Frequently Asked Questions for NEUs

Under the Coronavirus Local Fiscal Recovery Fund (FRF) established by the American Rescue Plan Act (ARPA), eligible local governments in Tennessee are to receive over $2.27 billion in federal funding to aid in responding to the pandemic, supporting economic recovery, and strengthening financial stability.

Counties and large (more than 50,000 people) metropolitan cities will receive funding directly from U.S. Treasury, while non-entitlement units of local government (NEUs) will receive funding through a transfer from the state.

A list of NEUs that are eligible to receive disbursements through the state of Tennessee is available here.

NEUs in Tennessee will begin receiving distributions once they submit a request for payment and required documentation via the state's online portal available to NEUs the week of August 16, 2021.

Further information on the Local Fiscal Recovery Funds and requirements for NEUs to receive their disbursements is included in the FAQs below.

1. Which local governments are considered NEUs eligible to receive their FRF allocation through a transfer from the state?

A list of NEUs that are eligible to receive disbursements through the state is available here.

2. Are there restrictions on eligible uses of Local Fiscal Recovery Funds received by NEUs?

Yes, Local Fiscal Recovery Funds must be spent on eligible expenditures, which include:

• Supporting public health expenditures

• Addressing negative economic impacts caused by the public health emergency

• Providing equity-based services for disproportionately impacted populations

• Replacing lost public sector revenue

• Providing premium pay for essential workers

• Investing in water, sewer, and broadband infrastructure

Eligible expenditures are defined by U.S. Treasury regulations and statutes and not further restricted by the state of Tennessee. Further details on eligible expenditures may be found in the Interim Final Rule and FAQs provided on the U.S. Treasury website: https://home.treasury.gov/policy-issues/coronavirus/assistance-for-state-local-and-tribal-governments/state-and-local-fiscal-recovery-funds.

3. Will the NEU be required to report on its use of FRF?

Yes, NEUs are considered prime recipients of U.S. Treasury and will be responsible for reporting on their compliance with use of FRF directly to U.S. Treasury. As such, NEUs, not the State of Tennessee, will be financially liable for any NEU expenditures that are deemed ineligible.

NEUs will be required to provide annual reporting to U.S. Treasury on all FRF funding projects including expenditures, project status, project demographic distribution, subawards, civil rights compliance and other required programmatic data and information. NEUs will also need to provide copies of the signed award terms and conditions agreement and the Assurances of Compliance with Title VI of the Civil Rights Act of 1964 as well as budget documentation with the reporting submission.

4. How will NEU allocations be determined?

The State of Tennessee has been allocated $438,055,590 to distribute to NEUs. Per U.S. Treasury guidance, allocations to NEUs are to be based on the proportion of the population in the NEU as a share of the total population of all NEUs in the state. The population count to be used to determine NEU allocations was provided by U.S. Treasury and based on the most recent data available from the Census Bureau. NEU allocations were determined by U.S. Treasury. The State of Tennessee does not have the authority to change a NEU’s initial allocation.

Additionally, U.S. Treasury guidance provides that each NEU’s total award is capped at 75 percent of its total annual budget in effect as of January 27, 2020.

5. How is “Total Annual Budget” defined under FRF?

U.S. Treasury defines “Total Annual Budget” as an NEU’s total annual budget, including both operating and capital expenditure budgets, in effect as of January 27, 2020. In cases in which an NEU does not adopt a formal budget, the total annual budget will equal the top-line expenditure total.

NEUs will not be required to provide budget documents supporting the total annual budget to request payment from the state; however, they will be required to submit supporting budget documents to U.S. Treasury as a part of the initial mandatory reporting.

6. How will NEUs receive their allocation?

Eligible NEUs that submit the required documentation will receive their allocations in two equal disbursements. The first disbursement will be made after a request for payment is submitted with all required documentation into the state’s online ARPA program management portal which will open to NEUs the week of August 16, 2021.

The second disbursement will be made approximately one year after the initial disbursement once the state has received its second tranche of funding from U.S. Treasury.

7. How does an NEU log into the state’s online ARPA program management portal to submit a request for payment?

The state will create accounts in the portal for a primary user from each local government based upon its records. Once the account has been created, the primary user will receive an email from NoReply-OutSystems@hornellp.com providing instructions on how to log into to their account.

The ARPA program management portal may be accessed through this link:

https://horne2.outsystemsenterprise.com/PM_Tennessee/Login.

8. How do I update the users in the ARPA program management portal?

Changes to the primary user or requests for an additional user may be submitted to TNARPA.support@hornellp.com.

9. Which account will NEUs receive payment/Where will NEU allocations be disbursed?

When submitting a request for payment, the NEU will be able to select one of the four options listed below for receiving payments. If none of the options provide are selected, a representative from the state will reach out regarding other payment alternatives.

Receive payment through the method of payment and account (if automatic deposit) used for the distribution of your monthly shared state tax payments
Receive payment through automatic deposit to an already existing LGIP account
Establish a new Tennessee Local Government Investment Pool (LGIP) account and receive payments through automatic deposit to that account
Receive payment through paper check

10. How do NEUs establish a new Tennessee Local Government Investment Pool (LGIP) account?

To create a new LGIP account, please visit Treasury.tn.gov/LGIP or call (615) 532-1163.

11. What information will my local government be required to provide as a part of the request for payment?

NEUs will be required to provide the following information in their request for payment.

Taxpayer identification number
DUNS number
Address
Authorized representative name, title, and email
Contact person name, title, and email
Financial institution selection information included in FAQ #7 above
Total NEU budget as defined in FAQ #4 above
Award Terms and Conditions Agreement as provided by U.S. Treasury signed by an authorized representative of the NEU. A blank copy may be found at this link: https://home.treasury.gov/system/files/136/NEU_Award_Terms_and_Conditions.pdf
Assurances of Compliance with Title VI of the Civil Rights Act of 1964 as provided by U.S. Treasury signed by an authorized representative of the NEU. A blank copy may be found at this link: https://home.treasury.gov/system/files/136/Title_VI_Assurances.pdf
While it is not required to submit a request for payment, NEUs will also be required to be registered at SAM.gov prior to the submission of the first mandatory reporting to U.S. Treasury.

12. Who is considered an Authorized Representative?

The Authorized Representative provided on the application should be an individual authorized by a sitting government official to act on behalf of the NEU with respect to its FRF allocation.

13. Who should be provided as the Contact Person?

The contact person should be an individual within the local government who will be knowledgeable of the NEU’s use of its FRF allocation with whom U.S. Treasury and the state can communicate regarding updates to guidance, reporting requirements and other information regarding the FRF.

14. What if an NEU does not have a DUNS number?

As noted above, a DUNS number is required prior to requesting payment from the state. If the NEU does not have a DUNS number, it should visit https://fedgov.dnb.com/webform/ to complete the registration process.

15. What if an NEU is not registered at SAM.gov?

As noted above, the NEU does not have to be registered at SAM.gov to request payment from the state, but it will be required to be registered prior to submitting the initial mandatory reporting to U.S. Treasury. The NEU can visit https://sam.gov/content/entity-registration to complete the registration process.

16. What if an NEU does not wish to receive funds from the FRF?

NEUs who do not wish to receive their FRF allocations may elect to transfer their allocation back to the state by submitting a Decline of Funds Notice to TNARPA.support@hornellp.com. If a NEU transfers its allocation back to the state, the NEU’s allocation will be added to the state’s overall State Fiscal Recovery Fund allocation and the NEU will no longer be legally obligated under the award with respect to accounting for the uses of the funds and the reporting on such uses.

The allocations of NEUs who are non-responsive and do not submit a Request for Payment or Decline of Funds Notice will be reallocated to the residual NEUs.

17. Will the state provide additional guidance or support surrounding compliance with FRF guidelines after NEUs receive their allocation?

Yes, the state is developing a local government technical assistance program which will be available both to counties and metropolitan cities that received funding directly from U.S. Treasury and to NEUs who received funding through the state. Participation in this assistance program is not mandatory; rather, it is an optional resource that local governments may use to gain insight on the eligibility of proposed expenditures. This objective of this program is to ensure all local governments have access to resources, unified communications from state officials and a consistent protocol for planning and implementing the ARPA funds.

This program will include an intensive 8-week training program for local government officials and eligibility reviews of annual spend plans for local governments. The eligibility review of spend plans will provide guidance and feedback to local governments on planned uses of their FRF allocations but will not result in the transfer of liability for any ineligible expenditures to the state. Additionally, ongoing communications with local governments will take place to provide updates and guidance to local governments and updated resources will be available on the state’s Fiscal Recovery Fund website. Further details on the program will be provided at later date.

18. How will the Local Government Technical Assistance Program be administered?

The Tennessee Local Government Technical Assistance Program will be administered by the Tennessee Department of Finance and Administration in collaboration with its consultant HORNE LLP. Participants in this program will receive emails from HORNE LLP’s authorized support email address: TNARPA.support@hornellp.com.

19. Where can I obtain additional information on the FRF?

Additional information may be found on the U.S. Treasury website for State and Local Fiscal Recovery Funds.

· U.S. Treasury website - https://home.treasury.gov/policy-issues/coronavirus/assistance-for-state-local-and-tribal-governments/state-and-local-fiscal-recovery-funds

· Interim final rule - https://www.govinfo.gov/content/pkg/FR-2021-05-17/pdf/2021-10283.pdf

· FAQs - https://home.treasury.gov/system/files/136/SLFRPFAQ.pdf

· Reporting requirements - https://home.treasury.gov/policy-issues/coronavirus/assistance-for-state-local-and-tribal-governments/state-and-local-fiscal-recovery-funds/recipient-compliance-and-reporting-responsibilities

· NEU information - https://home.treasury.gov/policy-issues/coronavirus/assistance-for-state-local-and-tribal-governments/state-and-local-fiscal-recovery-fund/non-entitlement-units

Page last updated: 08/12/2021