Agenda packet — Laguna Hills City Council, February 22, 2022 (part 3 of 3)

7.5.1.b
Packet Pg. 255 Attachment: Attachment B - Overview of SLFRF Final Rule (2746 : American Rescue Plan Act) 25 U.S. DEPARTMENT OF THE TREASURY
Coronavirus State & Local Fiscal Recovery Funds: Overview of the Final Rule U.S. Department of the Treasury
Treasury recognizes the enumerated projects below as eligible responses to impacted industries.
✓ Aid to mitigate financial hardship, such
as supporting payroll costs, lost pay and
benefits for returning employees,
support of operations and maintenance
of existing equipment and facilities
✓ Technical assistance, counseling, or
other services to support business
planning
✓ COVID-19 mitigation and infection
prevention measures (see section Public
Health)
As with all eligible uses, recipients may pursue a project not listed above by undergoing the steps outlined in the section Framework for Eligible Uses Beyond Those Enumerated.

7.5.1.b
Packet Pg. 256 Attachment: Attachment B - Overview of SLFRF Final Rule (2746 : American Rescue Plan Act) 26 U.S. DEPARTMENT OF THE TREASURY
Coronavirus State & Local Fiscal Recovery Funds: Overview of the Final Rule U.S. Department of the Treasury

PUBLIC SECTOR CAPACITY
Recipients may use SLFRF funding to restore and bolster public sector capacity, which supports government’s ability to deliver critical COVID-19 services. There are three main categories of eligible uses to bolster public sector capacity and workforce: Public Safety, Public Health, and Human Services Staff; Government Employment and Rehiring Public Sector Staff; and Effective Service Delivery.

Public Safety, Public Health, and Human Services Staff
SLFRF funding may be used for payroll and covered benefits for public safety, public health, health care, human services and similar employees of a recipient government, for the portion of the employee’s time spent responding to COVID-19. Recipients should follow the steps below.

1. Identify eligible public safety, public health, and human services staff. Public safety staff include:
✓ Police officers (including state police
officers)
✓ Sheriffs and deputy sheriffs
✓ Firefighters
✓ Emergency medical responders
✓ Correctional and detention officers
✓ Dispatchers and supervisor personnel
that directly support public safety staff
Public health staff include:
✓ Employees involved in providing medical
and other physical or mental health
services to patients and supervisory
personnel, including medical staff
assigned to schools, prisons, and other
such institutions
✓ Laboratory technicians, medical
examiners, morgue staff, and other
support services essential for patient
care
✓ Employees of public health
departments directly engaged in
public health matters and related
supervisory personnel
Human services staff include:
✓ Employees providing or administering
social services and public benefits
✓ Child welfare services employees
✓ Child, elder, or family care employees

2. Assess portion of time spent on COVID-19 response for eligible staff.

Recipients can use a variety of methods to assess the share of an employees’ time spent responding to COVID-19, including using reasonable estimates—such as estimating the share of time based on discussions with staff and applying that share to all employees in that position.

For administrative convenience, recipients can consider public health and safety employees entirely devoted to responding to COVID-19 (and their payroll and benefits fully covered by SLFRF) if the

7.5.1.b
Packet Pg. 257 Attachment: Attachment B - Overview of SLFRF Final Rule (2746 : American Rescue Plan Act) 27 U.S. DEPARTMENT OF THE TREASURY
Coronavirus State & Local Fiscal Recovery Funds: Overview of the Final Rule U.S. Department of the Treasury
employee, or his or her operating unit or division, is “primarily dedicated” to responding to COVID19. Primarily dedicated means that more than half of the employee, unit, or division’s time is dedicated to responding to COVID-19.

Recipients must periodically reassess their determination and maintain records to support their assessment, although recipients do not need to track staff hours.

3. Use SLFRF funding for payroll and covered benefits for the portion of eligible staff time spent on COVID-19 response. SLFRF funding may be used for payroll and covered benefits for the portion of the employees’ time spent on COVID-19 response, as calculated above, through the period of performance.

Government Employment and Rehiring Public Sector Staff
Under the increased flexibility of the final rule, SLFRF funding may be used to support a broader set of uses to restore and support public sector employment. Eligible uses include hiring up to a pre-pandemic baseline that is adjusted for historic underinvestment in the public sector, providing additional funds for employees who experienced pay cuts or were furloughed, avoiding layoffs, providing worker retention incentives, and paying for ancillary administrative costs related to hiring, support, and retention. • Restoring pre-pandemic employment. Recipients have two options to restore pre-pandemic employment, depending on the recipient’s needs.
• If the recipient simply wants to hire back employees for pre-pandemic positions: Recipients may use SLFRF funds to hire employees for the same positions that existed on January 27, 2020 but that were unfilled or eliminated as of March 3, 2021. Recipients may use SLFRF funds to cover payroll and covered benefits for such positions through the period of performance.
• If the recipient wants to hire above the pre-pandemic baseline and/or would like to have flexibility in positions: Recipients may use SLFRF funds to pay for payroll and covered benefits associated with the recipient increasing its number of budgeted FTEs up to 7.5 percent above its pre-pandemic baseline. Specifically, recipients should undergo the following steps:
a. Identify the recipient’s budgeted FTE level on January 27, 2020. This includes all budgeted positions, filled and unfilled. This is called the pre-pandemic baseline. b. Multiply the pre-pandemic baseline by 1.075. This is called the adjusted prepandemic baseline. c. Identify the recipient’s budgeted FTE level on March 3, 2021, which is the beginning of the period of performance for SLFRF funds. Recipients may, but are not required to, exclude the number of FTEs dedicated to responding to the COVID-19 public health emergency. This is called the actual number of FTEs. d. Subtract the actual number of FTEs from the adjusted pre-pandemic baseline to calculate the number of FTEs that can be covered by SLFRF funds. Recipients do not have to hire for the same roles that existed pre-pandemic.

7.5.1.b
Packet Pg. 258 Attachment: Attachment B - Overview of SLFRF Final Rule (2746 : American Rescue Plan Act) 28 U.S. DEPARTMENT OF THE TREASURY
Coronavirus State & Local Fiscal Recovery Funds: Overview of the Final Rule U.S. Department of the Treasury
Recipients may use SLFRF funds to cover payroll and covered benefits through the period of performance; these employees must have begun their employment on or after March 3, 2021. Recipients may only use SLFRF funds for additional FTEs hired over the March 3, 2021 level (i.e., the actual number of FTEs).
• Supporting and retaining public sector workers. Recipients can also use funds in other ways that support the public sector workforce.10 These include:
o Providing additional funding for employees who experienced pay reductions or were furloughed since the onset of the pandemic, up to the difference in the employee’s pay, taking into account unemployment benefits received.
o Maintaining current compensation levels to prevent layoffs. SLFRF funds may be used to maintain current compensation levels, with adjustments for inflation, in order to prevent layoffs that would otherwise be necessary.
o Providing worker retention incentives, including reasonable increases in compensation to persuade employees to remain with the employer as compared to other employment options. Retention incentives must be entirely additive to an employee’s regular compensation, narrowly tailored to need, and should not exceed incentives traditionally offered by the recipient or compensation that alternative employers may offer to compete for the employees. Treasury presumes that retention incentives that are less than 25 percent of the rate of base pay for an individual employee or 10 percent for a group or category of employees are reasonably proportional to the need to retain employees, as long as other requirements are met. • Covering administrative costs associated with administering the hiring, support, and retention programs above.

Effective Service Delivery
SLFRF funding may be used to improve the efficacy of public health and economic programs through tools like program evaluation, data, and outreach, as well as to address administrative needs caused or exacerbated by the pandemic. Eligible uses include:
• Supporting program evaluation, data, and outreach through:
10 Recipients should be able to substantiate that these uses of funds are substantially due to the public health emergency or its negative economic impacts (e.g., fiscal pressures on state and local budgets) and respond to its impacts. See the final rule for details on these uses.

7.5.1.b
Packet Pg. 259 Attachment: Attachment B - Overview of SLFRF Final Rule (2746 : American Rescue Plan Act) 29 U.S. DEPARTMENT OF THE TREASURY
Coronavirus State & Local Fiscal Recovery Funds: Overview of the Final Rule U.S. Department of the Treasury
✓ Program evaluation and evidence
resources
✓ Data analysis resources to gather,
assess, share, and use data
✓ Technology infrastructure to improve
access to and the user experience of
government IT systems, as well as
technology improvements to increase
public access and delivery of
government programs and services
✓ Community outreach and engagement
activities
✓ Capacity building resources to support
using data and evidence, including
hiring staff, consultants, or technical
assistance support
• Addressing administrative needs, including:
✓ Administrative costs for programs
responding to the public health
emergency and its economic impacts,
including non-SLFRF and non-federally
funded programs
✓ Address administrative needs caused
or exacerbated by the pandemic,
including addressing backlogs caused
by shutdowns, increased repair or
maintenance needs, and technology
infrastructure to adapt government
operations to the pandemic (e.g.,
video-conferencing software, data and
case management systems)

7.5.1.b
Packet Pg. 260 Attachment: Attachment B - Overview of SLFRF Final Rule (2746 : American Rescue Plan Act) 30 U.S. DEPARTMENT OF THE TREASURY
Coronavirus State & Local Fiscal Recovery Funds: Overview of the Final Rule U.S. Department of the Treasury

CAPITAL EXPENDITURES
As described above, the final rule clarifies that recipients may use funds for programs, services, and capital expenditures that respond to the public health and negative economic impacts of the pandemic.

Any use of funds in this category for a capital expenditure must comply with the capital expenditure requirements, in addition to other standards for uses of funds.

Capital expenditures are subject to the same eligibility standard as other eligible uses to respond to the pandemic’s public health and economic impacts; specifically, they must be related and reasonably proportional to the pandemic impact identified and reasonably designed to benefit the impacted population or class.

For ease of administration, the final rule identifies enumerated types of capital expenditures that Treasury has identified as responding to the pandemic’s impacts; these are listed in the applicable subcategory of eligible uses (e.g., public health, assistance to households, etc.). Recipients may also identify other responsive capital expenditures. Similar to other eligible uses in the SLFRF program, no preapproval is required for capital expenditures.

To guide recipients’ analysis of whether a capital expenditure meets the eligibility standard, recipients (with the exception of Tribal governments) must complete and meet the requirements of a written justification for capital expenditures equal to or greater than $1 million. For large-scale capital expenditures, which have high costs and may require an extended length of time to complete, as well as most capital expenditures for non-enumerated uses of funds, Treasury requires recipients to submit their written justification as part of regular reporting. Specifically:

If a project has
total capital
expenditures
of
and the use is enumerated by Treasury
as eligible, then
and the use is beyond those
enumerated by Treasury as eligible,
then
Less than $1
million
No Written Justification required No Written Justification required Greater than or
equal to $1
million, but
less than $10
million
Written Justification required but
recipients are not required to submit as
part of regular reporting to Treasury Written Justification required and recipients must submit as part of regular
reporting to Treasury
$10 million or
more
Written Justification required and
recipients must submit as part of regular
reporting to Treasury
A Written Justification includes:
• Description of the harm or need to be addressed. Recipients should provide a description of the specific harm or need to be addressed and why the harm was exacerbated or caused by the public health emergency. Recipients may provide quantitative information on the extent and the type of harm, such as the number of individuals or entities affected.

7.5.1.b
Packet Pg. 261 Attachment: Attachment B - Overview of SLFRF Final Rule (2746 : American Rescue Plan Act) 31 U.S. DEPARTMENT OF THE TREASURY
Coronavirus State & Local Fiscal Recovery Funds: Overview of the Final Rule U.S. Department of the Treasury
• Explanation of why a capital expenditure is appropriate. For example, recipients should include an explanation of why existing equipment and facilities, or policy changes or additional funding to pertinent programs or services, would be inadequate. • Comparison of proposed capital project against at least two alternative capital expenditures and demonstration of why the proposed capital expenditure is superior. Recipients should consider the effectiveness of the capital expenditure in addressing the harm identified and the expected total cost (including pre-development costs) against at least two alternative capital expenditures.

Where relevant, recipients should consider the alternatives of improving existing capital assets already owned or leasing other capital assets.

Treasury presumes that the following capital projects are generally ineligible:
 Construction of new correctional
facilities as a response to an increase in
rate of crime
 Construction of new congregate
facilities to decrease spread of COVID-19
in the facility
 Construction of convention centers,
stadiums, or other large capital projects
intended for general economic
development or to aid impacted
industries
In undertaking capital expenditures, Treasury encourages recipients to adhere to 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. Treasury also encourages recipients to prioritize in their procurements employers with high labor standards and to prioritize employers without recent violations of federal and state labor and employment laws.

7.5.1.b
Packet Pg. 262 Attachment: Attachment B - Overview of SLFRF Final Rule (2746 : American Rescue Plan Act) 32 U.S. DEPARTMENT OF THE TREASURY
Coronavirus State & Local Fiscal Recovery Funds: Overview of the Final Rule U.S. Department of the Treasury

FRAMEWORK FOR ELIGIBLE USES BEYOND THOSE ENUMERATED
As described above, recipients have broad flexibility to identify and respond to other pandemic impacts and serve other populations that experienced pandemic impacts, beyond the enumerated uses and presumed eligible populations. Recipients should undergo the following steps to decide whether their project is eligible:

Step 1. Identify COVID-19 public health or
economic impact

2. Design a response that addresses or
responds to the impact
Analysis
• Can identify impact to a specific
household, business or nonprofit or to
a class of households, businesses or
nonprofits (i.e., group)
• Can also identify disproportionate
impacts, or more severe impacts, to a
specific beneficiary or to a class
• Types of responses can include a
program, service, or capital
expenditure
• Response should be related and
reasonably proportional to the harm
• Response should also be reasonably
designed to benefit impacted
individual or class

1. Identify a COVID-19 public health or negative economic impact on an individual or a class.

Recipients should identify an individual or class that is “impacted” or “disproportionately impacted” by the COVID-19 public health emergency or its negative economic impacts as well as the specific impact itself.
• “Impacted” entities are those impacted by the disease itself or the harmful consequences of the economic disruptions resulting from or exacerbated by the COVID19 public health emergency. For example, an individual who lost their job or a small business that saw lower revenue during a period of closure would both have experienced impacts of the pandemic.
• “Disproportionately impacted” entities are those that experienced disproportionate public health or economic outcomes from the pandemic; Treasury recognizes that preexisting disparities, in many cases, amplified the impacts of the pandemic, causing more severe impacts in underserved communities. For example, a household living in a neighborhood with limited access to medical care and healthy foods may have faced health disparities before the pandemic, like a higher rate of chronic health conditions, that contributed to more severe health outcomes during the COVID-19 pandemic.

The recipient may choose to identify these impacts at either the individual level or at a class level. If the recipient is identifying impacts at the individual level, they should retain documentation supporting the impact the individual experienced (e.g., documentation of lost revenues from a small business). Such documentation can be streamlined in many cases (e.g., self-attestation that a household requires food assistance).

Recipients also have broad flexibility to identify a “class” – or a group of households, small businesses, or nonprofits – that experienced an impact. In these cases, the recipients should

7.5.1.b
Packet Pg. 263 Attachment: Attachment B - Overview of SLFRF Final Rule (2746 : American Rescue Plan Act) 33 U.S. DEPARTMENT OF THE TREASURY
Coronavirus State & Local Fiscal Recovery Funds: Overview of the Final Rule U.S. Department of the Treasury
first identify the class and the impact that it faced. Then, recipients only need to document that the individuals served fall within that class; recipients do not need to document a specific impact to each individual served. For example, a recipient could identify that restaurants in the downtown area faced substantial declines in revenue due to decreased foot traffic from workers; the recipient could develop a program to respond to the impact on that class and only needs to document that the businesses being served are restaurants in the downtown area.

Recipients should keep the following considerations in mind when designating a class:
• There should be a relationship between the definition of the class and the proposed response. Larger and less-specific classes are less likely to have experienced similar harms, which may make it more difficult to design a response that appropriately responds to those harms.
• Classes may be determined on a population basis or on a geographic basis, and the response should be appropriately matched. For example, a response might be designed to provide childcare to single parents, regardless of which neighborhood they live in, or a response might provide a park to improve the health of a disproportionately impacted neighborhood.
• Recipients may designate classes that experienced disproportionate impact, by assessing the impacts of the pandemic and finding that some populations experienced meaningfully more severe impacts than the general public. To determine these disproportionate impacts, recipients:
o May designate classes based on academic research or government research publications (such as the citations provided in the supplementary information in the final rule), through analysis of their own data, or through analysis of other existing data sources.
o May also consider qualitative research and sources to augment their analysis, or when quantitative data is not readily available. Such sources might include resident interviews or feedback from relevant state and local agencies, such as public health departments or social services departments. o Should consider the quality of the research, data, and applicability of analysis to their determination in all cases.
• Some of the enumerated uses may also be appropriate responses to the impacts experienced by other classes of beneficiaries. It is permissible for recipients to provide these services to other classes, so long as the recipient determines that the response is also appropriate for those groups.
• Recipients may designate a class based on income level, including at levels higher than the final rule definition of "low- and moderate-income." For example, a recipient may identify that households in their community with incomes above the final rule threshold for low-income nevertheless experienced disproportionate impacts from the pandemic and provide responsive services.

2. Design a response that addresses or responds to the impact. Programs, services, and other interventions must be reasonably designed to benefit the individual or class that experienced

7.5.1.b
Packet Pg. 264 Attachment: Attachment B - Overview of SLFRF Final Rule (2746 : American Rescue Plan Act) 34 U.S. DEPARTMENT OF THE TREASURY
Coronavirus State & Local Fiscal Recovery Funds: Overview of the Final Rule U.S. Department of the Treasury
the impact. They must also be related and reasonably proportional to the extent and type of impact experienced. For example, uses that bear no relation or are grossly disproportionate to the type or extent of the impact would not be eligible. “Reasonably proportional” refers to the scale of the response compared to the scale of the harm, as well as the targeting of the response to beneficiaries compared to the amount of harm they experienced; for example, it may not be reasonably proportional for a cash assistance program to provide a very small amount of aid to a group that experienced severe harm and a much larger amount to a group that experienced relatively little harm. Recipients should consider relevant factors about the harm identified and the response to evaluate whether the response is reasonably proportional. For example, recipients may consider the size of the population impacted and the severity, type, and duration of the impact. Recipients may also consider the efficacy, cost, cost-effectiveness, and time to delivery of the response.

For disproportionately impacted communities, recipients may design interventions that address broader pre-existing disparities that contributed to more severe health and economic outcomes during the pandemic, such as disproportionate gaps in access to health care or pre-existing disparities in educational outcomes that have been exacerbated by the pandemic.

7.5.1.b
Packet Pg. 265 Attachment: Attachment B - Overview of SLFRF Final Rule (2746 : American Rescue Plan Act) 35 U.S. DEPARTMENT OF THE TREASURY
Coronavirus State & Local Fiscal Recovery Funds: Overview of the Final Rule U.S. Department of the Treasury
Premium Pay
The Coronavirus State and Local Fiscal Recovery Funds may be used to provide premium pay to eligible workers performing essential work during the pandemic. Premium pay may be awarded to eligible workers up to $13 per hour. Premium pay must be in addition to wages or remuneration (i.e., compensation) the eligible worker otherwise receives. Premium pay may not exceed $25,000 for any single worker during the program.

Recipients should undergo the following steps to provide premium pay to eligible workers.

1. Identify an “eligible” worker. Eligible workers include workers “needed to maintain continuity of operations of essential critical infrastructure sectors.” These sectors and occupations are eligible:
✓ Health care
✓ Emergency response
✓ Sanitation, disinfection & cleaning
✓ Maintenance
✓ Grocery stores, restaurants, food
production, and food delivery
✓ Pharmacy
✓ Biomedical research
✓ Behavioral health
✓ Medical testing and diagnostics
✓ Home and community-based health care
or assistance with activities of daily living
✓ Family or child care
✓ Social services
✓ Public health
✓ Mortuary
✓ Critical clinical research, development,
and testing necessary for COVID-19
response
✓ State, local, or Tribal government
workforce
✓ Workers providing vital services to
Tribes
✓ Educational, school nutrition, and other
work required to operate a school
facility
✓ Laundry
✓ Elections
✓ Solid waste or hazardous materials
management, response, and cleanup
✓ Work requiring physical interaction with
patients
✓ Dental care
✓ Transportation and warehousing
✓ Hotel and commercial lodging facilities
that are used for COVID-19 mitigation
and containment
Beyond this list, the chief executive (or equivalent) of a recipient government may designate additional non-public sectors as critical so long as doing so is necessary to protecting the health and wellbeing of the residents of such jurisdictions.

2. Verify that the eligible worker performs “essential work,” meaning work that:
• Is not performed while teleworking from a residence; and • Involves either:
a. regular, in-person interactions with patients, the public, or coworkers of the individual that is performing the work; or
b. regular physical handling of items that were handled by, or are to be handled by, patients, the public, or coworkers of the individual that is performing the work.

7.5.1.b
Packet Pg. 266 Attachment: Attachment B - Overview of SLFRF Final Rule (2746 : American Rescue Plan Act) 36 U.S. DEPARTMENT OF THE TREASURY
Coronavirus State & Local Fiscal Recovery Funds: Overview of the Final Rule U.S. Department of the Treasury

3. Confirm that the premium pay “responds to” workers performing essential work during the COVID-19 public health emergency. Under the final rule, which broadened the share of eligible workers who can receive premium pay without a written justification, recipients may meet this requirement in one of three ways:
• Eligible worker receiving premium pay is earning (with the premium included) at or below 150 percent of their residing state or county’s average annual wage for all occupations, as defined by the Bureau of Labor Statistics’ Occupational Employment and Wage Statistics, whichever is higher, on an annual basis; or
• Eligible worker receiving premium pay is not exempt from the Fair Labor Standards Act overtime provisions; or
• If a worker does not meet either of the above requirements, the recipient must submit written justification to Treasury detailing how the premium pay is otherwise responsive to workers performing essential work during the public health emergency. This may include a description of the essential worker’s duties, health, or financial risks faced due to COVID-19, and why the recipient determined that the premium pay was responsive. Treasury anticipates that recipients will easily be able to satisfy the justification requirement for front-line workers, like nurses and hospital staff.

Premium pay may be awarded in installments or lump sums (e.g., monthly, quarterly, etc.) and may be awarded to hourly, part-time, or salaried or non-hourly workers. Premium pay must be paid in addition to wages already received and may be paid retrospectively. A recipient may not use SLFRF to merely reimburse itself for premium pay or hazard pay already received by the worker, and premium pay may not be paid to volunteers.

7.5.1.b
Packet Pg. 267 Attachment: Attachment B - Overview of SLFRF Final Rule (2746 : American Rescue Plan Act) 37 U.S. DEPARTMENT OF THE TREASURY
Coronavirus State & Local Fiscal Recovery Funds: Overview of the Final Rule U.S. Department of the Treasury
Water & Sewer Infrastructure
The Coronavirus State and Local Fiscal Recovery Funds may be used to make necessary investments in water and sewer infrastructure. State, local, and Tribal governments have a tremendous need to address the consequences of deferred maintenance in drinking water systems and removal, management, and treatment of sewage and stormwater, along with additional resiliency measures needed to adapt to climate change.

Recipients may undertake the eligible projects below:

PROJECTS ELIGIBLE UNDER EPA’S CLEAN WATER STATE REVOLVING FUND (CWSRF) Eligible projects under the CWSRF, and the final rule, include:
✓ Construction of publicly owned
treatment works
✓ Projects pursuant to implementation
of a nonpoint source pollution
management program established
under the Clean Water Act (CWA)
✓ Decentralized wastewater treatment
systems that treat municipal
wastewater or domestic sewage
✓ Management and treatment of
stormwater or subsurface drainage
water
✓ Water conservation, efficiency, or
reuse measures
✓ Development and implementation of a
conservation and management plan
under the CWA
✓ Watershed projects meeting the
criteria set forth in the CWA
✓ Energy consumption reduction for
publicly owned treatment works
✓ Reuse or recycling of wastewater,
stormwater, or subsurface drainage
water
✓ Security of publicly owned treatment
works
Treasury encourages recipients to review the EPA handbook for the CWSRF for a full list of eligibilities.

PROJECTS ELIGIBLE UNDER EPA’S DRINKING WATER STATE REVOLVING FUND (DWSRF) Eligible drinking water projects under the DWSRF, and the final rule, include:
✓ Facilities to improve drinking water
quality
✓ Transmission and distribution,
including improvements of water
pressure or prevention of
contamination in infrastructure and
lead service line replacements
✓ New sources to replace contaminated
drinking water or increase drought
resilience, including aquifer storage
and recovery system for water storage
✓ Green infrastructure, including green
roofs, rainwater harvesting collection,
permeable pavement
✓ Storage of drinking water, such as to
prevent contaminants or equalize
water demands
✓ Purchase of water systems and
interconnection of systems
✓ New community water systems
Treasury encourages recipients to review the EPA handbook for the DWSRF for a full list of eligibilities.

7.5.1.b
Packet Pg. 268 Attachment: Attachment B - Overview of SLFRF Final Rule (2746 : American Rescue Plan Act) 38 U.S. DEPARTMENT OF THE TREASURY
Coronavirus State & Local Fiscal Recovery Funds: Overview of the Final Rule U.S. Department of the Treasury

ADDITIONAL ELIGIBLE PROJECTS
With broadened eligibility under the final rule, SLFRF funds may be used to fund additional types of projects— such as additional stormwater infrastructure, residential wells, lead remediation, and certain rehabilitations of dams and reservoirs — beyond the CWSRF and DWSRF, if they are found to be “necessary” according to the definition provided in the final rule and outlined below. ✓ Culvert repair, resizing, and removal,
replacement of storm sewers, and
additional types of stormwater
infrastructure
✓ Infrastructure to improve access to
safe drinking water for individual
served by residential wells, including
testing initiatives, and
treatment/remediation strategies that
address contamination
✓ Dam and reservoir rehabilitation if
primary purpose of dam or reservoir is
for drinking water supply and project
is necessary for provision of drinking
water
✓ Broad set of lead remediation projects
eligible under EPA grant programs
authorized by the Water
Infrastructure Improvements for the
Nation (WIIN) Act, such as lead
testing, installation of corrosion
control treatment, lead service line
replacement, as well as water quality
testing, compliance monitoring, and
remediation activities, including
replacement of internal plumbing and
faucets and fixtures in schools and
childcare facilities
A “necessary” investment in infrastructure must be:
(1) responsive to an identified need to achieve or maintain an adequate minimum level of service, which may include a reasonable projection of increased need, whether due to population growth or otherwise,
(2) a cost-effective means for meeting that need, taking into account available alternatives, and (3) for investments in infrastructure that supply drinking water in order to meet projected population growth, projected to be sustainable over its estimated useful life.

Please note that DWSRF and CWSRF-eligible projects are generally presumed to be necessary investments. Additional eligible projects generally must be responsive to an identified need to achieve or maintain an adequate minimum level of service. Recipients are only required to assess costeffectiveness of projects for the creation of new drinking water systems, dam and reservoir rehabilitation projects, or projects for the extension of drinking water service to meet population growth needs. Recipients should review the supplementary information to the final rule for more details on requirements applicable to each type of investment.

APPLICABLE STANDARDS & REQUIREMENTS
Treasury encourages recipients to adhere to 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. Treasury also encourages recipients to prioritize in their procurements employers with high labor standards and to prioritize employers without recent violations of federal and state labor and employment laws.

7.5.1.b
Packet Pg. 269 Attachment: Attachment B - Overview of SLFRF Final Rule (2746 : American Rescue Plan Act) 39 U.S. DEPARTMENT OF THE TREASURY
Coronavirus State & Local Fiscal Recovery Funds: Overview of the Final Rule U.S. Department of the Treasury
Broadband Infrastructure
The Coronavirus State and Local Fiscal Recovery Funds may be used to make necessary investments in broadband infrastructure, which has been shown to be critical for work, education, healthcare, and civic participation during the public health emergency. The final rule broadens the set of eligible broadband infrastructure investments that recipients may undertake.

Recipients may pursue investments in broadband infrastructure meeting technical standards detailed below, as well as an expanded set of cybersecurity investments.

BROADBAND INFRASTRUCTURE INVESTMENTS
Recipients should adhere to the following requirements when designing a broadband infrastructure project:

1. Identify an eligible area for investment. Recipients are encouraged to prioritize projects that are designed to serve locations without access to reliable wireline 100/20 Mbps broadband service (meaning service that reliably provides 100 Mbps download speed and 20 Mbps upload speed through a wireline connection), but are broadly able to invest in projects designed to provide service to locations with an identified need for additional broadband investment.

Recipients have broad flexibility to define need in their community. Examples of need could include:
✓ Lack of access to a reliable high-speed
broadband connection
✓ Lack of affordable broadband
✓ Lack of reliable service
If recipients are considering deploying broadband to locations where there are existing and enforceable federal or state funding commitments for reliable service of at least 100/20 Mbps, recipients must ensure that SLFRF funds are designed to address an identified need for additional broadband investment that is not met by existing federal or state funding commitments. Recipients must also ensure that SLFRF funds will not be used for costs that will be reimbursed by the other federal or state funding streams.

2. Design project to meet high-speed technical standards. Recipients are required to design projects to, upon completion, reliably meet or exceed symmetrical 100 Mbps download and upload speeds. In cases where it is not practicable, because of the excessive cost of the project or geography or topography of the area to be served by the project, eligible projects may be designed to reliably meet or exceed 100/20 Mbps and be scalable to a minimum of symmetrical 100 Mbps download and upload speeds.

Treasury encourages recipients to prioritize investments in fiber-optic infrastructure wherever feasible and to focus on projects that will achieve last-mile connections. Further, Treasury encourages recipients to prioritize support for broadband networks owned, operated by, or affiliated with local governments, nonprofits, and co-operatives.

7.5.1.b
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3. Require enrollment in a low-income subsidy program. Recipients must require the service provider for a broadband project that provides service to households to either:
✓ Participate in the FCC’s Affordable
Connectivity Program (ACP)
✓ Provide access to a broad-based
affordability program to low-income
consumers that provides benefits
commensurate to ACP
Treasury encourages broadband services to also include at least one low-cost option offered without data usage caps at speeds sufficient for a household with multiple users to simultaneously telework and engage in remote learning. Recipients are also encouraged to consult with the community on affordability needs.

CYBERSECURITY INVESTMENTS
SLFRF may be used for modernization of cybersecurity for existing and new broadband infrastructure, regardless of their speed delivery standards. This includes modernization of hardware and software.

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Restrictions on Use
While recipients have considerable flexibility to use Coronavirus State and Local Fiscal Recovery Funds to address the diverse needs of their communities, some restrictions on use of funds apply.

OFFSET A REDUCTION IN NET TAX REVENUE
• States and territories may not use this funding to directly or indirectly offset a reduction in net tax revenue resulting from a change in law, regulation, or administrative interpretation beginning on March 3, 2021, through the last day of the fiscal year in which the funds provided have been spent. If a state or territory cuts taxes during this period, it must demonstrate how it paid for the tax cuts from sources other than SLFRF, such as 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 repaid to the Treasury.

DEPOSITS INTO PENSION FUNDS
• No recipients except Tribal governments may use this funding to make a deposit to a pension fund. Treasury 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 connected to an eligible use of funds (e.g., for public health and safety staff). Examples of extraordinary payments include ones that:
 Reduce a liability incurred prior to the
start of the COVID-19 public health
emergency and occur outside the
recipient's regular timing for making the
payment
 Occur at the regular time for pension
contributions but is larger than a regular
payment would have been

ADDITIONAL RESTRICTIONS AND REQUIREMENTS
Additional restrictions and requirements that apply across all eligible use categories include:
• No debt service or replenishing financial reserves. Since SLFRF funds are intended to be used prospectively, recipients may not use SLFRF funds for debt service or replenishing financial reserves (e.g., rainy day funds).
• No satisfaction of settlements and judgments. Satisfaction of any obligation arising under or pursuant to a settlement agreement, judgment, consent decree, or judicially confirmed debt restructuring in a judicial, administrative, or regulatory proceeding is itself not an eligible use.

However, if a settlement requires the recipient to provide services or incur other costs that are an eligible use of SLFRF funds, SLFRF may be used for those costs. • Additional general restrictions. SLFRF funds may not be used for a project that conflicts with or contravenes the purpose of the American Rescue Plan Act statute (e.g., uses of funds that

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undermine COVID-19 mitigation practices in line with CDC guidance and recommendations) and may not be used in violation of the Award Terms and Conditions or conflict of interest requirements under the Uniform Guidance. Other applicable laws and regulations, outside of SLFRF program requirements, may also apply (e.g., laws around procurement, contracting, conflicts-of-interest, environmental standards, or civil rights).

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Program Administration
The Coronavirus State and Local Fiscal Recovery Funds final rule details a number of administrative processes and requirements, including on distribution of funds, timeline for use of funds, transfer of funds, treatment of loans, use of funds to meet non-federal match or cost-share requirements, administrative expenses, reporting on use of funds, and remediation and recoupment of funds used for ineligible purposes. This section provides a summary for the most frequently asked questions.

TIMELINE FOR USE OF FUNDS
Under the SLFRF, funds must be used for costs incurred on or after March 3, 2021. Further, costs must be obligated by December 31, 2024, and expended by December 31, 2026.

TRANSFERS
Recipients may undertake projects on their own or through subrecipients, which carry out eligible uses on behalf of a recipient, including pooling funds with other recipients or blending and braiding SLFRF funds with other sources of funds. Localities may also transfer their funds to the state through section 603(c)(4), which will decrease the locality’s award and increase the state award amounts.

LOANS
Recipients may generally use SLFRF funds to provide loans for uses that are otherwise eligible, although there are special rules about how recipients should track program income depending on the length of the loan. Recipients should consult the final rule if they seek to utilize these provisions.

NON-FEDERAL MATCH OR COST-SHARE REQUIREMENTS
Funds available under the “revenue loss” eligible use category (sections 602(c)(1)(C) and 603(c)(1)(C) of the Social Security Act) generally may be used to meet the non-federal cost-share or matching requirements of other federal programs. However, note that SLFRF funds may not be used as the nonfederal share for purposes of a state’s Medicaid and CHIP programs because the Office of Management and Budget has approved a waiver as requested by the Centers for Medicare & Medicaid Services pursuant to 2 CFR 200.102 of the Uniform Guidance and related regulations.

SLFRF funds beyond those that are available under the revenue loss eligible use category may not be used to meet the non-federal match or cost-share requirements of other federal programs, other than as specifically provided for by statute. As an example, the Infrastructure Investment and Jobs Act provides that SLFRF funds may be used to meet the non-federal match requirements of authorized Bureau of Reclamation projects and certain broadband deployment projects. Recipients should consult the final rule for further details if they seek to utilize SLFRF funds as a match for these projects.

ADMINISTRATIVE EXPENSES
SLFRF funds may be used for direct and indirect administrative expenses involved in administering the program. For details on permissible direct and indirect administrative costs, recipients should refer to Treasury’s Compliance and Reporting Guidance. Costs incurred for the same purpose in like circumstances must be treated consistently as either direct or indirect costs.

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REPORTING, COMPLIANCE & RECOUPMENT
Recipients are required to comply with Treasury’s Compliance and Reporting Guidance, which includes submitting mandatory periodic reports to Treasury.

Funds used in violation of the final rule are subject to remediation and recoupment. As outlined in the final rule, Treasury may identify funds used in violation through reporting or other sources. Recipients will be provided with an initial written notice of recoupment with an opportunity to submit a request for reconsideration before Treasury provides a final notice of recoupment. If the recipient receives an initial notice of recoupment and does not submit a request for reconsideration, the initial notice will be deemed the final notice. Treasury may pursue other forms of remediation and monitoring in conjunction with, or as an alternative to, recoupment.

REVISIONS TO THE OVERVIEW OF THE FINAL RULE:
• January 18, 2022 (p. 4, p. 16): Clarification that the revenue loss standard allowance is “up to” $10 million under the Replacing Lost Public Sector Revenue eligible use category; addition of further information on the eligibility of general infrastructure, general economic development, and worker development projects under the Public Health and Negative Economic Impacts eligible use category.

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Compliance and Reporting Guidance
1 ted ieethe due
ADD cover page
November xx, 2021
Version: 2.0
November 15, 2021
Version: 2.1

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2 Coronavirus State and Local Fiscal Recovery Funds
Guidance on Recipient Compliance and Reporting
Responsibilities
On March 11, 2021, the American Rescue Plan Act was signed into law, and established the Coronavirus State Fiscal Recovery Fund and Coronavirus Local Fiscal Recovery Fund, which together make up the Coronavirus State and Local Fiscal Recovery Funds (“SLFRF”) program.

This program is intended to provide support to State, territorial, local, and Tribal governments in responding to the economic and public health impacts of COVID-19 and in their efforts to contain impacts on their communities, residents, and businesses.

This guidance provides additional detail and clarification for each recipient’s compliance and reporting responsibilities under the SLFRF program, and should be read in concert with the Award Terms and Conditions, the authorizing statute, the SLFRF implementing regulation, and other regulatory and statutory requirements, including regulatory requirements under the Uniform Guidance (2 CRF Part 200). Please see the Assistance Listing in SAM.gov under assistance listing number (formerly known as CFDA number), 21.027 for more information.

Please Note: This guidance document applies to the SLFRF program only and does not change nor impact reporting and compliance requirements for the Coronavirus Relief Fund (“CRF”) established by the CARES Act.

This guidance includes two parts:

Part 1: General Guidance
This section provides an orientation to recipients’ compliance responsibilities and the U.S.

Department of the Treasury’s (“Treasury”) expectations, and recommends best practices where appropriate under the SLFRF Program.

A. Key Principles……………………..……………………………………………………. P. 3
B. Statutory Eligible Uses…………………………………………………………………. P. 3 C. Treasury’s Rulemaking……………………………………………………….………… P. 4 D. Uniform Guidance (2 CFR Part 200)……………..…………………………………… P. 6 E. Award Terms and Conditions………………………………...………………………... P. 10 Part 2: Reporting Requirements
This section provides information on the reporting requirements for the SLFRF program.

A. Interim Report…...…………………………………………………………………...…. P. 14 B. Project and Expenditure Report…………….…………………………………...……. P. 15 C. Recovery Plan Performance Report..………………..……………………….….…… P. 22 Appendix 1: Expenditure Categories…………………………………………………….…… P. 30 Appendix 2: Evidenced-Based Intervention Additional Information…………………….…. P. 32

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3 Part 1: General Guidance
This section provides an orientation on recipients’ compliance responsibilities and Treasury’s expectations and recommended best practices where appropriate under the SLFRF program.

Recipients under the SLFRF program are the eligible entities identified in sections 602 and 603 of the Social Security Act as added by section 9901 of the American Rescue Plan Act of 2021 (the “SLFRF statute”) that receive a SLFRF award. Subrecipients under the SLFRF program are entities that receive a subaward from a recipient to carry out the purposes (program or project) of the SLFRF award on behalf of the recipient.

Recipients are accountable to Treasury for oversight of their subrecipients, including ensuring their subrecipients comply with the SLFRF statute, SLFRF Award Terms and Conditions, Treasury’s Interim Final Rule, and reporting requirements, as applicable.

A. Key Principles
There are several guiding principles for developing your own effective compliance regimes:
• Recipients and subrecipients are the first line of defense, and responsible for ensuring the SLFRF award funds are not used for ineligible purposes, and there is no fraud, waste, or abuse associated with their SLFRF award;
• Many SLFRF-funded projects respond to the COVID-19 public health emergency and meet urgent community needs. Swift and effective implementation is vital, and recipients must balance facilitating simple and rapid program access widely across the community and maintaining a robust documentation and compliance regime; • Treasury encourages recipients to use SLFRF-funded projects to advance shared interests and promote equitable delivery of government benefits and opportunities to underserved communities, as outlined in Executive Order 13985, On Advancing Racial Equity and Support for Underserved Communities Through the Federal Government; and • Transparency and public accountability for SLFRF award funds and use of such funds are critical to upholding program integrity and trust in all levels of government, and SLFRF award funds should be managed consistent with Administration guidance per Memorandum M-21-20 and Memorandum M-20-21.

B. Statutory Eligible Uses
As a recipient of an SLFRF award, your organization has substantial discretion to use the award funds in the ways that best suit the needs of your constituents – as long as such use fits into one of the following four statutory categories:

1. To respond to the COVID-19 public health emergency or its negative economic impacts;

2. To respond to workers performing essential work during the COVID-19 public health emergency by providing premium pay to such eligible workers of the recipient, or by providing grants to eligible employers that have eligible workers who performed essential work;

3. For the provision of government services, to the extent of the reduction in revenue of such recipient due to the COVID–19 public health emergency, relative to revenues collected in the most recent full fiscal year of the recipient prior to the emergency; and

4. To make necessary investments in water, sewer, or broadband infrastructure.

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4 Treasury adopted an Interim Final Rule to implement these eligible use categories and other restrictions on the use of funds under the SLFRF program. 1 It is the recipient’s responsibility
to ensure all SLFRF award funds are used in compliance with these requirements. In addition, recipients should be mindful of any additional compliance obligations that may apply – for example, additional restrictions imposed upon other sources of funds used in conjunction with SLFRF award funds, or statutes and regulations that may independently apply to water, broadband, and sewer infrastructure projects. Recipients should ensure they maintain proper documentation supporting determinations of costs and applicable compliance requirements, and how they have been satisfied as part of their award management, internal controls, and subrecipient oversight and management.

C. Treasury’s Rule
Treasury’s Interim Final Rule details recipients’ compliance responsibilities and provides additional information on eligible and restricted uses of SLFRF award funds and reporting requirements. Your organization should review and comply with the information contained in Treasury’s Interim Final Rule, and any subsequent final rule when building appropriate controls for SLFRF award funds.

1. Eligible and Restricted Uses of SLFRF Funds. As described in the SLFRF statute and summarized above, there are four enumerated eligible uses of SLFRF award funds. As a recipient of an award under the SLFRF program, your organization is responsible for complying with requirements for the use of funds. In addition to determining a given project’s eligibility, recipients are also responsible for determining subrecipient’s or beneficiaries’ eligibility and must monitor use of SLFRF award funds.

To help recipients build a greater understanding of eligible uses, Treasury’s Interim Final Rule establishes a framework for determining whether a specific project would be eligible under the SLFRF program, including some helpful definitions. For example, Treasury’s Interim Final Rule establishes:
• A framework for determining whether a project “responds to” a “negative economic impact” caused by the COVID-19 public health emergency; • Definitions of “eligible employers”, “essential work,” “eligible workers”, and “premium pay” for cases where premium pay is an eligible use;
• A definition of “general revenue” and a formula for calculating revenue lost due to the COVID-19 public health emergency;
• A framework for eligible water and sewer infrastructure projects that aligns eligible uses with projects that are eligible under the Environmental Protection Agency’s Drinking Water and Clean Water State Revolving Funds; and
• A framework for eligible broadband projects designed to provide service to unserved or underserved households, or businesses at speeds sufficient to enable users to generally meet household needs, including the ability to support the simultaneous use of work, education, and health applications, and also sufficiently robust to meet increasing household demands for bandwidth.

Treasury’s Interim Final Rule also provides more information on four important restrictions on use of SLFRF award funds: recipients may not deposit SLFRF funds into a pension fund; recipients that are States or territories may not use SLFRF funds to offset a reduction in net tax revenue caused by the recipient’s change in law, regulation, or administrative interpretation; and recipients may not use SLFRF funds as non-Federal match where 1 Treasury’s Interim Final Rule is effective as of May 17, 2021, and public comments are due July 16, 2021. This guidance may be clarified consistent with the final rule. https://www.govinfo.gov/content/pkg/FR-2021-05-17/pdf/2021-10283.pdf

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5 prohibited. In addition, the Interim Final Rule clarifies certain uses of SLFRF funds outside the scope of eligible uses, including that recipients generally may not use SLFRF funds directly to service debt, satisfy a judgment or settlement, or contribute to a “rainy day” fund.

Recipients should refer to Treasury’s Interim Final Rule for more information on these restrictions.

2. Eligible Costs Timeframe. Your organization, as a recipient of an SLFRF award, may use SLFRF funds to cover eligible costs that your organization incurred during the period that begins on March 3, 2021 and ends on December 31, 2024, as long as the award funds for the obligations incurred by December 31, 2024 are expended by December 31, 2026.

Costs for projects incurred by the recipient State, territorial, local, or Tribal government prior to March 3, 2021 are not eligible, as provided for in Treasury’s Interim Final Rule.

Recipients may use SLFRF award funds to provide assistance to households, businesses, nonprofits, and individuals within the eligible use categories described in Treasury’s Interim Final Rule for costs that those households, businesses, nonprofits, and individuals incurred prior to March 3, 2021. For example, a. Public Health/Negative Economic Impacts: Recipients may use SLFRF award funds to provide assistance to households, small businesses, and nonprofits – such as rent, mortgage, or utility assistance – for costs incurred by the household prior to March 3, 2021, provided that the recipient state, territorial, local or Tribal government did not incur the cost of providing such assistance prior to March 3, 2021. b. Premium Pay: Recipients may provide premium pay retrospectively for work performed at any time since the start of the COVID-19 public health emergency.

Such premium pay must be “in addition to” wages and remuneration already received and the obligation to provide such premium pay must not have been incurred by the recipient prior to March 3, 2021.
c. Revenue Loss: Treasury’s Interim Final Rule gives recipients broad discretion to use funds for the provision of government services to the extent of reduction in revenue.

While calculation of lost revenue begins with the recipient’s revenue in the last full fiscal year prior to the COVID-19 public health emergency and includes the 12-month period ending December 31, 2020, use of funds for government services must be forward looking for costs incurred by the recipient after March 3, 2021. d. Investments in Water, Sewer, and Broadband: Recipients may use SLFRF award funds to make necessary investments in water, sewer, and broadband. Recipients may use SLFRF award funds to cover costs incurred for eligible projects planned or started prior to March 3, 2021, provided that the project costs covered by the SLFRF award funds were incurred by the recipient after March 3, 2021.

Any funds not obligated or expended for eligible uses by the timelines above must be returned to Treasury, including any unobligated or unexpended funds that have been provided to subrecipients and contractors as part of the award closeout process pursuant to 2 C.F.R. 200.344(d). For the purposes of determining expenditure eligibility, Treasury’s Interim Final Rule provides that “incurred” has the same meaning given to “financial obligation” in 2 CFR 200.1.

3. Reporting. Generally, recipients must submit one initial interim report, quarterly or annual Project and Expenditure reports which include subaward reporting, and in some cases annual Recovery Plan reports. Treasury’s Interim Final Rule and Part 2 of this guidance provide more detail around SLFRF reporting requirements.

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6 D. Uniform Administrative Requirements
The SLFRF awards are generally subject to the requirements set forth in the Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, 2 CFR Part 200 (the “Uniform Guidance”). In all instances, your organization should review the Uniform Guidance requirements applicable to your organization’s use of SLFRF funds, and SLFRF-funded projects. Recipients should consider how and whether certain aspects of the Uniform Guidance apply.

The following sections provide a general summary of your organization’s compliance responsibilities under applicable statutes and regulations, including the Uniform Guidance, as described in the 2020 OMB Compliance Supplement Part 3. Compliance Requirements (issued August 18, 2020). Note that the descriptions below are only general summaries and all recipients and subrecipients are advised to carefully review the Uniform Guidance requirements and any additional regulatory and statutory requirements applicable to the program.

1. Allowable Activities. Each recipient should review program requirements, including Treasury’s Interim Final Rule and the recipient’s Award Terms and Conditions, to determine and record eligible uses of SLFRF funds. Per 2 CFR Part 200.303, your organization must develop and implement effective internal controls to ensure that funding decisions under the SLFRF award constitute eligible uses of funds, and document determinations.

2. Allowable Costs/Cost Principles. As outlined in the Uniform Guidance at 2 CFR Part 200, Subpart E regarding Cost Principles, allowable costs are based on the premise that a recipient is responsible for the effective administration of Federal awards, application of sound management practices, and administration of Federal funds in a manner consistent with the program objectives and terms and conditions of the award. Recipients must implement robust internal controls and effective monitoring to ensure compliance with the Cost Principles, which are important for building trust and accountability.

Assistance Listing
The Assistance Listing for the Coronavirus State and Local Fiscal Recovery Funds (SLFRF) was published May 28, 2021 on SAM.gov under Assistance Listing Number (“ALN”), formerly known as CFDA Number, 21.027.

The assistance listing includes helpful information including program purpose, statutory authority, eligibility requirements, and compliance requirements for recipients. The ALN is the unique 5-digit number assigned to identify a federal assistance listing, and can be used to search for federal assistance program information, including funding opportunities, spending on USASpending.gov, or audit results through the Federal Audit Clearinghouse.

To expedite payments and meet statutory timelines Treasury issued initial payments under an existing ALN, 21.019, assigned to the CRF. If you have already received funds or captured the initial number in your records, please update your systems and reporting to reflect the new ALN 21.027 for the SLFRF program. Recipients must use ALN

21.027 for all financial accounting, subawards, and associated program reporting requirements for the SLFRF awards.

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7 SLFRF Funds may be, but are not required to be, used along with other funding sources for a given project. Note that SLFRF Funds may not be used for a non-Federal cost share or match where prohibited by other Federal programs, e.g., funds may not be used for the State share for Medicaid.2
Treasury’s Interim Final Rule and guidance and the Uniform Guidance outline the types of costs that are allowable, including certain audit costs. For example, per 2 CFR 200.425, a reasonably proportionate share of the costs of audits required by the Single Audit Act Amendments of 1996 are allowable; however, costs for audits that were not performed in accordance with 2 CFR Part 200, Subpart F are not allowable. Please see 2 CFR Part 200, Subpart E regarding the Cost Principles for more information. a. Administrative costs: Recipients may use funds for administering the SLFRF program, including costs of consultants to support effective management and oversight, including consultation for ensuring compliance with legal, regulatory, and other requirements.3 Further, costs must be reasonable and allocable as outlined in 2 CFR 200.404 and 2 CFR 200.405. Pursuant to the SLFRF Award Terms and Conditions, recipients are permitted to charge both direct and indirect costs to their SLFRF award as administrative costs. Direct costs are those that are identified specifically as costs of implementing the SLFRF program objectives, such as contract support, materials, and supplies for a project. Indirect costs are general overhead costs of an organization where a portion of such costs are allocable to the SLFRF award such as the cost of facilities or administrative functions like a director’s office.
45 Each category of cost should be treated consistently in like circumstances as direct or indirect, and recipients may not charge the same administrative costs to both direct and indirect cost categories, or to other programs. If a recipient has a current Negotiated Indirect Costs Rate Agreement (NICRA) established with a Federal cognizant agency responsible for reviewing, negotiating, and approving cost allocation plans or indirect cost proposals, then the recipient may use its current NICRA. Alternatively, if the recipient does not have a NICRA, the recipient may elect to use the de minimis rate of 10 percent of the modified total direct costs pursuant to 2 CFR 200.414(f).
b. Salaries and Expenses: In general, certain employees’ wages, salaries, and covered benefits are an eligible use of SLFRF award funds. Please see Treasury’s Interim Final Rule for details.

3. Cash Management. SLFRF payments made to recipients are not subject to the requirements of the Cash Management Improvement Act and Treasury’s implementing regulations at 31 CFR part 205 or 2 CFR 200.305(b)(8)-(9).

As such, recipients can place funds in interest-bearing accounts, do not need to remit interest to Treasury, and are not limited to using that interest for eligible uses under the SLFRF award.

4. Eligibility. Under this program, recipients are responsible for ensuring funds are used for eligible purposes. Generally, recipients must develop and implement policies and 2 See 42 CFR 433.51 and 45 CFR 75.306.
3 Recipients also may use SLFRF funds directly for administrative costs to improve efficacy of programs that respond to the COVID-19 public health emergency. 31 CFR 35.6(b)(10). 4 2 CFR 200.413 Direct Costs.
5 2 CFR 200.414 Indirect Costs.

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8 procedures, and record retention, to determine and monitor implementation of criteria for determining the eligibility of beneficiaries and/or subrecipients. Your organization, and if applicable, the subrecipient(s) administering a program on behalf of your organization, will need to maintain procedures for obtaining information evidencing a given beneficiary, subrecipient, or contractor’s eligibility including a valid SAM.gov registration. Implementing risk-based due diligence for eligibility determinations is a best practice to augment your organization’s existing controls.

5. Equipment and Real Property Management. Any purchase of equipment or real property with SLFRF funds must be consistent with the Uniform Guidance at 2 CFR Part 200, Subpart D. Equipment and real property acquired under this program must be used for the originally authorized purpose. Consistent with 2 CFR 200.311 and 2 CFR 200.313, any equipment or real property acquired using SLFRF funds shall vest in the non-Federal entity. Any acquisition and maintenance of equipment or real property must also be in compliance with relevant laws and regulations.

6. Matching, Level of Effort, Earmarking. There are no matching, level of effort, or earmarking compliance responsibilities associated with the SLFRF award. See Section C.1 (Eligible and Restricted Uses of SLFRF Funds) for a discussion of restrictions on use of SLFRF funds. SLFRF funds may only be used for non-Federal match in other programs where costs are eligible under both SLFRF and the other program and use of such funds is not prohibited by the other program.

7. Period of Performance. Your organization should also develop and implement internal controls related to activities occurring outside the period of performance. For example, each recipient should articulate each project’s policy on allowability of costs incurred prior to award or start of the period of performance. All funds remain subject to statutory requirements that they must be used for costs incurred by the recipient during the period that begins on March 3, 2021, and ends on December 31, 2024, and that award funds for the financial obligations incurred by December 31, 2024 must be expended by December 31, 2026. Any funds not used must be returned to Treasury as part of the award closeout process pursuant to 2 C.F.R. 200.344(d).

8. Procurement, Suspension & Debarment. Recipients are responsible for ensuring that any procurement using SLFRF funds, or payments under procurement contracts using such funds are consistent with the procurement standards set forth in the Uniform Guidance at 2 CFR 200.317 through 2 CFR 200.327, as applicable. The Uniform Guidance establishes in 2 CFR 200.319 that all procurement transactions for property or services must be conducted in a manner providing full and open competition, consistent with standards outlined in 2 CFR 200.320, which allows for non-competitive procurements only in circumstances where at least one of the conditions below is true: the item is below the micro-purchase threshold; the item is only available from a single source; the public exigency or emergency will not permit a delay from publicizing a competitive solicitation; or after solicitation of a number of sources, competition is determined inadequate.6 Recipients must have and use documented procurement procedures that are consistent with the standards outlined in 2 CFR 200.317 through 2 CFR 200.320. The Uniform Guidance requires an infrastructure for competitive bidding and contractor oversight, including maintaining written standards of conduct and prohibitions on dealing with suspended or debarred parties. Your organization must ensure adherence to all applicable local, State, and federal procurement laws and regulations.

9. Program Income. Generally, program income includes, but is not limited to, income from fees for services performed, the use or rental of real or personal property acquired under 6 2 CFR 200.320(c)(1)-(3) and (5)

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9 Federal awards and principal and interest on loans made with Federal award funds.

Program income does not include interest earned on advances of Federal funds, rebates, credits, discounts, or interest on rebates, credits, or discounts. Recipients of SLFRF funds should calculate, document, and record the organization’s program income. Additional controls that your organization should implement include written policies that explicitly identify appropriate allocation methods, accounting standards and principles, compliance monitoring checks for program income calculations, and records.

The Uniform Guidance outlines the requirements that pertain to program income at 2 CFR 200.307. Treasury intends to provide additional guidance regarding program income and the application of 2 CFR 200.307(e)(1), including with respect to lending programs.

10. Reporting. All recipients of federal funds must complete financial, performance, and compliance reporting as required and outlined in Part 2 of this guidance. Expenditures may be reported on a cash or accrual basis, as long as the methodology is disclosed and consistently applied. Reporting must be consistent with the definition of expenditures pursuant to 2 CFR 200.1. Your organization should appropriately maintain accounting records for compiling and reporting accurate, compliant financial data, in accordance with appropriate accounting standards and principles.

In addition, where appropriate, your organization needs to establish controls to ensure completion and timely submission of all mandatory performance and/or compliance reporting. See Part 2 of this guidance for a full overview of recipient reporting responsibilities.

11. Subrecipient Monitoring. SLFRF recipients that are pass-through entities as described under 2 CFR 200.1 are required to manage and monitor their subrecipients to ensure compliance with requirements of the SLFRF award pursuant to 2 CFR 200.332 regarding requirements for pass-through entities.

First, your organization must clearly identify to the subrecipient: (1) that the award is a subaward of SLFRF funds; (2) any and all compliance requirements for use of SLFRF funds; and (3) any and all reporting requirements for expenditures of SLFRF funds.

Next, your organization will need to evaluate each subrecipient’s risk of noncompliance based on a set of common factors. These risk assessments may include factors such as prior experience in managing Federal funds, previous audits, personnel, and policies or procedures for award execution and oversight. Ongoing monitoring of any given subrecipient should reflect its assessed risk and include monitoring, identification of deficiencies, and follow-up to ensure appropriate remediation.

Accordingly, your organization should develop written policies and procedures for subrecipient monitoring and risk assessment and maintain records of all award agreements identifying or otherwise documenting subrecipients’ compliance obligations.

Recipients should note that non-entitlement units of local government (NEUs) are not subrecipients under the SLFRF program. They are SLFRF recipients that will report directly to Treasury.

Recipients should also note that subrecipients do not include individuals and organizations that received SLFRF funds as end users to respond to the negative economic impacts of COVID-19 on these organizations. Such individuals and organizations are beneficiaries and not subject to audit pursuant to the Single Audit Act and 2 C.F.R. Part 200, Subpart F.

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10 Separately or in addition, many recipients may choose to provide a subaward (e.g., via contract or grant) to other entities to provide services to other end—users. For example, a recipient may provide a grant to a nonprofit to provide homeless services to individuals experiencing homelessness. In this case, the subaward to a nonprofit is based on the services that the Recipient intends to provide, assistance to households experiencing homelessness, and the nonprofit is serving as the subrecipient, providing services on behalf of the recipient. Subrecipients are subject to audit pursuant to the Single Audit Act and 2 CFR part 200, subpart F regarding audit requirements.

12. Special Tests and Provisions. Treasury has received comments on the Interim Final Rule and will adopt a final rule after responding to these comments. In addition, Treasury may add clarifications to the Final Rule and other subregulatory guidance as well as frequently asked questions.

Across each of the compliance requirements above, Treasury described some best practices for development of internal controls. The table below provides a brief description and example of each best practice.

Table 1: Internal controls best practices
Best Practice Description Example
Written policies and
procedures
Formal documentation of
recipient policies and
procedures
Documented procedure for
determining worker eligibility
for premium pay
Written standards of conduct Formal statement of mission, values, principles, and
professional standards
Documented code of conduct /
ethics for subcontractors
Risk-based due diligence Pre-payment validations
conducted according to an
assessed level of risk
Enhanced eligibility review of
subrecipient with imperfect
performance history
Risk-based compliance
monitoring
Ongoing validations conducted
according to an assessed level
of risk
Higher degree of monitoring for
projects that have a higher risk
of fraud, given program
characteristics
Record maintenance and
retention
Creation and storage of
financial and non-financial
records.

Storage of all subrecipient
payment information.

E. Award Terms and Conditions
The Award Terms and Conditions of the SLFRF financial assistance agreement sets forth the compliance obligations for recipients pursuant to the SLFRF statute, the Uniform Guidance, and Treasury’s Interim Final Rule. Recipients should ensure they remain in compliance with all Award Terms and Conditions. These obligations include the following items in addition to those described above:

1. SAM.gov Requirements. All eligible recipients are also required to have an active registration with the System for Award Management (SAM) (https://www.sam.gov). To ensure timely receipt of funding, Treasury has stated that Non-entitlement Units of Government (NEUs) who have not previously registered with SAM.gov may do so after receipt of the award, but before the submission of mandatory reporting.7

2. Recordkeeping Requirements. Generally, your organization must maintain records and financial documents for five years after all funds have been expended or returned to Treasury, as outlined in paragraph 4.c. of the Award Terms and Conditions. Treasury may 7 See flexibility provided in https://www.whitehouse.gov/wp-content/uploads/2021/03/M_21_20.pdf.

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11 request transfer of records of long-term value at the end of such period. Wherever practicable, such records should be collected, transmitted, and stored in open and machine-readable formats.

Your organization must agree to provide or make available such records to Treasury upon request, and to the Government Accountability Office (“GAO”), Treasury’s Office of Inspector General (“OIG”), and their authorized representative in order to conduct audits or other investigations.

3. Single Audit Requirements. Recipients and subrecipients that expend more than $750,000 in Federal awards during their fiscal year will be subject to an audit under the Single Audit Act and its implementing regulation at 2 CFR Part 200, Subpart F regarding audit requirements.8 Recipients and subrecipients may also refer to the Office of Management and Budget (OMB) Compliance Supplements for audits of federal funds and related guidance and the Federal Audit Clearinghouse to see examples and single audit submissions.

4. Civil Rights Compliance. Recipients of Federal financial assistance from the Treasury are required to meet legal requirements relating to nondiscrimination and nondiscriminatory use of Federal funds. Those requirements include ensuring that entities receiving Federal financial assistance from the Treasury do not deny benefits or services, or otherwise discriminate on the basis of race, color, national origin (including limited English proficiency), disability, age, or sex (including sexual orientation and gender identity), in accordance with the following authorities: Title VI of the Civil Rights Act of 1964 (Title VI) Public Law 88-352, 42 U.S.C. 2000d-1 et seq., and the Department's implementing regulations, 31 CFR part 22; Section 504 of the Rehabilitation Act of 1973 (Section 504), Public Law 93-112, as amended by Public Law 93-516, 29 U.S.C. 794; Title IX of the Education Amendments of 1972 (Title IX), 20 U.S.C. 1681 et seq., and the Department's implementing regulations, 31 CFR part 28; Age Discrimination Act of 1975, Public Law 94-135, 42 U.S.C. 6101 et seq., and the Department implementing regulations at 31 CFR part 23.

In order to carry out its enforcement responsibilities under Title VI of the Civil Rights Act, Treasury will collect and review information from non-Tribal recipients to ascertain their compliance with the applicable requirements before and after providing financial assistance. Treasury’s implementing regulations, 31 CFR part 22, and the Department of Justice (DOJ) regulations, Coordination of Non-discrimination in Federally Assisted Programs, 28 CFR part 42, provide for the collection of data and information from recipients (see 28 CFR 42.406). Treasury may request that recipients submit data for postaward compliance reviews, including information such as a narrative describing their Title VI compliance status. This collection does not apply to Tribal Governments. 8 For-profit entities that receive SLFRF subawards are not subject to Single Audit requirements.

However, they are subject to other audits as deemed necessary by authorized governmental entities, including Treasury, the GAO, and Treasury’s OIG.

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12 Part 2: Reporting Guidance
There are three types of reporting requirements for the SLFRF program. • Interim Report: Provide initial overview of status and uses of funding. This is a one-time report. See Section A, page 14.
• Project and Expenditure Report: Report on projects funded, expenditures, and contracts and subawards over $50,000, and other information. See Section B, page 15. • Recovery Plan Performance Report: The Recovery Plan Performance Report (the “Recovery Plan”) will provide information on the projects that large recipients are undertaking with program funding and how they plan to ensure program outcomes are achieved in an effective, efficient, and equitable manner. It will include key performance indicators identified by the recipient and some mandatory indicators identified by Treasury. The Recovery Plan will be posted on the website of the recipient as well as provided to Treasury. See Section C, page 22.

The reporting threshold is based on the total award amount allocated by Treasury under the SLFRF program, not the funds received by the recipient as of the time of reporting.

States and territories are also required to submit information on their distributions to NEUs.

Please refer to Section D for additional details.

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13 Table 2: Reporting requirements by recipient type

Tier Recipient Interim Report
Project and
Expenditure
Report
Recovery Plan
Performance
Report
1 States, U.S. territories,
metropolitan cities and
counties with a
population that exceeds
250,000 residents
By August 31,
2021 or 60
days after
receiving
funding if
funding was
received by
October 15,
with
expenditures by
category
By January 31,
2022, and then 30
days after the end
of each quarter
thereafter9
By August 31,
2021 or 60 days
after receiving
funding, and
annually
thereafter by
July 3110
2 Metropolitan cities and
counties with a
population below
250,000 residents which
received more than $10
million in SLFRF funding
Not required
3 Tribal Governments
which received more
than $30 million in
SLFRF funding
4 Tribal Governments
which received less than
$30 million in SLFRF
funding
By April 30, 2022,
and then annually
thereafter11
5 Metropolitan cities and
counties with a
population below
250,000 residents which
received less than $10
million in SLFRF funding
6 NEUs Not required
Note: Based on the period of performance, reports will be collected through April 30, 2027. See the specific due dates listed in Sections B and C.

The remainder of this document describes these reporting requirements. User guides describing how and where to submit required reports will be posted at www.treasury.gov/SLFRPReporting and updated on a regular basis. 9 Interim Final Rule Page 111
10 Interim Final Rule page 112
11 Interim Final Rule Page 111

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14 A. Interim Report
States, U.S. territories, metropolitan cities, counties, and Tribal governments are required to submit a one-time interim report with expenditures12 by Expenditure Category covering the period from March 3rd to July 31, 2021, by August 31, 2021 or sixty (60) days after first receiving funding if the recipient’s date of award is between July 15, 2021 and October 15, 2021. The recipient will be required to enter obligations13 and expenditures and, for each, select the specific expenditure category from the available options. See Appendix 1 for Expenditure Categories (EC).

1. Required Programmatic Data
Recipients will also be required to provide the following information if they have or plan to have expenditures in the following Expenditure Categories.
a. Revenue replacement (EC 6.114): Key inputs into the revenue replacement formula in the Interim Final Rule and estimated revenue loss due to the Covid-19 public health emergency calculated using the formula in the Interim Final Rule as of December 31, 2020.
• Base year general revenue (e.g., revenue in the last full fiscal year prior to the public health emergency)
• Fiscal year end date
• Growth adjustment used (either 4.1 percent or average annual general revenue growth over 3 years prior to pandemic)
• Actual general revenue as of the twelve months ended December 31, 2020 12 For purposes of reporting in the SLFRF portal, an expenditure is the amount that has been incurred as a liability of the entity (the service has been rendered or the good has been delivered to the entity). 13 For purposes of reporting in the SLFRF portal, an obligation is an order placed for property and services, contracts and subawards made, and similar transactions that require payment. 14 See Appendix 1 for the full Expenditure Category (EC) list. References to Expenditure Categories are identified by “EC” followed by numbers from the table in Appendix 1.

Comparison to reporting for the CRF
This guidance does not change the reporting or compliance requirements pertaining to the CRF. Reporting and compliance requirements for the SLFRF are separate from CRF reporting requirements. Changes from CRF to SLFRF include:
• Project, Expenditure, and Subaward Reporting: The SLFRF reporting requirements leverage the existing reporting regime used for CRF to foster continuity and provide many recipients with a familiar reporting mechanism. The data elements for the Project and Expenditure Report will largely mirror those used for CRF, with some minor exceptions noted in this guidance. The users’ guide will describe how reporting for CRF funds will relate to reporting for the SLFRF. • Timing of Reports: CRF reports were due within 10 days of each calendar quarter end. For quarterly reporters, SLFRF reporting will be due 30 days from quarter end.

For annual reporters, SLFRF reporting will be due on an annual schedule (see table below).
• Program and Performance Reporting: The CRF reporting did not include any program or performance reporting. To build public awareness and accountability and allow Treasury to monitor compliance with eligible uses, some program and performance reporting is required for SLFRF.

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15 • Estimated revenue loss due to the Covid-19 public health emergency as of December 31, 2020
• An explanation of how revenue replacement funds were allocated to government services (Note: additional instructions and/or template to be provided in users’ guide) In calculating general revenue and the other items discussed above, recipients should use audited data if it is available. When audited data is not available, recipients are not required to obtain audited data if substantially accurate figures can be produced on an unaudited basis. Recipients should use their own data sources to calculate general revenue, and do not need to rely on revenue data published by the Census Bureau.

Treasury acknowledges that due to differences in timing, data sources, and definitions, recipients’ self-reported general revenue figures may differ from those published by the Census Bureau. Recipients may provide data on a cash, accrual, or modified accrual basis, provided that recipients are consistent in their choice of methodology throughout the covered period and until reporting is no longer required. Recipients’ reporting should align with their own financial reporting.

In calculating general revenue, recipients should exclude all intergovernmental transfers from the federal government. This includes, but is not limited to, federal transfers made via a State to a locality pursuant to the CRF or SLFRF. To the extent federal funds are passed through States or other entities or intermingled with other funds, recipients should attempt to identify and exclude the federal portion of those funds from the calculation of general revenue on a best-efforts basis.

Consistent with the broad latitude provided to recipients to use funds for government services to the extent of reduction in revenue, recipients will be required to submit a description of services provided. This description may be in narrative or in another form, and recipients are encouraged to report based on their existing budget processes and to minimize administrative burden. For example, a recipient with $100 in revenue replacement funds available could indicate that $50 were used for law enforcement operating expenses and $50 were used for pay-go building of sidewalk infrastructure. As discussed in the Interim Final Rule, these services can include a broad range of services but may not be used directly for pension deposits or debt service.

Reporting requirements will not require tracking the indirect effects of Fiscal Recovery Funds, apart from the restrictions on use of Fiscal Recovery Funds to offset a reduction in net tax revenue. In addition, recipients must indicate that Fiscal Recovery Funds were not used to make a deposit in a pension fund.

B. Project and Expenditure Report
All recipients are required to submit Project and Expenditure Reports.

1. Quarterly Reporting
The following recipients are required to submit quarterly Project and Expenditure Reports:
• States and U.S. territories
• Tribal governments that received more than $30 million in SLFRF funding • Metropolitan cities and counties with a population that exceeds 250,000 residents • Metropolitan cities and counties with a population below 250,000 residents that are allocated more than $10 million in SLFRF funding

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16 For these recipients, the initial quarterly Project and Expenditure Report will cover three calendar quarters from March 3, 2021 to December 31, 2021 and must be submitted to Treasury by January 31, 2022. The subsequent quarterly reports will cover one calendar quarter and must be submitted to Treasury within 30 calendar days after the end of each calendar quarter. Quarterly reports are not due concurrently with applicable annual reports.

The table below summarizes the quarterly report timelines:

Report Year Quarter Period Covered Due Date
1 2021 2 - 4 March 3 – December 31 January 31, 2022
2 2022 1 January 1 – March 31 April 30, 2022
3 2022 2 April 1 – June 30 July 31, 2022
4 2022 3 July 1 – September 30 October 31, 2022
5 2022 4 October 1 – December 31 January 31, 2023
6 2023 1 January 1 – March 31 April 30, 2023
7 2023 2 April 1 – June 30 July 31, 2023
8 2023 3 July 1 – September 30 October 31, 2023
9 2023 4 October 1 – December 31 January 31, 2024
10 2024 1 January 1 – March 31 April 30, 2024
11 2024 2 April 1 – June 30 July 31, 2024
12 2024 3 July 1 – September 30 October 31, 2024
13 2024 4 October 1 – December 31 January 31, 2025
14 2025 1 January 1 – March 31 April 30, 2025
15 2025 2 April 1 – June 30 July 31, 2025
16 2025 3 July 1 – September 30 October 31, 2025
17 2025 4 October 1 – December 31 January 31, 2026
18 2026 1 January 1 – March 31 April 30, 2026
19 2026 2 April 1 – June 30 July 31, 2026
20 2026 3 July 1 – September 30 October 31, 2026
21 2026 4 October 1 – December 31 March 31, 2027

2. Annual Reporting
The following recipients are required to submit annual Project and Expenditure Reports:
• Tribal governments that received less than $30 million in SLFRF funding • Metropolitan cities and counties with a population below 250,000 residents that are allocated less than $10 million in SLFRF funding
• NEUs. To facilitate reporting, each NEU will need a NEU Recipient Number. This is a unique identification code for each NEU assigned by the State or territory to the NEU as part of its request for funding.

For these recipients, the initial Project and Expenditure Report will cover from March 3, 2021 to March 31, 2022 and must be submitted to Treasury by April 30, 2022. The subsequent annual reports will cover one calendar year and must be submitted to Treasury by April 30.

The table below summarizes the report timelines:

Report Period Covered Due Date
1 March 3, 2021 – March 31, 2022 April 30, 2022
2 April 1, 2022 – March 31, 2023 April 30, 2023
3 April 1, 2023 – March 31, 2024 April 30, 2024
4 April 1, 2024 – March 31, 2025 April 30, 2025
5 April 1, 2025 – March 31, 2026 April 30, 2026
6 April 1, 2026 – December 31, 2026 April 30, 2027

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17 3. Required Information
The following information will be required in Project and Expenditure Reports for both quarterly and annual reporting:
a. Projects: Provide information on all SLFRF funded projects. Projects are new or existing eligible government services or investments funded in whole or in part by SLFRF funding.

For each project, the recipient will be required to enter the project name, identification number (created by the recipient), project expenditure category (see Appendix 1), description, and status of completion. Project descriptions must describe the project in sufficient detail to provide understanding of the major activities that will occur, and will be required to be between 50 and 250 words. Projects should be defined to include only closely related activities directed toward a common purpose. Recipients should review the Required Programmatic Data described in 3.g. below and define their projects at a sufficient level of granularity.

Note: For each project, the recipient will be asked to select the appropriate Expenditure Category based on the scope of the project (see Appendix 1). Projects should be scoped to align to a single Expenditure Category. For select Expenditure Categories, the recipient will also be asked to provide additional programmatic data (described further below). b. Expenditures: Once a project is entered the recipient will be able to report on the project’s obligations and expenditures. Recipients will be asked to report:
• Current period obligation
• Cumulative obligation
• Current period expenditure
• Cumulative expenditure
c. Project Status: Once a project is entered the recipient will be asked to report on project status each reporting period, in four categories:
• Not Started
• Completed less than 50 percent
• Completed 50 percent or more
• Completed
d. Adopted Budget (States, U.S. territories, metropolitan cities and counties with a population that exceeds 250,000 residents only): Each state, territory and metropolitan city and county with a population that exceeds 250,000 residents will provide the budget adopted for each project by its jurisdiction associated with SLFRF funds. Treasury will use this information to better understand the intended impact, identify opportunities for technical assistance, and understand the recipient’s progress in program implementation. Treasury is not approving or pre-approving projects or budgets.
• Recipients will enter the Adopted Budget based on information that exists currently in the recipient’s financial systems and the recipient’s established budget process.

Treasury understands that recipients may use different budget processes. For example, a recipient may consider a project budgeted once a legislature has appropriated funds; whereas another recipient may consider a project budgeted at the moment when the funds have been obligated.
• Additional information will be provided on the differences between Adopted Budget, Obligations, and Expenditures as part of the forthcoming User Guide. e. Project Demographic Distribution – Collection of this data will be phased in; no data will be collected in this area before April 2022: Recognizing the disproportionate impact of the pandemic-related recession on low-income and economically disadvantaged communities,

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18 the Interim Final Rule encourages recipients to direct Fiscal Recovery Funds toward disproportionately impacted communities. Recipients are encouraged to design projects that prioritize economic and racial equity and promote equitable outcomes. Treasury is committed to supporting recipients in executing and reporting on projects that promote equity. In a subsequent version of the Reporting Guidance and User Guide, which will be released after the issuance of the Fiscal Recovery Fund Final Rule, Treasury will issue detailed requirements for reporting the project demographic distribution of Fiscal Recovery Fund projects.
f. Subawards: Each recipient shall also provide detailed obligation and expenditure information for any contracts and grants awarded, loans issued, transfers made to other government entities, and direct payments made by the recipient that are greater than $50,000.

Recipients do not also need to submit separate monthly subaward reports to FSRS.gov as required pursuant to the 2 CFR Part 170, Appendix A award term regarding reporting subaward and executive compensation, which is included in the SLFRF Award Terms and Conditions. Treasury will submit this reporting on behalf of recipients using the $50,000 reporting threshold, timing, and data elements discussed in this guidance. If recipients choose to continue reporting to FSRS.gov in addition to reporting directly to Treasury on these funds, they may do so and will be asked to notify Treasury as part of their quarterly submission.

In general, recipients will be asked to provide the following information for each Contract, Grant, Loan, Transfer, or Direct Payment greater than $50,000:
• Subrecipient identifying and demographic information (e.g., DUNS number and location)
• Award number (e.g., Award number, Contract number, Loan number) • Award date, type, amount, and description
• Award payment method (reimbursable or lump sum payment(s)) • For loans, expiration date (date when loan expected to be paid in full) • Primary place of performance
• Related project name(s)
• Related project identification number(s) (created by the recipient) • Period of performance start date
• Period of performance end date
• Quarterly obligation amount
• Quarterly expenditure amount
• Project(s)
• Additional programmatic performance indicators for select Expenditure Categories (see below)
Aggregate reporting is required for contracts, grants, transfers made to other government entities, loans, direct payments, and payments to individuals that are below $50,000. This information will be accounted for by expenditure category at the project level.

As required by the 2 CFR Part 170, Appendix A award term regarding reporting subaward and executive compensation, recipients must also report the names and total compensation of their five most highly compensated executives and their subrecipients’ executives for the preceding completed fiscal year if (1) the recipient received 80 percent or more of its annual gross revenues from Federal procurement contracts (and subcontracts) and Federal financial assistance subject to the Transparency Act, as provided by 2 CFR 170.320 (and subawards), and received $25,000,000 or more in annual gross revenues from Federal procurement contracts (and subcontracts) and Federal financial assistance subject to the

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19 Transparency Act (and subawards), and (2) if the information is not otherwise public. In general, most SLFRF Recipients are governmental entities with executive salaries that are already disclosed, so no additional information must be reported. The recipient is responsible for the subrecipients’ compliance with registering and maintaining an updated profile on SAM.gov.
g. Civil Rights Compliance: Treasury will request information on recipients’ compliance with Title VI of the Civil Rights Act of 1964, as applicable, on an annual basis. This information may include a narrative describing the recipient’s compliance with Title VI, along with other questions and assurances. This collection does not apply to Tribal Governments. h. Ineligible Activities: Tax Offset Provision (States and territories only): Treasury may collect additional information related to the Tax Offset Provision as described in section 602(c)(2) of the Social Security Act and implemented under 31 CFR 35.8 as part of the Project and Expenditure Report, such as but not limited to revenue reducing covered changes. Please see Section C.11 (Recovery Plan, Ineligible Activities: Tax Offset Provision) for more information.
i. Required Programmatic Data (other than infrastructure projects): For all projects listed under the following Expenditure Categories (see Appendix 1), the information listed must be provided in each report.

1. Payroll for Public Health and Safety Employees (EC 1.9) – Collection to begin in January 2022:
• Number of government FTEs responding to COVID-19 supported under this authority

2. Household Assistance (EC 2.1-2.5) – Collection to begin January 2022:
• Brief description of structure and objectives of assistance program(s) (e.g., nutrition assistance for low-income households)
• Number of households served (by program if recipient establishes multiple separate household assistance programs)
• Brief description of recipient’s approach to ensuring that aid to households responds to a negative economic impact of Covid-19, as described in the Interim Final Rule

3. Small Business Economic Assistance (EC 2.9) – Collection of this data will be phased in; no data will be collected in this area before April 2022:
• Brief description of the structure and objectives of assistance program(s) (e.g., grants for additional costs related to Covid-19 mitigation) • Number of small businesses served (by program if recipient establishes multiple separate small businesses assistance programs)
• Brief description of recipient’s approach to ensuring that aid to small businesses responds to a negative economic impact of COVID-19, as described in the Interim Final Rule

4. Aid to Travel, Tourism, and Hospitality or Other Impacted Industries (EC 2.11-2.12) – Collection of this data will be phased in; no data will be collected in this area before April 2022:
• If aid is provided to industries other than travel, tourism, and hospitality (EC 2.12), a description of pandemic impact on the industry and rationale for providing aid to the industry
• Brief narrative description of how the assistance provided responds to negative economic impacts of the COVID-19 pandemic

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20 • For each subaward:
o Sector of employer (Note: additional detail, including list of sectors to be provided in a users’ guide)
o Purpose of funds (e.g., payroll support, safety measure implementation)

5. Rehiring Public Sector Staff (EC 2.14) – Collection to begin in January 2022:
• Number of FTEs rehired by governments under this authority

6. Education Assistance (EC 3.1-3.5) – Collection to begin in January 2022:
• The National Center for Education Statistics (“NCES”) School ID or NCES District ID. List the School District if all schools within the school district received some funds. If not all schools within the school district received funds, list the School ID of the schools that received funds. These can allow evaluators to link data from the NCES to look at school-level demographics and, eventually, student performance.15

7. Premium Pay (both Public Sector EC 4.1 and Private Sector EC 4.2) – Collection to begin in January 2022:
• List of sectors designated as critical to the health and well-being of residents by the chief executive of the jurisdiction, if beyond those included in the Interim Final Rule (Note: a list of sectors will be provided in the forthcoming users’ guide). • Number of workers to be served
• Employer sector for all subawards to third-party employers (i.e., employers other than the State, local, or Tribal government) (Note: a list of sectors will be provided in the forthcoming users’ guide).
• For groups of workers (e.g., an operating unit, a classification of worker, etc.) or, to the extent applicable, individual workers, for whom premium pay would increase total pay above 150 percent of their residing State’s average annual wage, or their residing county’s16 average annual wage, whichever is higher, on an annual basis:
o A brief written narrative justification of how the premium pay or grant is responsive to workers performing essential work during the public health emergency. This could include a description of the essential workers’ duties, health or financial risks faced due to COVID-19, and why the recipient government determined that the premium pay was responsive to workers performing essential work during the pandemic. This description should not include personally identifiable information; when addressing individual workers, recipients should be careful not to include this information.

Recipients may consider describing the workers’ occupations and duties in a general manner as necessary to protect privacy.

8. Revenue replacement (EC 6.1) – Collection began in August 2021:

Under the Interim Final Rule, recipients calculate revenue loss using data as of four discrete points during the program: December 31, 2020, December 31, 2021, December 31, 2022, and December 31, 2023. Revenue loss calculated as of December 31, 2020 will be reported in the Interim Report, as described above. For future calculation dates, revenue loss will be reported only in the Quarter 4 reports 15 For more information on NCES identification numbers see https://nces.ed.gov/ccd/districtsearch/ (districts) and https://nces.ed.gov/ccd/schoolsearch/ (schools). 16 County means a county, parish, or other equivalent county division (as defined by the Census Bureau). See 31 CFR 35.3.

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21 due January 31, 2022, January 31, 2023, and January 31, 2024. Reporting on revenue loss should include:
• General revenue collected over the past 12 months as of the most recent calculation date, as outlined in the Interim Final Rule (for example, for the January 31, 2022 report, recipients should provide 12 month general revenue as of December 31, 2021).
• Calculated revenue loss due to the Covid-19 public health emergency; and • An explanation of how the revenue replacement funds were allocated to government services (note: additional instructions and/or template to be provided in user guide).

In calculating general revenue and the revenue loss due to the COVID-19 public health emergency, recipients should follow the same guidance as described above for the Interim Report.
j. Required Programmatic Data for Infrastructure Projects (EC 5): For all projects listed under the Water, Sewer, and Broadband Expenditure Categories (see Appendix 1), more detailed project-level information is required. Each project will be required to report expenditure data as described above, but will also report the following information:

1. All infrastructure projects (EC 5) – Collection to begin in January 2022:
• Projected/actual construction start date (month/year) • Projected/actual initiation of operations date (month/year) • Location (for broadband, geospatial location data)
• For projects over $10 million (based on expected total cost):
a. A recipient may provide a certification that, for the relevant project, all laborers and mechanics employed by contractors and subcontractors in the performance of such project are paid wages at rates not less than those prevailing, as determined by the U.S. Secretary of Labor in accordance with subchapter IV of chapter 31 of title 40, United States Code (commonly known as the “Davis-Bacon Act”), for the corresponding classes of laborers and mechanics employed on projects of a character similar to the contract work in the civil subdivision of the State (or the District of Columbia) in which the work is to be performed, or by the appropriate State entity pursuant to a corollary State prevailing-wage-in-construction law (commonly known as “baby DavisBacon Acts”). If such certification is not provided, a recipient must provide a project employment and local impact report detailing:
▪ The number of employees of contractors and sub-contractors working on the project;
▪ The number of employees on the project hired directly and hired through a third party;
▪ The wages and benefits of workers on the project by classification; and ▪ Whether those wages are at rates less than those prevailing. 17 Recipients must maintain sufficient records to substantiate this information upon request.
b. A recipient may provide a certification that a project includes a project labor agreement, meaning a pre-hire collective bargaining agreement consistent with section 8(f) of the National Labor Relations Act (29 U.S.C. 158(f)). If the recipient does not provide such certification, the recipient must provide a project workforce continuity plan, detailing:
17 As determined by the U.S. Secretary of Labor in accordance with subchapter IV of chapter 31 of title 40, United States Code (commonly known as the “Davis-Bacon Act”), for the corresponding classes of laborers and mechanics employed on projects of a character similar to the contract work in the civil subdivision of the State (or the District of Columbia) in which the work is to be performed.

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22 ▪ How the recipient will ensure the project has ready access to a sufficient supply of appropriately skilled and unskilled labor to ensure high-quality construction throughout the life of the project;
▪ How the recipient will minimize risks of labor disputes and disruptions that would jeopardize timeliness and cost-effectiveness of the project; ▪ How the recipient will provide a safe and healthy workplace that avoids delays and costs associated with workplace illnesses, injuries, and fatalities;
▪ Whether workers on the project will receive wages and benefits that will secure an appropriately skilled workforce in the context of the local or regional labor market; and
▪ Whether the project has completed a project labor agreement. c. Whether the project prioritizes local hires.
d. Whether the project has a Community Benefit Agreement, with a description of any such agreement.

2. Water and sewer projects (EC 5.1-5.15) Collection to begin in January 2022 and required once the project starts:
• National Pollutant Discharge Elimination System (NPDES) Permit Number (if applicable; for projects aligned with the Clean Water State Revolving Fund) • Public Water System (PWS) ID number (if applicable; for projects aligned with the Drinking Water State Revolving Fund)

3. Broadband projects (EC 5.16-5.17) Collection to begin in January 2022:
• Confirm that the project is designed to, upon completion, reliably meet or exceed symmetrical 100 Mbps download and upload speeds.
o If the project is not designed to reliably meet or exceed symmetrical 100 Mbps download and upload speeds, explain why not, and
o Confirm that the project is designed to, upon completion, meet or exceed symmetrical 100 Mbps download speed and between at least 20 Mbps and 100 Mbps upload speed, and be scalable to a minimum of 100 Mbps download speed and 100 Mbps upload speed.
• Please note: additional programmatic data will be required for broadband projects beginning in July 2022 and will be defined in a subsequent version of the Reporting Guidance.
k. NEU Documentation (NEUs only): Each NEU will also be asked to provide the following information once their accounts are established in Treasury’s Reporting Portal and prior to the due date for their first annual Project and Expenditure Report (due April 30, 2022):
• Copy of the signed award terms and conditions agreement (which was signed and submitted to the State as part of the request for funding) • Copy of the signed assurances of compliance with Title VI of the Civil Rights Act of 1964 (which was signed and submitted to the State as part of the request for funding) • Copy of actual budget documents validating the top-line budget total provided to the State as part of the request for funding
NEU accounts will be established in Treasury’s Portal based on information provided by the States or territories, as further described in Section Part 2 D below.

C. Recovery Plan Performance Report
States, territories, metropolitan cities, and counties with a population that exceeds 250,000 residents will also be required to publish and submit to Treasury a Recovery Plan performance report (“Recovery Plan”). Each Recovery Plan must be posted on the public-facing website of

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23 the recipient by the same date the recipient submits the report to Treasury. This reporting requirement includes uploading a link to the publicly available document report along with providing data in the Treasury reporting portal.

The Recovery Plan will provide the public and Treasury information on the projects recipients are undertaking with program funding and how they are planning to ensure program outcomes are achieved in an effective, efficient, and equitable manner. While this guidance outlines some minimum requirements for the Recovery Plan, each recipient is encouraged to add information to the plan they feel is appropriate to provide information to their constituents on efforts they are taking to respond to the pandemic and promote economic recovery. Each jurisdiction may determine the general form and content of the Recovery Plan, as long as it includes the minimum information determined by Treasury. Treasury will provide a recommended template but recipients may modify this template as appropriate for their jurisdiction. The Recovery Plan will include key performance indicators identified by the recipient and some mandatory indicators identified by Treasury.

The initial Recovery Plan will cover the period from the date of award to July 31, 2021 and must be submitted to Treasury by August 31, 2021, or 60 days after receiving funding.

Thereafter, the Recovery Plan will cover a 12-month period and recipients will be required to submit the report to Treasury within 30 days after the end of the 12-month period (by July 31).

The table below summarizes the report timelines:

Annual
Report
Period Covered Due Date
1 Award Date – July 31, 2021 August 31, 2021
2 July 1, 2021 – June 30, 2022 July 31, 2022
3 July 1, 2022 – June 30, 2023 July 31, 2023
4 July 1, 2023 – June 30, 2024 July 31, 2024
5 July 1, 2024 – June 30, 2025 July 31, 2025
6 July 1, 2025 – June 30, 2026 July 31, 2026
7 July 1, 2026 – December 31, 2026 March 31, 2027
The Recovery Plan will include, at a minimum, the following information:

1. Executive Summary
Provide a high-level overview of the jurisdiction’s intended and actual uses of funding including, but not limited to: the jurisdiction’s plan for use of funds to promote a response to the pandemic and economic recovery, key outcome goals, progress to date on those outcomes, and any noteworthy challenges or opportunities identified during the reporting period.

2. Uses of Funds
Describe in further detail your jurisdiction’s intended and actual uses of the funds, such as how your jurisdiction’s approach would help support a strong and equitable recovery from the COVID-19 pandemic and economic downturn. Describe any strategies employed to maximize programmatic impact and effective, efficient, and equitable outcomes. Given the broad eligible uses of funds and the specific needs of the jurisdiction, please also explain how the funds would support the communities, populations, or individuals in your jurisdiction. Your description should address how you are promoting each of the following, to the extent they apply:
a. Public Health (EC 1): As relevant, describe how funds are being used to respond to COVID-19 and the broader health impacts of COVID-19 and the COVID-19 public health emergency.

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24 b. Negative Economic Impacts (EC 2): As relevant, describe how funds are being used to respond to negative economic impacts of the COVID-19 public health emergency, including to households and small businesses.
c. Services to Disproportionately Impacted Communities (EC 3): As relevant, describe how funds are being used to provide services to communities disproportionately impacted by the COVID-19 public health emergency.
d. Premium Pay (EC 4): As relevant, describe the approach, goals, and sectors or occupations served in any premium pay program. Describe how your approach prioritizes low-income workers.
e. Water, sewer, and broadband infrastructure (EC 5): Describe the approach, goals, and types of projects being pursued, if pursuing.
f. Revenue Replacement (EC 6): Describe the loss in revenue due to the COVID-19 public health emergency and how funds have been used to provide government services.

Where appropriate, recipients should also include information on your jurisdiction’s use (or planned use) of other federal recovery funds including other programs under the American Rescue Plan such as Emergency Rental Assistance, Housing Assistance, and so forth, to provide broader context on the overall approach for pandemic recovery.

3. Promoting equitable outcomes
Describe efforts to promote equitable outcomes, including how programs were designed with equity in mind. Please include in your description how your jurisdiction will consider and measure equity at the various stages of the program, including:
a. Goals: Are there particular historically underserved, marginalized, or adversely affected groups that you intend to serve within your jurisdiction? b. Awareness: How equal and practical is the ability for residents or businesses to become aware of the services funded by the SLFRF?
c. Access and Distribution: Are there differences in levels of access to benefits and services across groups? Are there administrative requirements that result in disparities in ability to complete applications or meet eligibility criteria?
d. Outcomes: Are intended outcomes focused on closing gaps, reaching universal levels of service, or disaggregating progress by race, ethnicity, and other equity dimensions where relevant for the policy objective?
Treasury encourages uses of funds that promote strong, equitable growth, including racial equity. Please describe how your jurisdiction’s planned or current use of funds prioritizes economic and racial equity as a goal, names specific targets intended to produce meaningful equity results at scale, and articulates the strategies to achieve those targets. In addition, please explain how your jurisdiction’s overall equity strategy translates into the specific services or programs offered by your jurisdiction in the following Expenditure Categories:
a. Negative Economic Impacts (EC 2): assistance to households, small businesses, and non-profits to address impacts of the pandemic, which have been most severe among low-income populations. This includes assistance with food, housing, and other needs; employment programs for people with barriers to employment who faced negative economic impacts from the pandemic (such as residents of low-income neighborhoods, minorities, disconnected youth, the unemployed, formerly incarcerated people, veterans, and people with disabilities); and other strategies that provide disadvantaged groups with access to education, jobs, and opportunity.
b. Services to Disproportionately Impacted Communities (EC 3): services to address health disparities and the social determinants of health, build stronger neighborhoods and communities (e.g., affordable housing), address educational disparities (e.g., evidencebased tutoring, community schools, and academic, social-emotional, and mental health

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25 supports for high poverty schools), and promote healthy childhood environments (e.g., home visiting, child care).

The initial report must describe efforts to date and intended outcomes to promote equity.

Each annual report thereafter must provide an update, using qualitative and quantitative data, on how the recipients’ approach achieved or promoted equitable outcomes or progressed against equity goals during the performance period. Please also describe any constraints or challenges that impacted project success in terms of increasing equity. In particular, this section must describe the geographic and demographic distribution of funding, including whether it is targeted toward traditionally marginalized communities.

For the purposes of the SLFRF, equity is described in the Executive Order 13985 On Advancing Racial Equity and Support for Underserved Communities Through the Federal Government, as issued on January 20, 2021.

4. Community Engagement
Please describe how your jurisdiction’s planned or current use of funds incorporates written, oral, and other forms of input that capture diverse feedback from constituents, communitybased organizations, and the communities themselves. Where relevant, this description must include how funds will build the capacity of community organizations to serve people with significant barriers to services, including people of color, people with low incomes, limited English proficient populations, and other traditionally underserved groups.

5. Labor Practices
Describe workforce practices on any infrastructure projects being pursued (EC 5). How are projects using strong labor standards to promote effective and efficient delivery of high-quality infrastructure projects while also supporting the economic recovery through strong employment opportunities for workers? For example, report whether any of the following practices are being utilized: project labor agreements, community benefits agreements, prevailing wage requirements, and local hiring.

6. Use of Evidence
The Recovery Plan should identify whether SLFRF funds are being used for evidence-based interventions18 and/or if projects are being evaluated through rigorous program evaluations that are designed to build evidence. Recipients must briefly describe the goals of the project, and the evidence base for the interventions funded by the project. Recipients must specifically identify the dollar amount of the total project spending that is allocated towards evidencebased interventions for each project in the Public Health (EC 1), Negative Economic Impacts (EC 2), and Services to Disproportionately Impacted Communities (EC 3) Expenditure Categories.19
Recipients are exempt from reporting on evidence-based interventions in cases where a program evaluation is being conducted. Recipients are encouraged to use relevant evidence Clearinghouses, among other sources, to assess the level of evidence for their interventions and identify evidence-based models that could be applied in their jurisdiction; such evidence clearinghouses include the U.S. Department of Education’s What Works Clearinghouse, the U.S. Department of Labor’s CLEAR, and the Childcare & Early Education Research Connections and the Home Visiting Evidence of Effectiveness clearinghouses from 18As noted in Appendix 2, evidence-based refers to interventions with strong or moderate levels of evidence.
19 Of note, recipients are only required to report the amount of the total funds that are allocated to evidence-based interventions in the areas of Public Health, Negative Economic Impacts, and Services to Disproportionately Impacted Communities that are marked by an asterisk in Appendix 1:

Expenditure Categories.

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26 Administration for Children and Families, as well as other clearinghouses relevant to particular projects conducted by the recipient. In such cases where a recipient is conducting a program evaluation in lieu of reporting the amount of spending on evidence-based interventions, they must describe the evaluation design including whether it is a randomized or quasiexperimental design; the key research questions being evaluated; whether the study has sufficient statistical power to disaggregate outcomes by demographics; and the timeframe for the completion of the evaluation (including a link to completed evaluation if relevant).20 Once the evaluation has been completed, recipients must post the evaluation publicly and link to the completed evaluation in the Recovery Plan. Once an evaluation has been completed (or has sufficient interim findings to determine the efficacy of the intervention), recipients should determine whether the spending for the evaluated interventions should be counted towards the dollar amount categorized as evidence-based for the relevant project.

For all projects, recipients may be selected to participate in a national evaluation, which would study their project along with similar projects in other jurisdictions that are focused on the same set of outcomes. In such cases, recipients may be asked to share information and data that is needed for the national evaluation.

Recipients are encouraged to consider how a Learning Agenda, either narrowly focused on SLFRF or broadly focused on the recipient’s broader policy agenda, could support their overarching evaluation efforts in order to create an evidence-building strategy for their jurisdiction.21
Appendix 2 contains additional information on evidence-based interventions for the purposes of the Recovery Plan.

7. Table of Expenses by Expenditure Category
Please include a table listing the amount of funds used in each Expenditure Category (See Appendix 1). The table should include cumulative expenses to date within each category, and the additional amount spent within each category since the last annual Recovery Plan.

8. Project Inventory
List the name and provide a brief description of all SLFRF funded projects. Projects are new or existing eligible government services or investments funded in whole or in part by SLFRF funding. For each project, include the project name, funding amount, identification number (created by the recipient and used thereafter in the quarterly Program and Expenditure Report), project Expenditure Category (see Appendix 1), and a description of the project which includes an overview of the main activities of the project, the approximate timeline, primary delivery mechanisms and partners, if applicable, and intended outcomes. Include a link to the website of the project if available. This information will provide context and additional detail for the information reported quarterly in the Project and Expenditure Report.

For infrastructure investment projects (EC 5), project-level reporting will be more detailed, as described for the Project and Expenditure Report above. Projects in this area may be grouped by Expenditure Category if needed, with further detail (such as the specific project name and identification number) provided in the Project and Expenditure Report. For infrastructure projects, descriptions should note how the project contributes to addressing climate change.

9. Performance Report
The Recovery Plan must include key performance indicators for the major SLFRF funded projects undertaken by the recipient. The recipient has flexibility in terms of how this information is presented in the Recovery Plan, and may report key performance indicators for 20 For more information on the required standards for program evaluation, see OMB M-20-12. 21 For more information on learning agendas, please see OMB M-19-23

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27 each project, or may group projects with substantially similar goals and the same outcome measures. In some cases, the recipient may choose to include some indicators for each individual project as well as crosscutting indicators.

Performance indicators should include both output and outcome measures. Output measures, such as number of students enrolled in an early learning program, provide valuable information about the early implementation stages of a project. Outcome measures, such as the percent of students reading on grade level, provide information about whether a project is achieving its overall goals. Recipients are encouraged to use logic models22 to identify their output and outcome measures. While the initial report will focus heavily on early output goals, recipients must include the related outcome goal for each project and provide updated information on achieving these outcome goals in annual reports. In cases where recipients are conducting a program evaluation for a project (as described above), the outcome measures in the performance report should be aligned with those being evaluated in the program. To support their performance measurement and program improvement efforts, recipients are permitted to use funds to make improvements to data or technology infrastructure and data analytics, as well as program evaluations.

10. Required Performance Indicators and Programmatic Data While recipients have discretion on the full suite of performance indicators to include, a number of mandatory performance indicators and programmatic data must be included. These are necessary to allow Treasury to conduct oversight as well as understand and aggregate program outcomes across recipients. This section provides an overview of the mandatory performance indicators and programmatic data. This information may be included in each recipient’s Recovery Plan as they determine most appropriate, including combining with the section above, but this data will also need to be entered directly into the Treasury reporting portal. Below is a list of required data for each Expenditure Category:
a. Household Assistance (EC 2.2 & 2.5) and Housing Support (EC 3.10-3.12):
• Number of people or households receiving eviction prevention services (including legal representation)
• Number of affordable housing units preserved or developed b. Negative Economic Impacts (EC 2):
• Number of workers enrolled in sectoral job training programs • Number of workers completing sectoral job training programs • Number of people participating in summer youth employment programs c. Education Assistance (EC 3.1-3.5):
• Number of students participating in evidence-based tutoring programs23 d. Healthy Childhood Environments (EC 3.6-3.9):
• Number of children served by childcare and early learning (pre-school/pre-K/ages 3- 5)
• Number of families served by home visiting
The initial report should include the key indicators above. Each annual report thereafter should include updated data for the performance period as well as prior period data, and a brief 22 A logic model is a tool that depicts the intended links between program investments and outcomes, specifically the relationships among the resources, activities, outputs, outcomes, and impact of a program.
23 For more information on evidence-based tutoring programs, refer to the U.S. Department of Education’s 2021 ED COVID-19 Handbook (Volume 2), which summarizes research on evidencebased tutoring programs (see the bottom of page 20.

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28 narrative adding any additional context to help the reader interpret the results and understand the any changes in performance indicators over time. To the extent possible, Treasury also encourages recipients to provide data disaggregated by race, ethnicity, gender, income, and other relevant factors.

11. Ineligible Activities: Tax Offset Provision (States and territories only) The following information is required for Treasury to ensure SLFRF funding is not used for ineligible activities.

In each reporting year, States and territories will report certain items related to the Tax Offset Provision as described in section 602(c)(2) of the Social Security Act and implemented by 31 CFR 35.8. Additional guidance will be forthcoming for reporting requirements regarding the tax offset provision and additional information that Recipients will report once the Final Rule goes into effect.
a. Revenue-reducing Covered Changes: Collection began August 2021:

For each reporting year, a recipient must report the value of covered changes that the recipient predicts will have the effect of reducing tax revenue in a given reporting year (revenue-reducing covered changes), similar to the way it would in the ordinary course of its budgeting process. The value of these covered changes may be reported based on estimated values produced by a budget model, incorporating reasonable assumptions, that aligns with the recipient government’s existing approach for measuring the effects of fiscal policies, and that measures relative to a current law baseline. The covered changes may also be reported based on actual values using a statistical methodology to isolate the change in year-over-year revenue attributable to the covered change(s), relative to the current law baseline prior to the change(s). Estimation approaches should not use dynamic methodologies that incorporate the projected effects of the policies on macroeconomic growth. In general, and where possible, reported values should be produced by the agency of the recipient government responsible for estimating the costs and effects of fiscal policy changes. Recipients must maintain records regarding the identification and predicted effects of revenue-reducing covered changes. The term “covered change,”” and “tax revenue” are described in the Interim Final Rule, 31 CFR 35.3.

For additional information, see 602(c)(2) of the Social Security Act, the Interim Final Rule, and 31 CFR 35.8.

D. Distributions to NEUs
Each State and territory is asked to provide regular updates on their NEU distribution as well as their distributions to units of general local government within counties that are not units of general local government (Non-UGLG). The distribution template generally requests information on whether the local government has (1) received funding; (2) declined funding and requested a transfer to the State under Section 603(c)(4) of the Act; or (3) not taken action on its funding or declined funding.

For NEUs, states and territories should be prepared to report on their information, including the following:
• NEU name
• NEU DUNS number
• NEU Taxpayer Identification Number (TIN)
• NEU Recipient Number (a unique identification code for each NEU assigned by the State or territory to the NEU as part of the request for funding) • NEU contact information (e.g., address, point of contact name, point of contact email address, and point of contact phone number)
• NEU authorized representative name and email address

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29 • Initial allocation and, if applicable, subsequent allocation to the NEU (before application of the 75 percent cap)
• Total NEU reference budget (as submitted by the NEU to the State or territory as part of the request for funding)
• Amount of the initial and, if applicable, subsequent allocation above 75 percent of the NEU’s reference budget which will be returned to Treasury • Payment amount(s)
• Payment date(s)
States with “weak” minor civil divisions (i.e., Illinois, Indiana, Kansas, Missouri, Nebraska, North Dakota, Ohio, and South Dakota) should also list any minor civil divisions that the State deemed ineligible.

For each eligible NEU that declined funding and requested a transfer to the State under Section 603(c)(4), the State or territory must also attach a form signed by the NEU, as detailed in the Guidance on Distributions of Funds to Non-Entitlement Units of Local Government.

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30 Appendix 1: Expenditure Categories
The Expenditure Categories (EC) listed below must be used to categorize each project as noted in Part 2 above. The term “Expenditure Category” refers to the detailed level (e.g., 1.1 COVID-10 Vaccination). When referred to as a category (e.g., EC 1) it includes all Expenditure Categories within that level.
1: Public Health

1.1 COVID-19 Vaccination ^

1.2 COVID-19 Testing ^

1.3 COVID-19 Contact Tracing

1.4 Prevention in Congregate Settings (Nursing Homes, Prisons/Jails, Dense Work Sites, Schools, etc.)*

1.5 Personal Protective Equipment

1.6 Medical Expenses (including Alternative Care Facilities)

1.7 Capital Investments or Physical Plant Changes to Public Facilities that respond to the COVID-19 public health emergency

1.8 Other COVID-19 Public Health Expenses (including Communications, Enforcement, Isolation/Quarantine)

1.9 Payroll Costs for Public Health, Safety, and Other Public Sector Staff Responding to COVID-19

1.10 Mental Health Services*

1.11 Substance Use Services*

1.12 Other Public Health Services
2: Negative Economic Impacts

2.1 Household Assistance: Food Programs* ^

2.2 Household Assistance: Rent, Mortgage, and Utility Aid* ^

2.3 Household Assistance: Cash Transfers* ^

2.4 Household Assistance: Internet Access Programs* ^

2.5 Household Assistance: Eviction Prevention* ^

2.6 Unemployment Benefits or Cash Assistance to Unemployed Workers*

2.7 Job Training Assistance (e.g., Sectoral job-training, Subsidized Employment, Employment Supports or Incentives)* ^

2.8 Contributions to UI Trust Funds

2.9 Small Business Economic Assistance (General)* ^

2.10 Aid to Nonprofit Organizations*

2.11 Aid to Tourism, Travel, or Hospitality

2.12 Aid to Other Impacted Industries

2.13 Other Economic Support* ^

2.14 Rehiring Public Sector Staff
3: Services to Disproportionately Impacted Communities

3.1 Education Assistance: Early Learning* ^

3.2 Education Assistance: Aid to High-Poverty Districts ^

3.3 Education Assistance: Academic Services* ^

3.4 Education Assistance: Social, Emotional, and Mental Health Services* ^

3.5 Education Assistance: Other* ^

3.6 Healthy Childhood Environments: Child Care* ^

3.7 Healthy Childhood Environments: Home Visiting* ^

3.8 Healthy Childhood Environments: Services to Foster Youth or Families Involved in Child Welfare System* ^

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31 3.9 Healthy Childhood Environments: Other* ^

3.10 Housing Support: Affordable Housing* ^

3.11 Housing Support: Services for Unhoused Persons* ^

3.12 Housing Support: Other Housing Assistance* ^

3.13 Social Determinants of Health: Other* ^

3.14 Social Determinants of Health: Community Health Workers or Benefits Navigators* ^

3.15 Social Determinants of Health: Lead Remediation ^

3.16 Social Determinants of Health: Community Violence Interventions* ^ 4: Premium Pay

4.1 Public Sector Employees

4.2 Private Sector: Grants to Other Employers
5: Infrastructure24

5.1 Clean Water: Centralized Wastewater Treatment

5.2 Clean Water: Centralized Wastewater Collection and Conveyance

5.3 Clean Water: Decentralized Wastewater

5.4 Clean Water: Combined Sewer Overflows

5.5 Clean Water: Other Sewer Infrastructure

5.6 Clean Water: Stormwater

5.7 Clean Water: Energy Conservation

5.8 Clean Water: Water Conservation

5.9 Clean Water: Nonpoint Source

5.10 Drinking water: Treatment

5.11 Drinking water: Transmission & Distribution

5.12 Drinking water: Transmission & Distribution: Lead Remediation

5.13 Drinking water: Source

5.14 Drinking water: Storage

5.15 Drinking water: Other water infrastructure

5.16 Broadband: “Last Mile” projects

5.17 Broadband: Other projects
6: Revenue Replacement

6.1 Provision of Government Services
7: Administrative

7.1 Administrative Expenses

7.2 Evaluation and Data Analysis

7.3 Transfers to Other Units of Government

7.4 Transfers to Non-entitlement Units (States and territories only) *Denotes areas where recipients must identify the amount of the total funds that are allocated to evidence-based interventions (see Use of Evidence section above for details) ^Denotes areas where recipients must report on whether projects are primarily serving disadvantaged communities (see Project Demographic Distribution section above for details) 24 Definitions for water and sewer Expenditure Categories can be found in the EPA’s handbooks. For “clean water” expenditure category definitions, please see:
https://www.epa.gov/sites/production/files/2018-03/documents/cwdefinitions.pdf. For “drinking water” expenditure category definitions, please see: https://www.epa.gov/dwsrf/drinking-water-staterevolving-fund-national-information-management-system-reports.

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32 Appendix 2: Evidenced-Based Intervention Additional Information What is evidence-based?
For the purposes of the SLFRF, evidence-based refers to interventions with strong or moderate evidence as defined below:

Strong evidence means that the evidence base can support causal conclusions for the specific program proposed by the applicant with the highest level of confidence. This consists of one or more well-designed and well-implemented experimental studies conducted on the proposed program with positive findings on one or more intended outcomes.

Moderate evidence means that there is a reasonably developed evidence base that can support causal conclusions. The evidence base consists of one or more quasi-experimental studies with positive findings on one or more intended outcomes OR two or more nonexperimental studies with positive findings on one or more intended outcomes. Examples of research that meet the standards include: well-designed and well-implemented quasiexperimental 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 nonexperimental 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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33 Revision Log
Version Date Published Summary of changes

1.0 June 17, 2021 Initial publication

1.1 June 24, 2021 • Pg. 12, removed references to “summary” level with respect to reporting by Expenditure Categories in
the Interim Report to avoid confusion.
• Pg. 13, revised the coverage period end date for the
Interim Report from June 30, 2021 to July 31, 2021
to align with the IFR.
• Pg. 13, removed references to “summary” level with
respect to reporting by Expenditure Categories in
the Interim Report to avoid confusion.
• Pg. 31, removed references to “summary level” with
respect to Expenditure Categories in Appendix 1 to
avoid confusion.

1.1 September 30, 2021 • Announced the extension in the Project and Expenditure Report submission date, originally due
on October 31, 2021.

2.0 November 5, 2021 • Updated Subrecipient Monitoring section to clarify beneficiaries and recipients.
• Updated references to Interim Final Rule comment
period as comment period is closed.
• Updated reporting tiers, thresholds and timelines in
Part 2 Table 2, Reporting Requirements by recipient
type, as well as Part 2 A and Part 2 B.
• Updated reporting periods for Interim Report and
Project and Expenditure reports.
• Added concept of Adopted Budget to Project and
Expenditure Report data fields.
• Noted phase in of Required Programmatic Data in
the Project and Expenditure Report.
• Removed certain data fields from the Ineligible
Activities: Tax Offset Provision under the Recovery
Plan.
• Separated reporting of NEU Distributions (for States
and territories) from the Interim Report and Project
and Expenditure Reports as information will be
provided on an ongoing basis.

2.1 November 15, 2021 • Updated pages 9 and 11 to note that civil rights certification is not applicable to Tribal Governments.

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DRAFT- PRE-DECISIONAL / CONFIDENTIAL / NOT FOR DISTRIBUTION Coronavirus State and Local Fiscal Recovery Fund:
i DRAFT- PRE-DECISIONAL / CONFIDENTIAL / NOT FOR DISTRIBUTION User Guide: Treasury’s Portal for Recipient Reporting
August 9, 2021
Version: 1.0 Version: 1.0
September 2, 2021
Version: 1.0
October 7, 2021
Version: 2

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Table of Contents
Section I. Reporting Basics.................................................................................................1 Section II. Navigation and Logistics....................................................................................3 Section III. Recipient Information..........................................................................................8 Section IV. Reporting Requirements- Non-Entitlement Units of Local Government........9 Section V. Reporting Requirements- Units of General Local Government within Counties that are Not Units of General Local Government ..................................................17 Section VI. Official Certification ..........................................................................................22 Appendix A – Bulk File Upload Overview...............................................................................24 Appendix B – Designating SLFRF Points of Contact by SLFRF Account Administrators 34 List of Figures
Figure 1 – Landing Page...............................................................................................................3 Figure 2 – Navigation Bar .............................................................................................................3 Figure 3 – Sample Bulk Upload Icon with Template Download Link ............................................4 Figure 4 – Successful Bulk Upload Example ................................................................................4 Figure 5 – Unsuccessful Bulk Upload ...........................................................................................5 Figure 6- Invalid Bulk Upload Error...............................................................................................6 Figure 7 Duplicative Value Upload Error.......................................................................................6 Figure 8 – Manual Entry Text Box ................................................................................................7 Figure 9 – Recipient Information...................................................................................................8 Figure 10 – Recipient Profile Discrepancies Entry........................................................................8 Figure 11 – NEU Monthly Updates .............................................................................................10 Figure 12 – Screen for Eligible NEUs .........................................................................................11 Figure 13 – NEU Distribution Process Written Summary............................................................14 Figure 14 – Screen for Ineligible NEUs.......................................................................................14 Figure 15 – Screen for NEU Transactions ..................................................................................15 Figure 16 – Non-UGLG Monthly Updates...................................................................................18 Figure 17 – Non-UGLG Distribution Screen ...............................................................................18 Figure 18 – Non-UGLG Distribution Process Written Summary .................................................20 Figure 19 – Non-UGLG Transaction Screen...............................................................................21 Figure 20 Official Certification.....................................................................................................22 Figure 21 – Summary of Reported Information...........................................................................23

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Section I. Reporting Basics
a) Overview
This document provides information on using Treasury’s Portal to submit required Coronavirus State and Local Fiscal Recovery Fund (SLFRF) reports. It is a supplement to the Compliance and Reporting Guidance (Reporting Guidance), which contains relevant information and guidance on reporting requirements.

Additionally, you should visit the Treasury’s SLFRF home page for the latest guidance and updates on programmatic and reporting topics, as well as information on Treasury’s Interim Final Rule (IFR).

Each SLFRF recipient is required to submit periodic reports with current performance and financial information including background information about the SLFRF projects that are the subjects of the reports; and financial information with details about obligations, expenditures, direct payments, and subawards.
b) What is Covered in this User Guide?
This User Guide provides detailed instructions to help States and U.S. Territories to gather and complete the following templates:
➢ Non-Entitlement Units of Local Government (NEU) Distribution Templates ➢ Units of general local government within counties that are not units of general local government (Non-UGLG) Distribution Templates
c) Designated Staff for Key Roles in Managing SLFRF Reports User Designations SLFRF recipient organizations are required to designate staff or officials for the following three roles in managing reports for their SLFRF award. Recipients must make the required designations prior to accessing Treasury’s Portal. The required roles are as follows:
• Account Administrator for the SLFRF award has the administrative role of maintaining the names and contact information of the designated individuals for SLFRF reporting. The Account Administrator is also responsible for working within your organization to determine its designees for the roles of Point of Contact for Reporting and Authorized Representative for Reporting and providing their names and contact information via Treasury’s Portal.

Finally, the Account Administrator is responsible for making any changes or updates to the user roles as needed over the award period. We recommend that the Account Administrator identify an individual to serve in his/her place in the event of staff changes. • Point of Contact for Reporting is the primary contact for receiving official Treasury notifications about reporting on the SLFRF award, including alerts about upcoming reporting, requirements, and deadlines. The Point of Contact for Reporting is responsible for completing the SLFRF reports.
• Authorized Representative for Reporting is responsible for certifying and submitting official reports on behalf of the SLFRF award recipient. Treasury will accept reports or other official communications only when submitted by the Authorized Representative for Reporting. The Authorized Representative for Reporting is also responsible for

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communications with Treasury on such matters as extension requests and amendments of previously submitted reports. The official reports may include special reports, quarterly reports, interim reports, and final reports.

An individual may be designated for multiple roles. For example, the individual designated as the Point of Contact for Reporting may also be designated as the Authorized Representative for Reporting. In addition, the recipient may designate one individual for all three roles. Multiple individuals can be designated for each role.

The guidance on the process for designating individuals for the three roles was provided via email to SLFRF recipients and is also posted in Treasury’s site.

The designated individuals’ names and contact information will be pre-populated in the “Recipient Profile” portion of the recipient’s SLFRF reports, and recipients will be able to update the information, if necessary.

Each designated individual must register with ID.me to gain access to Treasury’s portal. Please contact [email protected] for additional information on procedures for registering with ID.me.
d) Questions?
If you have any questions about the SLFRF program’s reporting requirements, please contact us by email via [email protected].

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Section II. Navigation and Logistics
a) Login to Landing Page and Portal Navigation
After logging into Treasury’s Portal, the landing page (see Figure 1) will appear listing the Office of Recovery Programs (ORP)-administered program for which your organization may be eligible for.

Figure 1 – Landing Page
From the landing page, select Go to Your Reports on the left side panel to be taken to a list of options for the programs you have access to under the Report Selection section.

Each listed report constitutes a link to that specific report’s online forms. Selecting a report from the landing page will open the first in a series of screens.

To begin completing a specific report, click on Provide Information for the given report. Refer to the Reporting Guidance for details about each type of required report for submittal.

The Navigation Bar (see Figure 2) on the top of Treasury’s Portal will allow you to freely move between screens.

Figure 2 – Navigation Bar
b) Helpful Tips/Shortcuts for Submitting Data to Treasury’s Portal Treasury’s Portal leads you through a series of online forms that, when completed, will fulfill your reporting obligations. While navigating through Treasury’s Portal and submitting required information, users will have the option of manually entering data directly into the portal or providing information via a bulk upload file that includes all relevant information in a Treasury approved process and format.

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Bulk File Upload File
Recipients can use the bulk upload function for providing required information for the five modules listed here:
• NEU Distribution- Eligible NEUs
• NEU Distribution- Ineligible (for listing ineligible Local Governments) • NEU Distribution- Transactions
• Non-UGLG- Distribution
• Non-UGLG- Transactions
When using the bulk upload, recipients must provide the required information in specified formats and use the Treasury approved templates for each respective bulk upload.

Recipients must download each of the templates separately from within the relevant Treasury Portal module.

Please see Appendix A – Bulk File Upload Overview for complete guidance on using this important function.

Modules accepting bulk upload files are clearly marked in Treasury’s Portal and identified in later sections of this User Guide. The template for each upload file is available in the relevant module for download (see Figure 3).

Figure 3 – Sample Bulk Upload Icon with Template Download Link When you click the upload button you will be directed to an upload screen (see Figure 4). You can either choose to add files or drag and drop files to initiate the bulk upload.

Figure 4 – Successful Bulk Upload Example
Treasury’s Portal will reject the file if an incorrect template, data format, or file format other than .csv is used for upload (see Figure 5). Treasury’s Portal will display an error message on screen (see Figure 5) if the bulk data upload file contains errors. If you receive an error

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message, you will need to correct the errors in the bulk upload file and re-submit the corrected version. Recipients should review the upload file carefully, as current system functionality will only show the first error found in a bulk file. Multiple field errors will necessitate multiple fix and upload attempts.

When a bulk upload error occurs, the system stops scanning the file and immediately reports the first error found in the document. Once you correct the error, you should ensure you have not made the same error in each consecutive row below where the first error was identified prior to re-submitting the corrected bulk upload file.

There are three common Bulk File Upload errors as described below:
• Blank Data (see Figure 5): When a required field is left blank within your Bulk Upload File, the specific bulk upload file row and cell number will be provided on the screen.

In the example below, the user made an error pertaining to the “Recipient Number” and the error is located in Column C, Row 11.

Figure 5 – Unsuccessful Bulk Upload
• Invalid Data (see Figure 6): Invalid data includes any type of data (numeric or text) that does not meet the requirements set forth in the Help Text within each Bulk Upload Template. When invalid data is found in a cell, the error message uses Row Zero logic.

When the system scans for and finds invalid data, the error message treats the first row containing your entered data (typically Row 8) as Row “0.” o For example, if your Bulk Upload file contains an error in Row 10, and the first line of your data entry is in Row 8, then the error message will report the mistake in Row 2 (10 minus the starting point of 8) as shown in the image below. o The error message will also show the required field that was incorrect, such as “Status” shown below.

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Figure 6- Invalid Bulk Upload Error
• Duplicate Data (see Figure 7): Duplicate data includes any type of data (numeric or text) that is repeated in the same column when the Help Text within a Bulk Upload Template requires a unique entry. When duplicate data is found in a cell, the error message uses Row Zero logic. When the system scans for and finds invalid data, the error message treats the first row containing your entered data (typically Row 8) as Row “0.”
o For example, if your Bulk Upload file contains an error in Row 9, and the first line of your data entry is in Row 8, then the error message will report the mistake in Row 1 (9 minus the starting point of 8) as shown in the image below. o The error message will also show the required field that was incorrect, such as “Unique Identifier” shown below.

Figure 7 Duplicative Value Upload Error
Manual Data Entry
Manual data entry requires you to provide inputs as instructed on the screen. Manual inputs are described in detail below for each section of this user guide.

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Note: An asterisk ( * ) indicates a required field. Entry into the field is required before you can save or proceed to the next screen.

Your inputs will be subject to validation by Treasury’s Portal to ensure that the data provided is consistent with expected format or description (e.g., entering “one hundred” instead of 100). If a given data entry fails a validation rule, Treasury’s Portal will display an error for you to address.

You will not be able to submit manually entered data that does not satisfy the data validation rules.

Narrative Boxes
When filling out detailed narratives, you are encouraged to type out responses in a word processing application (such as Microsoft Word) to minimize grammatical errors, track word count, and concisely answer all required narrative details. You can then copy and paste the final written narratives directly into the text boxes.

The text boxes (see Figure 8) can be expanded by clicking and dragging the icon in the bottomright corner.

Figure 8 – Manual Entry Text Box

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Section III. Recipient Information
Upon login, you will be directed to the recipient information page, which is intended to verify relevant information in the Treasury system.

1. Review and confirm your Recipient Profile pre-populated from your SLFRF Application file (see Figure 9). If you have previously entered a DUNS (+4) number, it will appear here.

2. If you have a Recipient DUNS (+4) number and the field is not populated, update as necessary.

Figure 9 – Recipient Information

3. Verify the information displayed, as well as names and contact information for individuals the recipient has designated for key roles for the SLFRF program. If changes are needed to the information displayed on the screen, use textbox (see figure 9), refer to the instructions included in Appendix B to update the applicable roles, or contact [email protected].

4. Use the textbox (see Figure 10) to flag errors, notifying Treasury if any information is incorrect.

Figure 10 – Recipient Profile Discrepancies Entry

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5. Once all fields have been reviewed and verified, click the Next button to proceed to the following screen. Information will save automatically.

Section IV. Reporting Requirements- Non-Entitlement Units of Local Government This section is only applicable for States and U.S. Territories.

Non-entitlement Units of Local Government (NEUs), defined in section 603(g)(5) of the Social Security Act, as added by section 9901 of the American Rescue Plan Act of 2021, are local governments typically serving populations of less than 50,000. NEUs include cities, villages, towns, townships, or other types of local governments.

NEUs receive SLFRF payments through their State and U.S. territory governments. State and U.S. territory governments receive a specific allocation of these funds from Treasury for this purpose and are responsible for distributing these funds to the NEUs within their State or U.S.

Territory. Award amounts are based on population.

Additional information on distributions to NEUs can be found here.

States and U.S. Territories are required to provide an update on distributions to eligible NEUs as part of the Interim Report, covering NEU distributions from the date of award to July 31, 2021.

Recipients are asked to provide updates on distributions to individual NEUs to Treasury every month thereafter until all distributions have been made. States and U.S. Territories should, unless otherwise instructed by Treasury, provide updates to Treasury where information or status has changed. Each report should cover all changes since the prior month’s report (e.g., submission by September 30, 2021, for the period covering August 1-31, 2021).

Templates will be available for download from Treasury’s Portal. Each NEU template will need to be completed separately to allow for the proper uploading of information into Treasury’s Portal.

For any NEUs that requested a transfer to the State or U.S. Territory under Section 603(c)(4), the State or U.S. Territory must complete, sign, and attach the Treasury form.

Note: Guidance related to the upload of the PDF Treasury form for NEUs requesting transfer to the State or U.S. Territory under Section 603(c)(4) will be provided separately.

Specific step-by-step instructions for filling out the NEU templates are noted below. Appendix A includes an overview of the bulk file upload process and the information associated with formats and content to include in the bulk upload files.

The following NEU Distribution templates are included in this section:
• NEU Distribution- Eligible NEUs
• NEU Distribution- Ineligible (for listing ineligible Local Governments) • NEU Distribution- Transactions

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In addition, a written narrative of the recipient’s NEU distribution process is also required, including any instructions or guidelines that were given to the NEUs. For NEU specific guidance, visit Treasury’s SLFRF website for NEUs.
a. Monthly NEU Updates
Each month States and U.S. territories will be asked to report if they have any NEU transactions or updates to report for the previous month (see Figure 11). • If “No” is selected, States and U.S. territories will be taken to the Non-UGLG information entry.
• If “Yes” is selected, States and U.S. territories will continue entering NEU information for the reporting month. Go to IV.b. below.

Figure 11 – NEU Monthly Updates
Note: - The State or U.S. Territory should ascertain that all NEUs identified by Treasury for such State or U.S. Territory are included in the reporting, as part of the Eligible NEUs template (see IV.b.) or the Ineligible template (see IV.c.). The list of NEUs can be found here in the List of Local Governments excel. As such, if a State or U.S.

Territory has 300 potential eligible NEUs on the list, the information reported to Treasury’s Portal should reflect all 300 NEUs broken out (as applicable) between the Eligible NEU or Ineligible Local Governments templates and status of action. Refer to example below.

State XX- Total Local Governments (per list)- 300
Eligible NEUs- 250 (report as part of Eligible NEUs. Refer to IV.b.) Action Taken (NEU requested funding or declined
funding and requested transfer to State) 150
Action Not Taken (NEU is nonresponsive or
declined funding but has not requested transfer) 100
Ineligible Local Governments- 50 (report as part Ineligible template. Refer to IV.c.) In accordance with Treasury’s guidance on distributions to NEUs, please note that only “weak minor civil divisions (MCD)” governments (Illinois, Indiana, Kansas, Missouri, Nebraska, North Dakota, Ohio, and South Dakota) should have deem any local governments on Treasury’s List of Local Governments as ineligible, barring exceptional circumstances.

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b. NEU Distribution: Eligible NEUs
In this section, the State or U.S. Territory will populate the table for all eligible NEUs within the State and U.S. Territory’s jurisdiction, including all eligible NEUs that are unresponsive or declined funding (see Figure 12). The “Status” column will enable the recipient to indicate whether the NEU has acted on their funding.

In the event the State or U.S. Territory needs to update information (including changing the “Status” from Action Not Taken to Action Taken), the State or U.S. Territory should submit updates to the previously submitted data. If dollar amounts previously reported need to be updated, the State or U.S. Territory should submit the change to the previously reported balances. For example, if the Total NEU Budget Reference submitted by the NEU as part of its request for funding or Sec. 603 (c)(4) transfer to the State was originally reported at $2 million but needs to be adjusted to $1.5 million, the State and U.S. Territory will submit an update of negative $500,000 in a follow-on submission.

Figure 12 – Screen for Eligible NEUs
For NEUs that are unresponsive, States or U.S. Territories do not have to provide information for all fields; however, a valid DUNS number is always required for uploading Eligible NEUs that have requested funding from the State or U.S. territory. The table below notes the fields that are required if 1) NEU has taken action (e.g., requested funding or declined funding and requested a transfer to the State or U.S. territory) or 2) NEU has not taken action (e.g., is unresponsive or declined funding).

1. Provide answer to the question, do you have any distributions or updates to distributions to eligible NEUs to report?

2. If the answer is “No”, proceed to NEU Distribution-Ineligible Local Governments in IV.c.

3. If the answer is “Yes”, download the NEU Distribution- Eligible NEUs template from the Treasury’s Portal screen. See Figure 12.

4. Fill the downloaded template with information specific to the distributions to NEUs, as follows. Refer to Appendix A for additional information related to the bulk file upload process. Optional fields are denoted by (*). “Column” below refers to the applicable area in the bulk upload file.

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Template
Column
Action Required for
NEU that Has
Taken Action
(e.g., Requested
Funding)
Required for NEU
that Has Taken
Action (declined
funding and
requested
transfer)
Required for
NEU that Has Not
Taken Action (e.g.,
Unresponsive or
Declined Funding)
B Provide the name of the State or
U.S. Territory in which the NEU
resides
Yes Yes Yes
C Include the NEU’s unique
recipient identification number
assigned by the State or U.S.

Territory to the NEU (e.g.,
AZ0013)
Yes Yes Yes
D Include the legal name of the
NEU
Yes Yes Yes
E Include the NEU’s DUNS
number*
Yes Yes No
F Include the NEU’s Taxpayer
Identification Number (TIN)*
Yes Yes No
G-M Include the NEU’s address
(including city, State, zip code,
and zip+4)
Yes Yes No
N Include the NEU’s primary email
address. If there is no NEU
primary email address, provide
the point of contact’s email
address*
Yes Yes No
O Include the NEU’s primary point
of contact’s full name (first then
last)*
Yes No No
P Include the NEU’s primary point
of contact’s phone number (###-
###-####)*
Yes No No
Q Include the NEU’s primary point
of contact’s email address*
Yes No No
R Include the NEU’s authorized
representative name. If the
primary point of contact is also
the authorized representative,
provide the name again*
Yes Yes No
S Include the NEU’s authorized
representative email address. If
the primary point of contact is
also the authorized
representative, provide the email
again*
Yes Yes No
T Indicate the NEU’s eligibility
status:
• Action Taken (i.e., the NEU
requested funding) or
declined funding and
requested Sec. 603 (c)(4)
transfer to the State)
Yes Yes Yes

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Template
Column
Action Required for
NEU that Has
Taken Action
(e.g., Requested
Funding)
Required for NEU
that Has Taken
Action (declined
funding and
requested
transfer)
Required for
NEU that Has Not
Taken Action (e.g.,
Unresponsive or
Declined Funding)
• Action Not Taken (i.e., the
NEU is nonresponsive or
declined funding)
U Provide the Total NEU Budget
Reference submitted by the NEU
as part of its request for funding
or Sec. 603 (c)(4) transfer to the
State*
Yes Yes No
V Provide the revised Total NEU
Budget Reference (e.g., if
revisions were made based on
updated Treasury guidance on
the NEU’s interpretation of the 75
percent budget cap issued on
June 30, 2021)*
Yes- if applicable No No
W Provide the Total Allocation
Across 1st and 2nd Tranches
before application of the 75
percent budget cap
Yes Yes Yes
X Provide the Total Allocation
Across 1st and 2nd Tranches
(before application of 75 percent
budget cap) (first revision, if
applicable)*
Yes- if applicable No No
Y Provide the Total Allocation
Across 1st and 2nd Tranches
(before application of 75 percent
cap) (second revision, if
applicable)*
Yes- if applicable No No
Z Provide the Final Allocation
Across 1st and 2nd Tranches after
application of the 75 percent
budget cap *
Yes Yes No
AA Provide the Final Allocation
Across 1st and 2nd Tranches after
application of the 75 percent
budget cap (first revision, if
applicable)*
Yes- if applicable No No
AB Provide the Final Allocation
Across 1st and 2nd Tranches after
application of the 75 percent
budget cap (second revision, if
applicable)*
Yes- if applicable No No
AC Include any additional notes
required to explain the NEU
distribution summary line items,
as applicable*
No No No

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5. Upload the NEU Distribution- Eligible NEUs template separately as a .csv file by using the respective Upload button on the screen or dropping the files in this view. • Reminder- in the event a file is uploaded, the information will be accepted by Treasury’s Portal as a record. Changes to information that has been bulk uploaded are not permitted. If you need to correct information submitted, contact [email protected].

6. After uploading or dropping the applicable template and documentation, provide a written summary of the State or U.S. Territory’s NEU distribution process, including any substantive instructions or guidance provided to the NEUs (see Figure 13).

Figure 13 – NEU Distribution Process Written Summary

7. Once all of the above information is entered, click Save. Click the Next button to proceed to the following screen.
c. NEU Distribution: Ineligible Local Governments
In this section, the State or U.S. Territory will populate the local governments that were deemed ineligible to receive a NEU distribution (see Figure 14). Optional fields are denoted by (*). “Column” below refers to the applicable area in the bulk upload file.

Figure 14 – Screen for Ineligible NEUs
As with the NEU Eligible NEUs template, States or U.S. Territories are asked to provide updates to Treasury every month after the initial submission. For these updates, States or U.S. Territories should only provide entries where information has changed.

1. Provide answer to the question, do you have any local government(s) that were deemed ineligible to receive a NEU distribution to report?

2. If the answer is “No”, proceed to NEU Distribution- Transactions.

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3. If the answer is “Yes”, download the NEU Distribution- Ineligible Local Governments template (for listing ineligible Local Governments).

4. Fill the downloaded template with information specific to Ineligible Local Governments, as follows. Refer to Appendix A for additional information related to the bulk file upload process. Optional fields are denoted by (*). “Column” below refers to the applicable area in the bulk upload file.
▪ Column B: Provide the name of the State or U.S. Territory in which the local government resides
▪ Column C: Include the legal name of the Local Government ▪ Column D: Include the Local Government’s DUNS number, if known or available*
▪ Column E: Select the rationale for ineligibility:
• Ineligible MCD (i.e., any Minor Civil Divisions in a “weak-MCD” State that did not meet the facts-and-circumstances test as outlined in Treasury’s guidance)
• Other. If other, provide additional explanation in Column E ▪ Column F: Provide an explanation for “Other” ineligibility rationale*

5. Upload the NEU Distribution- Ineligible Local Governments template separately as a .csv file by using the respective Upload button on the screen or dropping the files in this view.
• Reminder- in the event a file is uploaded, the information will be accepted by Treasury’s Portal as a record. Changes to information that has been bulk uploaded are not permitted. If you need to correct information submitted, contact [email protected].

6. Refer to steps IV.b.6 and IV.b.7 above.
d. NEU Distribution: Transactions
In this section, the State or U.S. Territory will populate the table for all NEU transactions (see Figure 15).

Figure 15 – Screen for NEU Transactions

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As with the Eligible NEUs and Ineligible Local Governments information, States or U.S.

Territories are asked to provide updates to Treasury every month after the submission of the Interim Report. For these updates, States or U.S. Territories should only provide entries where information has changed.

1. Provide answer to the question, do you have any NEU transactions to report?

2. If the answer is “No”, proceed to Non-UGLG section.

3. If the answer is “Yes”, download the NEU Distribution- Transactions.

4. Fill the downloaded templates with information specific to the transactions to NEUs, as follows. Refer to Appendix A for additional information related to the bulk file upload process. “Column” below refers to the applicable area in the bulk upload file. • Column B: Provide the name of the State or Territory in which the NEU resides
• Column C: Provide the NEU Recipient Number assigned by the State or Territory to the NEU
• NEU Recipient Number should match the number provided as part of the Eligible NEU template
• Column D: Provide the NEU Name
• NEU Name should match the NEU name provided as part of the Eligible NEU template
• Column E: Provide the NEU’s DUNS number
• DUNS number should match the DUNS number provided as part of the Eligible NEU template
• Column F: Provide the transaction ID, assigned by the State or Territory • Column G: Indicate whether the transaction was a Payment or Transfer to State under Section 603(c)(4)
• Column H: Provide a description of the transaction (e.g., initial payment under First Tranche, subsequent distribution under First Tranche) • Column I: Provide the transaction amount. Use negative numbers for downward revisions. For transfers to the State under Section 603 (c)(4), include the amount intended for transfer to the State
• Column J: Provide the date of the transaction. For transfers to the State or U.S. Territory under Section 603(c)(4), provide the date that Treasury’s transfer form agreement was signed by both parties, not the expected date of Treasury’s approval

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5. Upload the NEU Distribution- Transactions template separately as a .csv file by using the respective Upload button on the screen or dropping the files in this view.
• Reminder- in the event a file is uploaded, the information will be accepted by Treasury’s Portal as a record. Changes to information that has been bulk uploaded are not permitted. If you need to correct information submitted, contact [email protected].

6. Refer to step IV.b.6 and IV.b.7 above.

Section V. Reporting Requirements- Units of General Local Government within Counties that are Not Units of General Local Government
Note: This section is applicable only to Alaska, Connecticut, Massachusetts, Rhode Island, Vermont, U.S. Virgin Islands, and American Samoa.

Section 603(b)(3)(B)(ii) of the Social Security Act (the Act), as amended by the American Rescue Plan Act of 2021, provides that in the case of an amount to be paid to a county that is not a unit of general local government (Non-UGLG), the amount shall instead be paid to the State or U.S. Territory in which such county is located, and such State or U.S. Territory shall distribute such amount to each unit of general local government within such county based on population.

Units of general local government within Non-UGLG counties can include non-entitlement units of local government (NEUs) and metropolitan cities. As noted in the Guidance on Counties that are Not Units of General Local Government, NEUs and metropolitan cities located in Non-UGLG counties that receive funds under Section 603(b)(3)(B)(ii) of the Act must have already accepted the award terms for payments made under Section 603(b)(2) (for NEUs) or section 603(b)(1) (for metropolitan cities).

State and U.S. territory governments will receive a specific allocation of these funds from Treasury and are responsible for calculating the allocations and distributing funds to units of general local government within Non-UGLG counties in the State or U.S. territory.

States and U.S. Territories are required to provide updates on distributions as part of the Interim Report., covering distributions from the date of award, to the extent such distributions have been made prior to that date.

Recipients are asked to provide updates on distributions to units of general local government within Non-UGLG counties to Treasury every month thereafter until all distributions have been made. States and U.S. Territories should, unless otherwise instructed by Treasury, provide updates to Treasury where information or status has changed. Each report should cover all changes since the prior month’s report (e.g., submission by September 30, 2021, for the period covering August 1-31, 2021).

Templates will be available for download from Treasury’s Portal. Each Non-UGLG template will need to be completed separately to allow for the proper uploading of information into Treasury’s portal.

The Non-UGLG Distribution templates cover two areas:

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• Non-UGLG Distribution
• Non-UGLG Transactions
On this screen, State and U.S. Territory recipients will provide information pertaining to distributions made to Non-UGLGs.

Specific step-by-step instructions for filling out the Non-UGLG templates are noted below.

Appendix A includes an overview of the bulk file upload process and the information associated with formats and content to include in the bulk upload files Users will also be asked to provide a summary of the state’s Non-UGLG distribution process to date, to include substantive instructions or guidance that the state issued (e.g., key deadlines, guidance, etc.).
a. Monthly Non-UGLG Updates
Each month States and U.S. territories will be asked to report if they have had transactions for the current month (see Figure 16).
• If “No” is selected, States and U.S. territories may proceed to the certification page. • If “Yes” is selected, States and U.S. territories will continue entering Non-UGLG information for the month. See V.b. below.

Figure 16 – Non-UGLG Monthly Updates
b. Non-UGLG Distribution
In this template, the State or U.S. Territory will populate the spreadsheet for units of general local government (UGLG) within Non-UGLG counties that are eligible to receive a disbursement under Section 603(b)(3)(B)(ii) of the Social Security Act, as added by the American Rescue Plan Act of 2021 (see Figure 17).

Figure 17 – Non-UGLG Distribution Screen
States and U.S. Territories are asked to provide updates to Treasury every month after submitting the Interim Report. For these updates, States and U.S. Territories should only

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provide entries where information or status has changed. Each report should cover any changes since the prior month's report. Optional fields denoted by (*). A valid DUNS number is always required for units of general local government within the non-UGLG that request payment from the State or U.S. territory. The table below notes the fields that are required if 1) units of local governments within the Non-UGLG that requested funding or 2) units of government within a Non-UGLG that declined funding or are unresponsive

1. Provide answer to the question, do you have any distributions to eligible units of general local government to report?

2. If the answer is “No”, proceed to Non-UGLG Transactions.

3. If the answer is “Yes”, download the Non-UGLG: Distribution from Treasury’s Portal screen (see Figure 15).

4. Fill the downloaded template with information specific to distributions to Non-UGLGs, as follows. Refer to Appendix A for additional information related to the bulk file upload process. “Column” below refers to the applicable area in the bulk upload file.

Template
Column
Action Required for
Units of Local
Government within
the Non-UGLG that
Requested Funding
Required for
Units of Local
Government within
the Non-UGLG that
declined funding
and requested a
transfer
Required for
Units of Local
Government within
the Non-UGLG that
Declined Funding or
Non-responsive
B Provide the name of the
Non-UGLG County
Y Y Y
C Provide the name of the
UGLG Jurisdiction within the
Non-UGLG county
Y Y Y
D Provide the population of the
Jurisdiction
Y Y Y
E Provide the amount of funds
allocated to the Jurisdiction
Y Y Y
F Include the Jurisdiction
Number assigned by the
State to the Jurisdiction
(e.g., AZ0013)
Y Y Y
G Include the Jurisdiction
DUNS number*
Y Y N
H Include the Jurisdiction
Taxpayer Identification
Number (TIN)*
Y Y N
I-O Include the Jurisdiction
address (including city, State
and zip code)
Y Y N
P Include the Jurisdiction
primary email address. If
there is no primary email
address, provide the point of
contact's email address*
Y Y N
Q Include the Jurisdiction
primary point of contact's full
name (first then last)*
Y N N

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Template
Column
Action Required for
Units of Local
Government within
the Non-UGLG that
Requested Funding
Required for
Units of Local
Government within
the Non-UGLG that
declined funding
and requested a
transfer
Required for
Units of Local
Government within
the Non-UGLG that
Declined Funding or
Non-responsive
R Include the Jurisdiction
primary point of contact's
phone number (###-###-
####)*
Y N N
S Include the Jurisdiction
primary point of contact's
email address*
Y N N
T Include the Jurisdiction
authorized representative
name. If the primary point of
contact is also the
authorized representative,
provide the name again*
Y Y N
U Include the Jurisdiction
authorized representative
email address. If the primary
point of contact is also the
authorized representative,
provide the email again*
Y Y N
V Did the Jurisdiction decline
and transfer funding to the
State? Indicate Y or N
Y Y Y
W Include any additional notes
required to explain the
Jurisdiction distribution
summary line items, as
applicable*
Y, if applicable Y, If applicable Y, if applicable

5. Upload the Non-UGLG Distribution template separately as a .csv file by using the respective Upload button on the screen or dropping the files in this view.

6. After uploading the applicable template and documentation, provide a written summary of the State or U.S. Territory’s Non-UGLG distribution process to date. Include any substantive instructions or guidance provided to the Non-UGLG (e.g., key deadlines, guidance) (see Figure 18).

Figure 18 – Non-UGLG Distribution Process Written Summary

7. Once all of the above information is entered, click Save. Click the Next button to proceed to the following screen.

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c. Non-UGLG Transactions
In this template, the State or U.S. Territory will populate the spreadsheet for transactions to units of general local government within Non-UGLG counties (see Figure 19).

Figure 19 – Non-UGLG Transaction Screen
States and U.S. Territory are asked to provide updates to Treasury every month after submitting the Interim Report. For these updates, States or U.S. Territory should only provide entries where information has changed. Each report should cover any changes since the prior month's report.

1. Provide answer to the question, do you have any Non-UGLG transactions to report?

2. If the answer is “No”, proceed to certification page.

3. If the answer is “Yes”, download the Non-UGLG Transactions template from Treasury’s Portal screen (see Figure 17).
• Column B: Provide the name of the Non-UGLG County
• Non-UGLG name should match the Non-UGLG name provided as part of the Non-UGLG Distribution template
• Column C: Provide the name of the UGLG Jurisdiction within the Non-UGLG county
• Non-UGLG jurisdiction name should match the Non-UGLG jurisdiction name provided as part of the Non-UGLG Distribution template • Column D: Provide the Jurisdiction Number assigned by the State • Jurisdiction name should match the jurisdiction name provided as part of the Non-UGLG Distribution template
• Column E: Include the Jurisdiction DUNS number
• Jurisdiction DUNS should match the jurisdiction DUNS provided as part of the Non-UGLG Distribution template
• Column F: Provide the transaction ID, assigned by the State • Column G: Indicate whether the transaction was a Payment or Transfer to State under Section 603(c)(4)

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• Column H: Provide a description of the transaction (Enter “First Tranche” or “Second Tranche”)
• Column I: Provide the transaction amount. Use negative numbers for downward revisions. For transfers to the State under Section 603(c)(4), include the amount intended for transfer to the State.
• Column J: Provide the date of the transaction. For transfers to the State under Section 603(c)(4), provide the date that Treasury's transfer form agreement was signed by both parties (not the expected date on which Treasury would grant the transfer).

4. Upload the Non-UGLG Transaction template separately as a .csv file by using the respective Upload button on the screen or dropping the files in this view.

5. Refer to V.b.6 and V.b.7 for next steps.

Section VI. Official Certification
On this screen, the Authorized Representative for Reporting (ARR) will be asked to certify information pertaining to the NEU and Non-UGLG information. By certifying this submission, the ARR is confirming that all reported information is accurate and approved for submission (see Figures 20 and 21).

Users who are not designated as an ARR will not be presented with the screen.

1. The ARR’s Name, Title, Telephone Number, and E-Mail Address will be presented on screen for review.

2. Allow the Certifying Official to review all prior screens and entries to verify accuracy of the inputted record.

Figure 20 Official Certification

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Figure 21 – Summary of Reported Information

3. Verify information included in Figure 21 and confirm that the values presented are as expected based on the information included or uploaded in previous screens.

4. Once all of the information is validated, click the Submit button to complete the entry.

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Appendix A – Bulk File Upload Overview
a) Purpose
The following segment provides overview on the bulk file upload process. There are five (5) unique bulk file upload templates as outlined below:

1. NEU Distribution – Eligible NEUs

2. NEU Distribution – Ineligible

3. NEU Distribution – Transactions

4. Non-UGLG Distribution

5. Non-UGLG Transactions
b) Template Description
Each of the five bulk file upload templates contain instructions on how to populate the respective fields within each file. When adding content to each template, please follow the “Help” text, which will provide what is and isn’t permitted for each cell. Each Module in the web application provides a link to download the template. All templates have the same structure as described below:

Row 1: Template Version
Row 2: Template Name
Row 3: Instructions: Brief description of the template constraints.

Row 4: Field IDs: Column identifiers
Row 5: Field Label: Brief description of each Field or Column Row 6: Required or Optional: This field specifies if the field is optional or required. When the column is required, and a recipient does not provide the required data, the system will not accept any record or allow the file to be uploaded.

Row 7: Field Help Text: Provides a description of the column. There are 2 types of fields, 1). an open value either text or numbers and 2). A predefined list of pick list values:
▪ Open Value: Any text or number. Text for NEU State name or a Number that represents amounts. Most text types are free formats, the only expectation is for Dates, each column that represents a date describes the accepted format. For any number field, it is not required to add “,” to represent thousands or it is not required to add “$” to represent currency. Only add decimal “.” when needed.
▪ Pick List: A Predefine list of values that is accepted by the system. When the column is a pick list, row 7 provides the list of options that the system accepts. End users should “copy and paste” the valid value for each record.

If the respondent provides a value that is not in the predefined pick list, the system will not accept the file. Responses should not contain double quotes Row 8: Data that Recipient submits. Row 8 is where recipients insert specific data to submit. The system accepts 1 or many rows.

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The following is special guidance for each row or set of rows:

Do not change the content of rows 1 to 7.

Rows 4 to 7 provide metadata of each data element or column of the information that respondents will provide.

Add your data in row 8 column B.
c) Bulk Upload Process
The upload process includes the following steps:

Download the template from the link provided in the web application section of the module.

Open the template in Microsoft Excel.

Save the template as a .CSV file and change the name of the file as needed.

Add your data starting with row 8th of the applicable template.

When you finish adding your data repeat step 4.

Upload the new file to the portal. The system will provide a message if the upload was successful or unsuccessful.

Reuse the same file if the upload process fails. Reconcile the issues that the system indicated and repeat step 7 until all issues are corrected. d) Bulk Upload Creation Steps
The collective bulk file upload process is contingent upon end-users following the below steps to ensure successful submission:

Load the NEU Distribution – Eligible NEUs
Load the NEU Distribution – Ineligible
Load the NEU Distribution – Transactions
Non-UGLG Distribution
Non-UGLG Transactions
Note: All data submitted via the bulk upload functionality must be submitted as a .CSV file.
e) CSV Guidance
Refer to the following link for descriptions of the CSV format. https://en.wikipedia.org/wiki/Comma-separated_values
f) Specific CSV characteristics

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• The date format is: MM/DD/YYYY. Example:
a. 06/22/2021
• All currency values are numeric. It is not required to add “,” for thousand or millions. • All currency values should not contain a “$” sign. The file will be rejected if a “$” is included in the data entry.
g) Upload Template Description
Each data element and/or column in the CSV files is described below:
• Index No: Reference number for the data element. For internal use only. • Defined term: Column Short description.
• Definition: Column long description or definition.
• CSV Column Name: The column header name that must be used in the CSV file. • Required: Indicates if the column is required or not required. • List Value: The content of the column is from a list of predefined values. This is valid for some of the columns. The list is provided for all cases. Most of the cases is N/A which means that the type is ether String or Numeric.
• Data type: Specify the data type of the column. The options are: Numeric, Text, Date and Pick List.
• Max Length: Indicates the maximum length in characters that is allowed for each column.
h) NEU Distribution – Eligible NEUs
The downloadable template contains all information required to create the upload files to include required/optional fields, help text, and permissible data types. The following table highlights the data elements required for the NEU Distribution – Eligible NEUs.

Defined Term Definition Required List Values Data Type Max Length
State or Territory Name of the state or territory
performing the transfer to the NEU
(e.g, California, Maine, Maryland)
Required n/a String 20
NEU Recipient
Number
A unique identification code for
each NEU assigned by the State
to the NEU as part of the request
for funding (e.g., AZ1003)
Required n/a Number 10
NEU/Local
Government
Name
Legal name of the NEU
organization/local government.

Required n/a String 120
NEU/Local
Government
DUNS Number
NEU/local government DUNS
Number
Optional n/a Number 9
NEU Taxpayer
Identification
Number (TIN)
NEU Taxpayer Identification
Number (TIN)
Optional n/a Number 9
NEU Address 1 First line of the NEU
organization's address.

Optional n/a String 120

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Defined Term Definition Required List Values Data Type Max Length
NEU Address 2 Second line of the NEU
organization's address.

Optional n/a String 120
NEU Address 3 Third line of the NEU
organization's address.

Optional n/a String 120
NEU City Name of city in which the NEU
organization is located.

Optional n/a String 120
NEU State United States Postal Service
(USPS) two-letter abbreviation for
the state or territory in which the
NEU organization is located.

Optional n/a String 2
NEU Zip Code United States ZIP code (five
digits)
Optional n/a Number 5
NEU Zip +4 United States ZIP code (five
digits) concatenated with the
additional +4 digits associated
with the NEU organization's
address.

Optional n/a Number 4
NEU Email
Address
Email address of the NEU
organization.

Optional n/a String 120
NEU Point of
Contact (POC)
Name
Name of a Point of Contact at the
NEU.

Optional n/a String 120
NEU POC Phone
Number
Phone number of the primary
Point of Contact for the NEU
organization.

Optional n/a String 10
NEU POC Email Email address of the primary Point
of Contact for the NEU
organization.

Optional n/a String 120
Authorized
Representative
Name
Name of an Authorized
Representative of the NEU. If the
primary point of contact is also the
authorized representative, please
provide the name again.

Optional n/a String 120
Authorized
Representative
Email
Email of an Authorized
Representative of the NEU. If the
primary point of contact is also the
authorized representative, please
provide the email again.

Optional n/a String 120
Status Eligibility status of a given NEU.

Indicate the NEU's status: 1)
Action Taken (i.e., the NEU
requested funding or declined
funding & requested Sec.
603(c)(4) transfer to the state); or
2) Action Not Taken (i.e., the NEU
is nonresponsive / declined
funding)
Required 1) Action
Taken (i.e.,
the NEU
requested
funding or
declined
funding &
requested
Sec.
603(c)(4)
transfer to
the state);
2) Action Not
Taken (i.e.,
the NEU is
nonresponsiv
e / declined
funding)
Pick List n/a

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Defined Term Definition Required List Values Data Type Max Length
Total NEU
Budget
Reference
(original)
Provide the Total NEU Budget
Reference submitted by the NEU
as part of its request for funding or
Sec. 603(c)(4) transfer to the state
Optional n/a Dollar
Numeric
12, 2
Total NEU
Budget
Reference
(revised, if
applicable)
Provide the revised Total NEU
Budget Reference, if revisions
were made based on updated
NEU Guidance (i.e., updated
Treasury guidance on
interpretation of the 75 percent
budget cap issued on June 30,
2021)
Optional n/a Dollar
Numeric
12, 2
Total Allocation
Across 1st and
2nd Tranches
(before
application of 75
percent cap)
Provide the Total Allocation
Across 1st and 2nd Tranches
before application of the 75
percent budget cap
Required n/a Dollar
Numeric
12, 2
Total Allocation
Across 1st and
2nd Tranches
(before
application of 75
percent cap)
(first revision, if
applicable)
Provide the Total Allocation
Across 1st and 2nd Tranches
(before application of 75 percent
budget cap) (first revision, if
applicable)
Optional n/a Dollar
Numeric
12, 2
Total Allocation
Across 1st and
2nd Tranches
(before
application of 75
percent cap)
(second revision,
if applicable)
Provide the Total Allocation
Across 1st and 2nd Tranches
(before application of 75 percent
budget cap) (first revision, if
applicable)
Optional n/a Dollar
Numeric
12, 2
Final Allocation
Across 1st and
2nd Tranches
after application
of the 75 percent
budget cap
Final Allocation Across 1st and
2nd Tranches after application of
the 75 percent budget cap
Optional n/a Dollar
Numeric
12, 2
Final Allocation
Across 1st and
2nd Tranches
after application
of the 75 percent
budget cap (first
revision, if
applicable)
Final Allocation Across 1st and
2nd Tranches after application of
the 75 percent budget cap (first
revision, if applicable)
Optional n/a Dollar
Numeric
12, 2
Final Allocation
Across 1st and
2nd Tranches
after application
of the 75 percent
budget cap
(second revision,
if applicable)
Final Allocation Across 1st and
2nd Tranches after application of
the 75 percent budget cap
(second revision, if applicable)
Optional n/a Dollar
Numeric
12, 2
Additional Notes Include any additional notes
required to explain the NEU
distribution summary line items,
as applicable
Optional n/a String 400

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i) NEU Distribution - Ineligible
The downloadable template contains all information required to create the upload files to include required/optional fields, help text, and permissible data types. The templates provide all information required to create the upload files. The following table highlights the data elements required for the NEW Distribution - Ineligible.

Required n/a String 120
NEU/Local
Government
DUNS Number
NEU/local government DUNS
Number
Optional n/a Number 9
Reason for
Ineligibility
Select the rationale for ineligibility:
1) Ineligible MCD (i.e., any Minor
Civil Divisions in a "weak-MCD"
State that did not meet the factsand-circumstances test as outlined in Treasury's guidance);
or 2) Other. If other, please
provide additional explanation in
Column E
Required 1) Ineligible
MCD (i.e.,
any Minor
Civil
Divisions in a
"weak-MCD"
State that did
not meet the
facts-andcircumstance
s test as
outlined in
Treasury's
guidance);
2) Other. If
other, please
provide
additional
explanation
in Column E
Pick List n/a
Notes Provide an explanation for “Other”
ineligibility rationale
Optional n/a String 400
j) NEU Distribution - Transactions
The downloadable template contains all information required to create the upload files to include required/optional fields, help text, and permissible data types. The following table highlights the data elements required for NEU Distribution - Transactions.

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Defined Term Definition Required List Values Data Type Max Length
State or Territory Name of the state or territory
performing the transfer to the
NEU (e.g, California, Maine,
Maryland)
Required n/a String 20
NEU Recipient
Number
A unique identification code for
each NEU assigned by the
State to the NEU as part of the
request for funding (e.g.,
AZ1003)
Required n/a Number 10
NEU/Local
Government Name
Legal name of the NEU
organization/local government.

Required n/a String 120
NEU/Local
Government DUNS
Number
NEU/local government DUNS
Number
Required n/a Number 9
Transaction ID
(assigned by State
or Territory)
Provide the transaction ID,
assigned by the State or
Territory
Required n/a String 25
Transaction Type Transaction type (payment or
Transfer to State under Section
603(c)(4))
Required |- Payment;
|- Transfer to
State under
Section
603(c)(4)
Pick List n/a
Transaction
Description
Transaction description of the
transaction (e.g., initial payment
under First Tranche,
subsequent distribution under
First Tranche)
Required n/a String 25
Transaction
Amount
Transaction amount. Use
negative numbers for downward
revisions. For transfers to the
state under Section 603(c)(4),
include the amount of the
intended transfer.

Required n/a Dollar
Numeric
12,2
Date Provide the date of the
transaction. For transfers to the
state under Section 603(c)(4),
provide the date that Treasury's
transfer form agreement was
signed by both parties, not the
expected date of Treasury
approval.

Required n/a Date
Numeric
(MM/DD/YYY
Y)
10 7.5.1.d
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NEUs and Non-UGLG Distribution Templates User Guide 31
k) Non-UGLG Distribution
The downloadable template contains all information required to create the upload files to include required/optional fields, help text, and permissible data types. The following table highlights the data elements required for Non-UGLG Distribution.

Defined Term Definition Required List Values Data Type Max Length
Non-UGLG County
Name
Non-UGLG County Name Required n/a String 150
Jurisdiction Name Jurisdiction Recipient Name Required n/a String 150 Population of
Jurisdiction
Population of Jurisdiction Required n/a Number 12
Allocation amount Provide the amount of funds
allocated to the jurisdiction
Required n/a Number 12
Jurisdiction Number Include the Jurisdiction
Recipient Number assigned by
the State to the Jurisdiction
(e.g., AZ0013)
Required n/a String 50
Jurisdiction DUNS
number
Include the Jurisdiction unique
9 digit DUNS number
Optional n/a String 9
Taxpayer
Identification
Number (TIN)
Taxpayer Identification Number
(TIN)
Optional n/a text 82
Jurisdiction
Address 1
Jurisdiction Address 1 Required n/a String 150
Jurisdiction
Address 2
Jurisdiction Address 2 Optional n/a String 150
Jurisdiction
Address 3
Jurisdiction Address 3 Optional n/a String 150
Jurisdiction City Jurisdiction City Required n/a String 150 Jurisdiction State United States Postal Service
(USPS) two-letter abbreviation
for the state or territory in which
the NEU organization is
located.

Required n/a State Code 2
Jurisdiction Zip
Code
United States ZIP code (five
digits)
Required n/a Number 5
Jurisdiction Zip +4 United States ZIP code (five
digits) concatenated with the
additional +4 digits associated
with the NEU organization's
address.

Optional n/a Number 5+4
Jurisdiction Email
Address
Include the Jurisdiction primary
email address. If there is no
primary email address, please
provide the point of contact's
email address.

Optional n/a String 150

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Defined Term Definition Required List Values Data Type Max Length
Jurisdiction Point of
Contact Name
Jurisdiction Point of Contact
Name
Optional n/a String 150
Jurisdiction Point of
Contact Phone
Number
Jurisdiction Point of Contact
Phone Number
Optional n/a Number 10
Jurisdiction Point of
Contact Email
Jurisdiction Point of Contact
Email
Optional n/a String 150
Authorized
Representative
Name
Include the Jurisdiction
authorized representative
name. If the primary point of
contact is also the authorized
representative, please provide
the name again.

Optional n/a String 150
Authorized
Representative
Email
Include the Jurisdiction
authorized representative email
address. If the primary point of
contact is also the authorized
representative, please provide
the email again.

Optional n/a String 150
Question: Did the
jurisdiction decline
and transfer
funding to the
state?
Response to Question: Did the
jurisdiction decline and transfer
funding to the state?
Required n/a Yes or No 3
Notes Include any additional notes
required to explain the
Jurisdiction distribution
summary line items, as
applicable
Optional n/a text 500
l) Non-UGLG Transactions
The downloadable template contains all information required to create the upload files to include required/optional fields, help text, and permissible data types. The following table highlights the data elements required for Non-UGLG Transactions.

Defined Term Definition Required List Values Data Type Max Length
Non-UGLG County
Name
Non-UGLG County Name Required n/a String 150
Jurisdiction Name Jurisdiction Recipient Name Required n/a String 150 Jurisdiction
Recipient Number
Include the Jurisdiction
Recipient Number assigned by
the State to the Jurisdiction
(e.g., AZ0013)
Required n/a String 50

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NEUs and Non-UGLG Distribution Templates User Guide 33
Defined Term Definition Required List Values Data Type Max Length
Jurisdiction DUNS
number
Include the Jurisdiction unique
9 digit DUNS number
Required n/a String 9
Transaction ID
(assigned by NonUGLG)
Provide the transaction ID,
assigned by the State
Required n/a String 50
Transaction Type Indicate whether the transaction
was a Payment or Transfer to
State under Section 603(c)(4)
Required |- Payment;
|- Transfer to
State under
Section
603(c)(4)
Pick List n/a
Transaction
Description
Provide a description of the
transaction (Enter “First
Tranche” or “Second Tranche”)
Required “First
Tranche”
or
“Second
Tranche”)
Pick List n/a
Transaction
Amount
Provide the transaction amount.

Use negative numbers for
downward revisions. For
transfers to the state under
Section 603(c)(4), include the
amount intended for transfer to
the state.

Required n/a Number 12,2
Transaction Date Provide the date of the
transaction. For transfers to the
state under Section 603(c)(4),
provide the date that Treasury's
transfer form agreement was
signed by both parties (not the
expected date that Treasury
grants the transfer).

Required n/a date 10

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NEUs and Non-UGLG Distribution Templates User Guide 34
Appendix B – Designating SLFRF Points of Contact by SLFRF Account Administrators This section provides a brief instruction for SLFRF Account Administrators on accessing Treasury’s Portal to provide the names and contact information of officials to be designated as your organization’s points of contact for the SLFRF award(s). The following pages provide stepby-step guidance. See Section II for commonly asked questions/answers on this topic.

Note- the screens noted below may be subject to change.

Section I: Instructions
Step 1
You must be registered in the ID.me system to access Treasury’s Portal. You can refer additional guidance on registering in the ID.me system. If you have questions about registering in ID.me, please email [email protected].

Step 2
Once you are registered in ID.me, click on the link in the email you received requesting the POC designations. If you do not have the email link, please email us via [email protected] and we will provide the link.

Step 3
The link will take you to the Treasury Portal “State, Local, and Tribal Support” landing page as shown below. Once on that page, click on the Go to Your Report button at the bottom left of the screen, as indicated in by the red arrow below.

Step 4
The green Go to Your Report button will take you to the Submissions and Compliance page as shown below. Once on that page, click on the three-line navigation icon at the top left of the screen. The red arrow below is pointing to the icon.

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NEUs and Non-UGLG Distribution Templates User Guide 35
Step 5
After clicking on the three-line navigation icon, a drop-down menu will appear on the top left of the screen as shown below. Please click on “Account” from the drop-down menu, as shown by the red arrow below.

Step 6
Next you will see the screen below. Under the “Account Name” heading, click on the name of your organization (as shown by the red arrow).

Step 7
By clicking the name of your organization, Treasury’s portal will open to allow you to provide names and contact information on your organization’s designees for the SLFRF reports, as shown below. The landing page provides basic information about the designations. Please see section B for more details about the roles and responsibilities for each or the three roles.

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Packet Pg. 345 Attachment: Attachment D - Recipient-Reporting-User-Guide-NEU_Non-UGLG (2746 : American Rescue Plan Act) Coronavirus State and Local Fiscal Recovery Fund:

NEUs and Non-UGLG Distribution Templates User Guide 36
Step 8
When you are ready to key in the names of the designated individuals , click on the “Certification” button on the left navigation bar, as noted in the red arrow as shown below.

Step 9
On the “Official Certification of Authorization” screen, you should type in your name to indicate you are authorized to submit the names of the designated individuals. Once you enter your name, click on the Submit button.

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Step 10
Next, click on the “Designation Form” button on the left navigation bar, as noted by the red arrow shown below.

Step 11
Clicking on the “Designation Form” button will open the “Designation of Account Administrator, Point of Contact for Reporting, and Authorized Representative for Reporting” screen shown below.

You can use the Designation Form to enter the names and contact information for each of the three designations for each of you SLFRF allocations.

The roles for the SLFRF allocations are displayed as follows:
• SLFRF – Account Administrator
• SLFRF – Point of Contact for Reporting
• SLFRF – Authorized Representative for Reporting
The Designation Form screen shows nine data fields for entering key information about the individual being designated. These include:

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NEUs and Non-UGLG Distribution Templates User Guide 38
• Salutation (optional)
• First Name
• Middle Name (optional)
• Last Name
• Suffix (optional)
• Title
• Phone
• Email
• Name of Entity/Organization (Recipient entity)
Note: The screen will display a list at the bottom of the screen with the names and contact information of individuals (if any) who have previously been designated for any of the three roles. This list will be important in maintaining and updating your organization’s designees in the future.
a. Designation of the Account Administrator
Remember, we have temporarily authorized you as the SLFRF – Account Administrator. There is no need to re-enter your name and contact information if you plan to continue in that role. If you need to designate someone else as the SLFRF Account Administrator, • Find your name at the bottom of the screen.
• Hit the blue Edit button located to right of your name. • Enter the name and contact information of the new SLFRF Account Administrator. • Hit the blue Complete button.
b. Designation of Point of Contact for Reporting and Authorized Representative for Reporting
• Enter the next designee’s name and contact information. • After entering their name and required contact information, select the Program Role(s) for which he/she is being designated.
• Once the role is selected, click on the small arrow to the right of the role, which will move the role to the box on the right.
• Click on the Complete button at the bottom of the screen. • Follow the same process for each of the remaining designees. • When you have entered all three designations, please press the Complete button. • As a final step, go to the icon on the upper right of the screen as shown below to exit the system.

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NEUs and Non-UGLG Distribution Templates User Guide 39
Section II: Questions and Answers
Who is authorized to designate the Account Administrator, the Point of Contact for Reporting, and the Authorized Representative for Reporting for my organization’s SLFRF’s award?
Treasury requests that each SLFRF should follow its own decision-making procedures in making the three designations for each award.

What is the deadline for making the designation?
Treasury requests that use Treasury’s portal to make the three designations as soon as possible to enable your organization to submit its Interim Report and Recovery Plan Performance Report (if applicable).

What are the responsibilities for each of the three designated roles? The required roles are as follows:
• Account Administrator for the SLFRF award has the administrative role of maintaining the names and contact information of the designated individuals for SLFRF reporting.

The Account Administrator is also responsible for working within your organization to determine its designees for the roles of Point of Contact for Reporting and Authorized Representative for Reporting and providing their names and contact information via Treasury’s Portal. The Account Administrator can also view and submit reports. Finally, the Account Administrator is responsible for making any changes or updates as needed over the award period. We recommend that the Account Administrator identify an individual to serve in his/her place in the event of staff changes.

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NEUs and Non-UGLG Distribution Templates User Guide 40
• Point of Contact for Reporting is the primary contact for receiving official Treasury notifications about reporting on the SLFRF award, including alerts about upcoming reporting, requirements, and deadlines. The Point of Contact for Reporting is responsible for completing the SLFRF reports, but cannot certify and submit these reports.
• Authorized Representative for Reporting is responsible for certifying and submitting official reports on behalf of the SLFRF award recipient. Treasury will accept reports or other official communications only when submitted by the Authorized Representative for Reporting. The Authorized Representative for Reporting is also responsible for communications with Treasury on such matters as extension requests and amendments of previously submitted reports. The official reports may include special reports, monthly reports, quarterly reports, interim reports, and final reports.

May my organization designate one individual for multiple roles? Yes, an individual may be designated for multiple roles. For example, the individual designated as the Account Administrator can also be designated as the Authorized Representative for Reporting or Point of Contact for Reporting. It is also acceptable for an organization to designate one individual for all three roles however it should also adhere to any applicable rules on personnel checks and balances.

May my organization designate more than one individual per role? Yes, you may designate more than one person per each role but are encouraged to limit the number of users assigned to each role.

May my organization change the designations from time to time? Yes, an organization may make changes and updates to the list of designation individuals whenever needed.

Must each of the designated individuals register for using Treasury’s Portal? Yes, everyone designated for any of the roles must register with ID.me before they will be given access to Treasury’s portal. Please contact us at the email address below for more information and guidance on registering with ID.me.

Additional Questions or Additional Assistance?
If you have additional questions about accessing or using Treasury’s portal to provide the designees’ names and contact information, please send us an email via [email protected].

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:

NEUs and Non-UGLG Distribution Templates User Guide 41

7.5.1.d
Packet Pg. 351 Attachment: Attachment D - Recipient-Reporting-User-Guide-NEU_Non-UGLG (2746 : American Rescue Plan Act)

RECOMMENDED PROJECTS/STUDIES FOR ARPA FUNDING
The expenditure of American Rescue Plan Act funds should only be assigned to one time uses as this is not a repeating source of funds. To this end, Staff has prepared a priority list of projects and studies for City Council Consideration. The costs of the first 14 of 15 projects/studies listed below totals $7,845,000, which exceeds the total ARPA funds available. However, as these costs are estimates, there may be sufficient funds to fully implement the first 14 projects/studies as listed. The second set of projects listed below, numbered 16 through 22, are also viewed as priorities, however, all of these projects are eligible for Quimby Act funding, if such funding becomes available.

A summary explanation of each of the first 14 projects is provided below the table. 1 Americans with Disability Act (ADA) Transition Plan $ 100,000.00 2 Update the Laguna Hills Municipal Code $ 200,000.00
3 OCSD Body Worn Cameras and In Car Video $ 275,000.00
4 Traffic Signal Video Detection Camera replacements $ 600,000.00 5 Traffic Signal Reflective Backplates $ 300,000.00
6 Arterial Highway Pavement Rehabilitation $ 3,000,000.00 7 Traffic Signal Observation Camera replacements $ 70,000.00 8 Upgrade Audio-Visual - Council Chamber & Community Ctr $ 250,000.00 9 Housing Element Rezoning and Environmental Document $ 300,000.00 10 La Paz Sidewalk Widening at Valencia Elementary School $ 1,500,000.00 11 Civic Center Facility Condition Assessment update $ 25,000.00 12 Community Center Facility Condition Assessment Update $ 25,000.00 13 Traffic Signal Illuminated Street Name Sign replacements $ 450,000.00 14 Laguna Hills Drive Median Island Landscaping $ 750,000.00 SUBTOTAL 1 = $7,845,000.00 [Exceeds ARPA]
15 Storm Drain from Civic Center to Aliso Creek $ 900,000.00 SUBTOTAL 2 = $8,745,000.00
The following projects are "Quimby eligible"
16 Replace all Parks rubberized playground surfacing $ 1,250,000.00 17 Air Conditioning for the Community Center Gymnasium $ 700,000.00 18 Electronic Bulletin Board at the Community Center $ 100,000.00 19 Additional Security Cameras at Community Center $ 90,000.00 20 Additional Lighting at Community Center $ 80,000.00
21 Convert Community Center Sports Field Lighting to LED $ 200,000.00 22 Holiday Pavilion Development at the Community Center $ 400,000.00 TOTAL $ 11,565,000.00

7.5.1.e
Packet Pg. 352 Attachment: Attachment E - Proposed Projects for ARPA Funding (2746 : American Rescue Plan Act)

1. Americans with Disability Act (ADA) Transition Plan – This study is necessary for the City to remain eligible to receive Federal Funding, particularly funding related to transportation (roads) purposes. The City’s current Transition Plan is out of date.

It is noted that both the Civic Center and Community Center have ADA compliance plans that have been fully implemented. However, a Transition Plan additionally includes the public street system, parks and other public facilities to make sure plans are in place for future actions needed to meet the requirements of the Americans with Disability Act.

2. Update the Laguna Hills Municipal Code – The LHMC is in needed of a full update as many sections of the Code are out of date with current laws or court established precedents. While the City’s work remains in compliance with the current laws and established precedents, the Code, originally established in 1991, needs to be updated to be fully functional.

3. OCSD Body Worn Cameras and In Car Video – Several years ago, the Orange County Sheriffs Department made the determination they would work towards the deployment of Body Worn Cameras along with in-car cameras to provide the public with transparency in police enforcement. In the upcoming contract with the OCSD, all contract cities will be required to contribute to the one-time rollout costs for the Body Worn Cameras and the upgrade to the in-car camera systems.

4. Traffic Signal Video Detection Camera replacements – Traffic signals operate most efficiently when the computer operating the traffic signal has awareness of the vehicle and pedestrian demands on all approaches to the intersection. Over ten years ago, through a variety of traffic signal improvement projects, video detection cameras have been deployed for this purpose. These cameras are becoming antiquated and no longer supported by the vendor. Accordingly, it is time to replace existing cameras with current models to maintain and improve their effectiveness at all of the City’s traffic signal locations with vintage cameras.

5. Traffic Signal Reflective Backplates – The Federal Highway Administration has issued a report that identified at least a 15% reduction in signalized intersection crashes when yellow reflective stripes are added to traffic signal backplates. FHWA states, “this treatment is recognized as a human factors enhancement of traffic signal visibility, conspicuity, and orientation for both older and color vision deficient drivers. This countermeasure is also advantageous during periods of power outages when the signals would otherwise be dark, providing a visible cue for motorists to stop at the intersection ahead.” Given the age of most of our traffic signal equipment, the full backplate, and in some instances the signal head, would need to be replaced for all heads at all traffic signal locations. This safety improvement is recommended. The FHWA report can be found here: Intersection Proven Safety Countermeasure: Technical Summary: Backplates with

7.5.1.e
Packet Pg. 353 Attachment: Attachment E - Proposed Projects for ARPA Funding (2746 : American Rescue Plan Act) Retroreflective Borders, Published Date : 2015-01-01, Report Number : FHWA-SA15-007, URL : https://rosap.ntl.bts.gov/view/dot/42807

6. Arterial Highway Pavement Rehabilitation - The City’s Pavement Management System rates the condition of the City’s arterial highways on an every two-year basis on a 100-point Pavement Condition Index (PCI) scale. A rating of 86 or better is a pavement in very good condition and a rating of 59 or less is a pavement in poor to very poor condition. While the City spends approximately $2.5million every two years for pavement rehabilitation, the repairs and restoration of the arterial roadways is falling behind the need. As shown in the graph below, the arterial highway pavement condition is falling:

Under current spending plans, the PCI for arterial highways is projected to be 63 by Fiscal Year 2026-2027, just above the poor condition. An additional expenditure of $3,000,000 will maintain the arterial highways at a projected PCI of 75, the good range.

7. Traffic Signal Observation Camera replacements – The City maintains 10 traffic observation cameras at selected signalized intersection to provide a technology advantage for the limited staff availability. These observation cameras allow Staff to remotely observe traffic flow and conditions and adjust traffic signal timing. The existing cameras are over ten years old, are analog based, and are no longer a technology that is supported. Several cameras are no longer functional.

8. Upgrade Audio-Visual at Council Chamber and Community Center – The audiovisual equipment in both the City Council Chambers and in the Community Center Heritage Room are antiquated, being over 10 years old. Broadcast and media technology have greatly improved and these systems need to be upgraded in order to meet current and future needs.

9. Housing Element Rezoning and Environmental Document – The Housing Element Update is near to concluding the phase 1 effort. Subsequent to this effort,

7.5.1.e
Packet Pg. 354 Attachment: Attachment E - Proposed Projects for ARPA Funding (2746 : American Rescue Plan Act) expected in the next fiscal year is the phase 2 effort to rezone specifically identified properties to allow residential zoning along with the requisite environmental document. There may some grant funds available for this effort but this will not be known until the first phase effort is complete.

10. La Paz Sidewalk Widening at Valencia Elementary School – The La Paz Sidewalk Widening along the frontage of Valencia Elementary School has been an unfulfilled Capital Improvement due to lack of funding. The existing heavily used sidewalk is only four feet wide and needsto meet arterial highway standards. A wider sidewalk will aid access to the school and to the OCTA bus stop. In order to construct the sidewalk, the City will need to acquire right of way from the Saddleback Valley Unified School District, build a substantial retaining wall and then the sidewalk.

This project has been the subject of previous grant applications that have not reached a high enough score, relative to other projects around the State, to be funded.

11.Civic Center Facility Condition Assessment update – The existing Civic Center Facility Condition Assessment is over ten years old and needs an update to allow the City to properly budget for future maintenance and capital improvement funding needs of this City asset.

12.Community Center Facility Condition Assessment Update - The existing Community Center Facility Condition Assessment is over ten years old and needs an update to allow the City to properly budget for future maintenance and capital improvement funding needs of this City asset.

13.Traffic Signal Illuminated Street Name Sign replacements – The City’s 49 traffic signals include illuminated street name signs to provide guidance to motorists. The street name signs at 47 of the traffic signals are an antiquated design based upon fluorescent lighting and many of the sign panels are deteriorated to a state of poor condition. New technology illuminated street name signs are available in an LED based format. Complete replacement of these signs would improve the readability of the street names and, as the same time, allow the City to brand our location by adding “CITY OF LAGUNA HILLS” below each street name on these signs.

14. Laguna Hills Drive Median Island Landscaping – This median island curbing was constructed about ten years ago as a part of the pavement rehabilitation of this street with the then federal funding provided for one-time projects. Funding has not yet been available to landscape this island to the City’s standards.

7.5.1.e
Packet Pg. 355 Attachment: Attachment E - Proposed Projects for ARPA Funding (2746 : American Rescue Plan Act)

CITY OF LAGUNA HILLS
8-YEAR PLAN UPDATED

FINANCIAL POLICY RATIOS & RESERVES
Forecast Forecast Forecast Forecast Forecast Forecast Forecast Forecast YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5 YEAR 6 YEAR 7 YEAR 8 FY 2021/22 FY 2022/23 FY 2023/24 FY 2024/25 FY 2025/26 FY 2026/27 FY 2027/28 FY 2028/29 1 BEGINNING TOTAL FUND BALANCE $14,530,351 $12,135,408 $12,956,905 $11,025,415 $11,824,067 $10,521,604 $12,044,760 $10,876,987 2 General Fund Revenues 22,718,305 23,498,992 24,106,618 24,790,782 25,499,289 26,191,353 26,902,705 27,633,887 3 Special Revenues 6,103,705 5,440,232 2,071,713 1,906,737 1,798,579 2,048,412 1,880,577 1,713,529 4 Other Funding Sources 826,042 843,590 862,689 878,826 901,968 921,527 941,673 962,423 5 TOTAL REVENUES $29,648,052 $29,782,814 $27,041,020 $27,576,345 $28,199,836 $29,161,293 $29,724,955 $30,309,839 6 Operating Expenditures 22,044,256 23,404,916 23,991,798 24,641,622 25,309,208 25,995,046 26,699,637 27,423,500 7 Capital Expenditures 7,772,689 4,757,689 4,500,000 1,650,000 4,100,000 1,550,000 4,100,000 1,600,000 8 Other Funding Uses 376,130 357,291 43,091 43,091 43,091 43,091 43,091 43,091 9 CalPERS UAL Paydown/Section 115 Trust 0 0 0 0 0 0 0 0 10 Use of Insurance Reserve Funds 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 11 Debt Service 1,799,921 391,421 387,621 392,979 0 0 0 0 12 TOTAL EXPENDITURES $32,042,996 $28,961,317 $28,972,510 $26,777,692 $29,502,299 $27,638,137 $30,892,728 $29,116,591 13 Change in Total Fund Balance (2,394,944) 821,497 (1,931,490) 798,653 (1,302,464) 1,523,156 (1,167,773) 1,193,248 14 Ending Total Fund Balance $12,135,408 $12,956,905 $11,025,415 $11,824,067 $10,521,604 $12,044,760 $10,876,987 $12,070,235 15 Less the Following Fund Balances:
16 Restricted for Debt Service (391,421) (387,621) (392,979) - - - - - 17 Restricted Special Revenue Funds (2,143,954) (3,505,052) (2,308,674) (3,822,320) (2,402,808) (4,008,129) (2,670,615) (4,341,053) 18 Unrestricted General Fund Balance $9,600,033 $9,064,232 $8,323,762 $8,001,748 $8,118,796 $8,036,631 $8,206,372 $7,729,182 Less the Following Assigned Fund Balances:
19 Capital Maintenance Reserve Funds (655,659) (850,659) (775,659) (1,050,659) (980,299) (1,255,299) (856,587) (852,500) 20 Insurance Reserve Funds (200,000) (200,000) (200,000) (200,000) (200,000) (200,000) (200,000) (200,000) 21 Unassigned General Fund Balance 8,744,374 8,013,573 7,348,103 6,751,089 6,938,497 6,581,332 7,149,785 6,676,682 Ratio Analysis
22 Operating Ratio (>1.1) (before debt service) 1.07 1.04 1.04 1.04 1.04 1.04 1.04 1.04 23 Operating Surplus before Debt Service 1,500,091 937,666 977,509 1,027,986 1,092,048 1,117,835 1,144,741 1,172,810 24 Operating Ratio (>1.1) (after debt service) 0.99 1.02 1.02 1.03 1.04 1.04 1.04 1.04 25 Operating Surplus after Debt Service (299,830) 546,245 589,888 635,007 1,092,048 1,117,835 1,144,741 1,172,810 26 Debt Service Ratio (<12%) 8% 2% 2% 2% 0% 0% 0% 0%
27 Total Fund Balance Ratio 55% 55% 46% 48% 42% 46% 41% 44% 28 Unrestricted General Fund Balance Ratio (>35%) 44% 39% 35% 32% 32% 31% 31% 28% 29 Unassigned General Fund Balance Ratio (>25%) 40% 34% 31% 27% 27% 25% 27% 24%

7.5.1.f
Packet Pg. 356 Attachment: Attachment F - Eight-Year Plan Update (2746 : American Rescue Plan Act)

CITY OF LAGUNA HILLS
8-YEAR PLAN ADOPTED 2021-2023 BIENNIAL BUDGET (with ARPA & without VALH)

FINANCIAL POLICY RATIOS & RESERVES
Forecast Forecast Forecast Forecast Forecast Forecast Forecast Forecast YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5 YEAR 6 YEAR 7 YEAR 8 FY 2021/22 FY 2022/23 FY 2023/24 FY 2024/25 FY 2025/26 FY 2026/27 FY 2027/28 FY 2028/29 1 BEGINNING TOTAL FUND BALANCE $13,118,078 $13,892,564 $17,953,143 $15,515,705 $15,795,762 $13,961,737 $13,940,043 $11,213,799 2 General Fund Revenues 22,236,737 23,005,385 23,600,671 24,272,186 24,967,728 25,646,503 26,344,234 27,061,454 3 Special Revenues 5,240,615 5,440,232 2,071,713 1,906,737 1,798,579 2,048,412 1,880,577 1,713,529 4 Other Funding Sources 1,689,132 843,590 862,689 878,826 901,968 921,527 941,673 962,423 5 TOTAL REVENUES $29,166,484 $29,289,207 $26,535,072 $27,057,749 $27,668,275 $28,616,443 $29,166,484 $29,737,406 6 Operating Expenditures 22,125,948 23,404,916 23,991,798 24,641,622 25,309,208 25,995,046 26,699,637 27,423,500 7 Capital Expenditures 4,040,000 1,025,000 4,500,000 1,650,000 4,100,000 1,550,000 4,100,000 1,600,000 8 Other Funding Uses 376,130 357,291 43,091 43,091 43,091 43,091 43,091 43,091 9 CalPERS UAL Paydown/Section 115 Trust 0 0 0 0 0 1,000,000 1,000,000 1,000,000 10 Use of Insurance Reserve Funds 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 11 Debt Service 1,799,921 391,421 387,621 392,979 0 0 0 0 12 TOTAL EXPENDITURES $28,391,999 $25,228,628 $28,972,510 $26,777,692 $29,502,299 $28,638,137 $31,892,728 $30,116,591 13 Change in Total Fund Balance 774,485 4,060,579 (2,437,437) 280,057 (1,834,025) (21,694) (2,726,244) (379,185) 14 Ending Total Fund Balance $13,892,564 $17,953,143 $15,515,705 $15,795,762 $13,961,737 $13,940,043 $11,213,799 $10,834,614 15 Less the Following Fund Balances:
16 Restricted for Debt Service (391,421) (387,621) (392,979) - - - - - 17 Restricted Special Revenue Funds (3,015,318) (7,269,934) (5,603,895) (6,851,091) (5,431,579) (7,036,901) (5,699,387) (7,369,824) 18 Unrestricted General Fund Balance $10,485,825 $10,295,588 $9,518,831 $8,944,671 $8,530,158 $6,903,143 $5,514,413 $3,464,790 Less the Following Assigned Fund Balances:
19 Capital Maintenance Reserve Funds (655,659) (850,659) (775,659) (1,050,659) (980,299) (1,255,299) (856,587) (852,500) 20 Insurance Reserve Funds (200,000) (200,000) (200,000) (200,000) (200,000) (200,000) (200,000) (200,000) 21 Unassigned General Fund Balance 9,630,166 9,244,929 8,543,172 7,694,011 7,349,859 5,447,843 4,457,825 2,412,290 Ratio Analysis
22 Operating Ratio (>1.1) (before debt service) 1.08 1.02 1.02 1.02 1.02 1.02 1.02 1.02 23 Operating Surplus before Debt Service 1,799,921 444,059 471,562 509,390 560,487 572,985 586,270 600,377 24 Operating Ratio (>1.1) (after debt service) 1.00 1.00 1.00 1.00 1.02 1.02 1.02 1.02 25 Operating Surplus after Debt Service 0 52,638 83,941 116,411 560,487 572,985 586,270 600,377 26 Debt Service Ratio (<12%) 8% 2% 2% 2% 0% 0% 0% 0%
27 Total Fund Balance Ratio 63% 77% 65% 64% 55% 54% 42% 40% 28 Unrestricted General Fund Balance Ratio (>35%) 47% 44% 40% 36% 34% 27% 21% 13% 29 Unassigned General Fund Balance Ratio (>25%) 44% 39% 36% 31% 29% 21% 17% 9%

7.5.1.g
Packet Pg. 357 Attachment: Attachment G - 2021-2023 Biennial Budget 8-Year Plan (2746 : American Rescue Plan Act)

CITY OF LAGUNA HILLS
8-YEAR PLAN Adopted 2021-2023 Biennial Budget (without ARPA & without VALH)

FINANCIAL POLICY RATIOS & RESERVES
Forecast Forecast Forecast Forecast Forecast Forecast Forecast Forecast YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5 YEAR 6 YEAR 7 YEAR 8 FY 2021/22 FY 2022/23 FY 2023/24 FY 2024/25 FY 2025/26 FY 2026/27 FY 2027/28 FY 2028/29 1 BEGINNING TOTAL FUND BALANCE $13,118,078 $10,159,875 $10,487,765 $8,050,327 $8,330,384 $6,496,359 $6,474,665 $3,748,421 2 General Fund Revenues 22,236,737 23,005,385 23,600,671 24,272,186 24,967,728 25,646,503 26,344,234 27,061,454 3 Special Revenues 2,371,016 1,707,543 2,071,713 1,906,737 1,798,579 2,048,412 1,880,577 1,713,529 4 Other Funding Sources 826,042 843,590 862,689 878,826 901,968 921,527 941,673 962,423 5 TOTAL REVENUES $25,433,795 $25,556,518 $26,535,072 $27,057,749 $27,668,275 $28,616,443 $29,166,484 $29,737,406 6 Operating Expenditures 22,125,948 23,404,916 23,991,798 24,641,622 25,309,208 25,995,046 26,699,637 27,423,500 7 Capital Expenditures 4,040,000 1,025,000 4,500,000 1,650,000 4,100,000 1,550,000 4,100,000 1,600,000 8 Other Funding Uses 376,130 357,291 43,091 43,091 43,091 43,091 43,091 43,091 9 CalPERS UAL Paydown/Section 115 Trust 0 0 0 0 0 1,000,000 1,000,000 1,000,000 10 Use of Insurance Reserve Funds 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 11 Debt Service 1,799,921 391,421 387,621 392,979 0 0 0 0 12 TOTAL EXPENDITURES $28,391,999 $25,228,628 $28,972,510 $26,777,692 $29,502,299 $28,638,137 $31,892,728 $30,116,591 13 Change in Total Fund Balance (2,958,204) 327,890 (2,437,437) 280,057 (1,834,025) (21,694) (2,726,244) (379,185) 14 Ending Total Fund Balance $10,159,875 $10,487,765 $8,050,327 $8,330,384 $6,496,359 $6,474,665 $3,748,421 $3,369,236 15 Less the Following Fund Balances:
16 Restricted for Debt Service (391,421) (387,621) (392,979) - - - - - 17 Restricted Special Revenue Funds (2,041,803) (3,402,901) (2,206,523) (3,720,169) (2,300,657) (3,905,978) (2,568,464) (4,238,902) 18 Unrestricted General Fund Balance $7,726,651 $6,697,242 $5,450,825 $4,610,215 $4,195,702 $2,568,687 $1,179,957 ($869,666) Less the Following Assigned Fund Balances:
19 Capital Maintenance Reserve Funds (655,659) (850,659) (775,659) (1,050,659) (980,299) (1,255,299) (856,587) (852,500) 20 Insurance Reserve Funds (200,000) (200,000) (200,000) (200,000) (200,000) (200,000) (200,000) (200,000) 21 Unassigned General Fund Balance 6,870,992 5,646,583 4,475,166 3,359,556 3,015,403 1,113,388 123,370 (1,922,166) Ratio Analysis
22 Operating Ratio (>1.1) (before debt service) 1.04 1.02 1.02 1.02 1.02 1.02 1.02 1.02 23 Operating Surplus before Debt Service 936,831 444,059 471,562 509,390 560,487 572,985 586,270 600,377 24 Operating Ratio (>1.1) (after debt service) 0.96 1.00 1.00 1.00 1.02 1.02 1.02 1.02 25 Operating Surplus after Debt Service (863,090) 52,638 83,941 116,411 560,487 572,985 586,270 600,377 26 Debt Service Ratio (<12%) 8% 2% 2% 2% 0% 0% 0% 0%
27 Total Fund Balance Ratio 46% 45% 34% 34% 26% 25% 14% 12% 28 Unrestricted General Fund Balance Ratio (>35%) 35% 29% 23% 19% 17% 10% 4% -3% 29 Unassigned General Fund Balance Ratio (>25%) 31% 24% 19% 14% 12% 4% 0% -7%

7.5.1.g
Packet Pg. 358 Attachment: Attachment G - 2021-2023 Biennial Budget 8-Year Plan (2746 : American Rescue Plan Act)

Laguna Hills City CouncilFebruary 22, 2022

Laguna Hills City Council
February 22, 2022