The American Rescue Plan Act & Ohio Townships

The OTA has prepared a funding overview and steps to take to receive ARPA funds.

Townships are generally considered "non-entitlement units of local government" or NEUs for puposes of ARPA funding.

Please note that three townships (Colerain/Hamilton Co., Green/Hamilton Co., and West Chester/Butler Co.) were included on an earlier released list of metropolitan cities with populations +50K.

A packet of information regarding registration was mailed to all townships.


ARPA Procurement Guidance

As most townships do not receive federal funding, townships are not generally familiar with federal procurement standards, which are applicable to all ARPA expenditures. Compliance with federal procurement requirements was not an issue under the CARES Act because everyone was under a state of emergency, which is one of the exceptions to the federal guidelines.

The Treasury ARPA Final Rule was clear that all funds would be subject to federal procurement standards, which are referred to as the Uniform Guidance (“UG”) and generally set forth in 2 C.F.R. Part 200.

Notably, however, the UG does not only contain requirements for when funds are spent, but the UG also has requirements for recipients to have in place prior to the expenditure of any funds. The UG specifically requires any recipient to have: (1) “internal controls” in place; (2) documented procurement policies, and; (3) written standards of conduct relating to conflicts of interest. The recipient is also required to maintain all records necessary to document the detail involved in the procurement.

Below are links to documents to help townships understand federal procurement regulations:

Letter to OTA Explaining Procurement Documents and Policies

Spreadsheet Comparing all UG Requirements to Ohio's Procurement Requirements for Townships

Contract Addendum


Reporting

Treasury has created a recording for NEUs to use for reporting on their ARPA dollars! This video covers reporting responsibilities, accessing Treasury's portal, submitting supporting documents, and FAQs. To access the video, please click the button below.

Treasury Webinar - ARPA Reporting Setup for NEUs

Treasury Webinar - ARPA Reporting Procedures (after Setup)

Reporting Deadline Extended
The initial reporting deadline was originally set for October 31, 2021. This deadline has been updated to April 30, 2022 for NEUs (most Ohio townships) and January 31, 2022 for direct recipients (Colerain, Green, and West Chester Townships). For more information please click here. 

ON THIS PAGE
ARPA Procurement Guidance
Reporting
What Can You Use the Funding For?
  • Sample Resolutions
  • Helpful Links
ARPA Funding Overview

What can you use the funding for?

On January 7, 2022, Treasury released their Final Rule on ARPA funding, which significantly broadened eligible uses for Ohio townships. Thank you to the attorneys at Baker, Dublikar, Beck, Wiley & Mathews for their initial summary of this document and for providing the sample resolutions located below.

Revenue Loss
In the most significant change for townships, the Final Rule includes an option for ARPA recipients to elect to either calculate its revenue loss OR adopt a “standard allowance,” which is capped at $10 million. The Final Rule expressly acknowledges that the Standard Allowance will be most helpful  for smaller entities, which would seem to encompass all Ohio townships. So long as the recipient consistently elects to utilize the Standard Allowance, rather than calculating revenue loss, the recipient may use up to $10 million for the provision of government services.

The term government services retains the same meaning as in the Interim Final Rule and is discussed on page 259. The Final Rule states that, generally, services provided by the recipient are “government services,” unless specifically listed otherwise. It further defines Government Services as including, but are not limited to, “maintenance or pay-go funded building of infrastructure, including roads; modernization of cybersecurity, including hardware, software, and protection of critical infrastructure; health services; environmental remediation; school or educational services; and the provision of police, fire, and other public safety services.” 

This is consistent with the Interim Final Rule, which stated:

"Government services can include, but are not limited to, maintenance or pay-go funded building of infrastructure, including roads; modernization of cybersecurity, including hardware, software, and protection of critical infrastructure; health services; environmental remediation; school or educational services; and the provision of police, fire, and other public safety services. However, expenses associated with obligations under instruments evidencing financial indebtedness for borrowed money would not be considered the provision of government services, as these financing expenses do not directly provide services or aid to citizens. Specifically, government services would not include interest or principal on any outstanding debt instrument, including, for example, short-term revenue or tax anticipation notes, or fees or issuance costs associated with the issuance of new debt. For the same reasons, government services would not include satisfaction of any obligation arising under or pursuant to a settlement agreement, judgment, consent decree, or judicially confirmed debt restructuring in a judicial, administrative, or regulatory proceeding, except if the judgment or settlement required the provision of government services. That is, satisfaction of a settlement or judgment itself is not a government service, unless the settlement required the provision of government services. In addition, replenishing financial reserves (e.g., rainy day or other reserve funds) would not be considered provision of a government service, since such expenses do not directly relate to the provision of government services."

Based on this language, it appears that all townships will be able to presume their ARPA funds are revenue loss and use such funds broadly for any provision of government services, subject to the exceptions enumerated above. In order to properly effectuate the standard allowance, the resolution authorizing the use of the ARPA funds under the revenue loss category should specifically elect the Standard Allowance as defined by the Final Rule, and that will tie out the election for any audit. 

Funds must be obligated by December 31, 2024 and spent by December 31, 2026.


Sample Resolutions

Sample Resolution Adopting the Standard Allowance and Allocating Funds for a Project

Sample Resolution Rescinding a Prior Resolution for Revenue Loss and Adopting the Standard Allowance

Sample Resolution for Additional Expenditures After the Standard Allowance has been Adopted

Sample Resolution to Self-certify the Micro-purchase Threshold to $50,000 

Sample Comprehensive Township Procurement Policy


To assist townships, the OTA has negotiated an arrangement with Greg Beck and the attorneys at Baker, Dublikar, Beck, Wiley & Mathews to provide OTA members with a discounted rate for services related to ARPA funding. You can reach Greg by calling 330-499-6000 or by email at beck@bakerfirm.com.

Frequently Asked Questions from Treasury and Other Helpful Links 

ARPA Local Recovery Funds Webpage

Non-entitlement Units Webpage

Final Rule - ARPA Requirements

Final Rule Overview

Interim Final Rule - ARPA Requirements 

Office of Budget & Management

Recipient Compliance and Reporting Responsibilities

UAN Guidance

Auditor's ARPA Frequently Asked Questions


ARPA Funding Overview

American Rescue Plan Act (ARPA) funding will be distributed to non-entitlement units of local government based on population. All townships are considered non-entitlement units, with the exception of three that have populations over 50,000 and were included in the "Metropolitan Cities" category (see above).

  • There is a cap on the amount: The distribution may not exceed 75 percent of the jurisdiction’s most recent budget as of January 27, 2020.
  • You can find your township's allocation here. 

Funding for non-entitlement units was distributed to the state and will be administered by the Office of Budget and Management (OBM). OBM will pass the funding on to townships.

  • Townships must be registered with OBM to receive funding.
  • Funding will come in two disbursements: one initially and another 12 months later.