State Fiscal Recovery Fund | Department of Finance (2024)

California has received over $43 billion in combined recovery funds from the American Rescue Plan Act of 2021 to cover costs incurred between March 3, 2021 and December 31, 2024, to mitigate the impacts of the COVID-19 Pandemic, including $27 billion in state fiscal recovery funds. The Act specifies that funds may be used to respond to the public health emergency or its negative economic impacts, replace lost revenue, and to make necessary investments in water, sewer, or broadband infrastructure. The framework for the $27 billion Coronavirus State Fiscal Recovery Fund to help California build back a stronger, more equitable economy and address the disproportionate negative economic impacts of COVID-19 on low-wage sectors is summarized below. For a full list of project allocations and expenditures to date, see the most recent “SFRF Allocations and Expenditures by Program” link below.

• Address Public Health Impacts ($0.8 billion) – Includes support for the state’s emergency response to COVID-19, including vaccine incentives. These funds will also help address emotional and behavioral health concerns exacerbated by the COVID-19 Pandemic on California’s adults.
• Address Negative Economic Impacts ($7 billion) – Includes funds to address various negative economic impacts of COVID-19 on households, individuals, and businesses.
• Broadband Investments ($2.4 billion) – Promotes access to, and affordability of, broadband by funding infrastructure projects, which are critical to the state’s economy, education, and basic health and well-being, and will serve as a key component of the state’s long-term equitable recovery, vitality, and resilience.
• Replace Lost State Revenue ($16.7 billion) – Replaces state revenue lost due to the COVID-19 public health emergency. These funds will support a variety of government services.

2021 Recovery Plan Performance Report

2022 California Recovery Plan

2023 California Recovery Plan

2024 California Recovery Plan

Project and Expenditure Report

Beginning January 31, 2022, pursuant to federal requirements, Project and Expenditure Reports for the State Fiscal Recovery Fund are due to the U.S. Department of the Treasury on a quarterly basis. Expenditures are reported on a cash basis, which includes reimbursem*nts to subrecipients as well as advance payments for goods or services that have not yet been invoiced. The following chart provides the Budget Act allocation, amount awarded to subrecipients, and expenditures for each expenditure category.

Coronavirus State Fiscal Recovery Fund

(Dollars in Thousands)

^1/Expenditures include cash advance payments made to subrecipients for goods or services that have not yet been invoiced.

• SFRF Allocations and Expenditures by Program for the period of March 3, 2021, through December 31, 2021
• SFRF Allocations and Expenditures by Program for the period of March 3, 2021, through March 31, 2022
• SFRF Allocations and Expenditures by Program for the period of March 3, 2021, through June 30, 2022
• SFRF Allocations and Expenditures by Program for the period of March 3, 2021, through September 30, 2022
• SFRF Allocations and Expenditures by Program for the period of March 3, 2021, through December 31, 2022
• SFRF Allocations and Expenditures by Program for the period of March 3, 2021, through March 31, 2023
• SFRF Allocations and Expenditures by Program for the period of March 3, 2021, through June 30, 2023
• SFRF Allocations and Expenditures by Program for the period of March 3, 2021, through September 30, 2023
• SFRF Allocations and Expenditures by Program for the period of March 3, 2021, through December 31, 2023
• SFRF Allocations and Expenditures by Program for the period of March 3, 2021, through March 31, 2024
• SFRF Allocations and Expenditures by Program for the period of March 3, 2021, through June 30, 2024

Eligible Cost Timeframe

The American Rescue Plan Act specifies eligible costs incurred between March 3, 2021 and December 31, 2024. The California 2021-22 Budget Act, as amended by Chapter 2 of the Statutes of 2022, included language to allow time to reallocate unspent funds and provide some additional flexibility on timing. Control Section 11.96 requires that funds be obligated or spent by June 30, 2024, unless there is a reasonable plan to fully obligate or spend funds by December 31, 2024. Funds must be fully obligated by December 31, 2024, with all contracts, deliverables, and agreements in place by this date. All funds must be spent (fully liquidated) by December 31, 2026.

• A copy of Control Section 11.96 is included below.
• For additional information on Control Section 11.96, please see slides 5-6 of the State Fiscal Recovery Fund Webinar (link below).
• Control Section 11.96

Note:Competitive bidding (or obtaining more than one estimate) is required and contract provisions must be consistent with the basic timeline/framework detailed in Control Section 11.96.

Reporting Requirements and Deadlines

Quarterly Project and Expenditure Reporting Deadlines – Reporting is required to be submitted quarterly through the March 31, 2027 reporting period. The table below provides the anticipated deadlines through March 31, 2024reporting period.

Expenditure Categories– The U.S. Department of the Treasury has identified 66 different expenditure categories to track how funding is used. Some categories will require additional programmatic data. Departments need to determine which categories their projects fall under consistent with the enacted Budget (coordinate with your Finance Budget Analyst):

1. Address Public Health Impacts
2. Address Economic Impacts
3. Services to Disproportionally Impacted Communities
4. Infrastructure (Broadband)
5. Revenue Replacement

Descriptions should also include information about how these funds are integrated with other programs funded in the American Rescue Plan Act, such as Emergency Rental Assistance, Housing Assistance, etc.

Contact your Finance Budget Analyst for specific program-related questions and how to assign your program/project within the 66 Expenditure Categories.

For more information, please see the State Fiscal Recovery Fund Webinar and the U.S. Department of Treasury resources found on this page.

Visit the DOF’sState Fiscal Recovery Fund Reporting Portalinformational page for instructions on how to access the portal.

Treasury and Other Federal Resources

State agencies and departments are responsible for reviewing, understanding, and staying up to date on all federal guidance and requirements which apply to their federal funds. TheU.S. Treasury Coronavirus State and Local Fiscal Recovery Funds website contains several helpful documents, including the following:

• U.S. Department of the Treasury –Compliance and Reporting Guidance for State and Local Fiscal Recovery Funds.This guidance provides additional detail and clarification for each recipient’s compliance and reporting responsibilities under the SLFRF program, and should be read in concert with the Award Terms and Conditions, the authorizing statute, the SLFRF implementing regulation, and other regulatory and statutory requirements, including regulatory requirements under the Uniform Guidance (2 CRF Part 200). Please see the Assistance Listing in SAM.gov under assistance listing number (formerly known as CFDA number), 21.027 for more information.
  • SFRF federal award date: June 4, 2021
• U.S. Department of the Treasury –Coronavirus State and Local Fiscal Recovery Funds Frequently Asked Questions (FAQ). This document contains answers to frequently asked questions regarding the Coronavirus State and Local Fiscal Recovery Funds (CSFRF / CLFRF, or Fiscal Recovery Funds). Treasury will be updating this document periodically in response to questions received from stakeholders. Recipients and stakeholders should consult the Interim Final Rule for additional information.
• U.S. Department of the Treasury –Coronavirus State and Local Fiscal Recovery Funds Final Rule
• U.S. Department of the Treasury –Coronavirus State and Local Fiscal Recovery Fund Final Rule Overview
• U.S. Department of the Treasury –Coronavirus State and Local Fiscal Recovery Funds Quick Reference Guide
• U.S. Chief Financial Officers Council’s Program Integrity –The Antifraud Playbook,which provides an overview of practical and actionable guidance to reduce fraud risk
• U.S. Government Accountability Office’s Standards for Internal Control in the Federal Government (“Green Book”)

Other State Resources

State entities are responsible for ensuring SFRF expenditures and subrecipient monitoring comply with applicable federal and state laws, regulations, and guidance and for establishing and maintaining internal controls which include accurate reporting of federal funds into the Schedule of Expenditures of Federal Awards (SEFA) database. To assist state entities in their administration of SFRF, the state has the following resources available:

• State Fiscal Recovery Fund Webinar – Training provided by Finance staff to summarize requirements for state entities regarding data collection and reporting, management and oversight, and key deadlines. A copy of the training slides is available in the link below:
  • State Fiscal Recovery Funds: Management and Oversight
• State Leadership Accountability Act – Leadership accountability is about risk management. The following information from Finance’s Office of State Audits and Evaluations (OSAE) provides guidance on managing risk as a recipient of federal funds and/or as a pass-through entity:
  • Risk Management: State Entity Responsibilities
• Single Audit – California is considered a single non-federal entity and is automatically subject to an annual audit, also known as the state’s Single Audit. For more detailed information regarding the Single Audit, please refer to the following:
  • Single Audit Act: State Entity Responsibilities
• Federal Fund Audits and Monitoring – In accordance with Finance’s SFRF oversight and monitoring responsibilities OSAE’s Federal Funds Audits and Monitoring (FFAM) Team developed the following training to assist state entities in their SFRF program compliance with the applicable federal and state laws, regulations, and guidance.
  • Performance Measures: Outputs and Outcomes
  • Subrecipients and Contractors: Characteristics, Determination and Compliance Requirements
  • A Proactive Approach to Prevent Common Audit Findings
• Management Decision Letters – In accordance with 2 CFR 200.332(d), state departments, as the pass-through entity, are responsible for issuing a management decision for audit findings that relate to federal awards it makes to subrecipients as outlined in 2 CFR 200.521. A management decision letter template is provided below:
  • Management Decision Letter Template

Resources and Contacts

• Pleasecoordinate with your Finance Budget Analystfor general questions or program specific questions.
• Questions regarding federal requirements and reporting responsibilities:
  • Email –[email protected]
• Office of State Audits and Evaluations:
  • Single Audit Email –[email protected]
  • SLAA Email –[email protected]
  • FFAM Email –[email protected]
• Fiscal Systems and Consulting Unit Hotline (Accounting policy and Guidance):
  • Email –[email protected]
  • Phone –(916) 324-0385

Webpage last updated July 30, 2024