Needs
In 2021, the American Rescue Plan Act (ARPA) brought a windfall of federal funds to Wisconsin, challenging the State's Department of Administration to manage and report effectively on these funds. Wisconsin adopted U.S. Digital Response’s (USDR) free ARPA Grant Reporting tool to consolidate data from multiple agencies, automate reporting, and ensure compliance with U.S. Treasury requirements. The result was improved accuracy, significant time savings, and enhanced audit readiness. This case study examines how Wisconsin's use of USDR's solution streamlined reporting and set a new standard for effective federal fund management.
The federal funding landscape: A lifeline for communities
In recent years, the federal government has unleashed unprecedented funding to help states recover from the COVID-19 pandemic. This includes the American Recovery Plan Act’s State and Local Fiscal Recovery Funds (SLFRF) with Wisconsin receiving $2.5 billion.
These funds represented a crucial lifeline for Wisconsin's most vulnerable residents - from providing emergency funding to the childcare industry to implementing innovative workforce programs and supporting small businesses in underserved areas. However, the influx of funds also brought complex reporting requirements that could slow aid delivery if state agencies focused on reporting instead of program support.
Wisconsin's reporting dilemma
“There was a lot more federal funding flowing from the federal government to states, with a longer duration of the funds. We needed to shift to a more sustainable model, rather than having everybody pitch in as we did during the intense early pandemic period,” said Andrew Schwartz, Wisconsin’s Federal Funds Administrator and Agency Liaison, contrasting SLFRF and Coronavirus Relief Funds, similar funding for states under the CARES Act.
Wisconsin's existing processes using email and spreadsheets were far too cumbersome. The challenges included:
- Quarterly reporting requirements for SLFRF funds through 2027
- Data scattered across multiple state agencies
- A small team managing expanded responsibilities
- Increased scrutiny and audit concerns
These reporting hurdles were more than just administrative headaches - they directly impacted Wisconsin's ability to deploy funds quickly to those in need. Every hour spent wrestling with spreadsheets was an hour not spent on program design, community outreach, or responding to needs in underserved areas.
Our approach
USDR's solution: Turning reporting into a force for good
Wisconsin found its answer in USDR's ARPA Grant Reporting tool. This free, purpose-built solution offered:
- Automated data consolidation from multiple agencies
- Built-in compliance checks against Treasury rules
- A user-friendly interface requiring minimal training
The implementation process was straightforward with USDR providing crucial support throughout. “It's nice that the agencies who have to do this on top of everything else they're doing, especially on the financial side, can come back to it every three months, and it's not too much to remember what they did last time,” Andrew said, emphasizing the tool’s user-friendliness.
USDR's ARPA Grant Reporting tool delivered several key advantages for the state:
Simplified data consolidation and enhanced accuracy: The tool automatically combines reports from different agencies into Treasury-ready files, saving significant time and reducing errors. Built-in validations catch issues before submission, improving report accuracy and reducing compliance risks.
Streamlined processes and improved audit preparedness: The centralized portal eliminated manual tracking and provided a clearer audit trail.
Adaptability to evolving requirements: USDR's responsiveness to the Treasury's changing reporting rules helped Wisconsin stay compliant with minimal disruption.
This efficiency translated directly to community impact. By streamlining reporting, Wisconsin could:
- Focus more on program implementation instead of financial and project reporting
- Respond more quickly to changing community needs
- Ensure accurate reporting, reducing the risk of funding clawbacks that could harm program beneficiaries
Beyond software: fostering a community of practice
An unexpected benefit of adopting USDR's solution was access to a network of peers facing similar challenges. Weekly meetings facilitated by USDR provided a forum for states to share experiences and strategies.
“Being able to talk through things and, in some sense, commiserate with other states about issues has been a big plus. We can ask, 'How did you interpret that?' or 'This guidance changed. How are you thinking about it?' There's a level of familiarity that makes it more comfortable to ask questions to the group,” Andrew said.
This knowledge-sharing improves grant management practices across states, leading to more effective reporting of ARPA funds nationwide - a multiplier effect that amplified the tool's impact far beyond Wisconsin's borders.
Looking ahead: expanding the impact
Impressed with the results, Wisconsin is exploring USDR's reporting tools for other federal funding streams, including the Capital Projects Fund. “I'm certainly interested in any USDR tool designed for states' needs. Often the interfaces between the state systems and the federal government systems need that intermediary to bridge that gap for us,” Andrew said.
This expansion promises to enhance Wisconsin's ability to manage federal funds effectively, ensuring that every dollar has the maximum possible impact on the lives of its residents.
Technology as a force multiplier
Wisconsin's journey with USDR's ARPA Grant Reporting tool offers a compelling story of how technology can improve operational efficiency and amplify the ability to respond to community needs. The key lessons from Wisconsin's experience resonate beyond state lines:
- Efficiency drives impact: By simplifying reporting, Wisconsin freed up resources to focus on program implementation, enabling more responsive program delivery to vulnerable populations. This demonstrates how back-office improvements can translate directly to front-line services.
- Collaboration amplifies success: The peer network facilitated by USDR fostered knowledge sharing, creating a ripple effect of improved practices across participating states.
- Technology bridges gaps: USDR's solution effectively connected state systems with federal requirements, a model that could be replicated in other areas of government operations.
Ultimately, Wisconsin's experience illuminates a critical truth: communities benefit when government operations become more efficient. The state's journey from spreadsheet struggles to streamlined systems isn't just about administrative ease—it's about building a foundation for more responsive and impactful public service.
"I'm certainly interested in any USDR tool designed for states' needs. Often the interfaces between the state systems and the federal government systems need that intermediary to bridge that gap for us."
Andrew Schwartz
Wisconsin’s Federal Funds Administrator and Agency Liaison
Wisconsin Department of Administration
