With $16.2 million coming to Bartholomew County government through the American Rescue Plan (ARP), local officials have decided to get professional consulting help to make sure they spend it the right way.
Baker Tilly US, LLP — a Chicago-based public accounting and consulting firm with an office in Indianapolis — made an offer to ensure that whatever Bartholomew County officials purchase with those funds will qualify under stringent federal guidelines.
The county will receive about $8 million on or before May 11, while the remaining $8.2 million will be received next year, county Auditor Pia O’Connor said.
Under the agreement, Baker Tilly will charge a variable hourly rate for their consulting, but the total contract amount approved Monday by the Bartholomew County Commissioners cannot exceed $25,000 over the next two years, commissioner Chairman Larry Kleinhenz said.
The offer was made less than a week after the commissioners and the Bartholomew County Council reached an informal consensus that professional advice is needed.
During the council’s April 19 meeting, Kleinhenz warned that if the money isn’t spent according to the established criteria, the county would be opening itself up to substantial penalties that might include giving the money back.
O’Connor said while her office was able to make sure the $2.68 million received nearly a year ago through the Coronavirus Aid, Relief and Economic Security (CARES) Act was properly used and allocated, restrictions placed on these new funds are much larger and specific.
“It’s one of those things where if we don’t spend this money correctly, we definitely don’t want to be in a position where we have to pay it back,” O’Connor told the commissioners.
Elected officials are limited to the following general areas in spending the money:
To respond to the public health emergency with respect to COVID-19 or its negative economic impacts. This could include assistance to households, small business, nonprofits, or to aid impacted industries such as tourism, travel and hospitality.
To respond to workers performing essential work during the public health emergency by providing premium pay to eligible workers of Columbus, Bartholomew County government, and non-entitlement units of local government. The funds could also provide grants to certain employers who have eligible workers who perform essential work.
For the provision of government services to the extent of the reduction in revenue to Columbus, Bartholomew County government, and non-entitlement units of local government, due to the COVID-19 public health emergency. This provision would be relative to revenues collected in the most recent full fiscal year of the local governments.
To make necessary investments in water, sewer or broadband infrastructure as approved by the U.S. Treasury.
In addition,the county is prohibited from using these funds to lower taxes, to increase pension funds or finance general county government expenses.
But commissioner Tony London said the the relief fund has other buckets of money available that might include millions for such things as transportation, mental health treatment, infrastructure, rural broadband expansion and public health.
“Baker Tilly will help us go after those funds as well,” London said. “That’s part of their professional service. If there is money available, we need to go for it.”
The commissioners are expected to work with financial consultant Jason Semler, who worked for H.J. Umbaugh and Associates until that firm was acquired by Baker Tilly in 2019.
The relief funds were allocated after President Joe Biden signed legislation authorizing the relief funds for local and state governments on March 11.
