Published June 30, 2023
Guidance from U.S. Treasury on LATCF
Below is guidance from the US Treasury on the Local Assistance and Tribal Consistency Fund (LATCF). Treasury has defined this funding as a general revenue program that provides additional assistance to eligible counties.
Even though this funding can be used for any governmental purpose except for lobbying, it is still considered federal funding and will need to be tracked, reported, and audited as a federal grant. Some highlights from the LATCF Guidance are outlined below.
- As a general matter, recipients may treat these funds in a similar manner to how they treat funds generated from their own local revenue. Programs, services, and capital expenditures that are traditionally undertaken by a government are considered to fulfill a “governmental purpose.” For Tribal governments, investing in activities undertaken by Tribal enterprises, such as operating or capital expenditures for businesses that are owned or controlled by a Tribal government, are considered a governmental purpose. However, the LATCF funds may not be used for lobbying activities.
COMPLIANCE WITH FINANCIAL MANAGMENT, PROCUREMENT, AND CONFLICTS OF INTEREST STANDARDS
- Recipients must expend and account for the LATCF funds in accordance with the financial management, procurement, and conflicts of interest standards, laws, policies, and procedures applicable to their expenditure of an accounting for their own funds. Treasury will monitor violations of this requirement through reporting and other sources. Recipients should also review the Buy America domestic content procurement preference requirements.
- Recipients may not use federal funds to directly or indirectly pay for any personal service, advertisement, telegram, telephone, letter, printed or written matter, or other device, intended or designed to influence in any manner a Member of Congress, a jurisdiction, or an official of any government, to favor, adopt, or oppose, by vote or otherwise, any legislation, law, ratification, policy, or appropriation, whether before or after the introduction of any bill, measure, or resolution proposing such legislation, law, ratification, policy, or appropriation. Amounts that are used in violation of the lobbying restriction set forth in this guidance may be subject to recoupment.
ELIGIBLE AND INELIGIBLE COSTS
- As a general matter, recipients may use funds to cover costs incurred on any eligible use, including costs incurred from March 15, 2021. Recipients may use funds to cover costs of administering the LATCF program, including costs of consultants to support effective management and oversight as well as compliance with legal, regulatory, and other requirements.