It’s hard to believe we’re just a about three months shy of the second anniversary of the American Rescue Plan Act, otherwise known as ARPA. In two more years, or on December 31, 2024, State and Local Fiscal Recovery Funds or SLFRF – a part of ARPA – must be obligated. Then, two years later – by December 31, 2026 – SLFRF must be fully spent. Are you on track to meet these deadlines?

A report entitled, A Comparison of Fiscal Recovery Funds Utilization, notes: “The eligible uses of SLFRF  are intentionally broad to provide state and local governments with substantial flexibility to respond to pandemic impacts in their community, including general operating support to offset revenue losses while also encouraging them to make investments that support long-term growth, opportunity, and equity.”

As noted by the Treasury Department, “Recipients may use SLFRF funds to:

• Replace lost public sector revenue, using this funding to provide government services up to the amount of revenue lost due to the pandemic
• Respond to the far-reaching public health and negative economic impacts of the pandemic, by supporting the health of communities, and helping households, small businesses, impacted industries, nonprofits, and the public sector recover from economic impacts
• Provide premium pay for essential workers, offering additional support to those who have and will bear the greatest health risks because of their service in critical sectors
• Invest in water, sewer, and broadband infrastructure, making necessary investments to improve access to clean drinking water, to support vital wastewater and stormwater infrastructure, and to expand affordable access to broadband internet.”

You can find more details about categories and definitions on the National Conference of State Legislatures website. For information on how states are using funds, visit the Center on Budget and Policy Priorities. For information on allocations for cities and counties or how they are using funds, click here.

While you’re finalizing plans to ensure funds are obligated by the deadline, be sure to update your calendar with these quarterly Project and Expenditure Report deadlines: January 31, 2023 (for the period October 1 – December 31, 2022); April 30, 2023 (for January 1 – March 31); July 31, 2023 (for April 1 through June 30); and October 31, 2023 (for July 1 – September 30).

If you’re only required to submit an annual project and expenditure report, the next deadline is April 30, 2023. This covers the period from April 1, 2022 through March 31, 2023. An annual report is required from Tribal governments allocated less than $30 million; metropolitan cities and counties with less than 250,000 residents and less than $10 million in funding; and Non-Entitlement Units (NEUs) with less than $10 million in funding.

For additional information, refer to these resources:

• S. Department of the Treasury Compliance and reporting guidelines and deadlines and Overview of the Final Rule
• National Association of Counties ARPA Investment Tracker
• General Finance Officers Association Recommended Guiding Principles
• National League of Cities ARPA Local Relief Frequently Asked Questions
• Project and Expenditure Report User Guide(July 2022)

You can find additional resources on our website (go to the right of the screen and click “ARPA Downloads.”)

If you need any accounting, tax, or audit assistance with your SLFRF or other funds, please give RBT CPAs a call. We’re a leader in the Hudson Valley and beyond, known for our professionalism and integrity. We believe we succeed when we help you succeed. Contact us today.

After December 31 of this year, New York State & Local Retirement System (NYSLRS) legacy reporting will be phased out and replaced by Retirement Online for enhanced reporting. Over 900 employers have already made the switch. Since initial discussions about the change started over four years ago, we figured it’s a good time to review everything and remind you of the many resources available to help ensure a smooth transition for your office and your employees.

As noted on the Office of New York State Comptroller, Thomas P Dinapoli’s website, “When it comes to using Retirement Online, state agencies will primarily use it to enroll optional employees in the Retirement System. However, Retirement Online offers you much more than just easy enrollment.”

Retirement Online is faster and easier than the legacy system. Municipality users are commenting on how simple it is to use, which is especially valuable for smaller offices where staff wear many hats.

With the new system, government employers can easily enroll new members; generate reports; get instantaneous access to information about days worked, earnings, and job information; process and change deductions accurately and in a timely manner, and receive timely notifications about potential issues.

In addition, Retirement Online allows users to view new hire information and contribution rates, as well as historical reporting data and financial transactions; update information about your organization; manage and assign security access; request events; and submit the Statement of Accrued Payments and Leave Credits form for retiring employees.

There are numerous resources available to support the transition:

• Get started by emailing the NYSLRS Gold Certification team.
• Click here for details and resources on Gold Certification.
• Best Practices for State Payment Users Guide.
• Tips & Tricks.
• Videos and other information just for state employers.
• Updates and fixes.
• Resources including guides and tools; self-paced training; videos; and recorded webinars.

While you’re focusing on making the transition, remember, RBT CPAs is here to focus on all of your accounting, tax, and auditing needs. We’ve been supporting municipal clients in the Hudson Valley and beyond for over 75 years, and we’re committed to upholding the highest levels of professional, ethical service. Give us a call today.

U.S. and state leaders recognized municipalities do not have the resources or manpower to stop the onslaught of cyberattacks at a local level. This year, a new strategy has emerged in the war on cyber terrorism, fostering a shared services approach to winning on this invisible battlefield on national, state, and local levels. As a result, New York municipalities have access to more support, training, and tools than ever to protect sensitive data and critical infrastructure.

In June, the State and Local Government Security Act was signed into law, formalizing the Cybersecurity and Infrastructure Security Agency (CISA) and Multi-State Information Sharing and Analysis Center (MS-ISAC) relationship and roles in increasing cybersecurity defenses and resiliency.

Under the law, CISA is required to help address cyber incidents; share cyber threat indicators, defensive measures, and risks; communicate incidents; share best practices, standards, and policies; help build system resiliency; promote education and awareness; and more. MS-ISAC (made up of a coalition of more than 2,500 organizations including states and territories) must work with CISA to improve cybersecurity for all, using a 24/7 watch and warning center and a Computer Emergency Response Team.

In July, NY Governor Kathy Hochul announced the start of the state’s $30 million shared services program to help counties protect government systems against ransomware and other attacks. This follows the introduction of the state’s Joint Security Operation Center which takes a centralized approach to managing cybersecurity risk for government assets throughout the state. Counties can opt-in at no cost.

What’s more, the Infrastructure Investment and Jobs Act of 2021 includes $1 billion in grants to state, local, tribal, and territorial governments over four years. Under the law, 80% of money received by states via grants must go to local governments.  Just a few days ago (September 16 to be exact), the Department of Homeland Security launched the State and Local Cybersecurity Grant Program to begin distributing funds. (Click here for FAQs for how local governments can access the grants.)

To bolster efforts to stand up to cyber attacks at the local level, early this year, the New York State Association of Counties issued a Cybersecurity Primer for Local Leaders. The Hudson Valley Pattern for Progress hosted a series of webinars (with recordings available) focusing on boosting cybersecurity in the region.

Also, the New York State Office of Information Technology developed a webpage devoted to cybersecurity resources for local municipalities’ elected officials, administrative officials, and business managers. Among the many resources posted is a Local IT Governance Management Guide, as well as guides for incidence reports, risk management, getting started with cyber security, secure credit card payments, firewalls, Internet and acceptable use policies, disposal of electronic media, and backing up essential information. In addition, there are awareness resources including webinar recordings, newsletters, and toolkits; training resources; and a toolkit with assessment tools, user guides, and more.

With so many divisive factors in society today, it’s refreshing to see that when called upon Americans can be bigger than what divides us by uniting at every level of government to stand up against security threats in cyberspace. No doubt, it’s a big job on a battlefield with no borders and no visible enemies.

To free you up to focus on what you do best – including protecting your community’s critical infrastructure and residents’ private data, we want to remind you that RBT CPAs is here to take on everything accounting, tax, and audit-related. We’ve been serving municipalities in the Hudson Valley and beyond for over 50 years, and we’re always ready to do our part with the highest standards of professionalism and ethics. Contact RBT CPAs today.

Updates to New York’s Freedom of Information Law (FOIL) on March 22 (and retroactive to December 29, 2021) are designed to make it easier to access public records by speeding up responses to requests for information and providing more detailed justifications for denials. Are your municipal agencies and public authorities ready to respond?

New York state leadership is taking responsibility for transparency seriously, as seen by not one but two FOIL amendments within the last year – one at the end of 2021 and another in March of 2022. FOIL is intended to provide the public – whether it’s a taxpayer, a reporter, a defense attorney, or someone else – with access to public records from government agencies.

As a result of amendments, ABC 50 Now (via InformNNY.com) reported FOIL requests now go directly to the agency managing the information (rather than starting with an Executive Chamber review) and each agency must post commonly requested information online to eliminate the need for a FOIL request.

Section 86 defines agency as “any state or municipal department, board, bureau, division, commission, committee, public authority, public corporation, council, office or other governmental entity performing a governmental or proprietary function for the state or any one or more municipalities thereof, except the judiciary or the state legislature.”

FOIL is overseen by The Committee on Open Government. Its Model Rules for Agencies, Section 5 Requests for public access to records details how and when an agency should respond to a FOIL request. Some noteworthy items:

• A request can be verbal if records are readily available on the internet.
• Within five days of receipt of a request, a response must be provided. This includes:
  – Asking for more details;
  – Granting or denying the request;
  – Acknowledging receipt of the request and providing an approximate date for granting or denying the request (which must be within 20 business days from the acknowledgement unless a written explanation is provided about why there is a delay and when the request will be fulfilled); or
  – If after acknowledging the request, disclosure can’t be met by the date noted, a written explanation for the delay and the date the request will be granted must be provided.
• Several factors are used to determine a reasonable time to fulfill a request, including how big the request is, how easy it is to get the records, request complexity, the number of requests received by an agency, and more.
• Failing to comply with time limits is construed to be a denial that can be appealed. This includes:
  – Failing to provide access to requested records;
  – Failing to acknowledge in writing receipt of request or denial within five business days;
  – Failing to provide an approximate date for fulfilling the request in whole or in part;
  – Approximating a date for fulfilling the request that is unreasonable;
  – Failing to respond within a reasonable time after the approximate date provided or within 20 days of acknowledging receipt of a request;
  – Granting a request within 20 business days of acknowledging receipt of the request, but failing to do so and failing to explain why in writing and when the request will be granted in whole or in part;
  – Failing to grant a request and provide a written explanation why and when it will be granted in whole or in part; or
  – Responding to a request stating more than 20 business days is needed and stating when the request will be fulfilled but that date is unreasonable based on the request.

Other changes related to the updated law include the elimination of a judicial hearing for a public records request as long as an investigating agency confirms release of information could hurt investigations or lives (Bliss, 2022, CriminalLegalNews.org). What’s more, failing to fulfill a request and having a viable reason for doing so could result in having to pay a requestor’s attorney’s fees should the matter be litigated.

While FOIL has been around since the 1970s, renewed focus on transparency and trust in government as a New York state priority likely means the recent law changes are a beginning rather than an end, and more is likely to come in terms of enforcement and precedence. New York’s Committee on Open Government website has more information to help you learn about and navigate FOIL (including training materials). It’s worth a visit every once and a while to ensure compliance.

While this article reviews key highlights, we need to say and can’t emphasize enough that this is a legal matter. If your agency is subject to FOIL, you should seek legal counsel to ensure compliance. In the meantime, it is important to recognize that a broad spectrum of subjects – including finance-related ones – are subject to FOIL. That makes using a respected, professional accountant with a track record for excellence even more important – why not give RBT CPAs a call to see what we can do for you?

With the second quarter ending, you may want to get acquainted with updated guidance the U.S. Treasury provided for American Rescue Plan Act (ARPA) State and Local Fiscal Recovery Funds (SLFRF) Project and Expenditure (P&E) Reports. The next one is due July 31 and there are several new requirements.

On June 17^th, updates were issued by the U.S. Treasury for State and Local Fiscal Recovery Funds Compliance and Reporting Guidance.  Quarterly P&E reports are due from States and U.S. territories; tribal governments allocated more than $30 million in SLFRF funding; metropolitan cities and counties with more than 250,000 residents; metropolitan cities and counties with less than 250,000 residents allocated more than $10 million in SLFRF funds; and Non-Entitlement Units (NEUs) allocated more than $10 million in SLFRF funding.

The next report is due July 31 for the quarter ending June 30. If your municipality is required to submit a P&E, get acquainted with the updated reporting guidelines. Changes for quarterly and annual reports, as reported by the National Association of Counties, include:

• Reveal the type of capital expenditure per enumerated uses (found on pages 27 and 28 of the S. Treasury Compliance and Reporting Guidance, Section 2, Capital Expenditures).
• Provide written justification for capital expenditures in projects expected to total $10 million or more for enumerated uses or $1 million or more for an “other” use. (Exception: This does not apply to Tribal governments.)
• Provide labor reporting (outlined on pages 30 and 31 of the S. Treasury Compliance and Reporting Guidance) for projects with total expected capital expenditures of over $10 million.
• Provide additional information for Broadband projects (outlined on pages 32 and 33 of the S. Treasury Compliance and Reporting Guidance).
• Provide additional data for projects in expenditure categories (outlined on page 33 of the S. Treasury Compliance and Reporting Guidance). This applies to States, U.S. territories, and metropolitan cities and counties with more than 250,000 residents.
• New Recovery Plan Template required to be published annually on the recipient’s website and provided to.

For additional resources, including guides and webinars, visit the U.S. Department of the Treasury website.

On a different note, as reported by the New York Government Finance Officer’s Association (NYGFOA), SAM.gov – the Federal System of Award Management – is having some issues. If you’re experiencing delays or having issues completing reauthorization or registration, in order to get your Unique Entity Identifier (UEI) needed to apply for Federal funding opportunities, there are a number of resources that can help: UEI FAQ document published by the General Services Administration (GSA); SAM.gov Help webpage; and the GSA Federal Service Help Desk.

You probably have a lot more to do navigating all of these new requirements and processes. RBT CPAs can help. We’re available to partner with you on all of audit, tax, and accounting needs, so you have peace of mind these responsibilities are covered by one of the largest firms in the Hudson Valley, a top 100 firm in New York and a top 250 firm nationwide. That way, you’re freed up to focus on new and growing responsibilities to help plan for, secure, and track valuable funds for your community’s future.

New York State’s Fiscal Stress Monitoring System helps counties, cities, towns, villages, and school districts check vital signs for fiscal health and, when appropriate, proactively take action to address and fix issues. Take a moment to get acquainted (or reacquainted) with the tools and resources the state offers to monitor, act (when appropriate), and maintain strong fiscal health.

The Fiscal Stress Monitoring System was created by New York State Comptroller Thomas P DiNapoli in 2012 and is a lot like an annual physical. During an annual physical, a doctor collects information about certain key health factors; tracks and compares that information year to year; and, using baseline data, either helps the individual fix any issues or refers him/her for more specialized care to manage a condition. The state’s Fiscal Stress Monitoring System works much the same way. It provides an early warning to local officials and residents to indicate when action is needed to manage potential risks to finances, property taxes, and essential services.

Based on financial factors, fiscal stress scores are assigned and reported publicly. Financial indicators include year-end fund balance, short-term cash-flow borrowing, cash position and operating deficit patterns.

Stress scores using data from Annual Financial Reports for fiscal years ending 2021 have started to be reported via a press release and lists posted on the comptroller’s website. (School district scores were released in January.) A second, separate analysis of environmental factors using US Census Bureau data provides insight into a local government’s or school district’s economic health and other challenges.

In addition to these reports, insights from the Office of the Comptroller can highlight points of focus for local municipalities. As noted in a recent press release, “The financial landscape for many local governments has improved with the infusion of federal aid and stronger economic activity,” DiNapoli said. “The relief funds are temporary, so it is critical that local communities make changes, including carefully managing debt and engaging in long-term planning, that help improve their financial outlook for years down the road.”

Beyond the fiscal stress report, the Office of the Comptroller provides:

• A self-assessment tool – which can be especially helpful during budget planning processes – so local officials can determine stress scores using current and future financial assumptions.
• Numerous live and on-demand webinars on a variety of topics from budgeting, financial planning, and procurement to capital planning, audits, taxes, and more.
• Reference guides, research reports, and other resources.
• A Financial Toolkit, which provides targeted information, tools, and training to address potential challenges and issues arising from the COVID-19 pandemic.
• New York Open Book, a site that tracks state and local spending and makes public financial records, state contracts, and other commonly requested data.

If you prefer more personalized guidance on finance and accounting, remember, RBT CPAs is available to help. We’re one of the Hudson Valley’s leading accounting firms and we have extensive experience working with local governments and school districts. Give us a call.