Treasury Announces Enhanced Compliance Checks on State and Local Fiscal Recovery Funds

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The U.S. Department of Treasury this week announced it will enhance compliance checks on the Coronavirus State and Local Fiscal Recovery Funds (SLFRF) obligation data submitted by counties as part of its efforts to ensure taxpayer funds are used in accordance with program requirements. Treasury intends to recoup funds obligated or expended impermissibly and to recapture funds that were not obligated by the deadline. Counties that are deemed noncompliant will receive “Information Document Requests.”

Treasury also will begin sending “Financial Instructions to Return Unobligated Funds” to counties that did not fully obligate their award funds by the Dec. 31, 2024 deadline, based on the latest data available to Treasury. These instructions will: 

  • Inform the county how much it owes, based on its most recently submitted report.
  • Provide a date by which funds must be repaid.
  • Require recipients to use Pay.gov to process the repayments.

If a county does not repay amounts owed by the specified date, Treasury will establish a debt and follow standard debt collection policy and procedures in coordination with the Bureau of the Fiscal Service. Interest and penalties will accrue once the debt is established.

Counties required to submit quarterly reports were required to submit their latest report to Treasury by Jan. 31, covering obligations through the Dec. 31, 2024, obligation deadline. Counties required to submit annual reports will submit their next report to Treasury between April 1 and April 30, covering obligations through the obligation deadline.

Instructions can be found below about how to submit a report:

If your county is having issues with the Treasury portal or has received a noncompliance email, but you believe your county is in compliance, please contact Anna Berger at aberger@scac.sc with your name, county's name and Treasury case number so it can be shared with our National Association of Counties contact. NACo staff will be available to provide technical assistance.