Contents

Overview

State of Colorado Policies for Subrecipients

Expenditure Types for All Expenditure Categories

Civil Rights Compliance and Equity

Updates -January 16, 2024

We have had a few questions and subsequent conversations with the State Controller's Office and others.  Here are updates:

Supplanting vs. Supplementing

For 6.1 this will not be an issue since it is Provision of Government Services, Revenue Replacement. This is only true for the Expenditure Category 6.1

Contractors:

All LPHAs with a contractor line item, need to send OPHP a signed Subrecipient vs Contractor form.  Note -We have a form template, but are modifying it for LPHAs. More to come soon.

Revenue Replacement:

The use of Expenditure Category 6.1 in this case is for State-level replacement of lost revenue, and NOT for local-level replacement of lost revenue.  If there are concerns that this might count against the local-level calculation for SLFRF revenue replacement, it does not.

Overview

Due to the nature and speed of the agreements, it is extremely important to provide guidance that summarizes federal and state legal requirements on allowable costs.  In addition to meeting the allowability requirements, all expenses must be allocable to the scope of work, be reasonable, and consistent with documented agency policy.  These funds are part of the federal Coronavirus State & Local Fiscal Recovery Funds (SLFRF).

While recipients have considerable flexibility to use funds to address the diverse needs of their communities, some restrictions on use apply across all eligible use categories. These include:

• For states and territories: No offsets of a reduction in net tax revenue resulting from a change in state or territory law.
• For all recipients except for Tribal governments: No extraordinary contributions to a pension fund for the purpose of reducing an accrued, unfunded liability.
• For all recipients: No payments for debt service and replenishments of rainy day funds; no satisfaction of settlements and judgments; no uses that contravene or violate the American Rescue Plan Act, Uniform Guidance conflicts of interest requirements, and other federal, state, and local laws and regulations.

Page 41 of the 2022 Final Rule has more information about the Restrictions on Use.

Federal information about the State and Local Fiscal Recovery Funds (SLFRF) can be found here: https://home.treasury.gov/policy-issues/coronavirus/assistance-for-state-local-and-tribal-governments/state-and-local-fiscal-recovery-funds

State of Colorado Policies for Subrecipients

All Local Public Health Agencies are considered subrecipients for this funding, not grantees or contractors. Therefore, LPHAs are required to abide by the same federal rules as the state.

Policies include:

Procurement Conflicts of Interest This OSC policy provides direction regarding both individual and organization procurement

conflicts of interest.

Conflicts of Interest Technical Guidance This technical guidance document provides additional information to assist state

agencies, employees, and individuals in complying with the OSC Procurement Conflicts of Interest policy.

Internal Control System This OSC policy creates an internal control system to ensure compliance with 2 CFR 200

Uniform Guidance and CRS 24-17-102.

ARPA Department Certification  Every state agency that has been awarded SLFRF funds must sign the Certification Agreement to acknowledge and comply with U.S. Treasury requirements for SLFRF.

Duplication of Benefits  ARPA guidelines require that grantees avoid duplication of benefits (DoB). This document

assists state agencies in conducting a DoB analysis.

SLFRF and Internal Controls  Effective internal controls shall be established and maintained to ensure that entities

receiving ARPA funds are in compliance with federal statutes, regulations, and terms and

conditions of the award. This document details federal requirements and the framework needed for effective internal

controls.

Supplanting Guidance  This resource is intended to assist agencies in understanding the difference

between supplementing and supplanting federal funds. The resource also includes a

determination tool.

SLFRF Fraud, Waste, and Abuse Guide   This document is an informational guide to provide a basic understanding of Fraud, Waste and Abuse. Differences in organizations and programs may require variations to the analysis. This reference guide does not supplant the need to understand Federal, State, and Local requirements.

Time and Effort Guidance  All recipients and subrecipients of SLFRF funding are required to track the “time and effort” of their wholly or partially federally funded employees. An absence of this documentation will result in significant audit findings.

CDPHE training: Tracking Employee Time & Effort Across Multiple Funding Sources - FRMS Training (CO Train course # 111374)

Expenditure Types for All Expenditure Categories

*Telecommunications/video surveillance equipment by SD consultation with the NI or FBI director reasonably believes to be an entity owned or controlled by, or otherwise, connected to the government of a covered foreign country.

Capital:

Please read: https://drive.google.com/file/d/13S7fzgIpWXbVuWEBVfYGUn4lY5TnvYy5/view?usp=sharing

Description of the property; Serial or other ID number; Source of funding and percentage of federal dollars used; Title holder; Acquisition date; Cost; Location, use and condition of property; Disposition data including date of disposition and sale price if any.

SLFRF has some different disposition requirements than most federal funding. During the period of performance as well as after the period of performance the asset may be used for a purpose other than that for which it was originally purchased as long as the other purpose is consistent with an eligible use. For instance, if a vehicle was purchased for an original purpose of providing COVID-19 vaccinations to remote rural areas but is no longer a critical need, it may be repurposed to provide transportation to individuals with access to health care at the closest facility. This “repurposing” is in alignment with an eligible use, thus the vehicle would not need to be returned to Treasury at the end of the performance period. If the asset cannot be repurposed, then disposition should comply with the requirements of 2 CFR 200.310-315.

Civil Rights Compliance and Equity

Recipients of federal financial assistance from any federal agency are required to meet legal requirements relating to nondiscrimination and nondiscriminatory use of Federal funds. Those requirements include ensuring that entities receiving Federal financial assistance do not deny benefits or services, or otherwise discriminate on the basis of race, color, national origin (including limited English proficiency), disability, age, or sex (including sexual orientation and gender identity), in accordance with the following authorities: Title VI of the Civil Rights Act of 1964 (Title VI) Public Law 88-352, 42 U.S.C. 2000d-1 et seq., and the Department's implementing regulations, 31 CFR part 22; Section 504 of the Rehabilitation Act of 1973 (Section 504), Public Law 93-112, as amended by Public Law 93-516, 29 U.S.C.

794; Title IX of the Education Amendments of 1972 (Title IX), 20 U.S.C. 1681 et seq., and the Department's implementing regulations, 31 CFR part 28; Age Discrimination Act of 1975, Public Law 94- 135, 42 U.S.C. 6101 et seq., and the Department implementing regulations at 31 CFR part 23.

Equity

As a key principle of the ARPA, the US Treasury encourages recipients to use SLFRF-funded projects to advance shared interests and promote equitable delivery of government benefits and opportunities to underserved communities, as outlined in Executive Order 13985, On Advancing Racial Equity and Support for Underserved Communities Through the Federal Government. Additional resources on Equity

can be found in Appendix Administrative Requirements