ARP Obligation Deadline Looms Ahead STEPHANIE HUGHES Communications & Multimedia Strategist (ARP) WITH THE ARP GRANT DEADLINE OF DECEMBER 31, 2024, APPROACHING, MUNICIPALITIES MUST OBLIGATE FUNDS THROUGH A GRANT PROJECT ORDINANCE TO AVOID RETURNING THEM. NCLM’S MAS TEAM AIDS TOWNS IN COMPLIANCE, SOFTWARE, FINANCIAL SERVICES, AND OTHER TECHNICAL HELP. Since the passing of the American Rescue Plan (ARP) in 2021, municipalities have been busy working to invest these unprecedented funds in their communities and learning the necessary steps to stay in compliance with how these federal dollars can be spent and how they must be reported. We are nearing the first deadline of the ARP grants on December 31, 2024, by which date all funds must be obligated through the passing of a Grant Project Ordinance (GPO) by the town’s board. Once the obligation deadline has passed, all ARP funds that are not properly obligated under the ARP Regulations will have to be returned to the U.S. Treasury. Funds are considered obligated when towns have entered into a legal commitment, executed contracts, issued purchase orders to vendors, or hired employees. The simplest method to obligate funds is through the option of revenue replacement that goes towards benefits and salaries for town employees. Towns can allocate up to $10 million in revenue replacement. In this situation, once the board adopts the GPO, the funds are considered both obligated and expended. To adopt this GPO, the board must identify the specific prior expenditures they are designating for reimbursement and the dates the original expenditures were made. Under the regulations, governmental expenditures made after March 3, 2021, can be included in your GPO before the deadline of December 31, 2024. To avoid any towns needing to return funds, the League has been working with local government officials to confirm all necessary steps have been taken to properly obligate and expend ARP funds. If your town is unsure whether all necessary steps have been completed, or if you need assistance with passing a GPO, please contact the League at [email protected] to request a meeting with one of our field representatives. NCLM’S ARP TEAM TRANSITIONS TO MAS TEAM As towns across the state are becoming more proficient in obligating, spending, and reporting their use of ARP funds, the League’s American Rescue Plan (ARP) team is transitioning to become the Municipal Accounting Services (MAS) team. We feel this change in name will better reflect the work we are currently doing. The North Carolina General Assembly (NCGA) generously provided funds to the N.C. League of Municipalities out of the General Assembly’s own ARP allotment and tasked the League with providing technical assistance to municipalities as they work continues on page 42 MAS FIELD REPRESENTATIVES: REGIONAL MAP Regina Mathis Western Region [email protected] Charles Hines Central Western Region [email protected] Richard Marvin Central Eastern Region [email protected] Pam Hurdle Eastern Region [email protected] SOUTHERN CITY Quarter 3 2024 40
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