HomeMy Public PortalAboutTBWP 2021-07-07 17
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Board of Trustees
Workshop Agenda
Fraser Town Hall, 153 Fraser Avenue and Virtually
Wednesday July 7, 2021
6:00 PM- 7:00 PM
Members of the Board may have dinner together @ 5:30 p.m.
NOTE: Times are approximate and agenda subject to change
Watch the meeting live on Fraser's YouTube Channel
https://www.youtube.com/channel/UCs5aHnl7d-kkOi 1 cxV28DSg
Participate in the meeting through our virtual platform
Zoom Meeting Information
https://us02web.zoom.us/i/2590408013
Meeting 113:259 040 8013
Phone 1 -346-248-7799
1. American Rescue Plan Act Funds
Documents:
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MEMO TO: Mayor Vandernail and the Board of Trustees
FROM: Beth Williams, Finance Manager
DATE: July 7t", 2021
SUBJECT: The American Rescue Plan Act of 2021
MATTER BEFORE BOARD:
Funding uses for The American Rescue Plan Act of 2021, also called the COVID-19 Stimulus
Package
BACKGROUND:
On March 11, 2021 The American Rescue Plan Act (ARPA) of 2021, also called the COVID-19
Stimulus Package or American Rescue Plan, a $1.9 trillion economic stimulus bill, was passed
by the 117th United States Congress and signed into law.
The purpose of the bill is to send relief to states and local governments affected by the COVID-
19 Pandemic allowing them to better respond to the resulting public health needs and economic
hardships that communities continue to experience nationwide.
Non-Entitlement Units (NEUs)
Local governments with populations under 50,000 will receive an allocation determined by the
U.S. Treasury that will be distributed by the state. The allocation amount is determined by the
U.S. Treasury based on population and needs within that population. The allocation will be
distributed in 2 separate tranches (payments). The first tranche will be distributed within 30 days
of the funding being issued to the state. The second tranche will be distributed no earlier than
one year after the first tranche was received.
Fraser has been allocated $333,289.78. These funds are to cover eligible costs that incurred
during the period that begins March 3, 2021 and ends December 31, 2024, as long as the
award funds for the obligations incurred by December 31, 2024 and are expended by December
31, 2026.
Uses of Funding:
• Support Public Health Response
• Address Negative Economic Impacts
• Replace Public Sector Revenue Loss
• Premium Pay for Essential Workers
• Water and Sewer Infrastructure
• Broadband Infrastructure
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For example uses of funds, refer to the Coronavirus State and Local Fiscal Recovery Funds
Quick Reference Guide and the American Rescue Plan FACT sheet provided by the U.S.
Department of Treasury. For more detailed guidance, refer to the Compliance and Reporting
Guidance: State and Local Fiscal Recovery Funds also provided by the U.S. Department of
Treasury.
STAFF RECOMMENDATIONS:
In the American Rescue Plan FACT sheet:
#2 Addressing the negative economic impacts caused by the public health emergency, to help
alleviate the economic hardships caused by the pandemic, Coronavirus State and Local Fiscal
Recovery Funds enable eligible state, local, territorial, and Tribal governments to provide a wide
range of assistance to individuals and households, small businesses, and impacted industries,
in addition to enabling governments to rehire public sector staff and rebuild capacity.
• One use is supporting small businesses by helping them to address financial challenges
caused by the pandemic and to make investments in COVID-19 prevention and
mitigation tactics, as well as to provide technical assistance. To achieve these goals,
recipients may employ this funding to execute a broad array of loan, grant, in-kind
assistance, and counseling programs to enable small businesses to rebound from the
downturn.
The funding requests for Grand Kids Learning Center and KFFR fall under this category along
with helping workers, families, other small businesses, helping the tourism, travel and hospitality
sectors and rebuilding public sector capacity (rehiring staff). Donation to the Grand Foundation
would help assist workers and families in the community. Also, the Colorado Main Street: Open
for Business 20% matching funds could help businesses update their fagade and energy saving
initiatives.
#3 Serving the hardest-hit communities and families, while the pandemic has affected
communities across the country, it has disproportionately impacted low-income families and
communities of color and has exacerbated systemic health and economic inequities. Low-
income and socially vulnerable communities have experienced the most severe health
impacts.
• One use is Investments in housing and neighborhoods, such as services to address
individuals experiencing homelessness, affordable housing development, housing
vouchers, and residential counseling and housing navigation assistance to facilitate
moves to neighborhoods with high economic opportunity.
However, Governments may use Coronavirus State and Local Fiscal Recovery Funds to
support these additional services if they are provided:
• within a Qualified Census Tract (a low-income area as designated by the Department of
Housing and Urban Development);
• to families living in Qualified Census Tracts;
• by a Tribal government; or,
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• to other populations, households, or geographic areas disproportionately impacted by
the pandemic.
If Fraser can provide documentation that shows the disproportionate impact by the pandemic to
low-income families, communities of color, other populations, households, or geographic areas
then use of these funds towards housing can be applied.
#5 Providing premium pay for essential workers, to recognize the heroic contributions of
essential workers. Recipients may use this funding to provide premium pay directly, or through
grants to private employers, to a broad range of essential workers who must be physically
present at their jobs including, among others:
• Staff at nursing homes, hospitals, and home-care settings
• Workers at farms, food production facilities, grocery stores, and restaurants
• Janitors and sanitation workers
• Public health and safety staff
• Truck drivers, transit staff, and warehouse workers
• Childcare workers, educators, and school staff
• Social service and human services staff
Fraser could give grants to private employers to increase workers pay for those businesses that
have workers in the above listed jobs emphasizing the need for recipients to prioritize premium
pay for lower income workers.
#6 Investing in water and sewer infrastructure, to invest in necessary
improvements to their water and sewer infrastructures, including projects that address the
impacts of climate change.
Recipients may use this funding to invest in an array of drinking water infrastructure projects,
such as building or upgrading facilities and transmission, distribution, and storage systems,
including the replacement of lead service lines.
Recipients may also use this funding to invest in wastewater infrastructure projects, including
constructing publicly-owned treatment infrastructure, managing and treating stormwater or
subsurface drainage water, facilitating water reuse, and securing publicly-owned treatment
works.
Fraser could use these funds for some of the needed water and sewer infrastructure projects.
#7 Investing in broadband infrastructure, the pandemic has underscored the importance of
access to universal, high-speed, reliable, and affordable broadband coverage. Over the past
year, millions of Americans relied on the internet to participate in remote school, healthcare, and
work.
Investments in broadband be made in areas that are currently unserved or underserved—in
other words, lacking a wireline connection that reliably delivers minimum speeds of 25 Mbps
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download and 3 Mbps upload. Recipients are also encouraged to prioritize projects that achieve
last-mile connections to households and businesses.
Using these funds, recipients generally should build broadband infrastructure with modern
technologies in mind, specifically those projects that deliver services offering reliable 100 Mbps
download and 100 Mbps upload speeds, unless impracticable due to topography, geography, or
financial cost. In addition, recipients are encouraged to pursue fiber optic investments.
Fraser could use these funds to improve the broadband infrastructure in the area.
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U.S. DEPARTMENT OF THE TREASURY
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The American Rescue Plan will deliver $350 billion for state, local, territorial, and
Tribal governments to respond to the COVID-19 emergency and bring back jobs.
The Coronavirus State and Local Fiscal Recovery Funds provide a Eligible Jurisdictions&Allocations
substantial infusion of resources to help turn the tide on the
pandemic, address its economic fallout,and lay the foundation for
a strong and equitable recovery. Direct Recipients
Funding Objectives . States and District of Columbia
($195.3 billion)
• Support urgent VI -1 response efforts to continue to . Counties($65.1 billion)
decrease spread of the virus and bring the pandemic under control
® Metropolitan cities($45.6 billion)
• Replace lost public sector revenue to strengthen support for vital .
public services and help retain jobs • Tribal governments($20.0 billion)
• Support immediate economic stabilization for households and . Territories($4.5 billion)
businesses Indirect Recipients
• Address systemic public health and economic challenges that Non-entitlement units($19.5 billion)
have contributed to the inequal impact of the pandemic
Support Public Health Response AdP Address Negative Economic Impacts
Fund COVID-19 mitigation efforts, medical 11 LH Respond to economic harms to workers,families,
expenses, behavioral healthcare,and certain small businesses, impacted industries, and the
public health and safety staff public sector
Replace Public Sector Revenue Loss Premium Pay for Essential Workers
Use funds to provide government services to A Offer additional support to those who have and
the extent of the reduction in revenue will bear the greatest health risks because of their
experienced due to the pandemic service in critical infrastructure sectors
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Broadband Infrastructure ater and Sewer Infrastructure
Make necessary investments to improve access Make necessary investments to provide unserved
to clean drinking water and invest in or underserved locations with new or expanded
wastewater and stormwater infrastructure broadband access
For More Information., Pease'v'isitwww,treaS,Lliry.gov/SLFRP
For Media Inquirles: Please contact the U.S.Treasury Press Office at 1(202) 622-2960
For General Inquirles: Please email SLFRP@treaSLAry.gov for addiftionai information
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LJ.S,, DEPARTMENT OF THE TREASUIRY
�E x a r ri p I e I J s e s o f Ll ia`l C1 S
Support Public Health Response Zij Address Negative Economic Impacts
Services to contain and mitigate the spread of . Deliver assistance to workers and families, inc lt..idirig
COVID-19, rnedic,al expenses, supfx-.rH: unernployed kers, ,aid tc)
testing, cont,'.)ct qu,ar,-'.u'lti1'le Costs, c,-,dp,--.1city and sunikii.-A's benefits ft-A families c:rf 4:OVID-11)vktirlls
enhancements, And many rel,-.ited ,activities . Support smaill businesses with loaiis, F.pants, in-kind
Behavioral healthcare services, il-lClUdil'lp ii'ierital assistance, alf1d COL1lJ'5Plk'lg iA'0gUJITS
health crr subst ince nilsuse tre,-.itirient, crisis . Speed the recovery of impacted industries, indk�idiiig
lriterventk.)n, ind ielited services the havel, �.wd hi�.-.)spitalitysectols
payroll and coveiredbeinefitsfor public he,,alth, . Rebuild public sector capacity by ehiiing st-iff,
healthcare, hL)111,1r1 sei'vlces, and J)LJI)li(-safety staff to replerlishing state Unemployment it]SUrance funds, A_nd
the extent that they woi k on the COVID-19 mesponse implewienting economic o'elief pn)gi anis
Replace Public Sector Revenue Loss l'[ Prium Pay for Essential Workers
Ensure continuity of vital government services by . Provide premium pay to essential workers, both
fillling budget shcn'tfalls directly and 01H)Ugh grarlts tai third-party employers
Revenue loss is calculated relative to the expected . Prioritize low-and moderate-income workers,who
tiend, beginrilng wlth the lJSt full fiscal year (iie- f,dce the gre,itest inismAtch between empluyment-
pandemlc and adjusted a1111L]cflly l0l' 8N)Wth mel.)ted he,flth risks, nd ampersation
Recipients may re-calculate revenue loss at 111LIltiple . Key sectors include healthcare, giocery and food
points during the prograni, supl Ll entities seu'vices, edL]CatiO1, childcare, sanitation,aural transit
that experience revenue loss with i lag . Must be fully additive to a workei"s wages
Broadband Infrastructure,
Water & Sewer Infrastructure
lindludes improvements to infrastructure, SLICh as . Focus on households and businesses WitiIOLlt access
building Or upgrafflng facilities and ltransmissicm, to broadband ind those with ccmnections that do
dish'ibutlion,and sk'nage systems not pn:)vide iiiii,iiii,iAlly,ic!c!el)tal)lesl)eeds
EflgllWe uses Migined to Einviroinmentai Protection . Fuindl projects that deliver reliable service vJth
Agency)project categories fcei' the Clean Watei,State 111k1iWILIM 100 IVBb[)S CICAVOC)ACI/ 100 Mb[)S Lll)I()ad
Revcflving Fund and DrirklngWaLer`tale Revolving Speed's U111less imp ractic ible
Fund . Complement broadband investments made thl()LI&T11
the Capital Projects I'LMd
Eq�uity-Focused Services QY Ineligible Uses
• AddltloinMl f lexibUity for the hardest-hilt communities . Changes that reduce net tax revenue ffl U St not be
and farnflies to address health dispirities, invest in Offset with American ReSCUe P1,311 fUlICIS
huslng,address educatlonal disparities.and promote . Extraordinary payments into a pension fund are e a
heafthy chlldhood envlromnents prr)hiLOed Use Of this funding
Biroadllly applllcaUle h)QUalified Census Tr,,ICIS, other . Other restrictions apply to el igi ble Uses
dispirnpnirflnnitely impacted areas, and when
provlided byTrlbil governwients
The examples listed in this document are non-exha u st live,do not describe all terms and conditions associated with the use of this funding,
and do,not describe ail)the restrictions on use that may apply. The U.S. Department of the Treasury provides this document,the State andl
Local contact channels,and other resources for informational purposes.Although efforts have been made to ensure the accuracy of the
information(provided,the information is sulbjectto change or correction.Any Coronavirus State and Local Fiscal Recovery Funds received will be
sulbiectto the terms and conditions of the agreement entered into by Treasury and the respective jurisdiction,which shall incorporate the
provisions of the Interum Final Rude ail Final Rule that irnpleirnents this program.
FACT SHEET: The Coronavirus State and Local Fiscal Recovery Funds Will Deliver
$350 Billion for State, Local, Territorial, and Tribal Governments to Respond to the
COVID-19 Emergency and Bring Back Jobs
May 10, 2021
Aid to state, local, territorial, and Tribal governments will help turn the tide on the pandemic, address its
economic fallout, and lay the foundation for a strong and equitable recovery
Today,the U.S. Department of the Treasury announced the launch of the Coronavirus State and Local
Fiscal Recovery Funds, established by the American Rescue Plan Act of 2021, to provide $350 billion in
emergency funding for eligible state, local,territorial, and Tribal governments. Treasury also released
details on how these funds can be used to respond to acute pandemic response needs, fill revenue
shortfalls among these governments, and support the communities and populations hardest-hit by the
COVID-19 crisis. With the launch of the Coronavirus State and Local Fiscal Recovery Funds, eligible
jurisdictions will be able to access this funding in the coming days to address these needs.
State, local,territorial, and Tribal governments have been on the frontlines of responding to the
immense public health and economic needs created by this crisis–from standing up vaccination sites to
supporting small businesses–even as these governments confronted revenue shortfalls during the
downturn. As a result,these governments have endured unprecedented strains,forcing many to make
untenable choices between laying off educators,firefighters, and other frontline workers or failing to
provide other services that communities rely on. Faced with these challenges, state and local
governments have cut over 1 million jobs since the beginning of the crisis. The experience of prior
economic downturns has shown that budget pressures like these often result in prolonged fiscal
austerity that can slow an economic recovery.
To support the immediate pandemic response, bring back jobs, and lay the groundwork for a strong and
equitable recovery, the American Rescue Plan Act of 2021 established the Coronavirus State and Local
Fiscal Recovery Funds, designed to deliver$350 billion to state, local, territorial, and Tribal governments
to bolster their response to the COVID-19 emergency and its economic impacts. Today,Treasury is
launching this much-needed relief to:
• Support urgent COVID-19 response efforts to continue to decrease spread of the virus and bring
the pandemic under control;
• Replace lost public sector revenue to strengthen support for vital public services and help retain
jobs;
• Support immediate economic stabilization for households and businesses; and,
• Address systemic public health and economic challenges that have contributed to the inequal
impact of the pandemic on certain populations.
The Coronavirus State and Local Fiscal Recovery Funds provide substantial flexibility for each jurisdiction
to meet local needs—including support for households, small businesses, impacted industries, essential
workers, and the communities hardest-hit by the crisis. These funds also deliver resources that
recipients can invest in building, maintaining, or upgrading their water, sewer, and broadband
infrastructure.
1
Starting today, eligible state,territorial, metropolitan city, county, and Tribal governments may request
Coronavirus State and Local Fiscal Recovery Funds through the Treasury Submission Portal. Concurrent
with this program launch,Treasury has published an Interim Final Rule that implements the provisions
of this program.
FUNDING AMOUNTS
The American Rescue Plan provides a total of$350 billion in Coronavirus State and Local Fiscal Recovery
Funds to help eligible state, local,territorial, and Tribal governments meet their present needs and build
the foundation for a strong recovery. Congress has allocated this funding to tens of thousands of
jurisdictions. These allocations include:
Amount
Type ($ billions)
States& District of Columbia $195.3
Counties $65.1
Metropolitan Cites $45.6
Tribal Governments $20.0
Territories $4.5
Non-Entitlement Units of $19.5
Local Government
Treasury expects to distribute these funds directly to each state,territorial, metropolitan city, county,
and Tribal government. Local governments that are classified as non-entitlement units will receive this
funding through their applicable state government. Treasury expects to provide further guidance on
distributions to non-entitlement units next week.
Local governments should expect to receive funds in two tranches,with 50% provided beginning in May
2021 and the balance delivered 12 months later. States that have experienced a net increase in the
unemployment rate of more than 2 percentage points from February 2020 to the latest available data as
of the date of certification will receive their full allocation of funds in a single payment; other states will
receive funds in two equal tranches. Governments of U.S. territories will receive a single payment.
Tribal governments will receive two payments,with the first payment available in May and the second
payment, based on employment data,to be delivered in June 2021.
USES OF FUNDING
Coronavirus State and Local Fiscal Recovery Funds provide eligible state, local,territorial, and Tribal
governments with a substantial infusion of resources to meet pandemic response needs and rebuild a
stronger, more equitable economy as the country recovers. Within the categories of eligible uses,
recipients have broad flexibility to decide how best to use this funding to meet the needs of their
communities. Recipients may use Coronavirus State and Local Fiscal Recovery Funds to:
2
• Support public health expenditures, by funding COVID-19 mitigation efforts, medical expenses,
behavioral healthcare, and certain public health and safety staff;
• Address negative economic impacts caused by the public health emergency, including
economic harms to workers, households, small businesses, impacted industries, and the public
sector;
• Replace lost public sector revenue, using this funding to provide government services to the
extent of the reduction in revenue experienced due to the pandemic;
• Provide premium pay for essential workers, offering additional support to those who have
borne and will bear the greatest health risks because of their service in critical infrastructure
sectors; and,
• Invest in water, sewer, and broadband infrastructure, making necessary investments to
improve access to clean drinking water, support vital wastewater and stormwater
infrastructure, and to expand access to broadband internet.
Within these overall categories,Treasury's Interim Final Rule provides guidelines and principles for
determining the types of programs and services that this funding can support, together with examples
of allowable uses that recipients may consider. As described below,Treasury has also designed these
provisions to take into consideration the disproportionate impacts of the COVID-19 public health
emergency on those hardest-hit by the pandemic.
1. Supporting the public health response
Mitigating the impact of COVID-19 continues to require an unprecedented public health response from
state, local, territorial, and Tribal governments. Coronavirus State and Local Fiscal Recovery Funds
provide resources to meet these needs through the provision of care for those impacted by the virus
and through services that address disparities in public health that have been exacerbated by the
pandemic. Recipients may use this funding to address a broad range of public health needs across
COVID-19 mitigation, medical expenses, behavioral healthcare, and public health resources. Among
other services, these funds can help support:
• Services and programs to contain and mitigate the spread of COVID-19, including:
✓ Vaccination programs ✓ Enhancement of healthcare capacity,
✓ Medical expenses including alternative care facilities
✓ Testing ✓ Support for prevention, mitigation, or
✓ Contact tracing other services in congregate living
✓ Isolation or quarantine facilities and schools
✓ PPE purchases ✓ Enhancement of public health data
✓ Support for vulnerable populations to systems
access medical or public health services ✓ Capital investments in public facilities to
✓ Public health surveillance (e.g., meet pandemic operational needs
monitoring for variants) ✓ Ventilation improvements in key settings
✓ Enforcement of public health orders like healthcare facilities
✓ Public communication efforts
3
• Services to address behavioral healthcare needs exacerbated by the pandemic, including:
✓ Mental health treatment ✓ Crisis intervention
✓ Substance misuse treatment ✓ Services or outreach to promote access
✓ Other behavioral health services to health and social services
✓ Hotlines or warmlines
• Payroll and covered benefits expenses for public health, healthcare, human services, public
safety and similar employees, to the extent that they work on the COVID-19 response. For
public health and safety workers, recipients can use these funds to cover the full payroll and
covered benefits costs for employees or operating units or divisions primarily dedicated to the
COVID-19 response.
2. Addressing the negative economic impacts caused by the public health emergency
The COVID-19 public health emergency resulted in significant economic hardship for many Americans.
As businesses closed, consumers stayed home, schools shifted to remote education, and travel declined
precipitously, over 20 million jobs were lost between February and April 2020. Although many have
since returned to work, as of April 2021,the economy remains more than 8 million jobs below its pre-
pandemic peak, and more than 3 million workers have dropped out of the labor market altogether since
February 2020.
To help alleviate the economic hardships caused by the pandemic, Coronavirus State and Local Fiscal
Recovery Funds enable eligible state, local,territorial, and Tribal governments to provide a wide range
of assistance to individuals and households, small businesses, and impacted industries, in addition to
enabling governments to rehire public sector staff and rebuild capacity. Among these uses include:
• Delivering assistance to workers and families, including aid to unemployed workers and job
training, as well as aid to households facing food, housing, or other financial insecurity. In
addition,these funds can support survivor's benefits for family members of COVID-19 victims.
• Supporting small businesses, helping them to address financial challenges caused by the
pandemic and to make investments in COVID-19 prevention and mitigation tactics, as well as to
provide technical assistance. To achieve these goals, recipients may employ this funding to
execute a broad array of loan, grant, in-kind assistance, and counseling programs to enable
small businesses to rebound from the downturn.
• Speeding the recovery of the tourism,travel,and hospitality sectors, supporting industries that
were particularly hard-hit by the COVID-19 emergency and are just now beginning to mend.
Similarly impacted sectors within a local area are also eligible for support.
• Rebuilding public sector capacity, by rehiring public sector staff and replenishing
unemployment insurance (UI)trust funds, in each case up to pre-pandemic levels. Recipients
may also use this funding to build their internal capacity to successfully implement economic
relief programs, with investments in data analysis,targeted outreach, technology infrastructure,
and impact evaluations.
4
3. Serving the hardest-hit communities and families
While the pandemic has affected communities across the country, it has disproportionately impacted
low-income families and communities of color and has exacerbated systemic health and economic
inequities. Low-income and socially vulnerable communities have experienced the most severe health
impacts. For example, counties with high poverty rates also have the highest rates of infections and
deaths, with 223 deaths per 100,000 compared to the U.S. average of 175 deaths per 100,000.
Coronavirus State and Local Fiscal Recovery Funds allow for a broad range of uses to address the
disproportionate public health and economic impacts of the crisis on the hardest-hit communities,
populations, and households. Eligible services include:
• Addressing health disparities and the social determinants of health,through funding for
community health workers, public benefits navigators, remediation of lead hazards, and
community violence intervention programs;
• Investments in housing and neighborhoods, such as services to address individuals
experiencing homelessness, affordable housing development, housing vouchers, and residential
counseling and housing navigation assistance to facilitate moves to neighborhoods with high
economic opportunity;
• Addressing educational disparities through new or expanded early learning services, providing
additional resources to high-poverty school districts, and offering educational services like
tutoring or afterschool programs as well as services to address social, emotional, and mental
health needs; and,
• Promoting healthy childhood environments, including new or expanded high quality childcare,
home visiting programs for families with young children, and enhanced services for child
welfare-involved families and foster youth.
Governments may use Coronavirus State and Local Fiscal Recovery Funds to support these additional
services if they are provided:
• within a Qualified Census Tract (a low-income area as designated by the Department of Housing
and Urban Development);
• to families living in Qualified Census Tracts;
• by a Tribal government; or,
• to other populations, households, or geographic areas disproportionately impacted by the
pandemic.
4. Replacing lost public sector revenue
State, local,territorial, and Tribal governments that are facing budget shortfalls may use Coronavirus
State and Local Fiscal Recovery Funds to avoid cuts to government services. With these additional
resources, recipients can continue to provide valuable public services and ensure that fiscal austerity
measures do not hamper the broader economic recovery.
5
Many state, local,territorial, and Tribal governments have experienced significant budget shortfalls,
which can yield a devastating impact on their respective communities. Faced with budget shortfalls and
pandemic-related uncertainty, state and local governments cut staff in all 50 states. These budget
shortfalls and staff cuts are particularly problematic at present, as these entities are on the front lines of
battling the COVID-19 pandemic and helping citizens weather the economic downturn.
Recipients may use these funds to replace lost revenue. Treasury's Interim Final Rule establishes a
methodology that each recipient can use to calculate its reduction in revenue. Specifically, recipients
will compute the extent of their reduction in revenue by comparing their actual revenue to an
alternative representing what could have been expected to occur in the absence of the pandemic.
Analysis of this expected trend begins with the last full fiscal year prior to the public health emergency
and projects forward at either(a)the recipient's average annual revenue growth over the three full
fiscal years prior to the public health emergency or(b)4.1%, the national average state and local
revenue growth rate from 2015-18 (the latest available data).
For administrative convenience,Treasury's Interim Final Rule allows recipients to presume that any
diminution in actual revenue relative to the expected trend is due to the COVID-19 public health
emergency. Upon receiving Coronavirus State and Local Fiscal Recovery Funds, recipients may
immediately calculate the reduction in revenue that occurred in 2020 and deploy funds to address any
shortfall. Recipients will have the opportunity to re-calculate revenue loss at several points through the
program, supporting those entities that experience a lagged impact of the crisis on revenues.
Importantly, once a shortfall in revenue is identified, recipients will have broad latitude to use this
funding to support government services, up to this amount of lost revenue.
5. Providing premium pay for essential workers
Coronavirus State and Local Fiscal Recovery Funds provide resources for eligible state, local,territorial,
and Tribal governments to recognize the heroic contributions of essential workers. Since the start of the
public health emergency, essential workers have put their physical well-being at risk to meet the daily
needs of their communities and to provide care for others.
Many of these essential workers have not received compensation for the heightened risks they have
faced and continue to face. Recipients may use this funding to provide premium pay directly, or through
grants to private employers, to a broad range of essential workers who must be physically present at
their jobs including, among others:
✓ Staff at nursing homes, hospitals, ✓ Truck drivers,transit staff, and
and home-care settings warehouse workers
✓ Workers at farms,food production ✓ Childcare workers, educators, and school
facilities, grocery stores, and restaurants staff
✓ Janitors and sanitation workers ✓ Social service and human services staff
✓ Public health and safety staff
Treasury's Interim Final Rule emphasizes the need for recipients to prioritize premium pay for lower
income workers. Premium pay that would increase a worker's total pay above 150%of the greater of
the state or county average annual wage requires specific justification for how it responds to the needs
of these workers.
6
In addition, employers are both permitted and encouraged to use Coronavirus State and Local Fiscal
Recovery Funds to offer retrospective premium pay, recognizing that many essential workers have not
yet received additional compensation for work performed. Staff working for third-party contractors in
eligible sectors are also eligible for premium pay.
6. Investing in water and sewer infrastructure
Recipients may use Coronavirus State and Local Fiscal Recovery Funds to invest in necessary
improvements to their water and sewer infrastructures, including projects that address the impacts of
climate change.
Recipients may use this funding to invest in an array of drinking water infrastructure projects, such as
building or upgrading facilities and transmission, distribution, and storage systems, including the
replacement of lead service lines.
Recipients may also use this funding to invest in wastewater infrastructure projects, including
constructing publicly-owned treatment infrastructure, managing and treating stormwater or subsurface
drainage water,facilitating water reuse, and securing publicly-owned treatment works.
To help jurisdictions expedite their execution of these essential investments,Treasury's Interim Final
Rule aligns types of eligible projects with the wide range of projects that can be supported by the
Environmental Protection Agency's Clean Water State Revolving Fund and Drinking Water State
Revolving Fund. Recipients retain substantial flexibility to identify those water and sewer infrastructure
investments that are of the highest priority for their own communities.
Treasury's Interim Final Rule also encourages recipients to ensure that water, sewer, and broadband
projects use strong labor standards, including project labor agreements and community benefits
agreements that offer wages at or above the prevailing rate and include local hire provisions.
7. Investing in broadband infrastructure
The pandemic has underscored the importance of access to universal, high-speed, reliable, and
affordable broadband coverage. Over the past year, millions of Americans relied on the internet to
participate in remote school, healthcare, and work.
Yet, by at least one measure, 30 million Americans live in areas where there is no broadband service or
where existing services do not deliver minimally acceptable speeds. For millions of other Americans,the
high cost of broadband access may place it out of reach. The American Rescue Plan aims to help remedy
these shortfalls, providing recipients with flexibility to use Coronavirus State and Local Fiscal Recovery
Funds to invest in broadband infrastructure.
Recognizing the acute need in certain communities,Treasury's Interim Final Rule provides that
investments in broadband be made in areas that are currently unserved or underserved—in other
words, lacking a wireline connection that reliably delivers minimum speeds of 25 Mbps download and 3
Mbps upload. Recipients are also encouraged to prioritize projects that achieve last-mile connections to
households and businesses.
Using these funds, recipients generally should build broadband infrastructure with modern technologies
in mind, specifically those projects that deliver services offering reliable 100 Mbps download and 100
7
Mbps upload speeds, unless impracticable due to topography, geography, or financial cost. In addition,
recipients are encouraged to pursue fiber optic investments.
In view of the wide disparities in broadband access, assistance to households to support internet access
or digital literacy is an eligible use to respond to the public health and negative economic impacts of the
pandemic, as detailed above.
S. Ineligible Uses
Coronavirus State and Local Fiscal Recovery Funds provide substantial resources to help eligible state,
local,territorial, and Tribal governments manage the public health and economic consequences of
COVID-19. Recipients have considerable flexibility to use these funds to address the diverse needs of
their communities.
To ensure that these funds are used for their intended purposes,the American Rescue Plan Act also
specifies two ineligible uses of funds:
• States and territories may not use this funding to directly or indirectly offset a reduction in net
tax revenue due to a change in law from March 3,2021 through the last day of the fiscal year
in which the funds provided have been spent. The American Rescue Plan ensures that funds
needed to provide vital services and support public employees, small businesses, and families
struggling to make it through the pandemic are not used to fund reductions in net tax revenue.
Treasury's Interim Final Rule implements this requirement. If a state or territory cuts taxes,they
must demonstrate how they paid for the tax cuts from sources other than Coronavirus State
Fiscal Recovery Funds—by enacting policies to raise other sources of revenue, by cutting
spending, or through higher revenue due to economic growth. If the funds provided have been
used to offset tax cuts,the amount used for this purpose must be paid back to the Treasury.
• No recipient may use this funding to make a deposit to a pension fund. Treasury's Interim
Final Rule defines a "deposit" as an extraordinary contribution to a pension fund for the purpose
of reducing an accrued, unfunded liability. While pension deposits are prohibited, recipients
may use funds for routine payroll contributions for employees whose wages and salaries are an
eligible use of funds.
Treasury's Interim Final Rule identifies several other ineligible uses, including funding debt service, legal
settlements or judgments, and deposits to rainy day funds or financial reserves. Further, general
infrastructure spending is not covered as an eligible use outside of water, sewer,and broadband
investments or above the amount allocated under the revenue loss provision. While the program offers
broad flexibility to recipients to address local conditions, these restrictions will help ensure that funds
are used to augment existing activities and address pressing needs.
8
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Compliance and
ing * da
Report * Gui nce
State and Local . Recovery
June 24, 2021
Version: 1.1
0 U.S.DEPARTMENT OF THE TREASURY
Coronavirus i
Guidance on Recipient iReporting
Responsibilities
On March 11, 2021, the American Rescue Plan Act was signed into law, and established the
Coronavirus State Fiscal Recovery Fund and Coronavirus Local Fiscal Recovery Funds,
which together make up the Coronavirus State and Local Fiscal Recovery Funds ("SLFRF")
program. This program is intended to provide support to State, territorial, local, and Tribal
governments in responding to the economic and public health impacts of COVID-19 and in
their efforts to contain impacts on their communities, residents, and businesses.
This guidance provides additional detail and clarification for each recipient's compliance and
reporting responsibilities under the SLFRF program, and should be read in concert with the
Award Terms and Conditions, the authorizing statute, the „ II II II ;If:::......pp........
i
h
and other regulatory and statutory requirements, including regulatory requirements under tI � ,,;:
R. i nifui[pnn n MLU' nuu : ....1. : ,. Lis�uun,,µw, in SAM.gov under
a hull,;;;; a ll ,� , Please see the :u;;;tl kn nu
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 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 iRequirements
This section provides information on the reporting requirements for the SLFRF program.
A. Interim Report........................................................................................ P. 13
B. Project and Expenditure Report................................................................. P. 15
C. Recovery Plan Performance Report............................................................ P. 23
Appendix 1: Expenditure Categories................................................................... P. 31
Appendix 2: Evidenced-Based Intervention Additional Information............................. P. 33
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Part 1 : General Guidance
This section provides an orientation on recipients' compliance responsibilities and Treasury's
expectations and recommended best practices where appropriate under the SLFRF program.
Recipients under the SLFRF program are the eligible entities identified in sections 602 and
603 of the Social Security Act as added by section 9901 of the American Rescue Plan Act of
2021 (the "SLFRF statute") that receive a SLFRF award. Subrecipients under the SLFRF
program are entities that receive a subaward from a recipient to carry out the purposes
(program or project) of the SLFRF award on behalf of the recipient.
Recipients are accountable to Treasury for oversight of their subrecipients, including ensuring
their subrecipients comply with the SLFRF statute, SLFRF Award Terms and Conditions,
Treasury's Interim Final Rule, and reporting requirements, as applicable.
A. Key Principles
There are several guiding principles for developing your own effective compliance regimes:
• Recipients and subrecipients are the first line of defense, and responsible for ensuring the
SLFRF award funds are not used for ineligible purposes, and there is no fraud,waste, and
abuse associated with their SLFRF award;
• Many SLFRF-funded projects respond to the COVID-19 public health emergency and
meet urgent community needs. Swift and effective implementation is vital, and recipients
must balance facilitating simple and rapid program access widely across the community
and maintaining a robust documentation and compliance regime;
• SLFRF-funded projects should advance shared interests and promote equitable delivery
of government benefits and opportunities to underserved communities, as outlined in
"a .,'i.,I,II,. Ik,..... v V{',l all.... i H.II I�,.. .�rI P.... LIp"'d p"'duI fol[
Illullll!111:9 r.Ilil .1U2!11 dile V Ie I II Giuvei I alei7 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
I' Ilulll�lr 11Id !!IIru IIN1 12'O and IMu lol, lr;0'hluim IIS
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.
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Treasury adopted an IIIii::p�„Lp Inn.....IC Iiii.:ns, IL....I[�11,uII to implement these eligible use categories and other
restrictions on the use of funds under the SLFRF program.' 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 IiIG' iiunu „IL......IV�b„i,,ulJe, details recipients' compliance responsibilities and provides
.:uia ui�u....
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
' 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.
ullll ` I� v�wu .I`' +i 11bu p;:�p ri , iru ; unl I II ,IC Ii qb: a a�" .. 14 uVmL ";D. I ilii.''` :
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interpretation; and, recipients may not use SLFRF funds as non-Federal match where
prohibited. In addition,the Interim Final Rule clarifies certain uses of SLFRF funds outside
the scope of eligible uses, including that recipients generally may not use SLFRF funds
directly to service debt, satisfy a judgment or settlement, or contribute to a"rainy day"fund.
Recipients should refer to Treasury's Interim Final Rule for more information on these
restrictions.
2. Eligible Costs Timeframe. Your organization, as a recipient of an SLFRF award, may
use SLFRF funds to cover eligible costs that your organization incurred during the period
that begins on March 3, 2021 and ends on December 31, 2024, as long as the award funds
for the obligations incurred by December 31, 2024 are expended by December 31, 2026.
Costs for projects incurred by the recipient State, territorial, local, or Tribal government
prior to March 3, 2021 are not eligible, as provided for in Treasury's Interim Final Rule.
Recipients may use SLFRF award funds to provide assistance to households,
businesses, and individuals within the eligible use categories described in Treasury's
Interim Final Rule for costs that those households, businesses and individuals incurred
prior to March 3, 2021. For example,
a. Public Health/Negative Economic Impacts: Recipients may use SLFRF award funds
to provide assistance to households—such as rent, mortgage, or utility assistance—
for costs incurred by the household prior to March 3, 2021, provided that the recipient
State, territorial, local or Tribal government did not incur the cost of providing such
assistance prior to March 3, 2021.
b. Premium Pay: Recipients may provide premium pay retrospectively for work
performed at any time since the start of the COVID-19 public health emergency.
Such premium pay must be "in addition to" wages and remuneration already received
and the obligation to provide such pay must not have been incurred by the recipient
prior to March 3, 2021.
c. Revenue Loss: Treasury's Interim Final Rule gives recipients broad latitude to use
funds for the provision of government services to the extent of reduction in revenue.
While calculation of lost revenue begins with the recipient's revenue in the last full
fiscal year prior to the COVID-19 public health emergency and includes the 12-month
period ending December 31, 2020, use of funds for government services must be
forward looking for costs incurred by the recipient after March 3, 2021.
d. Investments in Water, Sewer, and Broadband: Recipients may use SLFRF award
funds to make necessary investments in water, sewer, and broadband. Recipients
may use SLFRF award funds to cover costs incurred for eligible projects planned or
started prior to March 3, 2021, provided that the project costs covered by the SLFRF
award funds were incurred after March 3, 2021.
Any funds not obligated or expended for eligible uses by the timelines above must be
returned to Treasury, including any unobligated or unexpended funds that have been
provided to subrecipients and contractors. For the purposes of determining expenditure
eligibility, Treasury's Interim Final Rule provides that "incurred" has the same meaning
given to "financial obligation" in 2 CFR§ 200.1.
3. Reporting. Generally, recipients must submit one initial interim report, quarterly or annual
Project and Expenditure reports which include subaward reporting, and in some cases
annual Recovery Plan reports. Treasury's Interim Final Rule and Part 2 of this guidance
provide more detail around SLFRF reporting requirements.
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Assistance Listing
Their;nt-! Il.,ii;njiir;�� for the Coronavirus State and Local Fiscal Recovery Funds
(CSLFRF)was published May 28, 2021 on SAM.gov under Assistance Listing Number
("ALN"), formerly known as CFDA Number, 21.027.
The assistance listing includes helpful information including program purpose, statutory
authority, eligibility requirements, and compliance requirements for recipients. The ALN
is the unique 5-digit number assigned to identify a federal assistance listing, and can be
used to search for federal assistance program information, including funding
opportunities, spending on USASpending.gov, or audit results through the Federal Audit
Clearinghouse.
To expedite payments and meet statutory timelines Treasury issued initial payments
under an existing ALN, 21.019, assigned to the CRF. If you have already received funds
or captured the initial number in your records, please update your systems and reporting
to reflect the new ALN 21.027 for the SLFRF program. Recipients must use ALN
21.027 for all financial accounting, subawards, and associated program reporting
requirements for the SLFRF awards.
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,
. I. u„u..it ;;"p;b„mu, (the "Uniform Guidance"). In all instances, your organization should review the
u II .............L............ .
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 '0 'Q �:Ml ' ira M .uunu14�llu uu " i..,^ uliuuu ::Hirai uulsu
a 1u u!apu.us d 1 ! ,;). Note that the descriptions below are only general summaries and
all recipients and subrecipients are advised to carefully review the Uniform Guidance
requirements and any additional regulatory and statutory requirements applicable to the
program.
1. Allowable Activities. Each recipient should review program requirements, including
Treasury's Interim Final Rule and the recipient's Award Terms and Conditions, to
determine and record eligible uses of SLFRF funds. Per 2 CFR 200.303,your organization
must develop and implement effective internal controls to ensure that funding decisions
under the SLFRF award constitute eligible uses of funds, and document determinations.
2. Allowable Costs/Cost Principles. As outlined in the Uniform Guidance at 2 CFR Part
200, Subpart E regarding Cost Principles, allowable costs are based on the premise that
a recipient is responsible for the effective administration of Federal awards, application of
sound management practices, and administration of Federal funds in a manner consistent
with the program objectives and terms and conditions of the award. Recipients must
implement robust internal controls and effective monitoring to ensure compliance with the
Cost Principles, which are important for building trust and accountability.
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SLFRF Funds may be, but are not required to be, used along with other funding sources
for a given project. Note that SLFRF Funds may not be used for a non-Federal cost share
or match where prohibited by other Federal programs, e.g., funds may not be used for the
State share for Medicaid.2
Treasury's Interim Final Rule and guidance and the Uniform Guidance outline the types of
costs that are allowable, including certain audit costs. For example, per 2 CFR 200.425,
a reasonably proportionate share of the costs of audits required by the Single Audit Act
Amendments of 1996 are allowable; however, costs for audits that were not performed, or
not in accordance with 2 CFR Part 200, Subpart F are not allowable. Please see 2 CFR
Part 200, Subpart E regarding the Cost Principles for more information.
a. Administrative costs: Recipients may use funds for administering the SLFRF
program, including costs of consultants to support effective management and
oversight, including consultation for ensuring compliance with legal, regulatory, and
other requirements.3 Further, costs must be reasonable and allocable as outlined in 2
CFR 200.404 and 2 CFR 200.405. Pursuant to the SLFRF Award Terms and
Conditions, recipients are permitted to charge both direct and indirect costs to their
SLFRF award as administrative costs. Direct costs are those that are identified
specifically as costs of implementing the SLFRF program objectives, such as
contract support, materials, and supplies for a project. Indirect costs are general
overhead costs of an organization where a portion of such costs are allocable to the
SLFRF award such as the cost of facilities or administrative functions like a director's
office.45 Each category of cost should be treated consistently in like circumstances as
direct or indirect, and recipients may not charge the same administrative costs to
both direct and indirect cost categories, or to other programs. If a recipient has a
current Negotiated Indirect Costs Rate Agreement (NICRA) established with a
Federal cognizant agency responsible for reviewing, negotiating, and approving cost
allocation plans or indirect cost proposals, then the recipient may use its current
NICRA. Alternatively, if the recipient does not have a NICRA, the recipient may elect
to use the de minimis rate of 10 percent of the modified total direct costs pursuant to
2 CFR 200.414(f).
b. Salaries and Expenses: In general, certain employees' wages, salaries, and covered
benefits are an eligible use of SLFRF award funds. Please see Treasury's Interim
Final Rule for details.
3. Cash Management. SLFRF payments made to recipients are not subject to the
requirements of the Cash Management Improvement Act and Treasury's implementing
regulations at 31 CFR part 205 or 2 CFR 200.305(b)(8)-(9).
As such, recipients can place funds in interest-bearing accounts, do not need to remit
interest to Treasury, and are not limited to using that interest for eligible uses under the
SLFRF award.
4. Eligibility. Under this program, recipients are responsible for ensuring funds are used for
eligible purposes. Generally, recipients must develop and implement policies and
procedures, and record retention, to determine and monitor implementation of criteria for
2 See 42 CFR 433.51 and 45 CFR 75.306.
3 Recipients also may use SLFRF funds directly for administrative costs to improve efficacy of
programs that respond to the COVID-19 public health emergency. 31 CFR 35.6(b)(10).
4 2 CFR 200.413 Direct Costs.
5 2 CFR 200.414 Indirect Costs.
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determining the eligibility of beneficiaries and/or subrecipients. Your organization, and if
applicable, the subrecipient(s)administering a program on behalf of your organization, will
need to maintain procedures for obtaining information evidencing a given beneficiary,
subrecipient, or contractor's eligibility including a valid SAM.gov registration. Implementing
risk-based due diligence for eligibility determinations is a best practice to augment your
organization's existing controls.
5. Equipment and Real Property Management. Any purchase of equipment or real
property with SLFRF funds must be consistent with the Uniform Guidance at 2 CFR Part
200, Subpart D. Equipment and real property acquired under this program must be used
for the originally authorized purpose. Consistent with 2 CFR 200.311 and 2 CFR 200.313,
any equipment or real property acquired using SLFRF funds shall vest in the non-Federal
entity. Any acquisition and maintenance of equipment or real property must also be in
compliance with relevant laws and regulations.
6. Matching, Level of Effort, Earmarking. There are no matching, level of effort, or
earmarking compliance responsibilities associated with the SLFRF award. SLFRF funds
may only be used for non-Federal match in other programs where costs are eligible under
both SLFRF and the other program and use of such funds is not prohibited by the other
program.
7. Period of Performance. Your organization should also develop and implement internal
controls related to activities occurring outside the period of performance. For example,
each recipient should articulate each project's policy on allowability of costs incurred prior
to award or start of the period of performance. All funds remain subject to statutory
requirements that they must be used for costs incurred by the recipient during the period
that begins on March 3, 2021, and ends on December 31, 2024, and that award funds for
the financial obligations incurred by December 31, 2024 must be expended by December
31, 2026. Any funds not used must be returned to Treasury.
8. Procurement, Suspension & Debarment. Recipients are responsible for ensuring that
any procurement using SLFRF funds, or payments under procurement contracts using
such funds are consistent with the procurement standards set forth in the Uniform
Guidance at 2 CFR 200.317 through 2 CFR 200.327, as applicable. The Uniform Guidance
establishes in 2 CFR 200.319 that all procurement transactions for property or services
must be conducted in a manner providing full and open competition, consistent with
standards outlined in 2 CFR 200.320, which allows for non-competitive procurements only
in circumstances where at least one of the conditions below is true: the item is below the
micro-purchase threshold; the item is only available from a single source; the public
exigency or emergency will not permit a delay from publicizing a competitive solicitation;
or after solicitation of a number of sources, competition is determined inadequate.6
Recipients must have and use documented procurement procedures that are consistent
with the standards outlined in 2 CFR 200.317 through 2 CFR 200.320. The Uniform
Guidance requires an infrastructure for competitive bidding and contractor oversight,
including maintaining written standards of conduct and prohibitions on dealing with
suspended or debarred parties.Your organization must ensure adherence to all applicable
local, State, and federal procurement laws and regulations.
9. Program Income. Generally, program income includes, but is not limited to, income from
fees for services performed, the use or rental or real or personal property acquired under
Federal awards and principal and interest on loans made with Federal award funds.
Program income does not include interest earned on advances of Federal funds, rebates,
credits, discounts, or interest on rebates, credits, or discounts. Recipients of SLFRF funds
s 2 CFR 200.320(c)(1)-(3)and (5)
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should calculate, document, and record the organization's program income. Additional
controls that your organization should implement include written policies that explicitly
identify appropriate allocation methods, accounting standards and principles, compliance
monitoring checks for program income calculations, and records.
The Uniform Guidance outlines the requirements that pertain to program income at 2 CFR
200.307. Treasury intends to provide additional guidance regarding program income and
the application of 2 CFR 200.307(e)(1), including with respect to lending programs.
10. Reporting. All recipients of federal funds must complete financial, performance, and
compliance reporting as required and outlined in Part 2 of this guidance. Expenditures
may be reported on a cash or accrual basis, as long as the methodology is disclosed and
consistently applied. Reporting must be consistent with the definition of expenditures
pursuant to 2 CFR 200.1. Your organization should appropriately maintain accounting
records for compiling and reporting accurate, compliant financial data, in accordance with
appropriate accounting standards and principles.
In addition, where appropriate, your organization needs to establish controls to ensure
completion and timely submission of all mandatory performance and/or compliance
reporting. See Part 2 of this guidance for a full overview of recipient reporting
responsibilities.
11. Subrecipient Monitoring. SLFRF recipients that are pass-through entities as defined
under 2 CFR 200.1 are required to manage and monitor their subrecipients to ensure
compliance with requirements of the SLFRF award pursuant to 2 CFR 200.332 regarding
requirements for pass-through entities.
First, your organization must clearly identify to the subrecipient: (1) that the award is a
subaward of SLFRF funds; (2) any and all compliance requirements for use of SLFRF
funds; and (3) any and all reporting requirements for expenditures of SLFRF funds.
Next, your organization will need to evaluate each subrecipient's risk of noncompliance
based on a set of common factors. These risk assessments may include factors such as
prior experience in managing Federal funds, previous audits, personnel, and policies or
procedures for award execution and oversight. Ongoing monitoring of any given
subrecipient should reflect its assessed risk and include monitoring, identification of
deficiencies, and follow-up to ensure appropriate remediation.
Accordingly, your organization should develop written policies and procedures for
subrecipient monitoring and risk assessment and maintain records of all award
agreements identifying or otherwise documenting subrecipients' compliance obligations.
12. Special Tests and Provisions. Treasury has set a deadline of July 16, 2021, for receipt
of public comment on its Interim Final Rule and will adopt a final rule responding to these
comments. In addition, Treasury may add clarifications to the implementing guidance.
Across each of the compliance requirements above, Treasury described some best practices
for development of internal controls. The table below provides a brief description and example
of each best practice.
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Table 1: Internal controls best ractiMEN; immijces
® -
Written policies and Formal documentation of Documented procedure for
procedures recipient policies and determining worker eligibility
procedures for premium pay
Written standards of conduct Formal statement of mission, Documented code of conduct/
values, principles, and ethics for subcontractors
professional standards
Risk-based due diligence Pre-payment validations Enhanced eligibility review of
conducted according to an subrecipient with imperfect
assessed level of risk performance history
Risk-based compliance Ongoing validations conducted Higher degree of monitoring for
monitoring according to an assessed level projects that have a higher risk
of risk of fraud, given program
characteristics
Record maintenance and Creation and storage of Storage of all subrecipient
retention financial and non-financial payment information.
records.
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
nIIII. ?°.. v '. ::P:N.:!I!!::re::9.:.n.:".:.). 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.'
2. Recordkeeping Requirements. Generally, your organization must maintain records and
financial documents for five years after all funds have been expended or returned to
Treasury, as outlined in paragraph 4.c. of the Award Terms and Conditions. Treasury may
request transfer of records of long-term value at the end of such period. Wherever
practicable, such records should be collected, transmitted, and stored in open and
machine-readable formats.
Your organization must agree to provide or make available such records to Treasury upon
request, and to any authorized oversight body, including but not limited to the Government
Accountability Office ("GAO"), Treasury's Office of Inspector General ("OIG"), and the
Pandemic Relief Accountability Committee ("PRAC").
3. Single Audit Requirements. Recipients and subrecipients that expend more than
$750,000 in Federal awards during their fiscal year will be subject to an audit under the
Single Audit Act and its implementing regulation at 2 CFR Part 200, Subpart F regarding
audit requirements.8 Recipients and subrecipients may also refer to the y..'.'i,;;p;;M
See flexibility provided in https://www.whitehouse.gov/wp-content/uploads/2021/03/M_21_20.pdf.
8 For-profit entities that receive SLFRF subawards are not subject to Single Audit requirements.
However, they are subject to other audits as deemed necessary by authorized governmental entities,
including Treasury, the GAO, the PRAC and the Treasury's OIG.
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and the tOsee examples and single audit
submissions.
4. ChrU Rights Compliance. Recipients nfFederal financial assistance from the Treasury
one required to meet legal requirements relating to nondiscrimination and
nondiscriminatory use o[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 naoe, oV|or, national origin (including limited
English profioienoy), dioobi|ity, aQe, or sex (including sexual orientation and gander
identity), inaccordance with the following authorities: Title V| ofthe Civil Rights Act of1004
(Tide V|) Public Law 88-352, 42 U.S.C. 20OOd-1 et aeq., and the Department's
implementing regulations, 31 CFR part 22; Section 504ofthe Rehabilitation Act of1Q73
(Section 5U4). Public Law S3-112. aoamended byPublic Law S3-518. 2SU.8.C. 7S4; Title
|X of the Education Amendments of 1072 (Tide |)(\. 20 U.S.C. 1881 et aeq., and the
Department's implementing regulations, 31 CFR part 28; Ago Discrimination Act of1075.
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 V| of the Civil Rights Act,
Treasury will collect and review information from recipients to ascertain their compliance
with the applicable requirements before and after providing financial assistance.
Treasury's implementing regulations, 31 CFR part 22, and the Department ofJustice
(DOJ) regulations,
CFF�ner��`. provide for the collection ofdata and information from recipients(see 28CFR
42.400\. Treasury may request that recipients submit data for post-award compliance
reviovvo, including information such as a narrative describing their Title V| compliance
status.
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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 1 .
• 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 G, page 23.
Table 2: Re ortin requirements by recipient type
States, U.S. territories, By August 31, By October 31, By August 31,
metropolitan cities and counties 2021, with 2021, and then 2021, and
with a population that exceeds expenditures 30 days after the annually
250,000 residents by category end of each thereafter by
quarter July 3110
Metropolitan cities and counties thereafter9 Not required
with a population below 250,000
residents which received more
than $5 million in SLFRF funding
Tribal Governments
Metropolitan cities and counties By October 31,
with a population below 250,000 2021, and then
residents which received less than annually
$5 million in SLFRF funding thereafter"
NEUs Not required
The remainder of this document describes these reporting requirements. A users' guide will
be provided with additional information on how and where to submit required reports.
9 Interim Final Rule Page 111
10 Interim Final Rule page 112
11 Interim Final Rule Page 111
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Comparison i
This guidance does not change the reporting or compliance requirements pertaining to
the CRF. Reporting and compliance requirements for the SLFRF are separate from
CRF reporting requirements. Changes from CRF to SLFRF include:
• Project, Expenditure, and Subaward Reporting: The SLFRF reporting
requirements leverage the existing reporting regime used for CRF to foster
continuity and provide many recipients with a familiar reporting mechanism. The
data elements for the Project and Expenditure Report will largely mirror those used
for CRF, with some minor exceptions noted in this guidance. The users' guide will
describe how reporting for CRF funds will relate to reporting for the SLFRF.
• Timing of Reports: CRF reports were due within 10 days of each calendar
quarter. SLFRF quarterly reporting will be due 30 days from quarter end.
• Program and Performance Reporting: The CRF reporting did not include any
program or performance reporting. To build public awareness and accountability
and allow Treasury to monitor compliance with eligible uses, some program and
performance reporting is required.
A. Interim Report
States, U.S. territories, metropolitan cities, counties, and Tribal governments are required to
submit a one-time interim report with expenditures12 by Expenditure Category from the date
of award to July 31, 2021. The recipient will be required to enter obligations13 and
expenditures and,for each, select the specific expenditure category from the available options.
See Appendix 1 for Expenditure Categories (EC).
1. Required Programmatic Data
Recipients will also be required to provide the following information if they have or plan to have
expenditures in the following Expenditure Categories.
a. Revenue replacement (EC 6.114): Key inputs into the revenue replacement formula in the
Interim Final Rule and estimated revenue loss due to the Covid-19 public health
emergency calculated using the formula in the Interim Final Rule as of December 31,
2020.
• Base year general revenue (e.g., revenue in the last full fiscal year prior to the public
health emergency)
• Fiscal year end date
• Growth adjustment used (either 4.1 percent or average annual general revenue growth
over 3 years prior to pandemic)
• Actual general revenue as of the twelve months ended December 31, 2020
• Estimated revenue loss due to the Covid-19 public health emergency as of December
31, 2020
• An explanation of how revenue replacement funds were allocated to government
services (Note: additional instructions and/or template to be provided in users' guide)
12 For purposes of reporting in the SLFRF portal, an expenditure is the amount that has been incurred
as a liability of the entity(the service has been rendered or the good has been delivered to the entity).
13 For purposes of reporting in the SLFRF portal, an obligation is an order placed for property and
services, contracts and subawards made, and similar transactions that require payment.
14 See Appendix 1 for the full Expenditure Category(EC) list. References to Expenditure Categories
are identified by"EC"followed by numbers from the table in Appendix 1.
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In calculating general revenue and the other items discussed above, recipients should
use audited data if it is available. When audited data is not available, recipients are not
required to obtain audited data if substantially accurate figures can be produced on an
unaudited basis. Recipients should use their own data sources to calculate general
revenue, and do not need to rely on revenue data published by the Census Bureau.
Treasury acknowledges that due to differences in timing, data sources, and definitions,
recipients' self-reported general revenue figures may differ from those published by the
Census Bureau. Recipients may provide data on a cash, accrual, or modified accrual
basis, provided that recipients are consistent in their choice of methodology throughout
the covered period and until reporting is no longer required. Recipients' reporting should
align with their own financial reporting.
In calculating general revenue, recipients should exclude all intergovernmental transfers
from the federal government. This includes, but is not limited to, federal transfers made
via a State to a locality pursuant to the CRF or SLFRF. To the extent federal funds are
passed through States or other entities or intermingled with other funds, recipients
should attempt to identify and exclude the federal portion of those funds from the
calculation of general revenue on a best-efforts basis.
Consistent with the broad latitude provided to recipients to use funds for government
services to the extent of reduction in revenue, recipients will be required to submit a
description of services provided. This description may be in narrative or in another form,
and recipients are encouraged to report based on their existing budget processes and to
minimize administrative burden. For example, a recipient with $100 in revenue
replacement funds available could indicate that$50 were used for law enforcement
operating expenses and $50 were used for pay-go building of sidewalk infrastructure. As
discussed in the Interim Final Rule, these services can include a broad range of services
but may not be used directly for pension deposits or debt service.
Reporting requirements will not require tracking the indirect effects of Fiscal Recovery
Funds, apart from the restrictions on use of Fiscal Recovery Funds to offset a reduction
in net tax revenue. In addition, recipients must indicate that Fiscal Recovery Funds were
not used to make a deposit in a pension fund.
b. Distributions to NEUs - States and territories only (EC 7.4): Information on SLFRF
distributions to eligible NEUs. Each State and territory will be asked to provide an
update on distributions to individual NEUs, including whether the NEU has (1) received
funding; (2)declined funding and requested a transfer to the State under Section
603(c)(4) of the Act; or(3) not taken action on its funding. States and territories should
be prepared to report on their information, including the following:
• NEU name
• NEU DUNS number
• NEU Taxpayer Identification Number(TIN)
• NEU Recipient Number (a unique identification code for each NEU assigned by the
State to the NEU as part of the request for funding)
• NEU contact information (e.g., address, point of contact name, point of contact email
address, and point of contact phone number)
• NEU authorized representative name and email address
• Initial allocation and, if applicable, subsequent allocation to the NEU (before
application of the 75 percent cap)
• Total NEU reference budget (as submitted by the NEU to the State as part of the
request for funding)
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• Amount of the initial and, if applicable, subsequent allocation above 75 percent of the
NEU's reference budget which will be returned to Treasury
• Payment amount(s)
• Payment date(s)
For each eligible NEU that declined funding and requested a transfer to the State under
Section 603(c)(4), the State must also attach a form signed by the NEU, as detailed in
the .niuu:;ir u7i , Mon l.inf ..N:N ill IX pc �a.rru`lu`u'ua uu�.
...........................................................................................................................................................................................................................................................................................................................................................................................................
States with "weak" minor civil divisions (i.e., Illinois, Indiana, Kansas, Missouri,
Nebraska, North Dakota, Ohio, and South Dakota) should also list any minor civil
divisions that the State deemed ineligible.
B. Project and Expenditure Report
All recipients are required to submit Project and Expenditure Reports.
1. Quarterly Reporting
The following recipients are required to submit quarterly Project and Expenditure Reports:
• States, U.S. territories, and Tribal governments
• Metropolitan cities and counties that received more than $5 million in SLFRF funding
For these recipients, the initial quarterly Project and Expenditure Report will cover two
calendar quarters from the date of award to September 30, 2021 and must be submitted to
Treasury by October 31, 2021. The subsequent quarterly reports will cover one calendar
quarter and must be submitted to Treasury within 30 calendar days after the end of each
calendar quarter. Quarterly reports are not due concurrently with applicable annual reports.
The table below summarizes the quarterly report timelines:
• • • • • •
1 2021 2 and 3 Award Date—September 30 October 31, 2021
2 2021 4 October 1 — December 31 January 31, 2022
3 2022 1 Januar 1 — March 31 Aril 30, 2022
4 2022 2 April 1 —June 30 July 31, 2022
5 2022 3 Jul 1 —September 30 October 31, 2022
6 2022 4 October 1 — December 31 January 31, 2023
7 2023 1 Januar 1 — March 31 Aril 30, 2023
8 2023 2 Aril 1 —June 30 July 31, 2023
9 2023 3 Jul 1 —September 30 October 31, 2023
10 2023 4 October 1 — December 31 January 31, 2024
11 2024 1 Januar 1 — March 31 Aril 30, 2024
12 2024 2 Aril 1 —June 30 July 31, 2024
13 2024 3 Jul 1 —September 30 October 31, 2024
14 2024 4 October 1 — December 31 January 31, 2025
15 2025 1 Januar 1 — March 31 Aril 30, 2025
16 2025 2 Aril 1 —June 30 July 31, 2025
17 2025 3 Jul 1 —September 30 October 31, 2025
18 2025 4 October 1 — December 31 January 31, 2026
19 2026 1 Januar 1 — March 31 Aril 30, 2026
20 2026 2 Aril 1 —June 30 July 31, 2026
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21 2026 3 Jul 1 —September 30 October 31, 2026
22 2026 4 October 1 — December 31 March 31, 2027
2. Annual Reporting
The following recipients are required to submit annual Project and Expenditure Reports:
• Metropolitan cities and counties that received less than $5 million in SLFRF funding.
• NEUs. To facilitate reporting, each NEU will need a NEU Recipient Number. This is a
unique identification code for each NEU assigned by the State to the NEU as part of its
request for funding.
For these recipients, the initial Project and Expenditure Report will cover from the date of
award to September 30, 2021 and must be submitted to Treasury by October 31, 2021. The
subsequent annual reports will cover one calendar year and must be submitted to Treasury
by October 31. The table below summarizes the report timelines:
1 Award Date— Se tember 30, 2021 October 31, 2021
2 October 1, 2021 — September 30, 2022 October 31, 2022
3 October 1, 2022— September 30, 2023 October 31, 2023
4 October 1, 2023— September 30, 2024 October 31, 2024
5 October 1, 2024— September 30, 2025 October 31, 2025
6 October 1, 2025— September 30, 2026 October 31, 2026
7 October 1, 2026— December 31, 2026 March 31, 2027
3. Required Information
The following information will be required in Project and Expenditure Reports:
a. Projects: Provide information on all SLFRF funded projects. Projects are new or existing
eligible government services or investments funded in whole or in part by SLFRF funding.
For each project, the recipient will be required to enter the project name, identification
number (created by the recipient), project expenditure category (see Appendix 1),
description, and status of completion. Project descriptions must describe the project in
sufficient detail to provide understanding of the major activities that will occur, and will be
required to be between 50 and 250 words. Projects should be defined to include only
closely related activities directed toward a common purpose. In particular, recipients should
review the Required Programmatic Data described below and define their projects at a
sufficient level of granularity to report these metrics for a reasonably specific activity or set
of activities in each project.
Note: For each project, the recipient will be asked to select the appropriate Expenditure
Category based on the scope of the project (see Appendix 1). Projects should be scoped
to align to a single Expenditure Category. For select Expenditure Categories, the recipient
will also be asked to provide additional programmatic data (described further below).
b. Expenditures: Once a project is entered the recipient will be able to report on the project's
obligations and expenditures. Recipients will be asked to report:
• Current period obligation
• Cumulative obligation
• Current period expenditure
• Cumulative expenditure
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c. Project Status: Once a project is entered the recipient will be asked to report on project
status each reporting period, in four categories:
• Not Started
• Completed less than 50 percent
• Completed 50 percent or more
• Completed
d. Project Demographic Distribution: Recognizing the disproportionate impact of the
pandemic-related recession on low-income communities, recipients must report whether
certain types of projects15 are targeted to economically disadvantaged communities, as
defined by HUD's uli u I ....'..;",e:. 11' !''4
....... ......IC...P....:'....:t.16 Recipients will be asked to identify whether or
I
not the project is serving an economically disadvantaged community. To minimize the
administrative burden on recipients while ensuring that this important aspect of program
performance is tracked, recipients may assume that the funds for a project count as being
targeted towards economically disadvantaged communities if the project funds are spent
on:
• A program or service is provided at a physical location in a Qualified Census Tract (for
multi-site projects, if a majority of sites are within Qualified Census Tracts);
• A program or service where the primary intended beneficiaries live within a Qualified
Census Tract;
• A program or service for which the eligibility criteria are such that the primary intended
beneficiaries earn less than 60 percent of the median income for the relevant
jurisdiction (e.g., State, county, metropolitan area, or other jurisdiction); or
• A program or service for which the eligibility criteria are such that over 25 percent of
intended beneficiaries are below the federal poverty line.
Recipients may use reasonable estimates to determine if a project meets one of these
criteria, including identifying the intended beneficiaries of a program or service in terms of
income characteristics, geographic location, or otherwise estimating the beneficiaries of a
program based on its eligibility criteria. Recipients do not need to track information on
each individual beneficiary to make the determination of whether or not the project is
serving an economically disadvantaged community. If a recipient is unable to measure
economic characteristics of the primary intended beneficiaries of a program or service
due to data limitations or for other reasons, that program or service may not be counted
as targeted to economically disadvantaged communities. Treasury recognizes that in
some circumstances, recipients may fund eligible programs or services that benefit
economically disadvantaged communities but may lack adequate data to assess
conclusively that such a program or service is targeted to economically disadvantaged
communities based on the criteria described above.
e. Subawards: Each recipient shall also provide detailed obligation and expenditure
information for any contracts and grants awarded, loans issued, transfers made to other
government entities, and direct payments made by the recipient that are greater than or
equal to $50,000.
15 Specifically recipients must report this information for projects in the Expenditure Categories that
are marked with "^" in the expenditure category listing in Appendix 1 of this guidance
16 HUD defines as a QCT as having "50 percent of households with incomes below 60 percent of the
Area Median Gross Income (AMGI)or have a poverty rate of 25 percent or more."To view median
income area for their jurisdiction, recipients may visit the U.S. Census 1W ,IIm ul on median incomes
and select the geography for their jurisdiction and relevant unit of measurement(household or
individual)for the project.
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Recipients do not also need to submit separate monthly subaward reports to FSRS.gov as
required pursuant to the 2 CFR Part 170, Appendix A award term regarding reporting
subaward and executive compensation, which is included in the SLFRF Award Terms and
Conditions. Treasury will submit this reporting on behalf of recipients using the $50,000
reporting threshold, timing, and data elements discussed in this guidance. If recipients
choose to continue reporting to FSRS.gov in addition to reporting directly to Treasury on
these funds, they may do so and will be asked to notify Treasury as part of their quarterly
submission.
In general, recipients will be asked to provide the following information for each Contract,
Grant, Loan, Transfer, or Direct Payment greater than or equal to $50,000:
• Subrecipient identifying and demographic information (e.g., DUNS number and
location)
• Award number(e.g., Award number, Contract number, Loan number)
• Award date, type, amount, and description
• Award payment method (reimbursable or lump sum payment(s))
• For loans, expiration date (date when loan expected to be paid in full)
• Primary place of performance
• Related project name(s)
• Related project identification number(s) (created by the recipient)
• Period of performance start date
• Period of performance end date
• Quarterly obligation amount
• Quarterly expenditure amount
• Project(s)
• Additional programmatic performance indicators for select Expenditure Categories(see
below)
Aggregate reporting is required for contracts, grants, transfers made to other government
entities, loans, direct payments, and payments to individuals that are below $50,000. This
information will be accounted for by expenditure category at the project level.
As required by the 2 CFR Part 170, Appendix A award term regarding reporting subaward
and executive compensation, recipients must also report the names and total compensation
of their five most highly compensated executives and their subrecipients' executives for the
preceding completed fiscal year if(1)the recipient received 80 percent or more of its annual
gross revenues from Federal procurement contracts (and subcontracts) and Federal
financial assistance subject to the Transparency Act, as defined at 2 CFR 170.320 (and
subawards), and received $25,000,000 or more in annual gross revenues from Federal
procurement contracts (and subcontracts) and Federal financial assistance subject to the
Transparency Act (and subawards), and (2) if the information is not otherwise public. In
general, most SLFRF Recipients are governmental entities with executive salaries that are
already disclosed, so no additional information must be reported. The recipient is
responsible for the subrecipients' compliance with registering and maintaining an updated
profile on SAM.gov.
f. Civil Rights Compliance: Treasury will request information on recipients' compliance with
Title VI of the Civil Rights Act of 1964 on an annual basis. This information may include a
narrative describing the recipient's compliance with Title VI, along with other questions and
assurances.
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g. Required Programmatic Data (other than infrastructure projects): For all projects listed
under the following Expenditure Categories (see Appendix 1), the information listed must
be provided in each report.
1. Payroll for Public Health and Safety Employees (EC 1.9):
• Number of government FTEs responding to COVID-19 supported under this
authority
2. Household Assistance (EC 2.1-2.5):
• Brief description of structure and objectives of assistance program(s)(e.g., nutrition
assistance for low-income households)
• Number of individuals served (by program if recipient establishes multiple separate
household assistance programs)
• Brief description of recipient's approach to ensuring that aid to households
responds to a negative economic impact of Covid-19, as described in the Interim
Final Rule
3. Small Business Economic Assistance (EC 2.9):
• Brief description of the structure and objectives of assistance program(s) (e.g.,
grants for additional costs related to Covid-19 mitigation)
• Number of small businesses served (by program if recipient establishes multiple
separate small businesses assistance programs)
• Brief description of recipient's approach to ensuring that aid to small businesses
responds to a negative economic impact of COVID-19, as described in the Interim
Final Rule
4. Aid to Travel, Tourism, and Hospitality or Other Impacted Industries (EC 2.11-2.12):
• If aid is provided to industries other than travel, tourism, and hospitality (EC 2.12),
a description of pandemic impact on the industry and rationale for providing aid to
the industry
• Brief narrative description of how the assistance provided responds to negative
economic impacts of the COVID-19 pandemic
• For each subaward:
o Sector of employer(Note: additional detail, including list of sectors to be
provided in a users' guide)
o Purpose of funds (e.g., payroll support, safety measure implementation)
5. Rehiring Public Sector Staff(EC 2.14):
• Number of FTEs rehired by governments under this authority
6. Education Assistance (EC 3.1-3.5):
• The National Center for Education Statistics ("NCES") School ID or NCES District
ID. List the School District if all schools within the school district received some
funds. If not all schools within the school district received funds, list the School ID
of the schools that received funds. These can allow evaluators to link data from the
NCES to look at school-level demographics and, eventually, student
performance."
" For more information on NCES identification numbers see Ililll{ !,, y/uiu l w�u NVuuN I uuN lin/,
(districts)and Ilulilll M. ,riyu a i� a IIS I,II a IV:II/ (schools).
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7. Premium Pay (both Public Sector EC 4.1 and Private Sector EC 4.2):
• List of sectors designated as critical to the health and well-being of residents by
the chief executive of the jurisdiction, if beyond those included in the Interim Final
Rule (Note: a list of sectors will be provided in the forthcoming users' guide).
• Number of workers to be served
• Employer sector for all subawards to third-party employers (i.e., employers other
than the State, local, or Tribal government) (Note: a list of sectors will be provided
in the forthcoming users' guide).
• For groups of workers (e.g., an operating unit, a classification of worker, etc.) or,
to the extent applicable, individual workers, for whom premium pay would
increase total pay above 150 percent of their residing State's average annual
wage, or their residing county's'$average annual wage, whichever is higher, on
an annual basis:
o A brief written narrative justification of how the premium pay or grant is
responsive to workers performing essential work during the public health
emergency. This could include a description of the essential workers' duties,
health or financial risks faced due to COVID-19, and why the recipient
government determined that the premium pay was responsive to workers
performing essential work during the pandemic. This description should not
include personally identifiable information; when addressing individual
workers, recipients should be careful not to include this information.
Recipients may consider describing the workers' occupations and duties in a
general manner as necessary to protect privacy.
8. Revenue replacement (EC 6.1):
Under the Interim Final Rule, recipients calculate revenue loss using data as of four
discrete points during the program: December 31, 2020, December 31, 2021,
December 31, 2022, and December 31, 2023. Revenue loss calculated as of
December 31, 2020 will be reported in the Interim Report, as described above. For
future calculation dates, revenue loss will be reported only in the Quarter 4 reports
due January 31, 2022, January 31, 2023, and January 31, 2024. Reporting on
revenue loss should include:
• General revenue collected over the past 12 months as of the most recent
calculation date, as outlined in the Interim Final Rule (for example, for the
January 31, 2022 report, recipients should provide 12 month general revenue as
of December 31, 2021);
• Calculated revenue loss due to the Covid-19 public health emergency; and
• An explanation of how the revenue replacement funds were allocated to
government services (note: additional instructions and/or template to be provided
in user guide).
In calculating general revenue and the revenue loss due to the COVID-19 public
health emergency, recipients should follow the same guidance as described above
for the Interim Report.
h. Required Programmatic Data for Infrastructure Projects (EC 5): For all projects listed under
the Water, Sewer, and Broadband Expenditure Categories (see Appendix 1), more detailed
project-level information is required. Each project will be required to report expenditure
data as described above, but will also report the following information:
'$ County means a county, parish, or other equivalent county division (as defined by the Census
Bureau). See 31 CFR 35.3.
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1. All infrastructure projects (EC 5):
• Projected/actual construction start date (month/year)
• Projected/actual initiation of operations date (month/year)
• Location (for broadband, geospatial location data)
• For projects over$10 million:
a. A recipient may provide a certification that, for the relevant project, all laborers
and mechanics employed by contractors and subcontractors in the
performance of such project are paid wages at rates not less than those
prevailing, as determined by the U.S. Secretary of Labor in accordance with
subchapter IV of chapter 31 of title 40, United States Code (commonly known
as the "Davis-Bacon Act"), for the corresponding classes of laborers and
mechanics employed on projects of a character similar to the contract work in
the civil subdivision of the State (or the District of Columbia) in which the work
is to be performed, or by the appropriate State entity pursuant to a corollary
State prevailing-wage-in-construction law (commonly known as "baby Davis-
Bacon Acts"). If such certification is not provided, a recipient must provide a
project employment and local impact report detailing:
■ The number of employees of contractors and sub-contractors working on
the project;
■ The number of employees on the project hired directly and hired through a
third party;
■ The wages and benefits of workers on the project by classification; and
■ Whether those wages are at rates less than those prevailing.19
Recipients must maintain sufficient records to substantiate this information
upon request.
b. A recipient may provide a certification that a project includes a project labor
agreement, meaning a pre-hire collective bargaining agreement consistent with
section 8(f) of the National Labor Relations Act (29 U.S.C. 158(f)). If the
recipient does not provide such certification, the recipient must provide a
project workforce continuity plan, detailing:
■ How the recipient will ensure the project has ready access to a sufficient
supply of appropriately skilled and unskilled labor to ensure high-quality
construction throughout the life of the project;
■ How the recipient will minimize risks of labor disputes and disruptions that
would jeopardize timeliness and cost-effectiveness of the project; and
■ How the recipient will provide a safe and healthy workplace that avoids
delays and costs associated with workplace illnesses, injuries, and
fatalities;
■ Whether workers on the project will receive wages and benefits that will
secure an appropriately skilled workforce in the context of the local or
regional labor market; and
■ Whether the project has completed a project labor agreement.
c. Whether the project prioritizes local hires.
d. Whether the project has a Community Benefit Agreement, with a description of
any such agreement.
19 As determined by the U.S. Secretary of Labor in accordance with subchapter IV of chapter 31 of
title 40, United States Code (commonly known as the"Davis-Bacon Act'),for the corresponding
classes of laborers and mechanics employed on projects of a character similar to the contract work in
the civil subdivision of the State (or the District of Columbia) in which the work is to be performed.
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2. Water and sewer projects (EC 5.1-5.15):
• National Pollutant Discharge Elimination System (NPDES) Permit Number (if
applicable; for projects aligned with the Clean Water State Revolving Fund)
• Public Water System (PWS) ID number(if applicable; for projects aligned with the
Drinking Water State Revolving Fund)
3. Broadband projects (EC 5.16-5.17):
• Speeds/pricing tiers to be offered, including the speed/pricing of its affordability
offering
• Technology to be deployed
• Miles of fiber
• Cost per mile
• Cost per passing
• Number of households (broken out by households on Tribal lands and those not on
Tribal lands) projected to have increased access to broadband meeting the
minimum speed standards in areas that previously lacked access to service of at
least 25 Mbps download and 3 Mbps upload
o Number of households with access to minimum speed standard of reliable 100
Mbps symmetrical upload and download
o Number of households with access to minimum speed standard of reliable 100
Mbps download and 20 Mbps upload
• Number of institutions and businesses (broken out by institutions on Tribal lands
and those not on Tribal lands) projected to have increased access to broadband
meeting the minimum speed standards in areas that previously lacked access to
service of at least 25 Mbps download and 3 Mbps upload, in each of the following
categories: business, small business, elementary school, secondary school, higher
education institution, library, healthcare facility, and public safety organization
o Specify the number of each type of institution with access to the minimum speed
standard of reliable 100 Mbps symmetrical upload and download; and
o Specify the number of each type of institution with access to the minimum speed
standard of reliable 100 Mbps download and 20 Mbps upload
i. Distributions to NEUs - States and territories only (EC 7.4): Information on SLFRF
distributions to eligible NEUs. Each State and territory will be asked to provide an update
on distributions to individual NEUs, including whether the NEU has (1) received funding;
(2) declined funding and requested a transfer to the State under Section 603(c)(4) of the
Act; or(3) not taken action on its funding. States and territories should be prepared to report
on their information, including the following:
• NEU name
• NEU DUNS number
• NEU Taxpayer Identification Number(TIN)
• NEU Recipient Number (a unique identification code for each NEU assigned by the
State to the NEU as part of the request for funding)
• NEU contact information (e.g., address, point of contact name, point of contact email
address, and point of contact phone number)
• NEU authorized representative name and email address
• Initial allocation and, if applicable, subsequent allocation to the NEU (before
application of the 75 percent cap)
• Total NEU reference budget (as submitted by the NEU to the State as part of the
request for funding)
• Amount of the initial and, if applicable, subsequent allocation above 75 percent of the
NEU's reference budget which will be returned to Treasury
• Payment amount(s)
• Payment date(s)
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For each eligible NEU that declined funding and requested a transfer to the State under
Section 603(c)(4), the State must also attach a form signed by the NEU, as detailed in the
Ziii!!l �ai�u u e "),1[11 IC (�)f IC=uuund a I:u:.r II IIK uu...IC uululllaruuu :Munn. Uuuuts of II o1cC4 i;., ,d uiinuiiaru,.L
........................................................................................................................................................................................................................................................................................................................................................................................................
States with "weak" minor civil divisions (i.e., Illinois, Indiana, Kansas, Missouri, Nebraska,
North Dakota, Ohio, and South Dakota) should also list any minor civil divisions that the
State deemed ineligible.
j. NEU Documentation (NEUs only): Each NEU will also be asked to provide the following
information with their first report submitted by October 31, 2021:
• Copy of the signed award terms and conditions agreement (which was signed and
submitted to the State as part of the request for funding)
• Copy of the signed assurances of compliance with Title VI of the Civil Rights Act of
1964 (which was signed and submitted to the State as part of the request for funding)
• Copy of actual budget documents validating the top-line budget total provided to the
State as part of the request for funding
C. Recovery Plan Performance Report
States, territories, metropolitan cities, and counties with a population that exceeds 250,000
residents will also be required to publish and submit to Treasury a Recovery Plan performance
report("Recovery Plan"). Each Recovery Plan must be posted on the public-facing website of
the recipient by the same date the recipient submits the report to Treasury. This reporting
requirement includes uploading a link to the publicly available document report along with
providing data in the Treasury reporting portal.
The Recovery Plan will provide the public and Treasury information on the projects recipients
are undertaking with program funding and how they are planning to ensure program outcomes
are achieved in an effective, efficient, and equitable manner. While this guidance outlines
some minimum requirements for the Recovery Plan, each recipient is encouraged to add
information to the plan they feel is appropriate to provide information to their constituents on
efforts they are taking to respond to the pandemic and promote economic recovery. Each
jurisdiction may determine the general form and content of the Recovery Plan, as long as it
includes the minimum information determined by Treasury. Treasury will provide a
recommended template but recipients may modify this template as appropriate for their
jurisdiction. The Recovery Plan will include key performance indicators identified by the
recipient and some mandatory indicators identified by Treasury.
The initial Recovery Plan will cover the period from the date of award to July 31, 2021 and
must be submitted to Treasury by August 31, 2021. Thereafter, the Recovery Plan will cover
a 12-month period and recipients will be required to submit the report to Treasury within 30
days after the end of the 12-month period (by July 31).The table below summarizes the report
timelines:
1 Award Date— July 31, 2021 !!A!ugust!31,
1, 2021
2 Jul 1, 2021 — June 30, 2022 2022
1!3 Jul 1, 2022— June 30, 2023 Jul 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
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The Recovery Plan will include, at a minimum, the following information:
1. Executive Summary
Provide a high-level overview of the jurisdiction's intended and actual uses of funding
including, but not limited to: the jurisdiction's plan for use of funds to promote a response to
the pandemic and economic recovery, key outcome goals, progress to date on those
outcomes, and any noteworthy challenges or opportunities identified during the reporting
period.
2. Uses of Funds
Describe in further detail your jurisdiction's intended and actual uses of the funds, such as
how your jurisdiction's approach would help support a strong and equitable recovery from the
COVID-19 pandemic and economic downturn. Describe any strategies employed to maximize
programmatic impact and effective, efficient, and equitable outcomes. Given the broad eligible
uses of funds and the specific needs of the jurisdiction, please also explain how the funds
would support the communities, populations, or individuals in your jurisdiction. Your
description should address how you are promoting each of the following, to the extent they
apply:
a. Public Health (EC 1): As relevant, describe how funds are being used to respond to
COVID-19 and the broader health impacts of COVID-19 and the COVID-19 public health
emergency.
b. Negative Economic Impacts (EC 2): As relevant, describe how funds are being used to
respond to negative economic impacts of the COVID-19 public health emergency,
including to households and small businesses.
c. Services to Disproportionately Impacted Communities (EC 3): As relevant, describe how
funds are being used to provide services to communities disproportionately impacted by
the COVID-19 public health emergency.
d. Premium Pay (EC 4): As relevant, describe the approach, goals, and sectors or
occupations served in any premium pay program. Describe how your approach prioritizes
low-income workers.
e. Water, sewer, and broadband infrastructure (EC 5): Describe the approach, goals, and
types of projects being pursued, if pursuing.
f. Revenue Replacement (EC 6): Describe the loss in revenue due to the COVID-19 public
health emergency and how funds have been used to provide government services.
Where appropriate, recipients should also include information on your jurisdiction's use (or
planned use) of other federal recovery funds including other programs under the American
Rescue Plan such as the Emergency Rental Assistance, Housing Assistance, and so forth, to
provide broader context on the overall approach for pandemic recovery.
3. Promoting equitable outcomes
Describe efforts to promote equitable outcomes, including how programs were designed with
equity in mind. Please include in your description how your jurisdiction will consider and
measure equity at the various stages of the program, including:
a. Goals: Are there particular historically underserved, marginalized, or adversely affected
groups that you intend to serve within your jurisdiction?
b. Awareness: How equal and practical is the ability for residents or businesses to become
aware of the services funded by the SLFRF?
c. Access and Distribution: Are there differences in levels of access to benefits and services
across groups?Are there administrative requirements that result in disparities in ability to
complete applications or meet eligibility criteria?
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d. Outcomes: Are intended outcomes focused on closing gaps, reaching universal levels of
service, or disaggregating progress by race, ethnicity, and other equity dimensions
where relevant for the policy objective?
Treasury encourages uses of funds that promote strong, equitable growth, including racial
equity. Please describe how your jurisdiction's planned or current use of funds prioritizes
economic and racial equity as a goal, names specific targets intended to produce meaningful
equity results at scale, and articulates the strategies to achieve those targets. In addition,
please explain how your jurisdiction's overall equity strategy translates into the specific
services or programs offered by your jurisdiction in the following Expenditure Categories:
a. Negative Economic Impacts (EC 2): assistance to households, small businesses, and
non-profits to address impacts of the pandemic, which have been most severe among
low-income populations. This includes assistance with food, housing, and other needs;
employment programs for people with barriers to employment who faced negative
economic impacts from the pandemic (such as residents of low-income neighborhoods,
minorities, disconnected youth, the unemployed, formerly incarcerated people, veterans,
and people with disabilities); and other strategies that provide disadvantaged groups with
access to education,jobs, and opportunity.
b. Services to Disproportionately Impacted Communities (EC 3): services to address health
disparities and the social determinants of health, build stronger neighborhoods and
communities (e.g., affordable housing), address educational disparities (e.g., evidence-
based tutoring, community schools, and academic, social-emotional, and mental health
supports for high poverty schools), and promote healthy childhood environments (e.g.,
home visiting, child care).
The initial report must describe efforts to date and intended outcomes to promote equity.
Each annual report thereafter must provide an update, using qualitative and quantitative
data, on how the recipients' approach achieved or promoted equitable outcomes or
progressed against equity goals during the performance period. Please also describe any
constraints or challenges that impacted project success in terms of increasing equity. In
particular, this section must describe the geographic and demographic distribution of
funding, including whether it is targeted toward traditionally marginalized communities.
For the purposes of the SLFRF, equity is defined in the IC �r.�, ;,NI'll �N,sir I CIHO,,,,p„
u u :II a oit o ut a u,q;:,
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.
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6. Use of Evidence
The Recovery Plan should identify whether SLFRF funds are being used for evidence-based
interventions20 and/or if projects are being evaluated through rigorous program evaluations
that are designed to build evidence. Recipients must briefly describe the goals of the project,
and the evidence base for the interventions funded by the project. Recipients must specifically
identify the dollar amount of the total project spending that is allocated towards evidence-
based interventions for each project in the Public Health (EC 1), Negative Economic Impacts
(EC 2), and Services to Disproportionately Impacted Communities (EC 3) Expenditure
Categories.21
Recipients are exempt from reporting on evidence-based interventions in cases where a
program evaluation is being conducted. Recipients are encouraged to use relevant evidence
Clearinghouses, among other sources, to assess the level of evidence for their interventions
and identify evidence-based models that could be applied in their jurisdiction; such evidence
clearinghouses include the U.S. Department of Education's ����.ILP.. flal....%JV...!.li..k.:.. w......Il...::. .!ial.!L.!.�..LU...I!...:".m:.I:;:e,, the
;! m
U.S. Department of Labor's � II II -�II�;, and the
tlu ll� a ubuuu clearinghouses from
iC uyII�II�y.. �II"II � 11 , II�11i � nII ;4; IIIIw f i: i bIII a IIII
Administration for Children and Families, as well as other clearinghouses relevant to particular
projects conducted by the recipient. In such cases where a recipient is conducting a program
evaluation in lieu of reporting the amount of spending on evidence-based interventions, they
must describe the evaluation design including whether it is a randomized or quasi-
experimental design; the key research questions being evaluated; whether the study has
sufficient statistical power to disaggregate outcomes by demographics; and the timeframe for
the completion of the evaluation (including a link to completed evaluation if relevant).22 Once
the evaluation has been completed, recipients must post the evaluation publicly and link to the
completed evaluation in the Recovery Plan. Once an evaluation has been completed (or has
sufficient interim findings to determine the efficacy of the intervention), recipients should
determine whether the spending for the evaluated interventions should be counted towards
the dollar amount categorized as evidence-based for the relevant project.
For all projects, recipients may be selected to participate in a national evaluation, which would
study their project along with similar projects in other jurisdictions that are focused on the same
set of outcomes. In such cases, recipients may be asked to share information and data that is
needed for the national evaluation.
Recipients are encouraged to consider how a Learning Agenda, either narrowly focused on
SLFRF or broadly focused on the recipient's broader policy agenda, could support their
overarching evaluation efforts in order to create an evidence-building strategy for their
jurisdiction.23
Appendix 2 contains additional information on evidence-based interventions for the purposes
of the Recovery Plan.
20As noted in Appendix 2, evidence-based refers to interventions with strong or moderate levels of
evidence.
21 Of note, recipients are only required to report the amount of the total funds that are allocated to
evidence-based interventions in the areas of Public Health, Negative Economic Impacts, and Services
to Disproportionately Impacted Communities that are marked by an asterisk in Appendix 1:
Expenditure Categories.
22 For more information on the required standards for program evaluation, see ul IIC' II"u I
23 For more information on learning agendas, please see �;;;�Ivfl y II°ii 1a ^�„
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7. Table of Expenses by Expenditure Category
Please include a table listing the amount of funds used in each Expenditure Category (See
Appendix 1). The table should include cumulative expenses to date within each category, and
the additional amount spent within each category since the last annual Recovery Plan.
8. Project Inventory
List the name and provide a brief description of all SLFRF funded projects. Projects are new
or existing eligible government services or investments funded in whole or in part by SLFRF
funding. For each project, include the project name, funding amount, identification number
(created by the recipient and used thereafter in the quarterly Program and Expenditure
Report), project Expenditure Category(see Appendix 1), and a description of the project which
includes an overview of the main activities of the project, the approximate timeline, primary
delivery mechanisms and partners, if applicable, and intended outcomes. Include a link to the
website of the project if available. This information will provide context and additional detail
for the information reported quarterly in the Project and Expenditure Report.
For infrastructure investment projects (EC 5), project-level reporting will be more detailed, as
described for the Project and Expenditure Report above. Projects in this area may be grouped
by Expenditure Category if needed, with further detail (such as the specific project name and
identification number) provided in the Project and Expenditure Report. For infrastructure
projects, descriptions should note how the project contributes to addressing climate change.
9. Performance Report
The Recovery Plan must include key performance indicators for the major SLFRF funded
projects undertaken by the recipient. The recipient has flexibility in terms of how this
information is presented in the Recovery Plan, and may report key performance indicators for
each project, or may group projects with substantially similar goals and the same outcome
measures. In some cases, the recipient may choose to include some indicators for each
individual project as well as crosscutting indicators.
Performance indicators should include both output and outcome measures. Output measures,
such as number of students enrolled in an early learning program, provide valuable information
about the early implementation stages of a project. Outcome measures, such as the percent
of students reading on grade level, provide information about whether a project is achieving
its overall goals. Recipients are encouraged to use logic models24 to identify their output and
outcome measures. While the initial report will focus heavily on early output goals, recipients
must include the related outcome goal for each project and provide updated information on
achieving these outcome goals in annual reports. In cases where recipients are conducting a
program evaluation for a project (as described above), the outcome measures in the
performance report should be aligned with those being evaluated in the program. To support
their performance measurement and program improvement efforts, recipients are permitted to
use funds to make improvements to data or technology infrastructure and data analytics, as
well as program evaluations.
10. Required Performance Indicators and Programmatic Data
While recipients have discretion on the full suite of performance indicators to include,a number
of mandatory performance indicators and programmatic data must be included. These are
necessary to allow Treasury to conduct oversight as well as understand and aggregate
program outcomes across recipients. This section provides an overview of the mandatory
performance indicators and programmatic data. This information may be included in each
recipient's Recovery Plan as they determine most appropriate, including combining with the
24 A logic model is a tool that depicts the intended links between program investments and outcomes,
specifically the relationships among the resources, activities, outputs, outcomes, and impact of a
program.
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section above, but this data will also need to be entered directly into the Treasury reporting
portal. Below is a list of required data for each Expenditure Category:
a. Household Assistance (EC 2.2 & 2.5) and Housing Support (EC 3.10-3.12):
• Number of people or households receiving eviction prevention services(including legal
representation)
• Number of affordable housing units preserved or developed
b. Negative Economic Impacts (EC 2):
• Number of workers enrolled in sectoral job training programs
• Number of workers completing sectoral job training programs
• Number of people participating in summer youth employment programs
c. Education Assistance (EC 3.1-3.5):
Number of students participating in evidence-based tutoring programs25
d. Healthy Childhood Environments (EC 3.6-3.9):
• Number of children served by childcare and early learning (pre-school/pre-K/ages 3-
5)
• Number of families served by home visiting
The initial report should include the key indicators above. Each annual report thereafter should
include updated data for the performance period as well as prior period data, and a brief
narrative adding any additional context to help the reader interpret the results and understand
the any changes in performance indicators over time. To the extent possible, Treasury also
encourages recipients to provide data disaggregated by race, ethnicity, gender, income, and
other relevant factors.
11. Ineligible Activities: Tax Offset Provision (States and territories only)
The following information is required for Treasury to ensure SLFRF funding is not used for
ineligible activities.
In each reporting year, States and territories will report certain items related to the Tax Offset
Provision 31 CFR 35.8, as detailed below. As indicated in the Interim Final Rule, Treasury is
seeking comment on reporting requirements related to the Tax Offset Provision, including
ways to better rely on information already produced by States and territories and to minimize
burden.
The terms"reporting year,""baseline,""covered change,""net reduction in total spending,"and
"tax revenue" are defined in the Interim Final Rule, 31 CFR 35.3. For purposes of calculating
a net reduction in total spending, total spending for the fiscal year ending 2019 should be
reported on an inflation-adjusted basis, consistent with the Interim Final Rule, 31 CFR 35.3.
Similarly, for purposes of calculating baseline, tax revenue for the fiscal year 2019 should be
reported on an inflation-adjusted basis, consistent with the Interim Final Rule, 31 CFR 35.3.
For purposes of reporting actual tax revenue and calculating tax revenue for the fiscal year
ending 2019,26 (a) if available, recipients should report information using audited financials
and (b) recipients may provide data on a cash, accrual, or modified accrual basis, but must be
consistent in their approach across all reporting periods. Similarly, for purposes of calculating
21 For more information on evidence-based tutoring programs, refer to the U.S. Department of
Education's u,li "ii IC Il:"..a a , IIIIA a�) a " all iiiinoie "1,which summarizes research on evidence-
based tutoring programs (see the bottom of page 20.
21 Tax revenue for fiscal year ending 2019 is relevant for calculating the recipient's baseline.
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a net reduction in total spending, recipients should report data using audited financials where
available.
a. Revenue-reducing Covered Chanaes:
For each reporting year, a recipient must report the value of covered changes that the
recipient predicts will have the effect of reducing tax revenue in a given reporting year
(revenue-reducing covered changes), similar to the way it would in the ordinary course of
its budgeting process. The value of these covered changes may be reported based on
estimated values produced by a budget model, incorporating reasonable assumptions,
that aligns with the recipient government's existing approach for measuring the effects of
fiscal policies, and that measures relative to a current law baseline. The covered changes
may also be reported based on actual values using a statistical methodology to isolate the
change in year-over-year revenue attributable to the covered change(s), relative to the
current law baseline prior to the change(s). Estimation approaches should not use
dynamic methodologies that incorporate the projected effects of the policies on
macroeconomic growth. In general and where possible, reported values should be
produced by the agency of the recipient government responsible for estimating the costs
and effects of fiscal policy changes. Recipients must maintain records regarding the
identification and predicted effects of revenue-reducing covered changes.
b. Baseline Revenue:
Baseline has the meaning defined in the Interim Final Rule, 31 CFR 35.3.
Whether the revenue-reducing covered changes are in excess of the de minimis.
Recipients must determine whether the aggregate value of the revenue-reducing covered
changes in the reporting year is less than one percent of baseline revenue.
c. Actual Tax Revenue:
Actual tax revenue means the actual tax revenue received by the recipient government in
the reporting year.Tax revenue has the meaning defined in the Interim Final Rule, 31 CFR
35.3.
d. Reduction in Net Tax Revenue:
The reduction in net tax revenue is equal to baseline revenue minus actual tax revenue in
each reporting year. If this value is zero or negative, there is no reduction in net tax
revenue.
e. Any revenue-increasing covered changes:
A recipient must report the value of covered changes that have had or that the recipient
predicts will have the effect of increasing tax revenue in a given reporting year (revenue-
increasing covered changes), similar to the way it would in the ordinary course of its
budgeting process. The value of these covered changes may be reported based on
estimated values produced by a budget model, incorporating reasonable assumptions,
that aligns with the recipient's existing approach for measuring the effects of fiscal policies,
and that measures relative to a current law baseline. The covered changes may also be
reported based on actual values using a statistical methodology to isolate the change in
year-over-year revenue attributable to the covered change(s), relative to the current law
baseline prior to the change(s). Estimation approaches should not use dynamic
methodologies that incorporate the projected effects of the policies on macroeconomic
growth. In general and where possible, reporting should be produced by the agency of
the recipient responsible for estimating the costs and effects of fiscal policy changes.
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Recipients should maintain records regarding revenue-reducing covered changes and
estimates of such changes.
f. Net reduction in total spending, and tables of specific spending cuts:
Recipients must report on spending cuts. To calculate the amount of spending cuts that
are available to offset a reduction in tax revenue, the recipient must first consider whether
there has been a reduction in total net spending, excluding Fiscal Recovery Funds (net
reduction in total spending). As in the Interim Final Rule, 35 CFR 35.3, net reduction in
total spending is measured as the recipient government's total spending for a given
reporting year excluding Fiscal Recovery Funds, subtracted from its total spending for its
fiscal year ending in 2019, adjusted for inflation using the Bureau of Economic Analysis's
Implicit Price Deflator for the gross domestic product of the United States. If that
subtraction yields a positive value, there has been a net reduction; if it yields zero or a
negative value, there has not been a net reduction. If there has been no net reduction in
total spending, a recipient will have no spending cuts to offset a reduction in net tax
revenue.
Next, a recipient must determine and aggregate the value of spending cuts in each
"reporting unit,"as defined below. For each reporting unit, the recipient must report(1)the
amount of the reduction in spending in the reporting unit relative to its inflation-adjusted
FY 2019 level, (2) the amount of any Fiscal Recovery Funds spent in the reporting unit,
and (3)the amount by which the reduction in spending exceeds the Fiscal Recovery funds
spent in the reporting unit. If a recipient has not spent amounts received from the Fiscal
Recovery Funds in a reporting unit, the full amount of the reduction in spending counts as
a covered spending cut and may be included in aggregate spending cuts. If the recipient
has spent amounts received from the Fiscal Recovery Funds, such amounts generally
would be deemed to have replaced the amount of spending cut, and only reductions in
spending above the amount of Fiscal Recovery Funds spent on the reporting unit would
be eligible to offset a reduction in net tax revenue. Only such amounts above the amount
of Fiscal Recovery Funds spent on the reporting unit should be included in the aggregate
of spending cuts.
To align with existing reporting and accounting, the Interim Final Rule considers the
department, agency, or authority from which spending has been cut and whether the
recipient government has spent amounts received from the Fiscal Recovery Funds on that
same department, agency, or authority. Recipients may also choose to report at a more
granular sub-department level. Recipients are encouraged to define and report spending
in departments, sub-departments (e.g., bureaus), agencies, or authorities (each a
"reporting unit") in a manner consistent with their existing budget process and should, to
the extent possible, report using the same reporting unit in each reporting year. For
example, if a State health department maintains separate budgets for different units (e.g.,
medical and public health units), those units may be reported and considered separately.
Spending cuts must be reported relative to FY 2019 spending levels, adjusted for inflation,
and excluding Fiscal Recovery Funds from reporting year spending levels.
Recipients should maintain records regarding spending cuts. As discussed in the Interim
Final Rule, in order to help ensure governments use Fiscal Recovery Funds in a manner
consistent with the prescribed eligible uses and do not use Fiscal Recovery Funds to
indirectly offset a reduction in net tax revenue resulting from a covered change, Treasury
will monitor changes in spending throughout the covered period. Evasions of the Tax
Offset Provision may be subject to recoupment.
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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.
1.1 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
OEM
2.1 Household Assistance: Food Programs* ^
2.2 Household Assistance: Rent, Mortgage, and Utility Aid* ^
2.3 Household Assistance: Cash Transfers* A
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)* A
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* A
2.14 Rehiring Public Sector Staff
• • 10 • • . •
11 Ill 111 ililliillili!ill!1,11111il!I
3.1 Education Assistance: Early Learning* ^
3.2 Education Assistance: Aid to High-Poverty Districts "
3.3 Education Assistance: Academic Services* A
3.4 Education Assistance: Social, Emotional, and Mental Health Services* A
3.5 Education Assistance: Other* A
3.6 Healthy Childhood Environments: Child Care* A
3.7 Healthy Childhood Environments: Home Visiting* A
3.8 Healthy Childhood Environments: Services to Foster Youth or Families Involved in
Child Welfare System* A
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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* A
3.13 Social Determinants of Health: Other* A
3.14 Social Determinants of Health: Community Health Workers or Benefits Navigators* "
3.15 Social Determinants of Health: Lead Remediation A
3.16 Social Determinants of Health: Community Violence Interventions* ^
4.1 Public Sector Employees
4.2 Private Sector: Grants to Other Employers
OEM
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
6.1 Provision of Government Services
7.1 Administrative Expenses
7.2 Evaluation and Data Analysis
7.3 Transfers to Other Units of Government
7.4 Transfers to Non-entitlement Units (States and territories only)
*Denotes areas where recipients must identify the amount of the total funds that are allocated
to evidence-based interventions (see Use of Evidence section above for details)
^Denotes areas where recipients must report on whether projects are primarily serving
disadvantaged communities (see Project Demographic Distribution section above for details)
27 Definitions for water and sewer Expenditure Categories can be found in the EPA's handbooks. For
"clean water" expenditure category definitions, please see:
null �Wt�r Wy i, Ipan /,;ul ' ,1 11,.., M „ lu mif:n,lull ',10II1_1', 03/6') 111111111, 11111 x, \"wa,�u luunifor.^uFor"drinking water„
expenditure category definitions, please see. II 1111 V '';v �,I I ;'/,„i%r/" Irl",(luu111111 u1rllq:� v I u !'I k:,
""M"„IIIYBuIIQii1111a,;;,,,,lY11,Vlll IYII,,U IIIYfolllllll"illkj,iV,ll,;lu IIVnnie;",111111 II II II 'j," IU 111111IY,;u ^NiIII,,.
U
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Appendix 2: Evidenced-Based Intervention Additional Information
What is evidence-based?
For the purposes of the SLFRF, evidence-based refers to interventions with strong or
moderate evidence as defined below:
Strong evidence means the evidence base that can support causal conclusions for the specific
program proposed by the applicant with the highest level of confidence. This consists of one
or more well-designed and well-implemented experimental studies conducted on the proposed
program with positive findings on one or more intended outcomes.
Moderate evidence means that there is a reasonably developed evidence base that can
support causal conclusions. The evidence base consists of one or more quasi-experimental
studies with positive findings on one or more intended outcomes OR two or more non-
experimental studies with positive findings on one or more intended outcomes. Examples of
research that meet the standards include: well-designed and well-implemented quasi-
experimental studies that compare outcomes between the group receiving the intervention
and a matched comparison group (i.e., a similar population that does not receive the
intervention).
Preliminary evidence means that the evidence base can support conclusions about the
program's contribution to observed outcomes.The evidence base consists of at least one non-
experimental study. A study that demonstrates improvement in program beneficiaries over
time on one or more intended outcomes OR an implementation (process evaluation) study
used to learn and improve program operations would constitute preliminary evidence.
Examples of research that meet the standards include: (1)outcome studies that track program
beneficiaries through a service pipeline and measure beneficiaries' responses at the end of
the program; and (2) pre- and post-test research that determines whether beneficiaries have
improved on an intended outcome.
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Revision Log
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.
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