The American Rescue Plan Act (ARPA) State and Local Fiscal Recovery Funds (SLFRF) have provided a vital lifeline to cities, towns and villages across the country. As reporting deadlines approach, it is important to prepare upfront to ensure compliance as well as maximize the impact of these funds. Here are some tips and tricks to help you navigate the reporting process with ease.
Key Deadlines
- January 31, 2025: Quarterly reporting deadline
- April 30, 2025: Annual reporting deadline for non-entitlement units (NEUs) and other annual reporters
- December 31, 2026: All ARPA State and Local Fiscal Recovery Funds must be spent
We recommend marking these dates on your calendar and planning backward to allow ample time for preparation and submission.
1. Verify You Can Sign Into Login.gov or ID.me
Before diving into report preparation, confirm that you can access your reporting portal, which will be either Login.gov or ID.me. If you have lost your login credentials or your Authorized Representative/Point of Contact for ARPA has left, ensure you have an account on ID.me or Login.gov and verify your postal code.
- Instructions on how to access ID.me can be found here.
- Instructions on how to access Login.gov can be found here.
You will then be taken to a landing page where you are able to update the roles as needed.
- If you use Login.gov, you will need to provide an account identifier. If you do not know your account identifier (which is a required component), you can email Treasury at COVIDReliefITSupport@treasury.gov and mention “Account Identifier” in the subject line of the email.
- If you use ID.me, an account identifier is not required.
2. Leverage the Standard Allowance Option
If your city has not yet opted for the Standard Allowance under the Revenue Replacement Expenditure Category (EC 6.1), plan to do so by the April reporting deadline. This option simplifies reporting by allowing recipients to claim up to $10 million of their SLFRF allocation for revenue loss, regardless of actual calculations.
For cities with projects currently reported under different expenditure categories:
- Review your projects to determine if they can be reclassified under Revenue Replacement.
- Ensure the transition aligns with Treasury’s guidance to maintain compliance.
- Remember: After claiming revenue loss using the standard allowance or calculated formula, you must follow a two-step process:
- Step One: Report claimed revenue loss: Elect either the $10 million Standard Allowance, up to the award amount, or calculate revenue loss according to the formula provided by Treasury.
- Step Two: Report projects under expenditure category 6. These projects must include:
- Amount of SLFRF funds budgeted, obligated, and expended (when applicable) for that specific project.
- Project description that summarizes the project in sufficient detail to provide an understanding of the major activities that will occur.
- Many entities have claimed revenue loss but have NOT properly explained how the funds have been obligated or spent to Treasury.
3. Track ARPA Expenses with Precision
Maintaining accurate and organized records is critical for streamlined reporting and audit readiness. Encourage your team to:
- Use a dedicated spreadsheet to track ARPA-funded expenses. (A template is available here should you need it).
- Include key details such as expenditure category, amount, project description and dates.
- Regularly update the spreadsheet to avoid last-minute scrambling.
- Keep documentation such as receipts, invoices, contracts and performance reports for two years after your project concludes, in case of audit.
4. Monitor Treasury Guidance and Updates from NLC
The Treasury periodically updates its guidance on SLFRF reporting requirements. Stay informed by:
- Regularly checking the Treasury’s SLFRF website.
- Reviewing Treasury’s FAQ section for in-depth answers.
- Subscribing to relevant newsletters or alerts.
- Subscribing to Treasury’s ARPA newsletter here and NLC’s Federal Advocacy newsletter here.
- Keeping a look out for NLC webinars focused on ARPA reporting beginning in March.
5. Correct Reporting Errors and Adjusting Projects
- If you discover reporting errors, keep note of them and update your report during the next reporting cycle.
- Remember, reports are cumulative and must include all obligations and expenditures from the beginning of the SLFRF period of performance.
- If the projects that you were funding have changed since you initially reported them to Treasury, you can adjust your reports accordingly.
- Additionally, if your city has excess funds that were obligated but not expended, they can be reclassified to another eligible SLFRF program, provided the municipality incurred the obligation for the project before December 31, 2024.
- These changes should be documented and reported to the Treasury in this report.
Preparing for ARPA reporting doesn’t have to be daunting. By taking proactive steps now, you can ensure a smooth and successful submission process. Remember, these funds are a historic investment in your community’s recovery and resilience — and accurate reporting is key to demonstrating their impact.
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