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Saginaw ARPA recipient Saginaw Just Transition seeks clarification after Guidehouse flags grant as ‘high risk’
Summary
Saginaw Just Transition (DAPA) said Guidehouse designated its ARPA award as high risk despite earlier guidance; the group asked the city and Guidehouse for a meeting. City staff said allocations are complete and described monitoring procedures including a 10% cap on indirect admin.
Pamela Pugh, speaking for Saginaw Just Transition — a fiscally sponsored project of Movement Strategy Center and a recipient of a $210,000 ARPA award approved by council on Sept. 23, 2024 — asked the council on Aug. 11 for follow-up after she said the group learned it had been designated “high risk” by Guidehouse, the city’s ARPA monitoring contractor. Pugh said her group was initially told in March by Guidehouse that it did not need to file a quarterly report but that, after repeated submissions of requested materials, it was recently informed that the award was being treated as high risk.
Pugh asked the city to schedule a joint meeting with Guidehouse to clarify the basis for the high‑risk designation and to allow continued dialogue; she said Saginaw Just Transition has provided budget details, scope of work, and performance narratives and wants to continue communicating in good faith about program alignment. The project is categorized under ARPA expenditure category 2.2, “Strong, healthy neighborhoods,” which the city said can include children’s environmental health, neighborhood safety features, food and energy projects, and other community health investments.
City staff told council that ARPA allocations have been made and that some recipients have not drawn down allocated funds. The city manager and grants-monitoring staff said subrecipients undergo monthly or quarterly monitoring depending on risk and funding type; monitoring includes sampling of expenses. Staff also said the cap on indirect administrative costs is 10% for ARPA subrecipients. Council members asked for additional briefings; the city manager offered to arrange informational sessions with Guidehouse and the grants team for council members who want more detail.
Council discussion clarified that all ARPA funds have been allocated by council action, though not all allocated funds have been expended by recipients. Council members requested a transparent recap of past ARPA votes and allocations for members who joined since the initial rounds of awards. The manager said staff can assemble reports and additional briefings.
