From the Coates Canon blog
Though the U.S. Treasury's Final Rule on the State and Local Fiscal Relief Funds allows for a flexible "standard allowance" in regards to ARP dollars, these appropriations are not simply a part of a local government's general fund. They remain federal grant funds, and must abide by award terms.
The UNC School of Government's Kara Millonzi has published a helpful blog on this topic. It contains information on Uniform Guidance requirements and sample policies.
The League recommends all cities and towns to review this helpful resource.