ARPA Coronavirus State and Local Fiscal Recovery Funds
The Final Rule for the Coronavirus State and Local Fiscal Recovery Funds (CSLFRF) was released in January 2022 and provided much needed clarification. As you prepare for your upcoming audit and CSLFRF Reporting requirements, keep the following important reminders top of mind:
- How to Account for Unused Funds: If your government did not spend all 2021 CSLFRF receipts in (that year)(in the year 2021), any unspent balance should be recorded as unearned revenue. These receipts will then be recognized as revenue in future years, when matching expenditures occur.
- US Treasury Reporting: The first Project and Expenditure Report deadline for non-entitlement units of local government (NEUs) is April 30, 2022. Reports will need to be completed via the US Treasury portal. On the US Treasury website, a Project and Expenditure reporting guide is available along with portal instructions.
- Single Audit Considerations:
- If your government expended more than $750,000 in federal funds, including CSLFRF funds, a single audit will likely be required. Be aware of any grants received from county or local boards passed through from their allotment of federal funds. It may not always be clear if your organization is receiving federal funds.
- If a single audit is required, your organization will need to have policies and procedures in place that align with federal requirements, of which there are many. Please reach out to your auditor now if you need assistance creating or reviewing your current policies and procedures.
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