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Warren City Council reallocates $5 million in ARPA funds to existing contracts to reduce federal risk
Summary
Warren City Council unanimously approved a resolution Dec. 19 to reallocate $5 million in ARPA funds from MOUs to existing vendor contracts and purchase orders, a move staff and Guidehouse said would lower the city’s exposure to potential federal clawbacks under GAO guidance.
Warren City Council unanimously approved a resolution on Dec. 19 to reallocate $5,000,000 in American Rescue Plan Act (ARPA) funds from previously executed memoranda of understanding to existing contracts and purchase orders, city staff said.
City Administrator Mister Fox said the change reflects consultant advice from Guidehouse that the city’s earlier MOUs may not meet the federal standard for "committed" obligations and that moving funds to signed contracts will better protect them. "That is correct. It's secure," Fox said when asked whether the $5 million is protected.
Why it matters: Guidehouse told…
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