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Home My WebLink About21- Grant Subrecipient Agreement - ARPA Household Efforts Sub Award - MTREP 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 24th day of November, 2021 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 Montana Racial Equity Project, a non-profit located at P.O. Box 11885, Bozeman, MT 59719 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, Montana Racial Equity Project submitted a proposal to the City for a program that complies with the term of the American Rescue Plan for household assistance efforts for $75,000; and THE PARTIES AGREE: 1. The Sub Award. The City will award and release to SUBRECIPIENT a sum of up seventy- five thousand dollars ($75,000) 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 seventy-five thousand dollars ($75,000) will be used by SUBRECIPIENT for the sole purpose of Household and worker assistance, 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, 2023 (FY24). 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 $75,000 (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 DocuSign Envelope ID: A24A6F01-1064-4DB0-8C44-B08C34237C06 FY 2022/2023 Subrecipient Grant Agreement – ARPA Household Efforts Page 2 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 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 B. 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 DocuSign Envelope ID: A24A6F01-1064-4DB0-8C44-B08C34237C06 FY 2022/2023 Subrecipient Grant Agreement – ARPA Household Efforts Page 3 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 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 Economic Impact Response- Childcare subsidies, unexpected household expenses and Financial Coaching. 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 DocuSign Envelope ID: A24A6F01-1064-4DB0-8C44-B08C34237C06 FY 2022/2023 Subrecipient Grant Agreement – ARPA Household Efforts Page 4 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 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 DocuSign Envelope ID: A24A6F01-1064-4DB0-8C44-B08C34237C06 FY 2022/2023 Subrecipient Grant Agreement – ARPA Household Efforts Page 5 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 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 DocuSign Envelope ID: A24A6F01-1064-4DB0-8C44-B08C34237C06 FY 2022/2023 Subrecipient Grant Agreement – ARPA Household Efforts Page 6 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 Agreement is terminated pursuant to this Section, SUBRECIPIENT will repay to the City any Grant funds already delivered to SUBRECIPIENT for the Economic Impact Response- Childcare subsidies, unexpected household expenses and Financial Coaching. 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 Anna Rosenberry 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 Judith Heilman 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, DocuSign Envelope ID: A24A6F01-1064-4DB0-8C44-B08C34237C06 FY 2022/2023 Subrecipient Grant Agreement – ARPA Household Efforts Page 7 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. 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. DocuSign Envelope ID: A24A6F01-1064-4DB0-8C44-B08C34237C06 FY 2022/2023 Subrecipient Grant Agreement – ARPA Household Efforts Page 8 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 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, DocuSign Envelope ID: A24A6F01-1064-4DB0-8C44-B08C34237C06 FY 2022/2023 Subrecipient Grant Agreement – ARPA Household Efforts Page 9 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. 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 DocuSign Envelope ID: A24A6F01-1064-4DB0-8C44-B08C34237C06 FY 2022/2023 Subrecipient Grant Agreement – ARPA Household Efforts Page 10 City Attorney at no cost to SUBRECIPIENT. Such request and determination shall not create an attorney-client relationship between SUBRECIPIENT and the City. 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 DocuSign Envelope ID: A24A6F01-1064-4DB0-8C44-B08C34237C06 FY 2022/2023 Subrecipient Grant Agreement – ARPA Household Efforts Page 11 agree to submit to the personal and exclusive jurisdiction of the courts located within Gallatin County, Montana. 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 DocuSign Envelope ID: A24A6F01-1064-4DB0-8C44-B08C34237C06 Executive DirectorJudith Heilman 11/29/2021 11/29/2021 12/16/2021 Exhibit A Program Proposal Executive Summary of the Program The Montana Racial Equity Project (MTREP) is proposing to offer financial assistance and resource distribution to households and workers impacted by the COVID-19 public health crisis. Through our COVID-19 Crisis Fund, we would help those financially impacted by helping to purchase groceries, winter clothing, gas cards, baby essentials, women’s hygiene items, rent assistance, and other financial support as deemed necessary. In collaboration with the Montana Immigrant Justice Alliance (MIJA), we would distribute monetary assistance and identified items to lessen the financial burden on these community members impacted by COVID-19 and its effects. Firm/ Individual Profile The Montana Racial Equity Project (MTREP) advocates equity and justice for historically marginalized, disenfranchised, and oppressed peoples in Montana. MTREP directs resources, energy, and time toward addressing racial inequity and injustice in Montana through community organizing, education, and base building. Our purpose is to educate and activate Montanans for that which we advocate. In working towards this, we lift the voices and elevate the agency of BIPOC through an intersectional lens and develop antiracist leaders and organizers. As the only black-led racial justice organization in the state, we are dedicated to empowering Black, Brown, Indigenous, and people of color (BIPOC) to acknowledge their racial trauma, learn, heal, and stand up for their civil rights. Our promise as an organization is to lift the voices and elevate the agency of BIPOC in every aspect of our work and put their voices at the forefront of our initiatives and community organizing. The goal has always been to educate and activate Montanans to reduce all expressions of racism, bigotry, and prejudice towards historically marginalized, disenfranchised, and oppressed people. We achieve this through educational workshops, community events, community organizing, EIJ consulting, and programs designed specifically for the benefit and betterment of BIPOC lives. 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 DocuSign Envelope ID: A24A6F01-1064-4DB0-8C44-B08C34237C06 The Montana Racial Equity Project Budget vs. Actuals: 2020 Budget - FY20 P&L January - December 2020 Accrual Basis Wednesday, April 14, 2021 02:35 PM GMT-06:00 1/3 TOTAL ACTUAL BUDGET OVER BUDGET Revenue Consultation Fees 22,000.00 2,700.00 19,300.00 Government Grants and Contracts 302,568.50 196,705.00 105,863.50 Individual Contributions Charitable Contributions 346,918.97 7,075.00 339,843.97 End of Year Appeal 19,335.00 13,000.00 6,335.00 GBGV 17,730.75 15,000.00 2,730.75 Sponsorship Contributions 500.00 -500.00 Total Individual Contributions 383,984.72 35,575.00 348,409.72 Investments 21.05 21.05 Program Income Program Service Fees 20,289.00 8,280.00 12,009.00 Sponsors 35,000.00 -35,000.00 Total Program Income 20,289.00 43,280.00 -22,991.00 Restricted Grants COVID Relief 95,079.50 95,079.50 Total Restricted Grants 95,079.50 95,079.50 Sales - Conference Registration 60,000.00 -60,000.00 Sales of Product Income 2,000.00 -2,000.00 Scholarship Donation 300.00 300.00 Temp Restricted Funds Black Student Academic Support Fund 1,900.00 3,600.00 -1,700.00 Total Temp Restricted Funds 1,900.00 3,600.00 -1,700.00 Workshop Scholarship Fund 420.00 -420.00 Total Revenue $826,142.77 $344,280.00 $481,862.77 GROSS PROFIT $826,142.77 $344,280.00 $481,862.77 Expenditures Advertising and Marketing 1,743.00 4,450.00 -2,707.00 Bank Charges 4,674.15 1,575.00 3,099.15 Business Expenses Business Registration Fees 20.06 135.00 -114.94 Total Business Expenses 20.06 135.00 -114.94 Continuing Education 12,196.25 3,500.00 8,696.25 Contract Services Accounting Fees 7,018.34 13,000.00 -5,981.66 Grant Writing, Research Expense 15,504.85 27,000.00 -11,495.15 Legal Fees 142.50 1,200.00 -1,057.50 Outside Contract Services 18,201.62 28,200.00 -9,998.38 Total Contract Services 40,867.31 69,400.00 -28,532.69 COVID Relief Expense 95,079.50 95,079.50 Dues and Subscriptions 8,057.84 2,335.00 5,722.84 DocuSign Envelope ID: A24A6F01-1064-4DB0-8C44-B08C34237C06 The Montana Racial Equity Project Budget vs. Actuals: 2020 Budget - FY20 P&L January - December 2020 Accrual Basis Wednesday, April 14, 2021 02:35 PM GMT-06:00 2/3 TOTAL ACTUAL BUDGET OVER BUDGET Event Expenses 90.05 1,250.00 -1,159.95 Facilities and Equipment Equip Rental and Maintenance 168.00 450.00 -282.00 Property Insurance 25,000.00 -25,000.00 Rent, Parking, Utilities 26,362.99 26,362.99 Total Facilities and Equipment 26,530.99 25,450.00 1,080.99 Fundraising Expenses 150.00 -150.00 Health Insurance 7,908.46 7,908.46 Insurance and Benefits 553.85 553.85 Legal and Professional Fees 3,252.50 2,000.00 1,252.50 Manager, Equity, Inclusion, Justice and Outreach 3,384.62 3,384.62 Meals and Entertainment 307.43 2,590.00 -2,282.57 Mileage 1,546.44 9,000.00 -7,453.56 Office Supplies 10,055.27 7,100.00 2,955.27 Operations Postage, Mailing Service 75.00 -75.00 Printing and Copying 561.73 200.00 361.73 Repair and Maintenance 1,632.29 750.00 882.29 Supplies 1,610.43 600.00 1,010.43 Telephone, Telecommunications 977.31 2,000.00 -1,022.69 Total Operations 4,781.76 3,625.00 1,156.76 Other Types of Expenses Insurance - Liability, D and O 1,127.50 1,200.00 -72.50 Insurance - Worker's Comp 816.61 816.61 Total Other Types of Expenses 1,944.11 1,200.00 744.11 Payroll Expenditures 1,250.00 1,250.00 Payroll Expenses Community Engagement Lead 10,769.22 10,769.22 Criminal Justice Lead 10,769.22 10,769.22 Education Admin 2,628.23 7,500.00 -4,871.77 Education Initiative Lead 10,769.22 38,000.00 -27,230.78 Executive Assistant 10,091.25 10,091.25 Executive Director Salary 48,653.79 45,000.00 3,653.79 Insurance and Benefits 2,192.36 6,000.00 -3,807.64 Manager, Equity, Inclusion, Justice Consulting 11,308.10 11,308.10 Operations & Communications Assistant 24,803.15 3,315.00 21,488.15 Payroll Tax Expense 14,853.09 10,357.80 4,495.29 Programs, Events and Outreach Admin 25,538.49 38,000.00 -12,461.51 Special Projects Lead 15,076.76 15,076.76 Unemployment Insurance 1,381.98 1,000.00 381.98 Total Payroll Expenses 188,834.86 149,172.80 39,662.06 Program Expense DocuSign Envelope ID: A24A6F01-1064-4DB0-8C44-B08C34237C06 The Montana Racial Equity Project Budget vs. Actuals: 2020 Budget - FY20 P&L January - December 2020 Accrual Basis Wednesday, April 14, 2021 02:35 PM GMT-06:00 3/3 TOTAL ACTUAL BUDGET OVER BUDGET Facilities Rental 250.00 30,990.00 -30,740.00 Program Advertising 541.84 825.00 -283.16 Program Materials and Supplies 3,388.60 5,420.00 -2,031.40 Program Speaking Fee 700.00 700.00 Total Program Expense 4,880.44 37,235.00 -32,354.56 Security Monitoring 273.00 273.00 Software and Apps 5,506.00 5,506.00 Staff Bonus 15,268.02 15,268.02 Travel and Meetings 76.52 76.52 Conference, Convention, Meeting 1,740.03 19,650.00 -17,909.97 Travel 2,757.69 3,700.00 -942.31 Total Travel and Meetings 4,574.24 23,350.00 -18,775.76 Website Expense 4,853.44 4,853.44 Workmans Comp Insurance 1,164.21 1,164.21 Total Expenditures $449,597.80 $343,517.80 $106,080.00 NET OPERATING REVENUE $376,544.97 $762.20 $375,782.77 NET REVENUE $376,544.97 $762.20 $375,782.77 DocuSign Envelope ID: A24A6F01-1064-4DB0-8C44-B08C34237C06 Related Experience with Projects Similar to the Scope of Services During the height of the pandemic, MTREP created the COVID-19 Crisis Fund to provide financial assistance and relief to the underserved and marginalized members of our community who had limited access to financial services or traditional resources. Well-versed in community organizing, MTREP was able to utilize our skills and expertise to help mobilize resources for our community and provide financial assistance on a case-by-case basis to those in need. Through our COVID-19 Crisis Fund, we prioritized (and continue to prioritize) the marginalized communities we serve, such as Black, Brown, Indigenous, people of color (BIPOC) and LGBTQIA, while expanding our support to include sick, disabled, quarantined without pay, elderly, working class individuals and families, and undocumented community members. These funds assisted individuals and families who needed income assistance, funds to cover sick leave, help buying groceries, making rent or utility payments, covering health expenses, school costs, and a myriad of other needs as they arose. MTREP’s Covid-19 Crisis fund started with $4,525, but it was depleted within 24 hours because of the need! We received $15,652 from the Southwest Montana Covid Response Fund, as well as support from other charitable foundations and donations from individuals. To date, we have expended over $95,000 in financial support to those who are most at-risk, serving roughly 150 people across the state. Detailed Description of the Program o How the program addresses the negative economic impacts caused by the public health emergency, including economic harms to workers and households. COVID-19 has had a dramatic effect on the needs of the underserved individuals and families we serve, financially, mentally, socially, and physically. Through our COVID-19 Crisis Fund, we will help mitigate the economic hardship on workers and households by mobilizing resources for our community and providing financial assistance on a case-by-case basis to those in need. Through our COVID-19 Crisis Fund, we will prioritize assistance to the marginalized communities we serve: BIPOC, LGBTQIA2s+, the disabled, the elderly, working class individuals and families, and undocumented community members. These funds will be used to assist workers and families who may need income assistance, funds to cover sick leave, help buying groceries, making rent or utility payments, covering health expenses, covering gas to get to and from work, buying winter clothes, and a myriad of other needs as they arise. o How much funding is being requested ($ 500,000 or less, including of administrative fees.) We are requesting $75,000 to be used for financial assistance and purchase of resources to marginalized groups. o How the funding will be distributed to households andor workers. The funding will be distributed through an application process. Households and workers who have faced negative economic impacts of the COVID-19 pandemic can submit a request for financial assistance, detailing what they need support with, and MTREP will review each application. We have a low-barrier DocuSign Envelope ID: A24A6F01-1064-4DB0-8C44-B08C34237C06 application process to make it equitable and accessible for the marginalized communities we serve. We will distribute the monetary amounts via Venmo, Paypal, check, or gift card depending upon the needs of the applicant. MTREP will also coordinate with the Montana Immigrant Justice Alliance (MIJA) to distribute funds and resources to o What, if any, administrative fees will be charged to the program To fulfill the services outlined in this proposal, we will need to hire a part-time employee to oversee and manage the COVID-19 Crisis Fund. We anticipate the administrative costs associated with this will be $15,000 and will be used to purchase a laptop and laptop accessories, register a Zoom account, and pay an $18 p/hr salary for the manager of this fund, along with other internal expenses. o How it will comply with Federal Requirements Our program will comply with Federal Requirements by using the award funds to respond to the COVID-19 public health emergency or its negative economic impacts. As a subrecipient, we will submit all required Project and Expenditure quarterly reports within thirty days after the end of each calendar quarter. We will report on appropriate projects, expenditures, project status, and demographic distribution. o How it will comply with requirements for City reporting. Grant funds will be used as described in this proposal as a permissible use of ARPA funding. Costs incurred shall only be necessary and allowable to carry out the proposed activities of the Approved Services from the City. On or before the twentieth day of each month, our organization shall submit invoices to the City setting forth actual expenditures in accordance with this agreement. We will complete and submit any required reports in a timely and professional manner as determined by the grant agreement. 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 COVID-19 has disproportionately affected BIPOC communities financially, mentally, physically and socially by increasing the extensive wealth gap that exists in our country and deepening the health disparities among BIPOC individuals. Our Covid-19 Crisis Fund will prioritize BIPOC, LGBTQIA2s+, the disabled, the elderly, working class individuals and families, undocumented community members, and those with limited English profieciency in order to get these households, workers, and indivudals the necessary resources they need with rapid response. While our COVID-19 Crisis Fund has not been designed to last long-term (as we hope COVID-19 is not a permanent part of our lives) we see the negative financial impact iit has had on these marginalized and underserved community members and are committed to providing them with financial assistance and peer support. These populations of people need to know that they have a support system in the community and can utilize MTREP as a resource. While this fund may not be a permanent service we provide, the financial assistance shows DocuSign Envelope ID: A24A6F01-1064-4DB0-8C44-B08C34237C06 these individuals that there are organizations in Bozeman that they can turn to for support and resources in the future. Additionally, we also see this as an opportunity for the city to show these marginalized community members that they are worth investing in and that the city cares about their lives, which could result in a renewed level of trust in the government thus bucking. Our long-term strategy is to continue to develop creative and dynamic measures by which to effect transformational change in racial justice and begin de-colonizing traditional white - colonized - ways of being and knowledge in order to support these communities impacted by COVID-19. Proposed Schedule for program and funding distribution ( must be fully distributed before July 31, 2024.)We anticipate fully distributing the awarded amount within one year of receipt of funds. We anticipate the following schedule: November 2021-Hire a part-time assistant to oversee the COVID-19 Crisis Fund. December 2021-Coordinate with Montana Immigrant Justice on an action plan and determine shared roles and responsibilities. Ongoing-receive applications from individuals and households who are experiencing financial burdens as a result of the public health emergency. Ongoing-review applications and make determinations on financial support and resources to be dispatched. Ongoing- monetary support and resources are allocated to workers and households in need. DocuSign Envelope ID: A24A6F01-1064-4DB0-8C44-B08C34237C06 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 The Montana Racial Equity Project (MTREP) MTREP Attn: Judith Heilman, Exec Dir DocuSign Envelope ID: A24A6F01-1064-4DB0-8C44-B08C34237C06 Appendix B 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 {"City1') as GRANTOR and The Montana Racial Equity Project (MTREP), a 501c3 nonprofit located at 234 E. Babcock Street, Bozeman, MT 59715 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, MTREP submitted a proposal to the City for a program that complies with the term of the American Rescue Plan for household assistance efforts for $75,000; and THE PARTIES AGREE: 1.The Sub Award. The City will award and release to SUBRECIPIENT a sum of up to [seventy-five thousand dollars ($75,000) 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 seventy-five thousand dollars ($75,000) will be used by SUBRECIPIENT for the sole purpose of redistribution of emergency funds to the community 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 $75,000 (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 FY 2022/2023 Subrecipient Grant Agreement -ARPA Household Efforts Page 1 DocuSign Envelope ID: A24A6F01-1064-4DB0-8C44-B08C34237C06 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 DocuSign Envelope ID: A24A6F01-1064-4DB0-8C44-B08C34237C06 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 redistribution of emergency funds to the community. 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 3 DocuSign Envelope ID: A24A6F01-1064-4DB0-8C44-B08C34237C06 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 DocuSign Envelope ID: A24A6F01-1064-4DB0-8C44-B08C34237C06 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 DocuSign Envelope ID: A24A6F01-1064-4DB0-8C44-B08C34237C06 Agreement is terminated pursuant to this Section, SUBRECIPIENT will repay to the City any Grant funds already delivered to SUBRECIPIENT for the redistribution of emergency funds to the community. 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.Jn 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 Judith Heilman 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 6 DocuSign Envelope ID: A24A6F01-1064-4DB0-8C44-B08C34237C06 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 DocuSign Envelope ID: A24A6F01-1064-4DB0-8C44-B08C34237C06 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. DocuSign Envelope ID: A24A6F01-1064-4DB0-8C44-B08C34237C06 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. DocuSign Envelope ID: A24A6F01-1064-4DB0-8C44-B08C34237C06 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. DocuSign Envelope ID: A24A6F01-1064-4DB0-8C44-B08C34237C06 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. Jeff Mihelich, City Manager City of Bozeman Print name and Title: Date: ----- Date: ----- -------------SUBRECIPIENT Approved as to form: Greg Sullivan, City Attorney City of Bozeman Date: ____ _ FY 2022/2023 Subrecipient Grant Agreement -ARPA Household Efforts Page 11 Judith Heilman, Exec Dir 09/29/2021 DocuSign Envelope ID: A24A6F01-1064-4DB0-8C44-B08C34237C06 Coronavirus State and Local Fiscal Recovery Funds Compliance and Reporting Guidance 1 ted ieethe due ADD cover page November xx, 2021 Version: 2.0 November 15, 2021 Version: 2.1 DocuSign Envelope ID: A24A6F01-1064-4DB0-8C44-B08C34237C06 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 Fund, 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. 14 B. Project and Expenditure Report…………….…………………………………...……. P. 15 C. Recovery Plan Performance Report..………………..……………………….….…… P. 22 Appendix 1: Expenditure Categories…………………………………………………….…… P. 30 Appendix 2: Evidenced-Based Intervention Additional Information…………………….…. P. 32 DocuSign Envelope ID: A24A6F01-1064-4DB0-8C44-B08C34237C06 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, or 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; • Treasury encourages recipients to use SLFRF-funded projects to 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. DocuSign Envelope ID: A24A6F01-1064-4DB0-8C44-B08C34237C06 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 interpretation; and recipients may not use SLFRF funds as non-Federal match where 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 DocuSign Envelope ID: A24A6F01-1064-4DB0-8C44-B08C34237C06 Coronavirus State and Local Fiscal Recovery Funds Compliance and Reporting Guidance 5 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, nonprofits, and individuals within the eligible use categories described in Treasury’s Interim Final Rule for costs that those households, businesses, nonprofits, 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, small businesses, and nonprofits – 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 premium 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 discretion 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 by the recipient 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 as part of the award closeout process pursuant to 2 C.F.R. 200.344(d). 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. DocuSign Envelope ID: A24A6F01-1064-4DB0-8C44-B08C34237C06 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 Part 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 (SLFRF) 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. DocuSign Envelope ID: A24A6F01-1064-4DB0-8C44-B08C34237C06 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 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 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. DocuSign Envelope ID: A24A6F01-1064-4DB0-8C44-B08C34237C06 Coronavirus State and Local Fiscal Recovery Funds Compliance and Reporting Guidance 8 procedures, and record retention, to determine and monitor implementation of criteria for 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. See Section C.1 (Eligible and Restricted Uses of SLFRF Funds) for a discussion of restrictions on use of SLFRF funds. 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 as part of the award closeout process pursuant to 2 C.F.R. 200.344(d). 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 of real or personal property acquired under 6 2 CFR 200.320(c)(1)-(3) and (5) DocuSign Envelope ID: A24A6F01-1064-4DB0-8C44-B08C34237C06 Coronavirus State and Local Fiscal Recovery Funds Compliance and Reporting Guidance 9 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 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 described 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. Recipients should note that non-entitlement units of local government (NEUs) are not subrecipients under the SLFRF program. They are SLFRF recipients that will report directly to Treasury. Recipients should also note that subrecipients do not include individuals and organizations that received SLFRF funds as end users to respond to the negative economic impacts of COVID-19 on these organizations. Such individuals and organizations are beneficiaries and not subject to audit pursuant to the Single Audit Act and 2 C.F.R. Part 200, Subpart F. DocuSign Envelope ID: A24A6F01-1064-4DB0-8C44-B08C34237C06 Coronavirus State and Local Fiscal Recovery Funds Compliance and Reporting Guidance 10 Separately or in addition, many recipients may choose to provide a subaward (e.g., via contract or grant) to other entities to provide services to other end—users. For example, a recipient may provide a grant to a nonprofit to provide homeless services to individuals experiencing homelessness. In this case, the subaward to a nonprofit is based on the services that the Recipient intends to provide, assistance to households experiencing homelessness, and the nonprofit is serving as the subrecipient, providing services on behalf of the recipient. Subrecipients are subject to audit pursuant to the Single Audit Act and 2 CFR part 200, subpart F regarding audit requirements. 12. Special Tests and Provisions. Treasury has received comments on the Interim Final Rule and will adopt a final rule after responding to these comments. In addition, Treasury may add clarifications to the Final Rule and other subregulatory guidance as well as frequently asked questions. 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. 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 7 See flexibility provided in https://www.whitehouse.gov/wp-content/uploads/2021/03/M_21_20.pdf. DocuSign Envelope ID: A24A6F01-1064-4DB0-8C44-B08C34237C06 Coronavirus State and Local Fiscal Recovery Funds Compliance and Reporting Guidance 11 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 the Government Accountability Office (“GAO”), Treasury’s Office of Inspector General (“OIG”), and their authorized representative in order to conduct audits or other investigations. 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 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 non-Tribal 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. This collection does not apply to Tribal Governments. 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, and Treasury’s OIG. DocuSign Envelope ID: A24A6F01-1064-4DB0-8C44-B08C34237C06 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 14. • 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 22. The reporting threshold is based on the total award amount allocated by Treasury under the SLFRF program, not the funds received by the recipient as of the time of reporting. States and territories are also required to submit information on their distributions to NEUs. Please refer to Section D for additional details. DocuSign Envelope ID: A24A6F01-1064-4DB0-8C44-B08C34237C06 Coronavirus State and Local Fiscal Recovery Funds Compliance and Reporting Guidance 13 Table 2: Reporting requirements by recipient type Tier Recipient Interim Report Project and Expenditure Report Recovery Plan Performance Report 1 States, U.S. territories, metropolitan cities and counties with a population that exceeds 250,000 residents By August 31, 2021 or 60 days after receiving funding if funding was received by October 15, with expenditures by category By January 31, 2022, and then 30 days after the end of each quarter thereafter9 By August 31, 2021 or 60 days after receiving funding, and annually thereafter by July 3110 2 Metropolitan cities and counties with a population below 250,000 residents which received more than $10 million in SLFRF funding Not required 3 Tribal Governments which received more than $30 million in SLFRF funding 4 Tribal Governments which received less than $30 million in SLFRF funding By April 30, 2022, and then annually thereafter11 5 Metropolitan cities and counties with a population below 250,000 residents which received less than $10 million in SLFRF funding 6 NEUs Not required Note: Based on the period of performance, reports will be collected through April 30, 2027. See the specific due dates listed in Sections B and C. The remainder of this document describes these reporting requirements. User guides describing how and where to submit required reports will be posted at www.treasury.gov/SLFRPReporting and updated on a regular basis. 9 Interim Final Rule Page 111 10 Interim Final Rule page 112 11 Interim Final Rule Page 111 DocuSign Envelope ID: A24A6F01-1064-4DB0-8C44-B08C34237C06 Coronavirus State and Local Fiscal Recovery Funds Compliance and Reporting Guidance 14 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 covering the period from March 3rd to July 31, 2021, by August 31, 2021 or sixty (60) days after first receiving funding if the recipient’s date of award is between July 15, 2021 and October 15, 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 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 end. For quarterly reporters, SLFRF reporting will be due 30 days from quarter end. For annual reporters, SLFRF reporting will be due on an annual schedule (see table below). • 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 for SLFRF. DocuSign Envelope ID: A24A6F01-1064-4DB0-8C44-B08C34237C06 Coronavirus State and Local Fiscal Recovery Funds Compliance and Reporting Guidance 15 • 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) 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. 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 and U.S. territories • Tribal governments that received more than $30 million in SLFRF funding • Metropolitan cities and counties with a population that exceeds 250,000 residents • Metropolitan cities and counties with a population below 250,000 residents that are allocated more than $10 million in SLFRF funding DocuSign Envelope ID: A24A6F01-1064-4DB0-8C44-B08C34237C06 Coronavirus State and Local Fiscal Recovery Funds Compliance and Reporting Guidance 16 For these recipients, the initial quarterly Project and Expenditure Report will cover three calendar quarters from March 3, 2021 to December 31, 2021 and must be submitted to Treasury by January 31, 2022. 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 - 4 March 3 – December 31 January 31, 2022 2 2022 1 January 1 – March 31 April 30, 2022 3 2022 2 April 1 – June 30 July 31, 2022 4 2022 3 July 1 – September 30 October 31, 2022 5 2022 4 October 1 – December 31 January 31, 2023 6 2023 1 January 1 – March 31 April 30, 2023 7 2023 2 April 1 – June 30 July 31, 2023 8 2023 3 July 1 – September 30 October 31, 2023 9 2023 4 October 1 – December 31 January 31, 2024 10 2024 1 January 1 – March 31 April 30, 2024 11 2024 2 April 1 – June 30 July 31, 2024 12 2024 3 July 1 – September 30 October 31, 2024 13 2024 4 October 1 – December 31 January 31, 2025 14 2025 1 January 1 – March 31 April 30, 2025 15 2025 2 April 1 – June 30 July 31, 2025 16 2025 3 July 1 – September 30 October 31, 2025 17 2025 4 October 1 – December 31 January 31, 2026 18 2026 1 January 1 – March 31 April 30, 2026 19 2026 2 April 1 – June 30 July 31, 2026 20 2026 3 July 1 – September 30 October 31, 2026 21 2026 4 October 1 – December 31 March 31, 2027 2. Annual Reporting The following recipients are required to submit annual Project and Expenditure Reports: • Tribal governments that received less than $30 million in SLFRF funding • Metropolitan cities and counties with a population below 250,000 residents that are allocated less than $10 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 or territory to the NEU as part of its request for funding. For these recipients, the initial Project and Expenditure Report will cover from March 3, 2021 to March 31, 2022 and must be submitted to Treasury by April 30, 2022. The subsequent annual reports will cover one calendar year and must be submitted to Treasury by April 30. The table below summarizes the report timelines: Report Period Covered Due Date 1 March 3, 2021 – March 31, 2022 April 30, 2022 2 April 1, 2022 – March 31, 2023 April 30, 2023 3 April 1, 2023 – March 31, 2024 April 30, 2024 4 April 1, 2024 – March 31, 2025 April 30, 2025 5 April 1, 2025 – March 31, 2026 April 30, 2026 6 April 1, 2026 – December 31, 2026 April 30, 2027 DocuSign Envelope ID: A24A6F01-1064-4DB0-8C44-B08C34237C06 Coronavirus State and Local Fiscal Recovery Funds Compliance and Reporting Guidance 17 3. Required Information The following information will be required in Project and Expenditure Reports for both quarterly and annual reporting: 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. Recipients should review the Required Programmatic Data described in 3.g. below and define their projects at a sufficient level of granularity. 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 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. Adopted Budget (States, U.S. territories, metropolitan cities and counties with a population that exceeds 250,000 residents only): Each state, territory and metropolitan city and county with a population that exceeds 250,000 residents will provide the budget adopted for each project by its jurisdiction associated with SLFRF funds. Treasury will use this information to better understand the intended impact, identify opportunities for technical assistance, and understand the recipient’s progress in program implementation. Treasury is not approving or pre-approving projects or budgets. • Recipients will enter the Adopted Budget based on information that exists currently in the recipient’s financial systems and the recipient’s established budget process. Treasury understands that recipients may use different budget processes. For example, a recipient may consider a project budgeted once a legislature has appropriated funds; whereas another recipient may consider a project budgeted at the moment when the funds have been obligated. • Additional information will be provided on the differences between Adopted Budget, Obligations, and Expenditures as part of the forthcoming User Guide. e. Project Demographic Distribution – Collection of this data will be phased in; no data will be collected in this area before April 2022: Recognizing the disproportionate impact of the pandemic-related recession on low-income and economically disadvantaged communities, DocuSign Envelope ID: A24A6F01-1064-4DB0-8C44-B08C34237C06 Coronavirus State and Local Fiscal Recovery Funds Compliance and Reporting Guidance 18 the Interim Final Rule encourages recipients to direct Fiscal Recovery Funds toward disproportionately impacted communities. Recipients are encouraged to design projects that prioritize economic and racial equity and promote equitable outcomes. Treasury is committed to supporting recipients in executing and reporting on projects that promote equity. In a subsequent version of the Reporting Guidance and User Guide, which will be released after the issuance of the Fiscal Recovery Fund Final Rule, Treasury will issue detailed requirements for reporting the project demographic distribution of Fiscal Recovery Fund projects. f. 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 $50,000. 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 $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 provided by 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 DocuSign Envelope ID: A24A6F01-1064-4DB0-8C44-B08C34237C06 Coronavirus State and Local Fiscal Recovery Funds Compliance and Reporting Guidance 19 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. g. Civil Rights Compliance: Treasury will request information on recipients’ compliance with Title VI of the Civil Rights Act of 1964, as applicable, on an annual basis. This information may include a narrative describing the recipient’s compliance with Title VI, along with other questions and assurances. This collection does not apply to Tribal Governments. h. Ineligible Activities: Tax Offset Provision (States and territories only): Treasury may collect additional information related to the Tax Offset Provision as described in section 602(c)(2) of the Social Security Act and implemented under 31 CFR 35.8 as part of the Project and Expenditure Report, such as but not limited to revenue reducing covered changes. Please see Section C.11 (Recovery Plan, Ineligible Activities: Tax Offset Provision) for more information. i. 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) – Collection to begin in January 2022: • Number of government FTEs responding to COVID-19 supported under this authority 2. Household Assistance (EC 2.1-2.5) – Collection to begin January 2022: • Brief description of structure and objectives of assistance program(s) (e.g., nutrition assistance for low-income households) • Number of households 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) – Collection of this data will be phased in; no data will be collected in this area before April 2022: • 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) – Collection of this data will be phased in; no data will be collected in this area before April 2022: • 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 DocuSign Envelope ID: A24A6F01-1064-4DB0-8C44-B08C34237C06 Coronavirus State and Local Fiscal Recovery Funds Compliance and Reporting Guidance 20 • 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) – Collection to begin in January 2022: • Number of FTEs rehired by governments under this authority 6. Education Assistance (EC 3.1-3.5) – Collection to begin in January 2022: • 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.15 7. Premium Pay (both Public Sector EC 4.1 and Private Sector EC 4.2) – Collection to begin in January 2022: • 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’s16 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) – Collection began in August 2021: 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 15 For more information on NCES identification numbers see https://nces.ed.gov/ccd/districtsearch/ (districts) and https://nces.ed.gov/ccd/schoolsearch/ (schools). 16 County means a county, parish, or other equivalent county division (as defined by the Census Bureau). See 31 CFR 35.3. DocuSign Envelope ID: A24A6F01-1064-4DB0-8C44-B08C34237C06 Coronavirus State and Local Fiscal Recovery Funds Compliance and Reporting Guidance 21 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. j. 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: 1. All infrastructure projects (EC 5) – Collection to begin in January 2022: • 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 (based on expected total cost): 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.17 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: 17 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. DocuSign Envelope ID: A24A6F01-1064-4DB0-8C44-B08C34237C06 Coronavirus State and Local Fiscal Recovery Funds Compliance and Reporting Guidance 22 ▪ 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; ▪ 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. 2. Water and sewer projects (EC 5.1-5.15) Collection to begin in January 2022 and required once the project starts: • 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) Collection to begin in January 2022: • Confirm that the project is designed to, upon completion, reliably meet or exceed symmetrical 100 Mbps download and upload speeds. o If the project is not designed to reliably meet or exceed symmetrical 100 Mbps download and upload speeds, explain why not, and o Confirm that the project is designed to, upon completion, meet or exceed symmetrical 100 Mbps download speed and between at least 20 Mbps and 100 Mbps upload speed, and be scalable to a minimum of 100 Mbps download speed and 100 Mbps upload speed. • Please note: additional programmatic data will be required for broadband projects beginning in July 2022 and will be defined in a subsequent version of the Reporting Guidance. k. NEU Documentation (NEUs only): Each NEU will also be asked to provide the following information once their accounts are established in Treasury’s Reporting Portal and prior to the due date for their first annual Project and Expenditure Report (due April 30, 2022): • 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 NEU accounts will be established in Treasury’s Portal based on information provided by the States or territories, as further described in Section Part 2 D below. 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 DocuSign Envelope ID: A24A6F01-1064-4DB0-8C44-B08C34237C06 Coronavirus State and Local Fiscal Recovery Funds Compliance and Reporting Guidance 23 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, or 60 days after receiving funding. 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 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. DocuSign Envelope ID: A24A6F01-1064-4DB0-8C44-B08C34237C06 Coronavirus State and Local Fiscal Recovery Funds Compliance and Reporting Guidance 24 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 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? 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 DocuSign Envelope ID: A24A6F01-1064-4DB0-8C44-B08C34237C06 Coronavirus State and Local Fiscal Recovery Funds Compliance and Reporting Guidance 25 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 described 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. 6. Use of Evidence The Recovery Plan should identify whether SLFRF funds are being used for evidence-based interventions18 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.19 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 18As noted in Appendix 2, evidence-based refers to interventions with strong or moderate levels of evidence. 19 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. DocuSign Envelope ID: A24A6F01-1064-4DB0-8C44-B08C34237C06 Coronavirus State and Local Fiscal Recovery Funds Compliance and Reporting Guidance 26 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).20 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.21 Appendix 2 contains additional information on evidence-based interventions for the purposes of the Recovery Plan. 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 20 For more information on the required standards for program evaluation, see OMB M-20-12. 21 For more information on learning agendas, please see OMB M-19-23 DocuSign Envelope ID: A24A6F01-1064-4DB0-8C44-B08C34237C06 Coronavirus State and Local Fiscal Recovery Funds Compliance and Reporting Guidance 27 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 models22 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 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 programs23 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 22 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. 23 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. DocuSign Envelope ID: A24A6F01-1064-4DB0-8C44-B08C34237C06 Coronavirus State and Local Fiscal Recovery Funds Compliance and Reporting Guidance 28 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 as described in section 602(c)(2) of the Social Security Act and implemented by 31 CFR 35.8. Additional guidance will be forthcoming for reporting requirements regarding the tax offset provision and additional information that Recipients will report once the Final Rule goes into effect. a. Revenue-reducing Covered Changes: Collection began August 2021: 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. The term “covered change,”” and “tax revenue” are described in the Interim Final Rule, 31 CFR 35.3. For additional information, see 602(c)(2) of the Social Security Act, the Interim Final Rule, and 31 CFR 35.8. D. Distributions to NEUs Each State and territory is asked to provide regular updates on their NEU distribution as well as their distributions to units of general local government within counties that are not units of general local government (Non-UGLG). The distribution template generally requests information on whether the local government 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 or declined funding. For NEUs, 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 or territory 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 DocuSign Envelope ID: A24A6F01-1064-4DB0-8C44-B08C34237C06 Coronavirus State and Local Fiscal Recovery Funds Compliance and Reporting Guidance 29 • 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 or territory 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) 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. For each eligible NEU that declined funding and requested a transfer to the State under Section 603(c)(4), the State or territory 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. DocuSign Envelope ID: A24A6F01-1064-4DB0-8C44-B08C34237C06 Coronavirus State and Local Fiscal Recovery Funds Compliance and Reporting Guidance 30 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* ^ DocuSign Envelope ID: A24A6F01-1064-4DB0-8C44-B08C34237C06 Coronavirus State and Local Fiscal Recovery Funds Compliance and Reporting Guidance 31 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: Infrastructure24 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) 24 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. DocuSign Envelope ID: A24A6F01-1064-4DB0-8C44-B08C34237C06 Coronavirus State and Local Fiscal Recovery Funds Compliance and Reporting Guidance 32 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 that the evidence base 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. DocuSign Envelope ID: A24A6F01-1064-4DB0-8C44-B08C34237C06 Coronavirus State and Local Fiscal Recovery Funds Compliance and Reporting Guidance 33 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. 1.1 September 30, 2021 • Announced the extension in the Project and Expenditure Report submission date, originally due on October 31, 2021. 2.0 November 5, 2021 • Updated Subrecipient Monitoring section to clarify beneficiaries and recipients. • Updated references to Interim Final Rule comment period as comment period is closed. • Updated reporting tiers, thresholds and timelines in Part 2 Table 2, Reporting Requirements by recipient type, as well as Part 2 A and Part 2 B. • Updated reporting periods for Interim Report and Project and Expenditure reports. • Added concept of Adopted Budget to Project and Expenditure Report data fields. • Noted phase in of Required Programmatic Data in the Project and Expenditure Report. • Removed certain data fields from the Ineligible Activities: Tax Offset Provision under the Recovery Plan. • Separated reporting of NEU Distributions (for States and territories) from the Interim Report and Project and Expenditure Reports as information will be provided on an ongoing basis. 2.1 November 15, 2021 • Updated pages 9 and 11 to note that civil rights certification is not applicable to Tribal Governments. DocuSign Envelope ID: A24A6F01-1064-4DB0-8C44-B08C34237C06