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 MAS@nclm.org 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 through the needed steps for staying in compliance with the U.S. Treasury. Out of that mandate, the League has assembled a team of experts to support towns with what they need to successfully invest these funds in their communities. These experts have spent the months since working with towns by providing financial services through software conversion and one-on-one accounting training and mentorship, ARP compliance guidance, and other service lines that are designed to support towns through assistance and resources.
As a result of the initial investment from the NCGA, the League has put together a robust offering of training and resources that are set to extend the reach of ARP funds far beyond the amounts originally received by individual municipalities. Today, towns are seeing the results of these services through access to improved software and specialized expertise in a variety of areas.
The Town of Hope Mills, under the direction of town manager Chancer McLaughlin, has taken advantage of the League’s grant writing services. The town is seeking grant funding to meet its fire department’s needs for updated equipment and vehicle repairs or purchases. McLaughlin shared that the program has not only helped them write compelling grant applications but has opened the door to apply for other grants that they would not have known about otherwise.
“Our experience has been nothing short of remarkable simply because this program allows us to go after … funding in a way that we were not aware of,” McLaughlin said. “[It] puts us in a situation where we have a stronger platform to meet the needs of our residents. That is the power of this because we are now being put in a position to better serve the public in a way that does not kill the general fund.”
In Castalia, the town has recently completed a full financial software conversion. Town clerk and finance officer, Tracy Shearin, shared how the conversion has gone beyond simply adopting a better software system, and how the mentorship and training have given her confidence in doing her job well and in having a support system in place for when questions arise.
“I love that they are teaching me why. Not just how, but why. And they are willing to explain it,” Shearin said. “I have had to learn, and I never had instruction before, … so to benefit from the knowledge of people that do understand and that have the capability of helping you understand benefits everybody. I feel confident in what I am doing simply because I have confidence in who is helping me learn it.”
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The League is excited to continue partnering with towns to provide these valuable services and resources. For more details about our Municipal Accounting Services, please visit our website: https://www.nclm.org/member-services/financial-operational-consulting/municipal-accounting-services/
NCLM MAS Service Line Offerings
Software Conversion: Intended for towns that could benefit from a more robust financial software, the League covers the cost of moving financial accounts over to a custom-tailored software suite specifically designed for small-town government.
Accounting Mentorship: For towns that desire financial training and assistance, but are not positioned for a software conversion, the League offers an accounting mentorship program with the goal of improving fiscal health.
Cybersecurity: The League provides cyber assessment and gap analysis, recommendations and quarterly touchpoints for improvement, plus individualized consulting to help protect local governments against cybersecurity threats.
Grant Writing: For towns interested in securing funding but need assistance with grant identification or the application process, the League provides support with project development, application preparation and submission, and general grant management.
Legal Assistance: The League connects towns with qualified legal advice for property acquisition, request for proposal development, policy and internal control development, as well as individualized legal guidance based on the towns’ needs.
Communications: Every town has a story to tell. The League works with towns to develop communication skills, including press release writing and distribution, engaging with elected officials, and learning how to best share the story of the town.
General Compliance Assistance: For towns that have not yet obligated funds, need assistance with choosing eligible projects or desire support with annual reporting and compliance, the League has field representatives across the state who are available to work with towns on the needs specific to their situation.
