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Comptroller stands by claim that almost $2.5M in ARP funds remains unencumbered

 Buffalo City Hall
Mason Ald
Buffalo City Hall

It’s a public back and forth between two branches of city government which is fast becoming a saga.

Buffalo Comptroller Barbara Miller-Williams claimed in a Jan. 14 letter that almost $2.5 million in American Rescue Plan (ARP) funds remain unencumbered, according to city accounts.

She said as of Jan. 1 2025, $328,878,133.10 (99.25%) of the funds had been obligated, leaving $2,478,798.90 (0.75%) unobligated per the city’s accounting system.

She sought clarification from Acting Mayor Scanlon’s administration on the status of the unobligated portion.

In response, Scanlon said he “firmly rejects” Miller-Williams’ assertion and claimed through a Jan. 16 statement that the federal cash had been encumbered in accordance with federal guidelines.

In a continuation of the public exchange between the pair, Miller-Williams released a statement standing by her original claim. She went on to clarify that the city’s financial records need to “concur” with information the city provided to the U.S. Department of the Treasury concerning the ARP cash.

“The City of Buffalo defines a contract as encumbered when all required documentation is filed with the Department of Audit and Control, and entered on the Municipal Information System (MUNIS), the City of Buffalo’s accounting software,” she said.

Miller-Williams told WBFO that some paperwork connected to four accounts was outstanding and would need to be submitted to her department.

“I’m simply asking for the administration and the common council to assist with providing proper documentation and information so that for accounting purposes, we're able to track the ARP funding,” she said.

In 2021 the City of Buffalo was awarded $331 million in federal ARP funds designed to help the city recover from the impact of the Covid-19 pandemic. The cash had to be under contract by the end of 2024 to comply with federal rules.

Any ARP cash left unencumbered after 2024 must be returned to the federal government.

In a Dec. 23 common council caucus meeting, it was revealed that outside accounting firm, Dresher and Malecki LLC, had conducted an in-kind tabletop review of the city’s ARP obligations at Scanlon’s direction, just before the federal deadline.

In his Jan. 16 statement Scanlon said: “The City of Buffalo has fulfilled its obligations under ARPA guidelines. The continued mischaracterization of this issue undermines the hard work and dedication of my executive staff who ensured the successful distribution of ARPA funds by the federal government’s mandated deadline.”

Despite Scanlon’s barbed tone, Miller-Williams said there is no bad blood between them.

“It's not a matter of we're at odds or we disagree. I'm only asking for additional information so that I can verify that the funds have been directed appropriately.”

Miller-Williams' letter and subsequent statements from Scanlon and the comptroller's office can be found in full, below.

Buffalo's Comptroller Barbara Miller-Williams penned a letter to Acting Mayor Scanlon stating that almost $2.5 million in the city's American Rescue Plan Funds remain unencumbered according to the city's accounting data. She asks Scanlon to clarify the status of the funds.
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City of Buffalo
Acting Mayor Scanlon refutes the comptroller's claims. He says the city has "fulfilled its obligations under ARPA guidelines."
City of Buffalo
Acting Mayor Scanlon refutes the comptroller's claims. He says the city has "fulfilled its obligations under ARPA guidelines."
Comptroller Miller-Williams' Jan. 17 statement
Comptroller's Office
Comptroller Miller-Williams' Jan. 17 statement

Holly Kirkpatrick is a journalist whose work includes investigations, data journalism, and feature stories that hold those in power accountable. She joined BTPM in December 2022.
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