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ARPA Application Instructions and Calculating the Top-Line Budget

Numbered letter 2021-5 - Top-line budget definition - American Rescue Plan Act (ARPA) Supplemental Information

First, please review Numbered Letter 2021-5 that defines how to calculate the top-line budget, if you have not done so already

  • For funds with a budget adopted by your governing body (e.g., General fund), one would use the adopted budget and any budget amendments as of January 27th, 2020. 
    • In other words, you are using what you had budgeted to spend in those funds, not actual expenditures.
    • For example, if you have a fiscal year that started on October 1st, 2019, for fiscal year 2020, would use this governing body-approved budget and approved budget amendments for these funds through January 27th, 2020.
  • For funds that do not require a budget to be adopted, nor was one adopted, one will use the actual expenses from the last audit prior to January 27, 2020.
    • In most cases, this will be the 2019 audit or, in some cases, the 2018 audit if you have a biennial audit. 
    • An example of this might be a Proprietary fund, such as a Sewer fund (e.g., an enterprise fund), that does not require budgets to be adopted (but it is a best practice to do so).
  • The amounts for each fund are added together to reach the top-line budget total.

For example, for a General Fund, one will use what was budgeted as of January 27th, 2020. If the local unit also has a Sewer fund, one would use the audited actual numbers just for that fund. Both would be added together to calculate the top-line budget. 

The amount that should be reported is just one total number summarizing the grand total for all funds for the top-line budget calculation. Local units do not need to upload or provide additional information to Michigan Treasury. Please note when the local unit completes the first reporting to the US Treasury in October, actual budget and audit documents validating the top-line budget will be filed with US Treasury. Please review US Treasury Compliance and Reporting Guidance. 

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