The June 23rd deadline is fast approaching...

By Karla Romero and David Cain

The June 23rd deadline is fast approaching for non-entitlement units of local governments (NEUs) to submit the required online application to receive their American Rescue Plan (ARP) allocation by mid-July. Allocations to local governments will be paid in two installments over the next two years. The amount distributed is capped at 75 percent of each city or town’s most recent budget. The web form submissions are due no later than 11:59 p.m. on Wednesday, June 23, 2021.

On June 10th, the Department of Finance (DOF) sent individual e-mails to the agency’s contact for the state-directed Coronavirus Relief Funds and each City Manager. The email included unique usernames and passwords to complete the required online submission, a link to the three required certifications, information regarding deadlines, DOF contact information, and U.S. Treasury guidance information.

If you didn’t receive this email, you should email fiscalrecovery@dof.ca.gov for your agency’s log-in information. If you will not be able to submit the online form by the deadline, you must email DOF (same email) with your plan to complete the form.

In addition to your organization’s address, authorized representative(s), DUNS number, and tax ID number; there are three required certifications that must be signed and uploaded online.

1. U.S. Treasury Award Terms and Conditions Agreement

This agreement outlines the use of funds, performance period, reporting, records retention period, and several applicable laws and regulations.

2. Assurances of Compliance with Title VI of the Civil Rights Act of 1964

Recipient is ensuring its current and future compliance with Title VI of the Civil Rights Act of 1964, which prohibits exclusion from participation, denial of the benefits of, or subjection to discrimination under programs and activities receiving federal financial assistance, of any person in the United States on the ground of race, color, or national origin.

3. Certification of Coronavirus Local Fiscal Recovery Fund Allocation Acceptance

With this form the agency is accepting or declining the ARP funding allocation, certifying the authority to apply for the funds, and that the agency follows 2 CFR Part 180 federal procurement guidelines.

States are required to collect information from each NEU agency, including budget information, before distributing the funds. Based on the budget information provided, the state determines if the 75-percent limit applies to any city or town when compared to the initial population-based allocation formula. Therefore, in addition to the three certifications, a copy of the most recent budget or annual total expenditures (with the key budget number highlighted) as of January 27, 2020, shall be provided with the application.

The “total budget” is defined as the annual total operating budget, including the general fund and other funds. If your agency did not have a formal budget as of January 27, 2020, you may enter zero and provide your agency’s most recent annual total expenditures as of the same date.

As a reminder Coronavirus Local Fiscal Recovery Funds may be used to:

  • Respond to the COVID-19 public health emergency and support various activities to decrease the spread of the virus.
  • Address negative economic impacts caused by the public health emergency including assistance to households, small businesses, nonprofits, or to provide aid to impacted industries such as tourism, travel, and hospitality.
  • Replace lost public sector revenue to the extent the reduction in revenue was experienced due to the pandemic.
  • Provide premium pay to eligible workers or grants to eligible employers of workers who perform essential work during the COVID-19 public health emergency.
  • Invest in water, sewer, and broadband infrastructure.

Other helpful tips to consider:

  • Remember to save your assigned NEU Recipient Number and the three certifications. They will be used for future U.S. Treasury reporting.
  • Total expenditures should be circled or highlighted on the budget report.
  • Do not use decimal places in the online portal when entering your agency’s budget as it may cause an error message.
  • After submission and before logging out consider printing and saving the application form for your records.

Don’t delay apply today and ensure your agency receives its first ARP allocation at the beginning of the new fiscal year. If funds are declined, they are transferred to the State of California. The web form, a summary checklist, the three certifications, and additional information can be found here.

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Karla Romero is the Finance Director/City Treasurer for the City of Brawley, has served on several committees, and a current board member. She has a bachelor’s and master’s degree in Business Administration; with 15 years of progressive local government experience. She enjoys seeing others succeed and is passionate about mentoring and sharing knowledge. In her free time, she enjoys reliving her childhood with an active son named Titus, traveling, and staying connected with family and friends.

David Cain is a retired Director of Finance and current Adjunct Professor at CSU-Northridge, Cal Poly Pomona, and CSU-Long Beach. He remains an active CSMFO member serving on several committees and in 2020, he received the prestigious CSMFO Distinguished Service Award.