Quarterly Reporting Special Tip with Clarifications
Summary
A Treasury Emergency Rental Assistance (ERA) quarterly reporting special tip dated January 24, 2022, addressed to ERA1 and ERA2 recipients preparing their Q4 2021 and later quarterly reports. It states that it supersedes and replaces sections of the Addendum published on October 28, 2021. The guidance clarifies that recipients report award funds as obligated when they make a definite commitment creating a legal liability, that paid amounts are also reported as obligated, and that monthly expenditures should match quarterly totals. It describes ERA1 reallocation under Section 501(d) of the Consolidated Appropriations Act, 2021, beginning on September 30, 2021, and notes that recipients must now register for a UEI number instead of a DUNS number.
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Treasury Emergency Rental Assistance (ERA)
Quarterly Reporting Special Tip
January 24, 2022
**Attention**
Dear ERA1 and ERA2 Recipients:
Thank you for your efforts to deliver emergency housing relief and increase transparency through
ERA quarterly reporting. As data in recent ERA monthly and quarterly reports demonstrate, many
at risk families remain in their homes and apartments thanks, in part, to the hard work of the ERA
Recipients.
Treasury is sharing several observations and important reporting tips below. Please take a moment
to review. Information in this document will be useful to all ERA recipents as they prepare their
Q4 2021 Quarterly Reports and future Quarterly Reports.
This special guidance supercedes and replaces sections of the Addendum published on
October 28, 2021.
Clarifications on Recipient Reporting on Obligations and Expenditures
• Obligation and Expenditure in Quarterly and Monthly Reporting 1: To elaborate on
existing guidance (there is no substantive change to the existing definitions of the terms),
ERA recipients should report their Treasury ERA prime recipient award funds as obligated
when the recipient makes a definite commitment that creates a legal liability for the
recipient to make a payment for goods and services ordered or received, or a legal duty on
the part of the recipient that could mature into a legal liability by virtue of actions on the
part of the other party (for example, an applicant for rental housing assistance). Payment
may be made immediately or in the future. Recipients incur an obligation, for example,
when they place an order, sign a contract, award a grant, purchase a service, or take other
actions that will require the recipient to make payments under the ERA award. In addition
to legal obligations that have not yet been paid, Recipients must also report ERA funds
that have been paid/expended as obligated in each Quarterly Report. Amounts reported
as Expenditures to Treasury in ERA Monthly Reports should be similarly reported as
Expenditures and Obligations in the associated ERA Quarterly Report. The sum of
Expenditures in ERA Monthly Reports are expected to equal Quarterly total expenditures
for the respective period less any necessary adjustments (for example, for returned checks).
For recipients on a cash basis of accounting only, the amount of the ERA award obligated
may be equal to the amount expended and paid (cash out the door). Otherwise, accrued
liabilities for expenses incurred that have not been paid (for example, an approved rental
housing assistance agreement or a commitment letter to pay prospective rental assistance
in the following quarter) must also be counted as amounts obligated.
1
Consistent with the definitions in Treasury’s reporting guidance, 2 CFR Part 200 definitions, standard instructions
for the Federal Financial Report (SF-425), and definitions from the Government Accountability Office.
1
• ERA1 Reallocation Guidance: Section 501(d) of the Consolidated Appropriations Act,
2021 provided that beginning on September 30, 2021, the Secretary shall recapture excess
funds, as determined by the Secretary, that were not obligated by a grantee and reallocate
such amounts to eligible grantees who, at the time of such reallocation, have obligated at
least 65 percent of the amount originally allocated to them and have a demonstrated need
for such funds. Treasury issued ERA1 Reallocation Guidance on October 4, 2021, that sets
forth policies and procedures for the ERA1 reallocation process, which is available here.
Please note that while the reallocation guidance allows recipients to assume 10% of the
total ERA1 award has been obligated for administrative expenses for the purposes of
reallocation, recipients are to report actual program Administration expenses and
obligations in Quarterly Report submissions.
Treasury’s Reallocation Guidance did not change Treasury’s obligation definition. The
reallocation guidance simply clarified that recipients may consider a financial assistance
commitment letter issued to induce a landlord to enter into a rental agreement with an
eligible household as an obligation.
Treasury expects amounts certified as obligated or expended for the purpose of reallocation
to match previous and future Monthly and Quarterly Reporting submissions (with the
exception of the 10% administrative expense allowance). Treasury will issue guidance on
accounting for reallocated funds in a future update to the ERA1 reporting guidance. Note,
however, that amounts returned to Treasury, whether excess funds or voluntary
reallocation, should be excluded from reporting since the funds are no longer available for
obligation or expenditure.
• Obligations and Expenditures Must Not Exceed the Federal Award Amount
Recipients should ensure that amounts reported as obligated or expended do not exceed the
total amount of the recipient’s respective ERA1 and/or ERA2 award received from
Treasury. Some recipients have reported obligations or expenditures that exceed the
amount of funds awarded and paid by Treasury. While recipients may utilize other, non-
Treasury ERA funds for their rental assistance programs, and are encouraged to do so
within the guidelines set forth in Treasury’s ERA Frequently Asked Questions and related
guidance from the Office of Management and Budget in M-21-20, Promoting Public Trust
in the Federal Government through Effective Implementation of the American Rescue Plan
Act and Stewardship of the Taxpayer Resources, recipients should only report expenditures
and obligations received from Treasury for their ERA1 and/or ERA2 award in their ERA
Quarterly Reports. Recipients must also remember to report expenditures and obligations
related to their ERA1 award separately from their ERA2 award. Treasury encourages
recipients to identify amounts and describe contributions from other federal, state, or local
programs in a comment field in quarterly and monthly submissions.
• Obligations and Expenditures by Financial Assistance Type Must be Less than or
Equal to the Federal Award Amount: The amount a recipient reports as obligated or
expended by ERA financial assistance type (for example, rent, rental arrears, etc.) and for
2
administrative expenses must not exceed the total amount of the ERA1 or ERA2 award.
This rule applies to amounts reported for a single reporting period and for cumulative
reporting.
• Monthly and Quarterly Expenditure Reporting: Treasury expects to be able to sum a
recipient’s monthly household expenditure reports and the monthly sum should be
consistent with expenditures reported in the respective Quarterly Report, except for
documented adjustments for refunds and recoveries where applicable 2. Amounts reported
in monthly reports should be consistent with ERA reallocation certifications for the same
reporting period and point in time. Please note, Treasury plans to issue additional guidance
on procedures for making updates or corrections to previously submitted monthly and
quarterly reports in early 2022.
• Reporting the ERA Prime Recipient’s Direct Obligations and Expenditures, and all
Subrecipient and Contractor Expenditures: As required in section 15011 of the CARES
Act, recipients must report all obligations, including all direct payments and all obligations
made to subrecipients and contractors. Please reference the Uniform Guidance at 2 CFR
200.332, Requirements for Pass-through Entities, for standards regarding when to report
subrecipient activity as obligated or not and apply the definitions in ERA reporting
guidance otherwise.
For example, the following Obligations and Expenditures are reportable in the
“Expenditures” tab and the “Expenditures Associated with the ERA Recipient’s
Subawards, Contracts, and Direct Payments Valued at $30,000 or More” of the ERA
Quarterly Report (see ERA reporting guidance) and the associated bulk upload files with
the relevant picklist selections included:
1) A recipient awards and expends/pays more than $30,000 directly to a third party
(such as a business, corporate landlord, utility provider, non-profit provider, or
other eligible entity) that is receiving the ERA funds exclusively as a beneficiary
on behalf of a tenant. (This does not include payments to beneficiaries who are
unincorporated individual persons, for example, an individual landlord
reporting rental income to the IRS on the Form 1040, U.S. Individual Income
Tax Return, Schedule E, Supplemental Income and Loss, under a personal tax
identification number such as a Social Security Number rather than an
Employer Identification Number issued by the IRS.) Please see the related
discussion below of Subrecipient versus Beneficiary versus Individual for more
information.
2) A recipient awards a contract with a net value of more than $30,000 to a contractor
for a service needed to implement the objectives of the recipient’s ERA Project 3
3) A recipient provides a subrecipient a subaward greater than $30,000 to carry out
part of the prime recipient’s ERA award.
2
Note, Treasury recognizes that the number of Monthly households assisted is unlikely to sum to the total number
of assisted households in quarterly reporting due to double counting of households receiving assistance across
months.
3
Expenditures, regardless of amount, to a contractor with a contract with a net value of $30,000 or more should be
reported in the “Expenditures Associated with the ERA Recipient’s Subawards, Contracts, and Direct Payments
Valued at $30,000 or More” screen on the ERA Quarterly Report.
3
Clarifications on how to Record Payments to Individuals, Small Landlords
and Other Beneficiaries on the ERA Quarterly Reports
• Reporting Payments to Individuals 4: Payments of ERA Financial Assistance to
individuals who are not incorporated – regardless of the amount – should be reported in
the aggregate using the “Obligations and Expenditures to Individuals (Beneficiaries) ”
screen or the associated bulk upload file without reporting the individual’s unique
identifiers (such as the Social Security Number).
• Reporting Payments to Unincorporated Small Landlords (Individuals):
Unincorporated small landlords (individuals) that receive ERA Financial Assistance
payments (e.g., for rent, rent arrears, and so forth) are beneficiaries. Therefore, ERA
Financial Assistance payments to such unincorporated small landlords – regardless of the
amount – should be reported in the aggregate using the “Obligations and Expenditures to
Individuals (Beneficiaries” screen or the associated bulk upload file without reporting the
landlord’s unique identifiers (such as the Social Security Number). Unincorporated small
landlords typically file a Form 1040 with Schedule E rental income with the IRS using a
personal tax identification (such as a Social Security Number).
• Reporting ERA Amounts of $30,000 or More Paid to a Beneficiary that is a Business,
Corporation, or Non-Profit – When an ERA Recipient pays $30,000 or more in ERA
Financial Assistance to a business, corporation, or non-profit entity that is receiving the
payment exclusively as a beneficiary of the program (excluding unincorporated individuals
as noted above), the ERA Recipient must create a beneficiary profile record that includes
the entity’s DUNS or Unique Entity Identifier (UEI) number (where registered), the
Taxpayer Identification Number/Employer Identification Number (TIN/EIN, not SSN), the
legal name, the entity type (for example, “For-profit Organization”), and the legal address
(usually the headquarters location corresponding with the TIN/EIN reported and
registration required for a DUNS or SAM). Until Treasury posts an updated reporting
screen, ERA Recipients are instructed to answer “NA” to the question, “Is the subrecipient
registered in SAM.gov?” for any non-individual beneficiaries to enable report acceptance
by Treasury’s portal and satisfy the mandatory data fields. The answer would be “NA”
even if the entity is not registered in SAM.gov and the recipient is using a TIN/EIN for
reporting. Treasury apologizes for this inconvenience. The ERA Recipient must then
follow the normal procedure for setting up a Direct Payment record on the “Subawards,
Contracts, Direct Payments” tab as outlined in the reporting guidance. In addition, the ERA
Recipient must report all expenditures (direct payments) made to the entity either on the
screen for reporting expenditures associated with Subawards, Contracts and Direct
Payment of $30,000 or more or by using the associated bulk upload file.
4
This reporting requirement is similar to the Treasury CARES Act Coronavirus Relief Fund reporting in
GrantSolutions.
4
Other Clarifications
• Reporting Subaward and Executive Compensation Information. Only “First-Tier”
subaward details are to be submitted to FSRS.gov as required by 2 CFR Part 170, Appendix
A regarding Reporting Subaward and Executive Compensation Information. This
requirement continues to apply in addition to the section 15011 of the CARES Act
reporting requirement for subawards, contracts and direct payments as detailed in the ERA
reporting guidance, including where recipients report subrecipient activity to FSRS.gov or
where Treasury reports such information on the recipient’s behalf to FSRS.gov based on
the subaward reporting the recipient provides to Treasury on its quarterly reports (see 2
CFR Part 170, Appendix A section I.a.2.i.)
An entity that is strictly a beneficiary receiving a payment is NOT required to do any of
the following: register for a DUNS number or a Unique Entity Identifier (UEI); register
with SAM.gov or report executive compensation in SAM.gov.
(Note, if an entity is both a beneficiary and a subrecipient or a contractor and if the
recipient’s operating norms meet the criteria specified in 2 CFR 200.331, Subrecipient and
contractor determinations, then the entity meeting the requirements of the award term in
appendix A 2 CFR Part 170 must register for a UEI 5 at SAM.gov and report executive
compensation 6.)
Thank you for your patience and comments as Treasury administers multiple pandemic programs.
We welcome your ongoing feedback regarding existing requirements and the clarifications above.
EmergencyRentalAssistance@Treasury.gov
U.S. Department of the Treasury
5
At this time, new DUNS numbers are no longer available. Federal recipients are required to register for a UEI
number instead of the DUNS number.
6
Pursuant to the Federal Funding Accountability and Transparency Act (FFATA) and its implementing regulations
at 2 CFR Part 170.
5
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