Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Arpa Compliance topic
No spam. Unsubscribe anytime.
Council schedules auditors to review ARPA eligibility as police‑station funding questions remain
Summary
Council asked staff to pursue Treasury clarification and scheduled the town’s external auditor to present a compliance review on ARPA (COVID relief) funds as staff works through which prior obligations can count as revenue‑loss reimbursement; the council also discussed risks of recoupment if rules are not met.
Town staff and council members spent substantial time on Monday reviewing how the town may apply American Rescue Plan Act (ARPA) / State and Local Fiscal Recovery Funds (SLFRF) to local priorities, including whether part of the town’s police‑station project could be funded from those grants.
Staff reported that Treasury rules require that recipients identify and “obligate” eligible projects by Dec. 31 of the reporting year to qualify for ARPA revenue‑loss allocations; in Treasury guidance an obligation is created by a purchase order, signed contract or similar binding instrument. Town staff presented a list of previously identified projects that had been entered into the Treasury reporting system, and told council that some items already have purchase orders or contracts in place and may be documented as eligible obligations. By contrast, the council’s previously discussed police station project currently has a design/engineering agreement in place but lacks a signed construction contract and therefore—under the town’s current compliance review—does not meet the Treasury rule on obligation for construction costs.
Council members and staff voiced concern about the potential for future federal audit activity to recoup funds that Treasury determines were impermissibly obligated or not properly documented. Staff said formal clarification from Treasury would reduce risk; several council members said they did not want the town to use ARPA funds for construction if it could jeopardize the grant program.
To provide the council with direct, auditor‑level analysis, staff arranged for the town’s external audit firm to present its closing audit remarks and to discuss ARPA compliance and any findings. The council set a special session to receive that presentation on June 20 at 5:30 p.m. Staff also said they will request clarification from Treasury on how ARPA revenue‑loss rules apply to the town’s specific list of projects and which prior obligations can be reclassified as eligible.
The council instructed staff to compile the list of previously entered obligations, verify any purchase orders or contracts that meet the Treasury definition of “obligation,” and return with a spreadsheet that indicates which line items can be documented as eligible. Council members stressed that if ARPA funds cannot cover police‑station construction under Treasury rules, the town will pursue other capital financing options for that project.
