Post on 23-Dec-2021
The American Rescue Plan & Arkansas
J O H N W I L K E RS O N :
G E N E R A L C O U N S E L
B L A K E G A R Y:
L E G A L C O U N S E L
C A R A N C U R RY:
G R A N T S AT TO R N E Y
Trainings:
Future?
Cover new administrative developments & key provisions on eligible uses, et al.
Questions: arp@arml.org
Same link
Handouts & Video posted to League’s website
First Tranche this Week
Thank you DF&A!
If a city/town needs help, please
let us know.
Payment & Accounting Tidbits for NEU’s
If your paperwork is complete with DF&A, expect your funds this week
Deposited into the general turnback account
If you do not have EFT, then a paper check will be sent
REMEMBER: DO NOT CO-MINGLE (separate account for funds?)
Collateralize if funds exceed FDIC limit push your accounts past $250K
A recipient may only use funds to cover costs incurred during the period beginning March 3, 2021
3 March, 2021
Cost MUST be obligated by December 31, 2024
31 Dec. 2024
Projects MUST be completed and paid for by December 31, 2026
31 Dec. 2026
Timelines for Use
• Period of Performance Ends
• Purchase Order Issued
• Contract Signed, or
• Subawards Made
DEFINITION OF “OBLIGATE”
2 CFR 200.71
Tools to help you through
this.
Reporting Guidance
Tools to help you through
this.
League’s Website
www.arml.org/resources/american-rescue-plan/
Tools to help you through
this.
Treasury’s Website
Tools to help you through
this.
Interim (soon to be
Final) Rule Can we follow Interim Rules for now?
Tools to help you through
this.
FAQs
Tools to help you through
this.
The League
John Wilkerson – jwilkerson@arml.org
Cindy Frizzell – cfrizzell@arml.org
Caran Curry – ccurry@arml.org
Blake Gary – bgary@arml.org
Sheila Boyd – sboyd@arml.org
Jack Critcher – jcritcher@arml.org
Lanny Richmond – lrichmond@arml.org
Breanna Keith – bkeith@arml.org
Caleb Alexander-McKinzie – lclerk6@arml.org
Alena Hernandez – lclerk5@arml.org
Larra Bender – lbender@arml.org
Cannot Use to Repay Existing Loan or Indebtedness
No Streets/Road
Not as a Federal Match (may change)
What We Know…So Far
INELIGIBLE USES
Lost Revenue due to COVID-19
Negative Impact of COVID-19
[Health (Public Safety) or Economic Impact)
Premium Pay for Essential Workers
Infrastructure Projects
Water, Sewer, or Broadband
What We Know…So Far
ELIGIBLE USES:
4 CATEGORIES
Eligible Use:Lost Revenue
❖What is Lost Revenue?
❖ Use League’s Revenue Calculator
❖ Loss will be the difference between ACTUAL 2020 Revenues vs. EXPECTED 2020 Revenues;
❖ Determine your average annual growth rate over the past three years.
If less than 4.1%, then use 4.1% as default growth rate;
❖Use these funds only for government services.
“Section 603(c)(1)(C) of the Act provide(s) recipients with broad latitude to use the Fiscal Recovery Funds for the provision of government services.”
“for the provision of government services to the extent of the reduction in revenue of such metropolitan city, nonentitlement unit of local government, or county due to the COVID–19 public health emergency relative to revenues collected in the most recent full fiscal year.” §602 (c)(1)(C)
What are “Governmental Services”?
“Government services can include, but are notlimited to, maintenance or pay-go funded buildingof infrastructure, including roads; modernization ofcybersecurity, including hardware, software, andprotection of critical infrastructure; health services;environmental remediation; school or educationalservices; and the provision of police, fire, and otherpublic safety services.”
Eligible Use:Negative Economic Impacts of COVID-19
“Respond to the public health emergency with respect to the COVID19 or its negative economic impacts, including assistance to households, small businesses, and nonprofits, or aid to impacted industries such as tourism, travel, and hospitality.”
“Where there has been a negative economic impact resulting from the public health emergency, local governments have broad latitude to choose whether and how to use the Fiscal Recovery Funds to respond to and address the negative economic impact.”
Eligible Use:Public Health Impacts of COVID-19
“Respond to the public health emergency with respect to COVID-19 or its negative economic impacts, including assistance to households, small businesses, and nonprofits, or aid to impacted industries such as tourism, travel, and hospitality.”
“Where there has been a negative economic impact resulting from the public health emergency, local governments have broad latitude to choose whether and how to use the Fiscal Recovery Funds to respond to and address the negative economic impact.”
NEGATIVE ECONOMIC
IMPACT
How do you know?
(1) Identify an effect of COVID-19 on public.
(2) Would the use of the funds “respond to” the identified negative economic impact?
REMEMBER: “Responses must be related and reasonably proportional to the extent and type of harm experienced; uses that bear no relation or are grossly disproportionate to the type or extent of harm experienced would not be eligible uses.”
Document документ
Document Documento
資料 Dokument
έγγραφο Belge
DOCUMENT, DOCUMENT, DOCUMENT
Can we assist the Northwest Technical Institute in building a new facility that would help them in the training of nurses?
Walkthrough Example: Public Health Impact
Tourism, Travel, & Hospitality
“Respond to the negative economic impacts, including . . .aid to impacted industries such as tourism, travel, and hospitality.”
Other than . . . tourism, travel, and hospitality.
Public Safety: Police, Fire, and EMT
As discussed in the Interim Final Rule, uses of CSFRF/CLFRF funds that
respond to an identified harm must be related and reasonably
proportional to the extent and type of harm experienced; uses that bear
no relation or are grossly disproportionate to the type or extent of harm
experienced would not be eligible uses.
Eligible Use:Premium Pay
❖ Up to $13 per hour in addition to wages for eligible worker, but not to exceed $25,000 for the life of the grant per worker;
(Worker may not receive Premium Pay for telework from residence.)
❖ Eligible Workers: Relied on to maintain continuity of operations of essential critical infrastructure sectors.
❖ Essential Work: Regular in-person interactions or regular physical handling
of items that were also handled by others.
❖ Chief executive has discretion to add additional sectors provided sectors are deemed critical to protect the health and well-being of its residents.
“Per the statute, recipients have broad latitude to designate critical infrastructure sectors and make grants to third-party employers for the purpose of providing premium pay or otherwise respond to essential workers.”
“to respond to workers performing essential workduring the COVID–19 public health emergency by providingpremium pay to eligible workers that are performing such essential work,
or
by providinggrants to eligible employers that have eligible workerswho perform essential work.”
Eligible Use:Premium Pay, miscellaneous
❖ LOPFI, APERS, FLSA
❖ CENTERPOINT/ PAYROLL PROCESSING
What about…
❖Volunteer Firefighters?
❖Elected City Officials?
“to respond to workers performing essential workduring the COVID–19 public health emergency by providingpremium pay to eligible workers that are performing such essential work,
or
by providinggrants to eligible employers that have eligible workerswho perform essential work.”“Per the statute, recipients have broad latitude to designate
critical infrastructure sectors and make grants to third-party
employers for the purpose of providing premium pay or
otherwise respond to essential workers.”
Payroll Contributions, etc.
LOPFI – Does Not Apply to Premium Pay
APERS – DoesApply to
Premium Pay
FLSA – We don’t know
yet, maybe not
CENTERPOINT can help.
Volunteer Fire Fighters – We
don’t know yet
FICA (other payroll contributions)
Resolution to Spend on Premium Pay
Eligible Use:Water, Sewer, & Broadband
“Local governments have a broad range of water and sewer infrastructure needs, the Interim Final Rule provides wide
latitude to identify investments in water and sewer infrastructure that are of the highest priority for their own
communities.”
❖Wide range of types or categories of projects that would be eligible to receive financial assistance through the
CWSRF or DWSRF.
❖ Davis-Bacon Does Not Apply
❖When using funds for storm water make sure there’s a water quality aspect to your project.
“to make necessary investments in water, sewer, or broadband infrastructure.”
Eligible Use:If it’s in the book…
“to make necessary investments in water, sewer, or broadband infrastructure.”
Eligible Use:Water Projects
❖DWSRF:
✓treatment;
✓transmission and distribution;
✓source rehabilitation and decontamination;
✓ storage;
✓consolidation;
✓new systems development.
“Local governments have a broad range of water and sewer infrastructure needs, the Interim Final Rule provides wide latitude to identify investments in water and sewer infrastructure that are of the highest priority for their
own communities.”
“to make necessary investments in water, sewer, or broadband infrastructure.”
Eligible Use:If it’s in the book…
“to make necessary investments in water, sewer, or broadband infrastructure.”
Eligible Use:Sewer Projects
❖ CWSRF:
✓ construction of publicly-owned treatment works,
✓ nonpoint source pollution management;
✓ decentralized wastewater treatment systems;
✓ stormwater systems, must have a treatment component;
✓water conservation, efficiency, and reuse measures;
✓ energy efficiency measures for publicly-owned treatment works
✓ security measures;
✓ technical assistance to ensure compliance with the Clean Water Act.
“Local governments have a broad range of water and sewer infrastructure needs, the Interim Final Rule provides wide latitude to identify investments in water and sewer infrastructure that are of the highest priority for their own
communities.”
“to make necessary investments in water, sewer, or broadband infrastructure.”
Eligible Use:Broadband Projects
“to make necessary investments in water, sewer, or broadband infrastructure.”
❖ Eligible Projects that reliably deliver 100/100;
❖ If impracticable, projects must reliably deliver at least 100/20;
❖ Projects must also be designed to serve unserved or underserved(those that are not currently served by a wireline connection that reliably delivers 25/2).
Focus of Governor Hutchinson
There is a lot of funding for Broadband out there
Explore Partnerships
STAY TUNED . . . More guidance coming
Fifth (sort of) Eligible Use:Transfers to State
“to make necessary investments in water, sewer, or broadband infrastructure.”
❖State transfers:
The Rescue Plan:“(4) TRANSFERS TO STATES.—Notwithstanding paragraph (1), a metropolitan city, nonentitlement unit of local government, or county receiving a payment from funds made available under this section may transfer such funds to the State in which such entity is located.”
The Interim Rule:“The transferor must provide notice of the transfer to Treasury in a format specified by Treasury. If the local government does not provide such notice, it will remain legally obligated to Treasury.”
Fifth (sort of) Eligible Use:Transfers to Others
“to make necessary investments in water, sewer, or broadband infrastructure.”
❖Transfers to Others:
The Rescue Plan:
“(3) TRANSFER AUTHORITY.—A metropolitan city, nonentitlement unit of local government, or county
receiving a payment from funds made available under this section may transfer funds to a private
nonprofit organization (as that term is defined in paragraph (17) of section 401 of the McKinney-
Vento Homeless Assistance Act (42 U.S.C. 11360(17)), a public benefit corporation involved in the
transportation of passengers or cargo, or a special-purpose unit of State or local government.”
The Interim Rule:
“The Interim Final Rule clarifies that the lists of transferees in Sections 602(c)(3) and 603(c)(3) are not
exclusive. The Interim Final Rule permits State, territorial, and Tribal governments to transfer Fiscal
Recovery Funds to other constituent units of government or § 602(c)(3) of the Act. private entities
beyond those specified in the statute. Similarly, local governments are authorized to transfer Fiscal
Recovery Funds to other constituent units of government (e.g., a county is able to transfer Fiscal Recovery
Funds to a city, town, or school district within it) or to private entities.”
When Transferring to “Other than State”:Lots to Consider
Determination of the Relationship
Subrecipient vs. Contractor
Pre-award Risk Assessment Formation and
Issuance of Subaward Agreement
Post-award Monitoring & Reporting
More to Consider
UGG (not, ugh…)
Award Document
Title VI Compliance (non-discrimination)
Reporting (more guidance coming)
Uniform Grant Guidelines
“UGG”
2 CFR § 200
Definitions
Uniform Grant Guidelines “UGG”
2 CFR § 200
Part E
Expenses must be:
❖ Necessary to the performance of a project
❖ Reasonable
❖ Allowable
❖ Allocable to the project and consistently/uniformly treated
❖ Documented
Allowable Costs
Procurement
Separate Recorded Training Session
General rule: follow state or local law, whichever is more restrictive
If below formal bidding, then get at least 3 quotes + document reasonableness of the cost
No geographic preferences
Procurement Chart
Procurement Quote Form (DBE quote)
Conflict of Interest Policy
Arkansas Procurement Chart
Uniform Grant Guidelines “UGG”
2 CFR § 200
Greater than $750k in federal funds per year, aggregated.
Required Audits
Award Documents: Compliance (Don’t Worry, this is Manageable)
SAMOMB Guidelines to Agencies on
Governmentwide Debarment and Suspension (Nonprocurement),
Recipient Integrity and Performance
Matters
Drug-Free Workplace
Restrictions on Lobbying
Uniform Relocation Assistance and Real
Property Acquisitions
Applicable federal environmental laws
and regulations.
Title VI of the Civil Rights Act of 1964 -
-----------
The Fair Housing Act
Section 504 of the Rehabilitation Act
(disability discrimination)
The Age Discrimination Act
Title II of the Americans with
Disabilities Act of 1990.
❖ Applies to projects, not employment
❖Must have a complaint procedure(Use ARDOT’s Title VI forms)
❖ Limited English Proficiency
❖ Report violations
❖ Train staff
❖ Narrative Report on Progress
Title VI –Nondiscrimination
Non-Discrimination in Grant Administration
Title VI Compliance Document
❖ Already applies to municipalities – since 1991
❖ Protects the rights of people who have a physical or mental disability
❖ Be sure to add a clause in any public works construction contract that ensures ADA compliance
❖ Staff training & Policies – how to access aids, etc.
ADA (Disability)
Drug Free Workplace
Reporting
For Metro cities: quarterly
For NEUs: annually
Narrative: Title VI
Even if you haven’t spent or
obligated any funds, must file
report.
More guidance coming soon.
Administration Costs
Eligible Use
Administration costs must be reasonable,
actual costs (% of audit, grant)
Indirect CostIndirect – 10% De Minimus
Budget early, but charge/incur at time of reporting,
Then move funds to general revenue.
Final Thoughts
INTERIM RULES (SOON TO BE FINAL)
MORE GUIDANCE (FAQS) COMING
AGAIN, PLENTY OF TIME TO SPEND