American Rescue Plan Act Subrecipient Agreement

The American Rescue Plan Act (ARPA) is one of the most significant pieces of legislation passed in recent times. It is aimed at supporting individuals and businesses across the United States that have been adversely affected by the COVID-19 pandemic. As part of this act, there are specific provisions regarding subrecipient agreements that will have a significant impact on organizations that receive funding.

A subrecipient agreement is an agreement between a recipient of federal funds and a subrecipient, which is typically a state or local government, nonprofit organization, or other entity that receives financial assistance from the recipient to carry out activities or services. The purpose of this agreement is to ensure that the subrecipient uses the federal funds in compliance with the terms and conditions set out in the grant or contract.

Under ARPA, subrecipient agreements must include specific language regarding the use of funds and compliance with federal regulations. For example, subrecipients must certify that they will use the federal funds only for permissible uses, such as supporting public health, providing economic relief, or addressing other COVID-19-related impacts. Additionally, subrecipients must agree to comply with all applicable federal laws and regulations, including those related to fraud, waste, and abuse, and must maintain appropriate records.

One of the critical provisions of the ARPA subrecipient agreement is the requirement that subrecipients report on the use of funds. Subrecipients must provide regular reports to the grantor, which details how they have used the funds. These reports must include specific information, such as the amount of funds expended, the number of people served, and the outcomes achieved. Subrecipients must also report if any of the funds were used for a purpose other than what was specified in the agreement.

The ARPA subrecipient agreement requirements are designed to ensure that federal funds are used appropriately and effectively. Failure to comply with the terms of the agreement could result in penalties, fines, or even criminal charges. Therefore, it is crucial that organizations that receive federal funding understand the requirements and take appropriate steps to comply with them.

In summary, the ARPA subrecipient agreement is a critical component of the American Rescue Plan Act. It sets out specific requirements regarding the use of federal funds and compliance with federal regulations. Organizations that receive funding under ARPA must ensure that they understand the requirements and take appropriate steps to comply with them. By doing so, they can help ensure that federal funds are used effectively to address the impacts of COVID-19.