ARPA SLFRF funding in 2024 and beyond

Since recipients must obligate all funds by Dec. 31, 2024, there’s no time to waste. However, planning appropriately from the beginning can help yield the most positive impact from funding. Organizations should make time for any needed strategic planning, program design and implementation, and business process reengineering as soon as possible.

SLFRF might provide state and local governments with more federal funding than they have ever had at one time. Without strategic foresight, it can be tempting to throw money at every issue that’s been historically underfunded and see what happens.

A more productive route is to intentionally fund programs that advance the goals and objectives set forth by an established strategic plan. If organizations don’t have a strategic plan, it is a good idea to develop one. Alternatively, if a comprehensive strategy doesn’t make sense at this time, organizations can establish an ARPA SLFRF-specific plan to help make the most of future funds and determine what obligations they’ll execute by the end of 2024.

Some activities need attention throughout the entire funding process. Following are details on Treasury reporting, program closeout, and program assessment.

Treasury reporting

State and local governments are required to report to Treasury on their ARPA SLFRF spending. The reporting frequency depends on the government’s size. For example, states provide a highly detailed financial and programmatic data report quarterly and a higher level report for non-entitlement units annually.

Reporting can be tedious, complex, and require significant employee time if the right practices and technology are not in place – especially if an organization is required to report every quarter.

Program closeout

SLFRF-funded projects must be formally closed at the conclusion of the project life cycle. Program closeout includes:

• Expenditure of all SLFRF funds for agency projects
• Completion of financial and programmatic reporting for all projects
• Collection of all project documentation and data for retention

Generally, closeout procedures allow agencies and compliance review teams to:

• Complete final financial and programmatic data reviews
• Reconcile the Treasury submission portal with known information
• Gather and maintain supporting documentation
• Review 2 CRF 200 for compliance and establish continuing compliance procedures

Treasury likely will issue closeout guidance toward the end of the SLFRF spending window. However, as some subrecipients will wrap up their spending before Dec. 31, 2026, governments need to establish closeout processes and procedures in advance.

Program assessment

As ARPA SLFRF spending winds down in 2026, governments need to review which programs (if any) should stay and identify how they are going to fund these programs moving forward. Program assessments can help leaders understand which programs are working based on performance against recognized standards and best practices, benchmarks from comparable organizations, and an evaluation of outcomes against goals and objectives.

ARPA remains an active program and funding stream for state and local governments. From initial planning to Treasury reporting, subrecipient monitoring, program closeout, and everything in between, the Crowe public sector consulting team can help your organization through the complex process of getting and using needed funds for your community.