Pembroke Park commission authorizes outside ARPA compliance review, votes to allow manager to hire firm up to $25,000

The Pembroke Park Town Commission voted unanimously May 6 to let the town manager hire an outside accounting or auditing firm, at a cost not to exceed $25,000, to review the town’s American Rescue Plan Act (ARPA) obligations and compliance.

The vote followed a finance department presentation and a staff review of ARPA project documentation. Finance Director James Averman told commissioners his team compiled roughly 500 pages of grant records and reported that the town had expended about $2.1 million, left a remaining balance the presentation listed as $735,180, and showed active commitments in the backup materials. Commissioner Muhamd said the commission should “get ahead” of any federal review after she raised concerns the town’s approach to recognizing obligations could trigger a Treasury clawback of about $3.38 million if deadlines and obligation rules were not satisfied.

Why it matters: ARPA compliance is governed by Treasury guidance and can require corrective action or return of funds if obligations were not completed according to federal rules. Commissioners said they wanted an independent compliance assessment rather than waiting for a Treasury audit.

Commissioners discussed who should conduct the review and whether the town’s existing external auditor could advise. Vice Mayor Kashm and others suggested asking the current auditor (James Moore Associates) for counsel, but Commissioner Muhamd and others recommended hiring a specialist to do a focused compliance review and to help negotiate with federal officials if necessary. The motion authorized the manager to procure a firm under the town’s procurement code for a scope limited to ARPA compliance work and not to exceed $25,000. A roll call vote recorded five “yes” votes (Commissioner Muhamd; Mayor Jacobs; Acting Clerk Commissioner Moriceet; Vice Mayor Kashm; Clerk Commissioner Hodkins). The motion carried.

What the finance director said: James Averman said his team had found no evidence of deliberate irregularities in the purchase orders and invoice trail but acknowledged some projects had not progressed and that the timing of obligations relative to Treasury’s deadlines was not clear. “We collected every single purchase order [and] invoice ... Everything was done by the book,” Averman said, while also urging caution about deadlines and the need to verify compliance.

Next steps: Staff will use the authorization to solicit an ARPA-focused compliance review, returning to the commission with a recommended contract and scope. Commissioners asked that any chosen firm also be prepared to help the town communicate with Treasury or other federal contacts if the review identifies issues.