Treasury Details 'Vigorous' SLFRF Monitoring Plan
The Department of the Treasury has, in essence, laid down the law for Coronavirus State and Local Fiscal Recovery Fund (SLFRF) recipients in terms of compliance reviews and recoupment of funds.
In a March 25 notice, Treasury stressed that it “intends to vigorously monitor recipients’ methods of obligating funds” by the Dec. 31, 2024, deadline, adding that it is “committed to recouping funds that recipients obligated or expended impermissibly, as well as to recapturing funds that they did not obligate by the deadline.”
The agency noted that many recipients has submitted their Dec. 31, 2024, obligation reports. Those submitting quarterly reports were required to submit their latest report to Treasury by Jan. 31 covering obligations through the obligation deadline. Annual reporters will submit their next report to Treasury between April 1-30, covering obligations through the obligation deadline.
To better assess whether recipients properly obligated funds, Treasury explains in the notice that it will enhance its compliance checks on the obligation data submitted by recipients. Recipients may receive information document requests and will be expected to promptly comply with such requests. The agency also will soon send instructions to return unobligated funds to recipients that did not fully obligate their award funds by the deadline, based on the latest data available to Treasury. These instructions will: (1) inform the recipient how much it owes, based on its most recently submitted report; (2) provide a date by which funds must be repaid; and (3) direct the recipient to Pay.gov for repayment options.
Recipients should be aware that if they do not repay the amount owed by the specified date, Treasury will establish a debt and follow standard debt collection policy and procedures in coordination with Treasury’s Bureau of the Fiscal Service. Interest and penalties will accrue once the debt is established.
And for those of you who like visuals, Treasury also released a 2025 Roadmap to Reporting, which includes deadlines and discusses calculations related to revenue loss under SLFRF.
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