1 american recovery and reinvestment act: a snapshot presented by: tracy mclaughlin kyle b. mcquaid

www.heinfeldmeech.com/hmu

hmu@heinfeldmeech.com

1

American Recovery and Reinvestment Act: A Snapshot

Presented by:Tracy McLaughlinKyle B. McQuaid

ARRA Facts

• Signed into law on February 17, 2009

• Total Funding: $787B• Goals:

– Create jobs– Jumpstart economic growth– Provide direct tax relief

• Unprecedented accountability and transparency

ARRA Strategy

• Create or save 3.5 million jobs by providing direct tax relief

• Invest $150 billion in infrastructure projects

• Double renewable energy generating capacity over a three year period

• Provide funds to state and local governments to support health and educational programs

Ensuring Accountability and Transparency

• Funding for the “Watchdogs”• Governor Certifications• Quarterly Reporting

Ensuring Accountability and Transparency

Objectives for federal agencies:• ARRA funds awarded and distributed

in a prompt, fair, and reasonable manner

• Recipients and uses of all ARRA funds are transparent to the public

• ARRA funds are used for authorized purposes only

Ensuring Accountability and Transparency

• Funded projects must:– Avoid unnecessary delays and cost

overruns– Meet specific goals and targets, and

contribute to improved performance on broad economic indicators

– 50% of funds must be initiated no later than 120 days after date of enactment

ARRA Fund Limits

• ARRA funds may not be used for casinos or other gambling establishments, aquariums, zoos, golf courses, or swimming pools

• Buy-American: all construction materials (iron, steel, and manufactured goods) must be produced in the U.S.

• All wages cannot be lower than those prevailing on projects of a character similar in the locality

ARRA Recipients

• Any recipient that has received an award must report – It does not matter if you have not received or spent any funds

• Prime Recipient– Receives funds directly from a federal agency– Must ensure that their own and sub-recipient data

is accurate and complete– Perform data quality reviews for significant

reporting errors and/or omissions• Sub-Recipient

– Receives funds from a prime recipient– Must ensure that their own data is accurate and

complete– Perform data quality reviews for significant

reporting errors and/or omissions

ARRA Reporting

• Data Quality– Accurate, complete, and timely– Avoid:

• Material omissions (% of project completed, estimated number of jobs)

• Significant report errors (reported values show a decrease from a prior reporting period)

– Review process: Conduct a data quality review• Federal agency could terminate the

funding and/or initiation of suspension and debarment proceedings

ARRA Reporting Requirements

• Federal agency code• Program source (TAS)• DUNS number – should match DUNS number

on the award/contract• CFDA number• Final report• Award type, date, description, and amount• Project and Grant period start and end date• Project description and status• Jobs created/retained – description and

number• Federal expenditure• Total federal ARRA, federal non-ARRA and

non-federal share expenditures

ARRA Reporting Phases and Timeline

1. Draft: 1–10 days • Input reporting data

2. Initial Submission: 11-21 days• Review and make changes

3. Final submission: 22 – 29 days• Federal agency reviews &

comments

4. Publish: 30 days• Recipient reports available on

recovery.gov

ARRA Reporting: Jobs

• Jobs Created:– A new position created and filled or an

existing position that is filled as a result of ARRA funding

• Jobs Retained– An existing position that would not have

been continued to be filled had it not been for the ARRA funding

• A job cannot be counted as both• Indirect support (e.g., clerical/admin

staff) cannot be counted

ARRA Reporting: Jobs

• Must report all FTE created or retained– Total hours worked in jobs divided by the

number of hours in a full-time schedule• Reported in two separate fields

(number and description)• Recipients who do not perform their

own work must get job creation estimates from the entity performing the work

• Federal agencies must provide guidance for the required sampling parameters

ARRA Reporting: Jobs

• Reported cumulatively each quarter

Auditing ARRA• All ARRA programs are considered high

risk due to the inherent risk with the new transparency and accountability requirements

• Buy-American• Davis-Bacon Act

– Submission of weekly certified payrolls– Prevailing wage rate clauses included

• ARRA funds are accounted for separately on the Schedule of Expenditures of Federal Awards (SEFA) and Data Collection Form (SF-SAC)– The prefix “ARRA-” must be included in

identifying the Federal program

Auditing ARRA

• Revenue should be coded to object 4500

– Allocation should be made to M&O, UCO & SCA based on normal state equalization distribution

Auditing ARRA-Req’d Program CodesRequired sub-program codes:• 199—Regular Education-SFSF• 261—English Language Learners Incremental Costs-

SFSF• 266—English Language Learners Compensatory

Instruction-SFSF• 271—Vocational and Technological Education-SFSF• 299—Special Education Other-SFSF (disability and

other categories)• 439—Pupil Transportation-English Language

Learners Compensatory Instruction-SFSF• 479—Pupil Transportation-Vocational and

Technological Education-SFSF• 499—Pupil Transportation Other-SFSF• 699—Other Instructional Programs-SFSF

Let’s review…

Question 1

If a previously nonexistent position of plant receptionist occurs as a result of ARRA funds, it is counted as a job created.

TRUE or FALSEWhy?

Support jobs are not counted as “Jobs Created/Retained”

Question 2

50% of funds must be initiated no later than 120 days after date of enactment

TRUE or FALSE

Federal agency reviews and comments occurs during the Initial Submission phase

TRUE or FALSE

Question 3

Federal agency can not terminate the funding and/or initiate suspension and debarment proceedings as repercussion if correct reporting procedures are not followed

TRUE or FALSE

They can!

Question 4

If a recipient has not spent any of the funds awarded to them, they are not required to report.

TRUE or FALSE

Any recipient that has been awarded must report

Question 5

Thank you for attending.

Presented by:Tracy McLaughlin

Kyle McQuaid

602-277-9449 ext. 307tracym@heinfeldmeech.com

602-277-9449 ext. 304kylem@heinfeldmeech.com

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