Program

COVID-19 Federal Assistance e311

Topics

Lost Revenue & Revenue Replacement, Tourism

Regarding tourism non-profit revenue loss funds, what documentation must be maintained and submitted regarding the fund? What reporting to the federal government is required?

There are specific reporting requirements for aid to impacted industries, including:

  • a brief narrative description of how the assistance provided responds to negative economic impacts of the COVID-19 pandemic; and
  • for each subaward: 
    • sector of employer (note: additional detail, including list of sectors to be provided in a users’ guide); and
    • purpose of funds (e.g., payroll support, safety measure implementation).[1]

The American Rescue Plan Act of 2021 (“ARP”) allows the use of Coronavirus State and Local Fiscal Recovery Funds (“CSLFRF”) “to respond to the public health emergency with respect to COVID-19 or its negative economic impacts, including assistance to households, small businesses, and nonprofits, or aid to impacted industries such as tourism, travel, and hospitality.”[2] The U.S. Department of the Treasury’s (“Treasury”) Interim Final Rule (the “Rule”) provides guidance indicating that tourism, in many cases, will meet eligibility requirements for the use of CSLFRF funds.[3]

General Reporting Requirements

The Rule describes the CSLFRF reporting requirements.[4] To facilitate transparency and accountability, the Rule requires that state, local, and tribal governments publicly report assistance provided to private-sector businesses, including tourism, travel, hospitality, and other impacted industries. Recipients should also maintain records to support their assessment of how businesses or business districts receiving assistance were affected by the negative economic impacts of the pandemic and how CSLFRF funds remediated any negative downstream effects.[5], [6] Each subaward provided as part of aid to the tourism industry must also list the purpose of the funds provided (such as payroll support or safety measure implementation). This information will begin to be collected by Treasury in April 2022.[7]

CSLFRF recipients must comply with Treasury’s Compliance and Reporting Guidance (“Reporting Guidance”) which lays out the requirements and deadlines for reports. Part 2 of the Reporting Guidance describes, in detail, Treasury’s reporting requirements relating to the use of the CSLFRF funds.[8] The Reporting Guidance explains in detail the three main reports ARP fund recipients must provide:

  • Interim Report (to be submitted by August 31, 2021, or 60 days after receiving funding if funding was received by October 15, with expenditures by category).
  • Project and Expenditure Report, to be submitted by:
    • January 31, 2022, for States, U.S. territories, metropolitan cities and counties with a population that exceeds 250,000 residents or populations below 250,000 residents that received more than $10 million in funding, and Tribal Governments that received more than $30 million in funding for the period between award date and December 31, 2021.
    • April 30, 2022, for non-entitlement units of government (“NEUs”), metropolitan cities and counties with a population below 250,000 that received less than $10 million in funding, and Tribal Governments that received less than $30 million in funding for the period between award date and March 31, 2022.[9]
  • Recovery Plan Performance Report (if applicable, to be submitted by August 31, 2021, or 60 days after receiving funding).[10] If a Recipient receives approval on proposed projects after August 31, 2021, the Recipient should submit an updated Recovery Plan within 60 days after approval by the legislature or other governance entities.[11]

In addition, CSLFRF recipients must comply with the Uniform Administrative Requirements Cost Principles for Federal Awards at 2 Code of Federal Regulations (“CFR”) Part 200.[12]

Additionally, on August 9, 2021, Treasury released the Portal for Recipient Reporting State and Local Fiscal Recovery Funds User Guide to assist recipients with submitting required reports through the Treasury portal.[13] Treasury has also provided a Recovery Plan Template to assist with completing the reporting requirements.[14] 

U.S. Economic Development Administration ("EDA") Grants

In addition to assistance authorized by the ARP CSLFRF provisions, the ARP also appropriated $3 billion to the U.S. Economic Development Administration (“EDA”), including $750 million specifically allocated to the Travel, Tourism, & Outdoor Recreation Program.[15] This funding will support the following EDA efforts:

  • State Tourism Grants: $510 million in non-competitive awards to help states quickly invest in marketing, infrastructure, workforce, and other projects to rejuvenate safe leisure, business, and international travel; and
  • Competitive Tourism Grants: $240 million to help communities that have been hardest hit by challenges facing the travel, tourism, and outdoor recreation sectors to invest in infrastructure, workforce, or other projects to support the recovery of the industry and economic resilience of the community in the future.[16]

EDA's notice relating to these grants indicates that a “public or private non-profit organization or association acting in cooperation with officials of a political subdivision of a State” can be an eligible applicant for the purposes of this EDA program.[17]

The relevant reporting requirements for recipients of EDA’s Competitive Tourism Grant are outlined in the Fiscal Year 2021 ARP Travel, Tourism, and Outdoor Recreation Notice of Funding Opportunity – Executive Summary (“the Notice”).[18]

Further, the Notice includes a table that outlines the requirements for completing an application.[19] There are no application submission deadlines; however, because applications are reviewed on a rolling basis, there are multiple suggested application submission dates in different documents; the one-pager released by EDA lists March 15, 2022,[20] while the Notice advises submitting applications by January 31, 2022.[21]

EDA Competitive Tourism Grants: Reporting Requirements

Some reporting requirements for recipients of tourism grants through the EDA are:

  • Submit financial, progress, and impact reports with the terms and conditions of the grant award, generally less than semi-annually. All project progress and financial reports must be submitted to the applicable EDA program officer in an electronic format to be determined at the time of award.[22]
  • Report information about subrecipients. All awardees of applicable grants and cooperative agreements are required to report to the Federal Subaward Reporting System (“FSRS”) available at www.FSRS.gov on all subawards over $30,000. Please see the OMB guidance published at 2 C.F.R. part 170.[23]
  • Provide additional data on activities, outputs, and actual impact of the funded investment, in part to fulfill the requirements of the Government Performance and Results Act (“GPRA”). EDA anticipates that recipients will be expected to track their engagement activities within the scope of work, with project beneficiaries, and other project stakeholders. EDA further anticipates recipients will be expected to collect data, using surveys of beneficiaries or clients, if necessary, on the outputs and outcomes of their activities, such as the number of strategic plans or economic development tools developed, the number of new business partnerships formed, or the range of new capabilities acquired. EDA plans to collect this information using Forms ED-915 (Public Works, Economic Adjustment Infrastructure and Revolving Loan Fund Investments), ED-916 (Semi-annual Program Outputs Questionnaire for EDA grantees), ED-917 (Annual Capacity Outcomes Questionnaire for EDA Grantees serving clients), and ED-918 (Annual Capacity Outcomes Questionnaire for EDA Grantees).[24]

Last Revised: November 15, 2021

[1] U.S. Department of the Treasury, “Compliance and Reporting Guidelines,” at 19, available at: https://home.treasury.gov/system/files/136/SLFRF-Compliance-and-Reporting-Guidance.pdf.

[2] American Rescue Plan Act of 2021 § 9901, Pub. L. No. 117-2, amending 42 U.S.C. §801 et seq., at Section 603(c)(1)(A), available at: https://www.congress.gov/bill/117th-congress/house-bill/1319/text#HC028912924A04512A1F80BFA0F1C1051 (emphasis added).

[3] Treas. Reg. 31 CFR 35 at 36-37, available at: https://home.treasury.gov/system/files/136/FRF-Interim-Final-Rule.pdf

[4] Treas. Reg. 31 CFR 35 at 110-112, available at: https://home.treasury.gov/system/files/136/FRF-Interim-Final-Rule.pdf

[5] Id. at 36-38. 

[6] Treasury has also issued a series of Frequently Asked Questions (“FAQs”) relating to the use of CSLFRF assistance.  FAQ #9.1 and 9.2 generally discuss Treasury’s reporting requirements for uses of CLFRF funds. See Coronavirus State and Local Fiscal Recovery Funds, Frequently Asked Questions (as of July 19, 2021) – FAQ #9.1, #9.2, at 35, available at: https://home.treasury.gov/system/files/136/SLFRPFAQ.pdf.

[7] Department of Treasury, Coronavirus State and Local Fiscal Recovery Funds: “Guidance on Recipient Compliance and Reporting Responsibilities,” at page no. 19, available at https://home.treasury.gov/system/files/136/SLFRF-Compliance-and-Reporting-Guidance.pdf 

[8] U.S. Department of the Treasury, “Compliance and Reporting Guidelines,” at 12-30, available at: https://home.treasury.gov/system/files/136/SLFRF-Compliance-and-Reporting-Guidance.pdf.

[9] Id. at 13.

[10] Id.

[11] U.S. Department of Treasury, “Treasury’s Portal for Recipient Reporting,” at 27, available at: SLFRF_Treasury-Portal-Recipient-Reporting-User-Guide.pdf.

[12]  U.S. Department of the Treasury, “Compliance and Reporting Guidelines,” at 6, available at https://home.treasury.gov/system/files/136/SLFRF-Compliance-and-Reporting-Guidance.pdf.

[13] U.S. Department of the Treasury, “Treasury’s Portal for Recipient Reporting State and Local Fiscal Recovery Funds,” available at: https://home.treasury.gov/system/files/136/SLFRF_Treasury-Portal-Recipient-Reporting-User-Guide.pdf.

[15] EDA, American Rescue Plan Programs, “See Notice of Funding Opportunity,” available at: https://eda.gov/arpa/travel-tourism/ (emphasis added).

[16] EDA, “FY 2021 American Rescue Plan Act Travel, Tourism, and Outdoor Recreation Notice of Funding Opportunity,” available at: https://www.grants.gov/web/grants/view-opportunity.html?oppId=334748.

[17] Id.

[18] Id., at Section Additional Information, “See Related Documents”, “ARPA Tourism NOFO.pdf” at 1. 

[19] Id. at 15-20.

[21] EDA, American Rescue Plan Programs, “See Notice of Funding Opportunity”, at Section Synopsis, available at: https://eda.gov/arpa/travel-tourism/.

[22] Id. at 29.

[23] Id. at 29-30. See also 2 CFR 170, available at: https://www.ecfr.gov/cgi-bin/text-idx?node=pt2.1.170&rgn=div5.

[24] Id. at 30.