective, efficient, and equitable manner. It will include key performance indicators identified by the recipient and some mandatory indicators identified by
Treasury. The Recovery Plan will be posted on the website of the recipient as well as provided to Treasury. See Section C, page 23. Table 2: Reporting requirements by recipient type
Recipient Interim Report Project and Expenditure Report
Recovery Plan Performance Report
States, U.S. territories,
metropolitan cities and counties with a population that exceeds 250,000 residents
By August 31,
2021, with expenditures by category
By October 31,
2021, and then 30 days after the end of each
quarter thereafter9
By August 31,
2021, and annually thereafter by
July 31 10
Metropolitan cities and counties with a population below 250,000 residents which received more than $5 million in SLFRF funding
Not required
Tribal Governments
Metropolitan cities and counties with a population below 250,000
residents which received less than $5 million in SLFRF funding
By October 31, 2021, and then
annually thereafter11 NEUs Not required
The remainder of this document describes these reporting requirements. A users’ guide will
be provided with additional information on how and where to submit required reports.
9 Interim Final Rule Page 111
10 Interim Final Rule page 112 11 Interim Final Rule Page 111
Coronavirus State and Local Fiscal Recovery Funds Compliance and Reporting Guidance 13
A. Interim Report
States, U.S. territories, metropolitan cities, counties, and Tribal governments are required to submit a one-time interim report with expenditures12 by Expenditure Category from the date of award to July 31, 2021. The recipient will be required to enter obligations13 and
expenditures and, for each, select the specific expenditure category from the available options. See Appendix 1 for Expenditure Categories (EC). 1. Required Programmatic Data Recipients will also be required to provide the following information if they have or plan to have expenditures in the following Expenditure Categories.
a. Revenue replacement (EC 6.114): Key inputs into the revenue replacement formula in the Interim Final Rule and estimated revenue loss due to the Covid-19 public health
emergency calculated using the formula in the Interim Final Rule as of December 31, 2020.
• Base year general revenue (e.g., revenue in the last full fiscal year prior to the public health emergency)
• Fiscal year end date
• Growth adjustment used (either 4.1 percent or average annual general revenue growth
over 3 years prior to pandemic)
• Actual general revenue as of the twelve months ended December 31, 2020
• Estimated revenue loss due to the Covid-19 public health emergency as of December 31, 2020
• An explanation of how revenue replacement funds were allocated to government services (Note: additional instructions and/or template to be provided in users’ guide)
12 For purposes of reporting in the SLFRF portal, an expenditure is the amount that has been incurred as a liability of the entity (the service has been rendered or the good has been delivered to the entity).
13 For purposes of reporting in the SLFRF portal, an obligation is an order placed for property and services, contracts and subawards made, and similar transactions that require payment.
14 See Appendix 1 for the full Expenditure Category (EC) list. References to Expenditure Categories are identified by “EC” followed by numbers from the table in Appendix 1.
Comparison to reporting for the CRF
This guidance does not change the reporting or compliance requirements pertaining to the CRF. Reporting and compliance requirements for the SLFRF are separate from CRF reporting requirements. Changes from CRF to SLFRF include:
• Project, Expenditure, and Subaward Reporting: The SLFRF reporting requirements leverage the existing reporting regime used for CRF to foster continuity and provide many recipients with a familiar reporting mechanism. The data elements for the Project and Expenditure Report will largely mirror those used for CRF, with some minor exceptions noted in this guidance. The users’ guide will describe how reporting for CRF funds will relate to reporting for the SLFRF.
• Timing of Reports: CRF reports were due within 10 days of each calendar
quarter. SLFRF quarterly reporting will be due 30 days from quarter end.
• Program and Performance Reporting: The CRF reporting did not include any program or performance reporting. To build public awareness and accountability and allow Treasury to monitor compliance with eligible uses, some program and performance reporting is required.
Coronavirus State and Local Fiscal Recovery Funds Compliance and Reporting Guidance 14
In calculating general revenue and the other items discussed above, recipients should use audited data if it is available. When audited data is not available, recipients are not required to obtain audited data if substantially accurate figures can be produced on an unaudited basis. Recipients should use their own data sources to calculate general
revenue, and do not need to rely on revenue data published by the Census Bureau. Treasury acknowledges that due to differences in timing, data sources, and definitions, recipients’ self-reported general revenue figures may differ from those published by the
Census Bureau. Recipients may provide data on a cash, accrual, or modified accrual basis, provided that recipients are consistent in their choice of methodology throughout the covered period and until reporting is no longer required. Recipients’ reporting should
align with their own financial reporting. In calculating general revenue, recipients should exclude all intergovernmental transfers
from the federal government. This includes, but is not limited to, federal transfers made via a State to a locality pursuant to the CRF or SLFRF. To the extent federal funds are passed through States or other entities or intermingled with other funds, recipients
should attempt to identify and exclude the federal portion of those funds from the calculation of general revenue on a best-efforts basis. Consistent with the broad latitude provided to recipients to use funds for government services to the extent of reduction in revenue, recipients will be required to submit a description of services provided. This description may be in narrative or in another form, and recipients are encouraged to report based on their existing budget processes and to minimize administrative burden. For example, a recipient with $100 in revenue
replacement funds available could indicate that $50 were used for law enforcement operating expenses and $50 were used for pay-go building of sidewalk infrastructure. As discussed in the Interim Final Rule, these services can include a broad range of services
but may not be used directly for pension deposits or debt service. Reporting requirements will not require tracking the indirect effects of Fiscal Recovery
Funds, apart from the restrictions on use of Fiscal Recovery Funds to offset a reduction in net tax revenue. In addition, recipients must indicate that Fiscal Recovery Funds were not used to make a deposit in a pension fund.
b. Distributions to NEUs - States and territories only (EC 7.4): Information on SLFRF distributions to eligible NEUs. Each State and territory will be asked to provide an update on distributions to individual NEUs, including whether the NEU has (1) received funding; (2) declined funding and requested a transfer to the State under Section 603(c)(4) of the Act; or (3) not taken action on its funding. States and territories should be prepared to report on their information, including the following:
• NEU name
• NEU DUNS number
• NEU Taxpayer Identification Number (TIN)
• NEU Recipient Number (a unique identification code for each NEU assigned by the
State to the NEU as part of the request for funding)
• NEU contact information (e.g., address, point of contact name, point of contact email
address, and point of contact phone number)
• NEU authorized representative name and email address
• Initial allocation and, if applicable, subsequent allocation to the NEU (before application of the 75 percent cap)
• Total NEU reference budget (as submitted by the NEU to the State as part of the request for funding)
Coronavirus State and Local Fiscal Recovery Funds Compliance and Reporting Guidance 15
• Amount of the initial and, if applicable, subsequent allocation above 75 percent of the NEU’s reference budget which will be returned to Treasury
• Payment amount(s)
• Payment date(s) For each eligible NEU that declined funding and requested a transfer to the State under
Section 603(c)(4), the State must also attach a form signed by the NEU, as detailed in the Guidance on Distributions of Funds to Non-Entitlement Units of Local Government.
States with “weak” minor civil divisions (i.e., Illinois, Indiana, Kansas, Missouri, Nebraska, North Dakota, Ohio, and South Dakota) should also list any minor civil divisions that the State deemed ineligible.
B. Project and Expenditure Report
All recipients are required to submit Project and Expenditure Reports. 1. Quarterly Reporting The following recipients are required to submit quarterly Project and Expenditure Reports:
• States, U.S. territories, and Tribal governments
• Metropolitan cities and counties that received more than $5 million in SLFRF funding For these recipients, the initial quarterly Project and Expenditure Report will cover two
calendar quarters from the date of award to September 30, 2021 and must be submitted to Treasury by October 31, 2021. The subsequent quarterly reports will cover one calendar quarter and must be submitted to Treasury within 30 calendar days after the end of each
calendar quarter. Quarterly reports are not due concurrently with applicable annual reports. The table below summarizes the quarterly report timelines:
Report Year Quarter Period Covered Due Date
1 2021 2 and 3 Award Date – September 30 October 31, 2021
2 2021 4 October 1 – December 31 January 31, 2022
3 2022 1 January 1 – March 31 April 30, 2022
4 2022 2 April 1 – June 30 July 31, 2022
5 2022 3 July 1 – September 30 October 31, 2022
6 2022 4 October 1 – December 31 January 31, 2023
7 2023 1 January 1 – March 31 April 30, 2023
8 2023 2 April 1 – June 30 July 31, 2023
9 2023 3 July 1 – September 30 October 31, 2023
10 2023 4 October 1 – December 31 January 31, 2024
11 2024 1 January 1 – March 31 April 30, 2024
12 2024 2 April 1 – June 30 July 31, 2024
13 2024 3 July 1 – September 30 October 31, 2024
14 2024 4 October 1 – December 31 January 31, 2025
15 2025 1 January 1 – March 31 April 30, 2025
16 2025 2 April 1 – June 30 July 31, 2025
17 2025 3 July 1 – September 30 October 31, 2025
18 2025 4 October 1 – December 31 January 31, 2026
19 2026 1 January 1 – March 31 April 30, 2026
20 2026 2 April 1 – June 30 July 31, 2026
Coronavirus State and Local Fiscal Recovery Funds Compliance and Reporting Guidance 16
Report Year Quarter Period Covered Due Date
21 2026 3 July 1 – September 30 October 31, 2026
22 2026 4 October 1 – December 31 March 31, 2027
2. Annual Reporting
The following recipients are required to submit annual Project and Expenditure Reports:
• Metropolitan cities and counties that received less than $5 million in SLFRF funding.
• NEUs. To facilitate reporting, each NEU will need a NEU Recipient Number. This is a unique identification code for each NEU assigned by the State to the NEU as part of its request for funding.
For these recipients, the initial Project and Expenditure Report will cover from the date of award to September 30, 2021 and must be submitted to Treasury by October 31, 2021. The subsequent annual reports will cover one calendar year and must be submitted to Treasury
by October 31. The table below summarizes the report timelines:
Report Period Covered Due Date
1 Award Date – September 30, 2021 October 31, 2021
2 October 1, 2021 – September 30, 2022 October 31, 2022
3 October 1, 2022 – September 30, 2023 October 31, 2023
4 October 1, 2023 – September 30, 2024 October 31, 2024
5 October 1, 2024 – September 30, 2025 October 31, 2025
6 October 1, 2025 – September 30, 2026 October 31, 2026
7 October 1, 2026 – December 31, 2026 March 31, 2027
3. Required Information The following information will be required in Project and Expenditure Reports: a. Projects: Provide information on all SLFRF funded projects. Projects are new or existing eligible government services or investments funded in whole or in part by SLFRF funding.
For each project, the recipient will be required to enter the project name, identification number (created by the recipient), project expenditure category (see Appendix 1), description, and status of completion. Project descriptions must describe the project in
sufficient detail to provide understanding of the major activities that will occur, and will be required to be between 50 and 250 words. Projects should be defined to include only closely related activities directed toward a common purpose. In particular, recipients should
review the Required Programmatic Data described below and define their projects at a sufficient level of granularity to report these metrics for a reasonably specific activity or set of activities in each project.
Note: For each project, the recipient will be asked to select the appropriate Expenditure Category based on the scope of the project (see Appendix 1). Projects should be scoped
to align to a single Expenditure Category. For select Expenditure Categories, the recipient will also be asked to provide additional programmatic data (described further below). b. Expenditures: Once a project is entered the recipient will be able to report on the project’s obligations and expenditures. Recipients will be asked to report:
• Current period obligation
• Cumulative obligation
• Current period expenditure
• Cumulative expenditure
Coronavirus State and Local Fiscal Recovery Funds Compliance and Reporting Guidance 17
c. Project Status: Once a project is entered the recipient will be asked to report on project status each reporting period, in four categories:
• Not Started
• Completed less than 50 percent
• Completed 50 percent or more
• Completed
d. Project Demographic Distribution: Recognizing the disproportionate impact of the pandemic-related recession on low-income communities, recipients must report whether certain types of projects15 are targeted to economically disadvantaged communities, as
defined by HUD’s Qualified Census Tract.16 Recipients will be asked to identify whether or not the project is serving an economically disadvantaged community. To minimize the administrative burden on recipients while ensuring that this important aspect of program
performance is tracked, recipients may assume that the funds for a project count as being targeted towards economically disadvantaged communities if the project funds are spent on:
• A program or service is provided at a physical location in a Qualified Census Tract (for multi-site projects, if a majority of sites are within Qualified Census Tracts);
• A program or service where the primary intended beneficiaries live within a Qualified Census Tract;
• A program or service for which the eligibility criteria are such that the primary intended
beneficiaries earn less than 60 percent of the median income for the relevant jurisdiction (e.g., State, county, metropolitan area, or other jurisdiction); or
• A program or service for which the eligibility criteria are such that over 25 percent of
intended beneficiaries are below the federal poverty line. Recipients may use reasonable estimates to determine if a project meets one of these
criteria, including identifying the intended beneficiaries of a program or service in terms of income characteristics, geographic location, or otherwise estimating the beneficiaries of a program based on its eligibility criteria. Recipients do not need to track information on
each individual beneficiary to make the determination of whether or not the project is serving an economically disadvantaged community. If a recipient is unable to measure economic characteristics of the primary intended beneficiaries of a program or service
due to data limitations or for other reasons, that program or service may not be counted as targeted to economically disadvantaged communities. Treasury recognizes that in some circumstances, recipients may fund eligible programs or services that benefit economically disadvantaged communities but may lack adequate data to assess conclusively that such a program or service is targeted to economically disadvantaged communities based on the criteria described above. e. Subawards: Each recipient shall also provide detailed obligation and expenditure
information for any contracts and grants awarded, loans issued, transfers made to other government entities, and direct payments made by the recipient that are greater than or equal to $50,000.
15 Specifically recipients must report this information for projects in the Expenditure Categories that are marked with “^” in the expenditure category listing in Appendix 1 of this guidance 16 HUD defines as a QCT as having “50 percent of households with incomes below 60 percent of the Area Median Gross Income (AMGI) or have a poverty rate of 25 percent or more.” To view median income area for their jurisdiction, recipients may visit the U.S. Census website on median incomes and select the geography for their jurisdiction and relevant unit of measurement (household or individual) for the project.
Coronavirus State and Local Fiscal Recovery Funds Compliance and Reporting Guidance 18
Recipients do not also need to submit separate monthly subaward reports to FSRS.gov as required pursuant to the 2 CFR Part 170, Appendix A award term regarding reporting subaward and executive compensation, which is included in the SLFRF Award Terms and Conditions. Treasury will submit this reporting on behalf of recipients using the $50,000 reporting threshold, timing, and data elements discussed in this guidance. If recipients
choose to continue reporting to FSRS.gov in addition to reporting directly to Treasury on these funds, they may do so and will be asked to notify Treasury as part of their quarterly submission.
In general, recipients will be asked to provide the following information for each Contract, Grant, Loan, Transfer, or Direct Payment greater than or equal to $50,000:
• Subrecipient identifying and demographic information (e.g., DUNS number and location)
• Award number (e.g., Award number, Contract number, Loan number)
• Award date, type, amount, and description
• Award payment method (reimbursable or lump sum payment(s))
• For loans, expiration date (date when loan expected to be paid in full)
• Primary place of performance
• Related project name(s)
• Related project identification number(s) (created by the recipient)
• Period of performance start date
• Period of performance end date
• Quarterly obligation amount
• Quarterly expenditure amount
• Project(s)
• Additional programmatic performance indicators for select Expenditure Categories (see below) Aggregate reporting is required for contracts, grants, transfers made to other government entities, loans, direct payments, and payments to individuals that are below $50,000. This information will be accounted for by expenditure category at the project level.
As required by the 2 CFR Part 170, Appendix A award term regarding reporting subaward and executive compensation, recipients must also report the names and total compensation of their five most highly compensated executives and their subrecipients’ executives for the
preceding completed fiscal year if (1) the recipient received 80 percent or more of its annual gross revenues from Federal procurement contracts (and subcontracts) and Federal financial assistance subject to the Transparency Act, as defined at 2 CFR 170.320 (and
subawards), and received $25,000,000 or more in annual gross revenues from Federal procurement contracts (and subcontracts) and Federal financial assistance subject to the Transparency Act (and subawards), and (2) if the information is not otherwise public. In
general, most SLFRF Recipients are governmental entities with executive salaries that are already disclosed, so no additional information must be reported. The recipient is responsible for the subrecipients’ compliance with registering and maintaining an updated profile on SAM.gov. f. Civil Rights Compliance: Treasury will request information on recipients’ compliance with Title VI of the Civil Rights Act of 1964 on an annual basis. This information may include a narrative describing the recipient’s compliance with Title VI, along with other questions and
assurances.
Coronavirus State and Local Fiscal Recovery Funds Compliance and Reporting Guidance 19
g. Required Programmatic Data (other than infrastructure projects): For all projects listed under the following Expenditure Categories (see Appendix 1), the information listed must be provided in each report.
1. Payroll for Public Health and Safety Employees (EC 1.9):
• Number of government FTEs responding to COVID-19 supported under this authority
2. Household Assistance (EC 2.1-2.5):
• Brief description of structure and objectives of assistance program(s) (e.g., nutrition
assistance for low-income households)
• Number of individuals served (by program if recipient establishes multiple separate household assistance programs)
• Brief description of recipient’s approach to ensuring that aid to households responds to a negative economic impact of Covid-19, as described in the Interim Final Rule 3. Small Business Economic Assistance (EC 2.9):
• Brief description of the structure and objectives of assistance program(s) (e.g., grants for additional costs related to Covid-19 mitigation)
• Number of small businesses served (by program if recipient establishes multiple separate small businesses assistance programs)
• Brief description of recipient’s approach to ensuring that aid to small businesses responds to a negative economic impact of COVID-19, as described in the Interim
Final Rule 4. Aid to Travel, Tourism, and Hospitality or Other Impacted Industries (EC 2.11-2.12):
• If aid is provided to industries other than travel, tourism, and hospitality (EC 2.12), a description of pandemic impact on the industry and rationale for providing aid to
the industry
• Brief narrative description of how the assistance provided responds to negative
economic impacts of the COVID-19 pandemic
• For each subaward:
o Sector of employer (Note: additional detail, including list of sectors to be provided in a users’ guide) o Purpose of funds (e.g., payroll support, safety measure implementation)
5. Rehiring Public Sector Staff (EC 2.14):
• Number of FTEs rehired by governments under this authority 6. Education Assistance (EC 3.1-3.5):
• The National Center for Education Statistics (“NCES”) School ID or NCES District ID. List the School District if all schools within the school district received some
funds. If not all schools within the school district received funds, list the School ID of the schools that received funds. These can allow evaluators to link data from the NCES to look at school-level demographics and, eventually, student
performance.17
17 For more information on NCES identification numbers see https://nces.ed.gov/ccd/districtsearch/ (districts) and https://nces.ed.gov/ccd/schoolsearch/ (schools).
Coronavirus State and Local Fiscal Recovery Funds Compliance and Reporting Guidance 20
7. Premium Pay (both Public Sector EC 4.1 and Private Sector EC 4.2):
• List of sectors designated as critical to the health and well-being of residents by
the chief executive of the jurisdiction, if beyond those included in the Interim Final Rule (Note: a list of sectors will be provided in the forthcoming users’ guide).
• Number of workers to be served
• Employer sector for all subawards to third-party employers (i.e., employers other
than the State, local, or Tribal government) (Note: a list of sectors will be provided in the forthcoming users’ guide).
• For groups of workers (e.g., an operating unit, a classification of worker, etc.) or, to the extent applicable, individual workers, for whom premium pay would increase total pay above 150 percent of their residing State’s average annual
wage, or their residing county’s18 average annual wage, whichever is higher, on an annual basis: o A brief written narrative justification of how the premium pay or grant is
responsive to workers performing essential work during the public health emergency. This could include a description of the essential workers’ duties, health or financial risks faced due to COVID-19, and why the recipient government determined that the premium pay was responsive to workers performing essential work during the pandemic. This description should not include personally identifiable information; when addressing individual workers, recipients should be careful not to include this information. Recipients may consider describing the workers’ occupations and duties in a
general manner as necessary to protect privacy. 8. Revenue replacement (EC 6.1):
Under the Interim Final Rule, recipients calculate revenue loss using data as of four discrete points during the program: December 31, 2020, December 31, 2021, December 31, 2022, and December 31, 2023. Revenue loss calculated as of
December 31, 2020 will be reported in the Interim Report, as described above. For future calculation dates, revenue loss will be reported only in the Quarter 4 reports due January 31, 2022, January 31, 2023, and January 31, 2024. Reporting on
revenue loss should include:
• General revenue collected over the past 12 months as of the most recent
calculation date, as outlined in the Interim Final Rule (for example, for the January 31, 2022 report, recipients should provide 12 month general revenue as of December 31, 2021);
• Calculated revenue loss due to the Covid-19 public health emergency; and
• An explanation of how the revenue replacement funds were allocated to government services (note: additional instructions and/or template to be provided in user guide).
In calculating general revenue and the revenue loss due to the COVID-19 public health emergency, recipients should follow the same guidance as described above
for the Interim Report. h. Required Programmatic Data for Infrastructure Projects (EC 5): For all projects listed under
the Water, Sewer, and Broadband Expenditure Categories (see Appendix 1), more detailed project-level information is required. Each project will be required to report expenditure data as described above, but will also report the following information:
18 County means a county, parish, or other equivalent county division (as defined by the Census Bureau). See 31 CFR 35.3.
Coronavirus State and Local Fiscal Recovery Funds Compliance and Reporting Guidance 21
1. All infrastructure projects (EC 5):
• Projected/actual construction start date (month/year)
• Projected/actual initiation of operations date (month/year)
• Location (for broadband, geospatial location data)
• For projects over $10 million:
a. A recipient may provide a certification that, for the relevant project, all laborers and mechanics employed by contractors and subcontractors in the performance of such project are paid wages at rates not less than those
prevailing, as determined by the U.S. Secretary of Labor in accordance with subchapter IV of chapter 31 of title 40, United States Code (commonly known as the “Davis-Bacon Act”), for the corresponding classes of laborers and
mechanics employed on projects of a character similar to the contract work in the civil subdivision of the State (or the District of Columbia) in which the work is to be performed, or by the appropriate State entity pursuant to a corollary
State prevailing-wage-in-construction law (commonly known as “baby Davis-Bacon Acts”). If such certification is not provided, a recipient must provide a project employment and local impact report detailing:
The number of employees of contractors and sub-contractors working on the project;
The number of employees on the project hired directly and hired through a third party;
The wages and benefits of workers on the project by classification; and
Whether those wages are at rates less than those prevailing.19 Recipients must maintain sufficient records to substantiate this information upon request.
b. A recipient may provide a certification that a project includes a project labor agreement, meaning a pre-hire collective bargaining agreement consistent with section 8(f) of the National Labor Relations Act (29 U.S.C. 158(f)). If the
recipient does not provide such certification, the recipient must provide a project workforce continuity plan, detailing:
How the recipient will ensure the project has ready access to a sufficient
supply of appropriately skilled and unskilled labor to ensure high-quality construction throughout the life of the project;
How the recipient will minimize risks of labor disputes and disruptions that
would jeopardize timeliness and cost-effectiveness of the project; and
How the recipient will provide a safe and healthy workplace that avoids delays and costs associated with workplace illnesses, injuries, and fatalities;
Whether workers on the project will receive wages and benefits that will secure an appropriately skilled workforce in the context of the local or regional labor market; and
Whether the project has completed a project labor agreement.
c. Whether the project prioritizes local hires. d. Whether the project has a Community Benefit Agreement, with a description of any such agreement.
19 As determined by the U.S. Secretary of Labor in accordance with subchapter IV of chapter 31 of title 40, United States Code (commonly known as the “Davis-Bacon Act”), for the corresponding classes of laborers and mechanics employed on projects of a character similar to the contract work in the civil subdivision of the State (or the District of Columbia) in which the work is to be performed.
Coronavirus State and Local Fiscal Recovery Funds Compliance and Reporting Guidance 22
2. Water and sewer projects (EC 5.1-5.15):
• National Pollutant Discharge Elimination System (NPDES) Permit Number (if
applicable; for projects aligned with the Clean Water State Revolving Fund)
• Public Water System (PWS) ID number (if applicable; for projects aligned with the
Drinking Water State Revolving Fund) 3. Broadband projects (EC 5.16-5.17):
• Speeds/pricing tiers to be offered, including the speed/pricing of its affordability offering
• Technology to be deployed
• Miles of fiber
• Cost per mile
• Cost per passing
• Number of households (broken out by households on Tribal lands and those not on Tribal lands) projected to have increased access to broadband meeting the minimum speed standards in areas that previously lacked access to service of at least 25 Mbps download and 3 Mbps upload
o Number of households with access to minimum speed standard of reliable 100 Mbps symmetrical upload and download o Number of households with access to minimum speed standard of reliable 100 Mbps download and 20 Mbps upload
• Number of institutions and businesses (broken out by institutions on Tribal lands and those not on Tribal lands) projected to have increased access to broadband meeting the minimum speed standards in areas that previously lacked access to service of at least 25 Mbps download and 3 Mbps upload, in each of the following categories: business, small business, elementary school, secondary school, higher education institution, library, healthcare facility, and public safety organization
o Specify the number of each type of institution with access to the minimum speed standard of reliable 100 Mbps symmetrical upload and download; and o Specify the number of each type of institution with access to the minimum speed
standard of reliable 100 Mbps download and 20 Mbps upload i. Distributions to NEUs - States and territories only (EC 7.4): Information on SLFRF
distributions to eligible NEUs. Each State and territory will be asked to provide an update on distributions to individual NEUs, including whether the NEU has (1) received funding; (2) declined funding and requested a transfer to the State under Section 603(c)(4) of the Act; or (3) not taken action on its funding. States and territories should be prepared to report on their information, including the following:
• NEU name
• NEU DUNS number
• NEU Taxpayer Identification Number (TIN)
• NEU Recipient Number (a unique identification code for each NEU assigned by the State to the NEU as part of the request for funding)
• NEU contact information (e.g., address, point of contact name, point of contact email address, and point of contact phone number)
• NEU authorized representative name and email address
• Initial allocation and, if applicable, subsequent allocation to the NEU (before application of the 75 percent cap)
• Total NEU reference budget (as submitted by the NEU to the State as part of the request for funding)
• Amount of the initial and, if applicable, subsequent allocation above 75 percent of the NEU’s reference budget which will be returned to Treasury
• Payment amount(s)
• Payment date(s)
Coronavirus State and Local Fiscal Recovery Funds Compliance and Reporting Guidance 23
For each eligible NEU that declined funding and requested a transfer to the State under Section 603(c)(4), the State must also attach a form signed by the NEU, as detailed in the Guidance on Distributions of Funds to Non-Entitlement Units of Local Government. States with “weak” minor civil divisions (i.e., Illinois, Indiana, Kansas, Missouri, Nebraska,
North Dakota, Ohio, and South Dakota) should also list any minor civil divisions that the State deemed ineligible.
j. NEU Documentation (NEUs only): Each NEU will also be asked to provide the following information with their first report submitted by October 31, 2021:
• Copy of the signed award terms and conditions agreement (which was signed and submitted to the State as part of the request for funding)
• Copy of the signed assurances of compliance with Title VI of the Civil Rights Act of 1964 (which was signed and submitted to the State as part of the request for funding)
• Copy of actual budget documents validating the top-line budget total provided to the State as part of the request for funding C. Recovery Plan Performance Report
States, territories, metropolitan cities, and counties with a population that exceeds 250,000 residents will also be required to publish and submit to Treasury a Recovery Plan performance report (“Recovery Plan”). Each Recovery Plan must be posted on the public-facing website of
the recipient by the same date the recipient submits the report to Treasury. This reporting requirement includes uploading a link to the publicly available document report along with providing data in the Treasury reporting portal.
The Recovery Plan will provide the public and Treasury information on the projects recipients are undertaking with program funding and how they are planning to ensure program outcomes
are achieved in an effective, efficient, and equitable manner. While this guidance outlines some minimum requirements for the Recovery Plan, each recipient is encouraged to add information to the plan they feel is appropriate to provide information to their constituents on efforts they are taking to respond to the pandemic and promote economic recovery. Each jurisdiction may determine the general form and content of the Recovery Plan, as long as it includes the minimum information determined by Treasury. Treasury will provide a recommended template but recipients may modify this template as appropriate for their jurisdiction. The Recovery Plan will include key performance indicators identified by the
recipient and some mandatory indicators identified by Treasury. The initial Recovery Plan will cover the period from the date of award to July 31, 2021 and
must be submitted to Treasury by August 31, 2021. Thereafter, the Recovery Plan will cover a 12-month period and recipients will be required to submit the report to Treasury within 30 days after the end of the 12-month period (by July 31). The table below summarizes the report
timelines:
Annual Report Period Covered Due Date
1 Award Date – July 31, 2021 August 31, 2021
2 July 1, 2021 – June 30, 2022 July 31, 2022
3 July 1, 2022 – June 30, 2023 July 31, 2023
4 July 1, 2023 – June 30, 2024 July 31, 2024
5 July 1, 2024 – June 30, 2025 July 31, 2025
6 July 1, 2025 – June 30, 2026 July 31, 2026
7 July 1, 2026 – December 31, 2026 March 31, 2027
Coronavirus State and Local Fiscal Recovery Funds Compliance and Reporting Guidance 24
The Recovery Plan will include, at a minimum, the following information: 1. Executive Summary
Provide a high-level overview of the jurisdiction’s intended and actual uses of funding including, but not limited to: the jurisdiction’s plan for use of funds to promote a response to the pandemic and economic recovery, key outcome goals, progress to date on those outcomes, and any noteworthy challenges or opportunities identified during the reporting period. 2. Uses of Funds Describe in further detail your jurisdiction’s intended and actual uses of the funds, such as
how your jurisdiction’s approach would help support a strong and equitable recovery from the COVID-19 pandemic and economic downturn. Describe any strategies employed to maximize programmatic impact and effective, efficient, and equitable outcomes. Given the broad eligible
uses of funds and the specific needs of the jurisdiction, please also explain how the funds would support the communities, populations, or individuals in your jurisdiction. Your description should address how you are promoting each of the following, to the extent they
apply: a. Public Health (EC 1): As relevant, describe how funds are being used to respond to COVID-19 and the broader health impacts of COVID-19 and the COVID-19 public health
emergency. b. Negative Economic Impacts (EC 2): As relevant, describe how funds are being used to respond to negative economic impacts of the COVID-19 public health emergency, including to households and small businesses. c. Services to Disproportionately Impacted Communities (EC 3): As relevant, describe how funds are being used to provide services to communities disproportionately impacted by the COVID-19 public health emergency. d. Premium Pay (EC 4): As relevant, describe the approach, goals, and sectors or
occupations served in any premium pay program. Describe how your approach prioritizes low-income workers. e. Water, sewer, and broadband infrastructure (EC 5): Describe the approach, goals, and
types of projects being pursued, if pursuing. f. Revenue Replacement (EC 6): Describe the loss in revenue due to the COVID-19 public health emergency and how funds have been used to provide government services.
Where appropriate, recipients should also include information on your jurisdiction’s use (or planned use) of other federal recovery funds including other programs under the American
Rescue Plan such as the Emergency Rental Assistance, Housing Assistance, and so forth, to provide broader context on the overall approach for pandemic recovery. 3. Promoting equitable outcomes Describe efforts to promote equitable outcomes, including how programs were designed with equity in mind. Please include in your description how your jurisdiction will consider and measure equity at the various stages of the program, including: a. Goals: Are there particular historically underserved, marginalized, or adversely affected
groups that you intend to serve within your jurisdiction? b. Awareness: How equal and practical is the ability for residents or businesses to become aware of the services funded by the SLFRF?
c. Access and Distribution: Are there differences in levels of access to benefits and services across groups? Are there administrative requirements that result in disparities in ability to complete applications or meet eligibility criteria?
Coronavirus State and Local Fiscal Recovery Funds Compliance and Reporting Guidance 25
d. Outcomes: Are intended outcomes focused on closing gaps, reaching universal levels of service, or disaggregating progress by race, ethnicity, and other equity dimensions where relevant for the policy objective? Treasury encourages uses of funds that promote strong, equitable growth, including racial
equity. Please describe how your jurisdiction’s planned or current use of funds prioritizes economic and racial equity as a goal, names specific targets intended to produce meaningful equity results at scale, and articulates the strategies to achieve those targets. In addition,
please explain how your jurisdiction’s overall equity strategy translates into the specific services or programs offered by your jurisdiction in the following Expenditure Categories: a. Negative Economic Impacts (EC 2): assistance to households, small businesses, and
non-profits to address impacts of the pandemic, which have been most severe among low-income populations. This includes assistance with food, housing, and other needs; employment programs for people with barriers to employment who faced negative
economic impacts from the pandemic (such as residents of low-income neighborhoods, minorities, disconnected youth, the unemployed, formerly incarcerated people, veterans, and people with disabilities); and other strategies that provide disadvantaged groups with
access to education, jobs, and opportunity. b. Services to Disproportionately Impacted Communities (EC 3): services to address health disparities and the social determinants of health, build stronger neighborhoods and communities (e.g., affordable housing), address educational disparities (e.g., evidence-based tutoring, community schools, and academic, social-emotional, and mental health supports for high poverty schools), and promote healthy childhood environments (e.g., home visiting, child care).
The initial report must describe efforts to date and intended outcomes to promote equity. Each annual report thereafter must provide an update, using qualitative and quantitative data, on how the recipients’ approach achieved or promoted equitable outcomes or
progressed against equity goals during the performance period. Please also describe any constraints or challenges that impacted project success in terms of increasing equity. In particular, this section must describe the geographic and demographic distribution of
funding, including whether it is targeted toward traditionally marginalized communities. For the purposes of the SLFRF, equity is defined in the Executive Order 13985 On Advancing
Racial Equity and Support for Underserved Communities Through the Federal Government, as issued on January 20, 2021. 4. Community Engagement Please describe how your jurisdiction’s planned or current use of funds incorporates written, oral, and other forms of input that capture diverse feedback from constituents, community-based organizations, and the communities themselves. Where relevant, this description must include how funds will build the capacity of community organizations to serve people with
significant barriers to services, including people of color, people with low incomes, limited English proficient populations, and other traditionally underserved groups.
5. Labor Practices Describe workforce practices on any infrastructure projects being pursued (EC 5). How are projects using strong labor standards to promote effective and efficient delivery of high-quality infrastructure projects while also supporting the economic recovery through strong employment opportunities for workers? For example, report whether any of the following practices are being utilized: project labor agreements, community benefits agreements, prevailing wage requirements, and local hiring.
Coronavirus State and Local Fiscal Recovery Funds Compliance and Reporting Guidance 26
6. Use of Evidence The Recovery Plan should identify whether SLFRF funds are being used for evidence-based interventions20 and/or if projects are being evaluated through rigorous program evaluations that are designed to build evidence. Recipients must briefly describe the goals of the project, and the evidence base for the interventions funded by the project. Recipients must specifically
identify the dollar amount of the total project spending that is allocated towards evidence-based interventions for each project in the Public Health (EC 1), Negative Economic Impacts (EC 2), and Services to Disproportionately Impacted Communities (EC 3) Expenditure
Categories.21 Recipients are exempt from reporting on evidence-based interventions in cases where a
program evaluation is being conducted. Recipients are encouraged to use relevant evidence Clearinghouses, among other sources, to assess the level of evidence for their interventions and identify evidence-based models that could be applied in their jurisdiction; such evidence
clearinghouses include the U.S. Department of Education’s What Works Clearinghouse, the U.S. Department of Labor’s CLEAR, and the Childcare & Early Education Research Connections and the Home Visiting Evidence of Effectiveness clearinghouses from
Administration for Children and Families, as well as other clearinghouses relevant to particular projects conducted by the recipient. In such cases where a recipient is conducting a program evaluation in lieu of reporting the amount of spending on evidence-based interventions, they must describe the evaluation design including whether it is a randomized or quasi-experimental design; the key research questions being evaluated; whether the study has sufficient statistical power to disaggregate outcomes by demographics; and the timeframe for the completion of the evaluation (including a link to completed evaluation if relevant).22 Once the evaluation has been completed, recipients must post the evaluation publicly and link to the
completed evaluation in the Recovery Plan. Once an evaluation has been completed (or has sufficient interim findings to determine the efficacy of the intervention), recipients should determine whether the spending for the evaluated interventions should be counted towards
the dollar amount categorized as evidence-based for the relevant project. For all projects, recipients may be selected to participate in a national evaluation, which would
study their project along with similar projects in other jurisdictions that are focused on the same set of outcomes. In such cases, recipients may be asked to share information and data that is needed for the national evaluation.
Recipients are encouraged to consider how a Learning Agenda, either narrowly focused on SLFRF or broadly focused on the recipient’s broader policy agenda, could support their overarching evaluation efforts in order to create an evidence-building strategy for their jurisdiction.23 Appendix 2 contains additional information on evidence-based interventions for the purposes of the Recovery Plan.
20As noted in Appendix 2, evidence-based refers to interventions with strong or moderate levels of evidence.
21 Of note, recipients are only required to report the amount of the total funds that are allocated to evidence-based interventions in the areas of Public Health, Negative Economic Impacts, and Services to Disproportionately Impacted Communities that are marked by an asterisk in Appendix 1: Expenditure Categories.
22 For more information on the required standards for program evaluation, see OMB M-20-12. 23 For more information on learning agendas, please see OMB M-19-23
Coronavirus State and Local Fiscal Recovery Funds Compliance and Reporting Guidance 27
7. Table of Expenses by Expenditure Category Please include a table listing the amount of funds used in each Expenditure Category (See Appendix 1). The table should include cumulative expenses to date within each category, and the additional amount spent within each category since the last annual Recovery Plan.
8. Project Inventory List the name and provide a brief description of all SLFRF funded projects. Projects are new or existing eligible government services or investments funded in whole or in part by SLFRF
funding. For each project, include the project name, funding amount, identification number (created by the recipient and used thereafter in the quarterly Program and Expenditure Report), project Expenditure Category (see Appendix 1), and a description of the project which
includes an overview of the main activities of the project, the approximate timeline, primary delivery mechanisms and partners, if applicable, and intended outcomes. Include a link to the website of the project if available. This information will provide context and additional detail
for the information reported quarterly in the Project and Expenditure Report. For infrastructure investment projects (EC 5), project-level reporting will be more detailed, as
described for the Project and Expenditure Report above. Projects in this area may be grouped by Expenditure Category if needed, with further detail (such as the specific project name and identification number) provided in the Project and Expenditure Report. For infrastructure projects, descriptions should note how the project contributes to addressing climate change. 9. Performance Report The Recovery Plan must include key performance indicators for the major SLFRF funded projects undertaken by the recipient. The recipient has flexibility in terms of how this
information is presented in the Recovery Plan, and may report key performance indicators for each project, or may group projects with substantially similar goals and the same outcome measures. In some cases, the recipient may choose to include some indicators for each
individual project as well as crosscutting indicators. Performance indicators should include both output and outcome measures. Output measures,
such as number of students enrolled in an early learning program, provide valuable information about the early implementation stages of a project. Outcome measures, such as the percent of students reading on grade level, provide information about whether a project is achieving
its overall goals. Recipients are encouraged to use logic models24 to identify their output and outcome measures. While the initial report will focus heavily on early output goals, recipients must include the related outcome goal for each project and provide updated information on achieving these outcome goals in annual reports. In cases where recipients are conducting a program evaluation for a project (as described above), the outcome measures in the performance report should be aligned with those being evaluated in the program. To support their performance measurement and program improvement efforts, recipients are permitted to use funds to make improvements to data or technology infrastructure and data analytics, as
well as program evaluations. 10. Required Performance Indicators and Programmatic Data
While recipients have discretion on the full suite of performance indicators to include, a number of mandatory performance indicators and programmatic data must be included. These are necessary to allow Treasury to conduct oversight as well as understand and aggregate
program outcomes across recipients. This section provides an overview of the mandatory performance indicators and programmatic data. This information may be included in each recipient’s Recovery Plan as they determine most appropriate, including combining with the
24 A logic model is a tool that depicts the intended links between program investments and outcomes, specifically the relationships among the resources, activities, outputs, outcomes, and impact of a program.
Coronavirus State and Local Fiscal Recovery Funds Compliance and Reporting Guidance 28
section above, but this data will also need to be entered directly into the Treasury reporting portal. Below is a list of required data for each Expenditure Category: a. Household Assistance (EC 2.2 & 2.5) and Housing Support (EC 3.10-3.12):
• Number of people or households receiving eviction prevention services (including legal representation)
• Number of affordable housing units preserved or developed b. Negative Economic Impacts (EC 2):
• Number of workers enrolled in sectoral job training programs
• Number of workers completing sectoral job training programs
• Number of people participating in summer youth employment programs
c. Education Assistance (EC 3.1-3.5):
• Number of students participating in evidence-based tutoring programs25
d. Healthy Childhood Environments (EC 3.6-3.9):
• Number of children served by childcare and early learning (pre-school/pre-K/ages 3-5)
• Number of families served by home visiting The initial report should include the key indicators above. Each annual report thereafter should
include updated data for the performance period as well as prior period data, and a brief narrative adding any additional context to help the reader interpret the results and understand the any changes in performance indicators over time. To the extent possible, Treasury also
encourages recipients to provide data disaggregated by race, ethnicity, gender, income, and other relevant factors. 11. Ineligible Activities: Tax Offset Provision (States and territories only) The following information is required for Treasury to ensure SLFRF funding is not used for ineligible activities.
In each reporting year, States and territories will report certain items related to the Tax Offset Provision 31 CFR 35.8, as detailed below. As indicated in the Interim Final Rule, Treasury is seeking comment on reporting requirements related to the Tax Offset Provision, including ways to better rely on information already produced by States and territories and to minimize burden. The terms “reporting year,” “baseline,” “covered change,” “net reduction in total spending,” and “tax revenue” are defined in the Interim Final Rule, 31 CFR 35.3. For purposes of calculating a net reduction in total spending, total spending for the fiscal year ending 2019 should be reported on an inflation-adjusted basis, consistent with the Interim Final Rule, 31 CFR 35.3.
Similarly, for purposes of calculating baseline, tax revenue for the fiscal year 2019 should be reported on an inflation-adjusted basis, consistent with the Interim Final Rule, 31 CFR 35.3.
For purposes of reporting actual tax revenue and calculating tax revenue for the fiscal year ending 2019,26 (a) if available, recipients should report information using audited financials and (b) recipients may provide data on a cash, accrual, or modified accrual basis, but must be
consistent in their approach across all reporting periods. Similarly, for purposes of calculating
25 For more information on evidence-based tutoring programs, refer to the U.S. Department of Education’s 2021 ED COVID-19 Handbook (Volume 2), which summarizes research on evidence-based tutoring programs (see the bottom of page 20. 26 Tax revenue for fiscal year ending 2019 is relevant for calculating the recipient’s baseline.
Coronavirus State and Local Fiscal Recovery Funds Compliance and Reporting Guidance 29
a net reduction in total spending, recipients should report data using audited financials where available. a. Revenue-reducing Covered Changes: For each reporting year, a recipient must report the value of covered changes that the
recipient predicts will have the effect of reducing tax revenue in a given reporting year (revenue-reducing covered changes), similar to the way it would in the ordinary course of its budgeting process. The value of these covered changes may be reported based on
estimated values produced by a budget model, incorporating reasonable assumptions, that aligns with the recipient government’s existing approach for measuring the effects of fiscal policies, and that measures relative to a current law baseline. The covered changes
may also be reported based on actual values using a statistical methodology to isolate the change in year-over-year revenue attributable to the covered change(s), relative to the current law baseline prior to the change(s). Estimation approaches should not use
dynamic methodologies that incorporate the projected effects of the policies on macroeconomic growth. In general and where possible, reported values should be produced by the agency of the recipient government responsible for estimating the costs
and effects of fiscal policy changes. Recipients must maintain records regarding the identification and predicted effects of revenue-reducing covered changes. b. Baseline Revenue: Baseline has the meaning defined in the Interim Final Rule, 31 CFR 35.3. Whether the revenue-reducing covered changes are in excess of the de minimis. Recipients must determine whether the aggregate value of the revenue-reducing covered
changes in the reporting year is less than one percent of baseline revenue. c. Actual Tax Revenue:
Actual tax revenue means the actual tax revenue received by the recipient government in the reporting year. Tax revenue has the meaning defined in the Interim Final Rule, 31 CFR 35.3. d. Reduction in Net Tax Revenue: The reduction in net tax revenue is equal to baseline revenue minus actual tax revenue in
each reporting year. If this value is zero or negative, there is no reduction in net tax revenue. e. Any revenue-increasing covered changes: A recipient must report the value of covered changes that have had or that the recipient predicts will have the effect of increasing tax revenue in a given reporting year (revenue-increasing covered changes), similar to the way it would in the ordinary course of its budgeting process. The value of these covered changes may be reported based on
estimated values produced by a budget model, incorporating reasonable assumptions, that aligns with the recipient’s existing approach for measuring the effects of fiscal policies, and that measures relative to a current law baseline. The covered changes may also be
reported based on actual values using a statistical methodology to isolate the change in year-over-year revenue attributable to the covered change(s), relative to the current law baseline prior to the change(s). Estimation approaches should not use dynamic
methodologies that incorporate the projected effects of the policies on macroeconomic growth. In general and where possible, reporting should be produced by the agency of the recipient responsible for estimating the costs and effects of fiscal policy changes.
Coronavirus State and Local Fiscal Recovery Funds Compliance and Reporting Guidance 30
Recipients should maintain records regarding revenue-reducing covered changes and estimates of such changes. f. Net reduction in total spending, and tables of specific spending cuts: Recipients must report on spending cuts. To calculate the amount of spending cuts that
are available to offset a reduction in tax revenue, the recipient must first consider whether there has been a reduction in total net spending, excluding Fiscal Recovery Funds (net reduction in total spending). As in the Interim Final Rule, 35 CFR 35.3, net reduction in
total spending is measured as the recipient government’s total spending for a given reporting year excluding Fiscal Recovery Funds, subtracted from its total spending for its fiscal year ending in 2019, adjusted for inflation using the Bureau of Economic Analysis’s
Implicit Price Deflator for the gross domestic product of the United States. If that subtraction yields a positive value, there has been a net reduction; if it yields zero or a negative value, there has not been a net reduction. If there has been no net reduction in
total spending, a recipient will have no spending cuts to offset a reduction in net tax revenue.
Next, a recipient must determine and aggregate the value of spending cuts in each “reporting unit,” as defined below. For each reporting unit, the recipient must report (1) the amount of the reduction in spending in the reporting unit relative to its inflation-adjusted FY 2019 level, (2) the amount of any Fiscal Recovery Funds spent in the reporting unit, and (3) the amount by which the reduction in spending exceeds the Fiscal Recovery funds spent in the reporting unit. If a recipient has not spent amounts received from the Fiscal Recovery Funds in a reporting unit, the full amount of the reduction in spending counts as a covered spending cut and may be included in aggregate spending cuts. If the recipient
has spent amounts received from the Fiscal Recovery Funds, such amounts generally would be deemed to have replaced the amount of spending cut, and only reductions in spending above the amount of Fiscal Recovery Funds spent on the reporting unit would
be eligible to offset a reduction in net tax revenue. Only such amounts above the amount of Fiscal Recovery Funds spent on the reporting unit should be included in the aggregate of spending cuts.
To align with existing reporting and accounting, the Interim Final Rule considers the department, agency, or authority from which spending has been cut and whether the
recipient government has spent amounts received from the Fiscal Recovery Funds on that same department, agency, or authority. Recipients may also choose to report at a more granular sub-department level. Recipients are encouraged to define and report spending
in departments, sub-departments (e.g., bureaus), agencies, or authorities (each a “reporting unit”) in a manner consistent with their existing budget process and should, to the extent possible, report using the same reporting unit in each reporting year. For example, if a State health department maintains separate budgets for different units (e.g., medical and public health units), those units may be reported and considered separately. Spending cuts must be reported relative to FY 2019 spending levels, adjusted for inflation, and excluding Fiscal Recovery Funds from reporting year spending levels.
Recipients should maintain records regarding spending cuts. As discussed in the Interim Final Rule, in order to help ensure governments use Fiscal Recovery Funds in a manner consistent with the prescribed eligible uses and do not use Fiscal Recovery Funds to
indirectly offset a reduction in net tax revenue resulting from a covered change, Treasury will monitor changes in spending throughout the covered period. Evasions of the Tax Offset Provision may be subject to recoupment.
Coronavirus State and Local Fiscal Recovery Funds Compliance and Reporting Guidance 31
Appendix 1: Expenditure Categories
The Expenditure Categories (EC) listed below must be used to categorize each project as noted in Part 2 above. The term “Expenditure Category” refers to the detailed level (e.g., 1.1
COVID-10 Vaccination). When referred to as a category (e.g., EC 1) it includes all Expenditure Categories within that level.
1: Public Health
1.1 COVID-19 Vaccination ^
1.2 COVID-19 Testing ^
1.3 COVID-19 Contact Tracing
1.4 Prevention in Congregate Settings (Nursing Homes, Prisons/Jails, Dense Work Sites, Schools, etc.)*
1.5 Personal Protective Equipment
1.6 Medical Expenses (including Alternative Care Facilities)
1.7 Capital Investments or Physical Plant Changes to Public Facilities that respond to the COVID-19 public health emergency
1.8 Other COVID-19 Public Health Expenses (including Communications, Enforcement,
Isolation/Quarantine)
1.9 Payroll Costs for Public Health, Safety, and Other Public Sector Staff Responding to COVID-19
1.10 Mental Health Services*
1.11 Substance Use Services*
1.12 Other Public Health Services
2: Negative Economic Impacts
2.1 Household Assistance: Food Programs* ^
2.2 Household Assistance: Rent, Mortgage, and Utility Aid* ^
2.3 Household Assistance: Cash Transfers* ^
2.4 Household Assistance: Internet Access Programs* ^
2.5 Household Assistance: Eviction Prevention* ^
2.6 Unemployment Benefits or Cash Assistance to Unemployed Workers*
2.7 Job Training Assistance (e.g., Sectoral job-training, Subsidized Employment, Employment Supports or Incentives)* ^
2.8 Contributions to UI Trust Funds
2.9 Small Business Economic Assistance (General)* ^
2.10 Aid to Nonprofit Organizations*
2.11 Aid to Tourism, Travel, or Hospitality
2.12 Aid to Other Impacted Industries
2.13 Other Economic Support* ^
2.14 Rehiring Public Sector Staff
3: Services to Disproportionately Impacted Communities
3.1 Education Assistance: Early Learning* ^
3.2 Education Assistance: Aid to High-Poverty Districts ^
3.3 Education Assistance: Academic Services* ^
3.4 Education Assistance: Social, Emotional, and Mental Health Services* ^
3.5 Education Assistance: Other* ^
3.6 Healthy Childhood Environments: Child Care* ^
3.7 Healthy Childhood Environments: Home Visiting* ^
3.8 Healthy Childhood Environments: Services to Foster Youth or Families Involved in Child Welfare System* ^
Coronavirus State and Local Fiscal Recovery Funds Compliance and Reporting Guidance 32
3.9 Healthy Childhood Environments: Other* ^
3.10 Housing Support: Affordable Housing* ^
3.11 Housing Support: Services for Unhoused Persons* ^
3.12 Housing Support: Other Housing Assistance* ^
3.13 Social Determinants of Health: Other* ^
3.14 Social Determinants of Health: Community Health Workers or Benefits Navigators* ^
3.15 Social Determinants of Health: Lead Remediation ^
3.16 Social Determinants of Health: Community Violence Interventions* ^
4: Premium Pay
4.1 Public Sector Employees
4.2 Private Sector: Grants to Other Employers
5: Infrastructure27
5.1 Clean Water: Centralized Wastewater Treatment
5.2 Clean Water: Centralized Wastewater Collection and Conveyance
5.3 Clean Water: Decentralized Wastewater
5.4 Clean Water: Combined Sewer Overflows
5.5 Clean Water: Other Sewer Infrastructure
5.6 Clean Water: Stormwater
5.7 Clean Water: Energy Conservation
5.8 Clean Water: Water Conservation
5.9 Clean Water: Nonpoint Source
5.10 Drinking water: Treatment
5.11 Drinking water: Transmission & Distribution
5.12 Drinking water: Transmission & Distribution: Lead Remediation
5.13 Drinking water: Source
5.14 Drinking water: Storage
5.15 Drinking water: Other water infrastructure
5.16 Broadband: “Last Mile” projects
5.17 Broadband: Other projects
6: Revenue Replacement
6.1 Provision of Government Services
7: Administrative
7.1 Administrative Expenses
7.2 Evaluation and Data Analysis
7.3 Transfers to Other Units of Government
7.4 Transfers to Non-entitlement Units (States and territories only)
*Denotes areas where recipients must identify the amount of the total funds that are allocated to evidence-based interventions (see Use of Evidence section above for details)
^Denotes areas where recipients must report on whether projects are primarily serving disadvantaged communities (see Project Demographic Distribution section above for details)
27 Definitions for water and sewer Expenditure Categories can be found in the EPA’s handbooks. For “clean water” expenditure category definitions, please see: https://www.epa.gov/sites/production/files/2018-03/documents/cwdefinitions.pdf. For “drinking water” expenditure category definitions, please see: https://www.epa.gov/dwsrf/drinking-water-state-revolving-fund-national-information-management-system-reports.
Coronavirus State and Local Fiscal Recovery Funds Compliance and Reporting Guidance 33
Appendix 2: Evidenced-Based Intervention Additional Information What is evidence-based? For the purposes of the SLFRF, evidence-based refers to interventions with strong or moderate evidence as defined below:
Strong evidence means the evidence base that can support causal conclusions for the specific program proposed by the applicant with the highest level of confidence. This consists of one or more well-designed and well-implemented experimental studies conducted on the proposed program with positive findings on one or more intended outcomes. Moderate evidence means that there is a reasonably developed evidence base that can support causal conclusions. The evidence base consists of one or more quasi-experimental studies with positive findings on one or more intended outcomes OR two or more non-experimental studies with positive findings on one or more intended outcomes. Examples of research that meet the standards include: well-designed and well-implemented quasi-
experimental studies that compare outcomes between the group receiving the intervention and a matched comparison group (i.e., a similar population that does not receive the intervention). Preliminary evidence means that the evidence base can support conclusions about the program’s contribution to observed outcomes. The evidence base consists of at least one non-
experimental study. A study that demonstrates improvement in program beneficiaries over time on one or more intended outcomes OR an implementation (process evaluation) study used to learn and improve program operations would constitute preliminary evidence.
Examples of research that meet the standards include: (1) outcome studies that track program beneficiaries through a service pipeline and measure beneficiaries’ responses at the end of the program; and (2) pre- and post-test research that determines whether beneficiaries have improved on an intended outcome.
Coronavirus State and Local Fiscal Recovery Funds Compliance and Reporting Guidance 34
Revision Log Version Date Published Summary of changes 1.0 June 17, 2021 Initial publication
1.1 June 24, 2021 • Pg. 12, removed references to “summary” level with respect to reporting by Expenditure Categories in the
Interim Report to avoid confusion.
• Pg. 13, revised the coverage period end date for the
Interim Report from June 30, 2021 to July 31, 2021 to align with the IFR.
• Pg. 13, removed references to “summary” level with respect to reporting by Expenditure Categories in the Interim Report to avoid confusion.
• Pg. 31, removed references to “summary level” with respect to Expenditure Categories in Appendix 1 to
avoid confusion.