Newton County obligates remaining ARPA funds to payroll to avoid returning unspent money

On Sept. 26, 2024, the Newton County Commissioners Court voted to obligate the county’s remaining American Rescue Plan Act (ARPA) balance to payroll so the funds would be obligated or expended by Dec. 31, 2024 and not subject to return.

Mark, of the county auditor’s office, told the court that a review of previously approved ARPA requests showed some allocations were unspent or ineligible for reimbursement. He said the county had transferred $121,000 of a $200,000 solid-waste allocation and that, depending on whether the remaining $79,000 is transferred to solid waste, the available ARPA balance would be about $1,168,169.61. He recommended obligating whatever remains to payroll so the county could document eligible expenditures before the December deadline.

Commissioner Benson moved to obligate all remaining ARPA funds to payroll; Commissioner White seconded. The motion passed with all members voting in favor, as recorded in the minutes.

Why it matters: County officials said obligating ARPA funds to payroll preserves eligibility and frees general-fund dollars for other uses. The court emphasized the need to maintain documentation showing ARPA dollars were spent on permissible payroll expenses so those amounts are not required to be returned to state or federal authorities.

Next steps: Staff and the auditor’s office will document payroll expenditures and finalize obligation paperwork before Dec. 31, 2024. The auditor’s office had earlier requested supporting invoices and sampling documentation as part of the audit/testing process.