Webinar On: “eploying ARS Act Title V COVID-19 Relief Funds (R) … · 2020. 5. 11. · Webinar...

Webinar On: “Deploying CARES Act

Title V COVID-19 Relief Funds (CRF) for Indian Tribes”

May 7, 2020

Presented By:KIVA Institute, LLC

[email protected]

Deploying COVID-19 Funds for Tribes

Ben H. NuvamsaPresident/CEO

KIVA [email protected]

http://www.kivainstitute.com/

2

P CARES Act for Indian Country

Pub. L. 116-136 Coronavirus Aid, Relief and Economic Stabilization Act (CARES) Act of 2020

March 27, 2020

• On March 27, 2020 Congress passed and the President signed Pub. L. 116-136 into law providing over $2.0 trillion in one-time supplemental funding to respond to the Coronavirus Pandemic.

• Coronavirus Relief Fund (CRF) created. Over $150 billion in direct assistance to domestic governments:

• $139 billion for state governments based on population ($1.25 billion minimum funding)

• $8.0 billion set aside for Indian tribes

• $3.0 billion for territories including District of Columbia and Puerto Rico

• .

Webinar Agenda

Part 1 – A Refresher: CARES Act Funding

• A Global View of COVID-19 Funding

• Tribal Funding Set-Asides

• BIA, BIE, IHS, HUD, Other

Part 2 – First Distribution of Tribal Set-Aside (60%)

Part 3 - U.S. Treasury Statutory Guidelines – Use of CRF

Part 4 – OMB Exceptions

Part 5 - Deploying Indian Country CRF

• Pub. L, 93-638 Agreements

• Discretionary Grants

• Tribal General Fund

Question & Answer Session

Adjourn

3

Agenda - Virtual Conference

A

Part 1A Refresher:

CARES Act (Pub. L. 116-136) Fundingfor Indian Country & Special Tribal-Aside Funding

March 27, 2020

4

CARES Act Funding: A Review

5

P

CARES Act provides over $2.0 trillion in economic relief package in following major categories:

Pub. L. 116-136 CARES Act Funding

Assistance for American Workers &

Families

Assistance for Small Businesses

Preserving Jobs for American Industry

Assistance for State and Local Governments

$150 Billion

Source: U.S. Department of the Treasury

COVID-19 Appropriations - $2.0 Trillion

6

Public Law 116-136 “Coronavirus Aid, Relief and Economic Security

Act” (CARES Act), signed into law on March 27,

2020, provides special $2.0 trillion one-time

supplemental funding to speed relief across the

American economy. This is the third relief package

from Congress.

P Pub. L. 116-136 CARES Act Funding

Individuals$560 Billion

BigCorporations$500 Billion

Small Businesses$377 Billion

State &Local Govts

$399.8 Billion

PublicHealth$153.5 Billion

Reserve$26

Billion

Source: National Public Radio

Over $10.0 Billion for Indian Country

In the Following Major Categories

and

Specific Tribal Set-Aside Funding

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P Indian Country Covid-19 Relief Funding

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P

Economic Development and Employment

• $454B for loans, loan guarantees, investments in support of Federal Reserve’s lending facilities to eligible businesses, states, tribal nations, municipalities

• $8B Set-Aside funding for tribal nations for COVID-19 Public Health Emergency Relief

• Up to $10M for small tribal businesses eligible for Small Business Act Section 7(a) program to cover salaries, paid sick leave, mortgages/rent, employee health insurance premiums

• Authority for federal government to provide up to 50 percent reimbursement for cost of unemployment compensation

• Direct relief for tribal fishery participants from Department of Commerce

Indian Country CRF Funding

Source: National Congress of American Indians

9

P

Tribal Governance and Housing/Community Development

• $453M for BIA Operation of Indian Programs & Bureau of Indian Education until September 20, 2021.

• $453M BIA

• ($420M Direct Payments to Tribes)

• $69M BIE

• (See April 13, 2020 Dear Tribal Leader Letter from AS-IA Sweeney)

• $300M authorized through September 30, 2024 for HUD Native American Programs

• $200M for Indian Housing Block Grants (IHBG)

• $100M for Indian Community Development Block Grants (ICDBG)


Source: National Congress of American Indians & Bureau of Indian Affairs

10

P

Health, Education and Nutrition

• $1.032B for Indian Health Service

• Up to $65M for electronic health record stabilization and support

• Not less than $450M for IHS directly operated programs; and for tribal and urban health programs under Pub. L 93-638; and under Title V of Indian Health Care Improvement Act

• $125M for transfer to and merge with IHS Facilities account

• Not less than $15M from Health Resources and Services Administration for Telehealth and Rural Health Services

• Not less than $15M for Substance Abuse and Mental Health Services Administration Health Surveillance Program



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P

Health, Education and Nutrition (continued)

• Not less than $15M from Public Health Service and Social Services Emergency Fund for essential medical resources

• Not less than $125M set aside from Centers for Disease Control –Wide Activities and Program Support account

• Extension of Special Diabetes Program for Indians through November 30, 2020

• $4.5M for tribal domestic violence shelters through the Family Violence and Prevention Services Act (10 percent tribal set-aside from $45M overall)

1111



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P

Health, Education and Nutrition (continued)

• Extension of TANF Program through November 30, 2020

• $20M for Older Americans Act, Tribal Nutrition Program for delivery of nutritional services to American Indians, Alaska Native, and Native Hawaiian elders

• $900M for LIHEAP



Department of Health & Human Services• $275M for Human Resources & Services Administration (HRSA)

($90M Ryan White HIV/AIDS; $185M Rural Critical Access Hospitals)

Centers for Disease Control • $4.3B Federal, State, Rural, Tribal Health Activities (PPEs,

Surveillance for COVID, Laboratory Testing, Contact Tracing, Infection Control & Mitigation, Other Public Health Preparedness)

• $500M Global Disease Detection

• $500M Public Health Data Surveillance

• $300M Infections, Diseases Rapid Response Reserve

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Other Potential Tribal Funding


Department of Homeland Security:

• $45M Disaster Relief Fund to protect tribal citizens, help in recovery from effects of COVID-19; reimbursable activities may include medical response, PPEs; National Guard deployment, logistics, safety measures, community services.

• $100M Assistance to Firefighter Grants

• $100M Emergency Management Performance Grants to support coordination, communications, logistics

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Other Potential Tribal Funding


COVID-19 Appropriations for Tribes

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P

Indian Health Service

$1.032 Billion

HUD NAP$300

Million

BIA$522.0Million

$69M BIE:($2.7M Haskell/SIPI$16.8M Tribal Colleges$3.4M Tribal Tech Colleges)$46.1 BIE Schools-TCCs

$453M BIA OIPS

Tribes$420

Million

$380M ATG

$20M WAG

$20M Reserve

IHS Direct Service; Tribal & Urban Health Programs. Expanded support for medical services, equipment, supplies, education, purchased/referred care, new investments, telehealth, disease surveillance, records improvement.

$200M ICDBG

$100M ImminentThreat via COVID19

Tribal CRF Set-Aside Funding

“At lease $400Mshall be made availableto meet direct needs of tribes”

Source: Congressional Research Service, Bureau of Indian Affairs,Indian Health Service

Part 2

Joint Statement by Treasury Secretary Mnuchin and Interior Secretary Bernhardt

On Distribution of Coronavirus Relief Fund Dollars to Native American Tribes

May 5, 2020

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Part 2 - Initial Distribution of CRF

U.S. Department of the Treasury

• Treasury will distribute $4.8 billion, or 60% of the $8.0 billion to tribes based on population data used in the distribution of the Indian Housing Block Grant (IHBG), subject to a floor of $100,000.

• Above data is based on U.S. Census figures and is already familiar to tribal governments.

• Remaining 40% of the $8.0 billion based on the total number of persons employed by the Indian tribes; and any tribally-owned entity; and further data to be collected related to the amount of higher expenses faced by the tribe in fighting against COVID-19

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Initial Distribution of COVID-19 Relief Funds

Source: U.S. Department of the Treasury; and Department of the Interior

U.S. Department of the Treasury

• Payments to tribes began on May 5, 2020 based on population allocation; and will take over several banking days. Amounts calculated for Alaska Native Claims Settlement Act regional and village corporations will be held back until pending litigation relating to their eligibility is resolved.

• Payments to tribes is based on employment and expenditure data will be made at a later date. Treasury will work with tribes to confirm employment numbers and seek additional information regarding higher expenses due to the public health emergency.

• Funds were to be distributed by April 26, 2020 but litigation surrounding the inclusion of ANSCA delayed the distribution.

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Initial Distribution of COVID-19 Relief Funds

Source: U.S. Department of the Treasury; and Department of the Interior

Part 3U. S. Department of Treasury Guidelines

for Use of Tribal CRFApril 22, 2020

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Part 3 – U.S. Department of Treasury

Title V of the Coronavirus Aid, Relief and Economic Security Act (CARES Act; P.L. 116-136), signed into law on March 27, 2020 created the Coronavirus Relief Fund (CRF) to provide:

• $150 billion in direct assistance for domestic governments (states, territories, and tribes)

• $139 billion allocated to state governments based on population; not state receiving less than $1.25 billion

• $8 billion set aside for tribes based on tribe’s share of aggregate tribal expenditures in FY2019

• $3 billion allotted for territories including District of Columbia and Puerto Rico

20

Use of Title V of CARES Act

Source: U. S. Department of the Treasury

• Section 5001(f) of CARES Act provides that the Inspector General of the Department of Treasury will determine whether CRF payments are used for eligible purposes;

• CRF payments made for ineligible purposes are treated as debt owed to the U.S. Treasury;

• CRF payments may not be used to directly account for revenue shortfalls related to COVID-19 outbreak;

• No later than 30 days of enactment, the Treasury Secretary will pay each state, tribal government and unit of local government its share.

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• Treasury Secretary will determine the amounts for tribal governments in consultation with the Secretary of the Interior.

• This determination will be based on expenditure of each tribal government on the overall 2019 expenditures to ensure that all earmarked payments from the Fund are distributed.

• To receive payments from the Fund, units of local government must submit a certification to the Treasury Secretary signed by the Chief Executive Officer for that local government unit stating that its proposed use of the funds are consistent with the three conditions.

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The CARES Act provides that CRF may be used to cover costs that --

1) Are necessary expenditures incurred to the public health emergency with respect to Coronavirus Disease 2019 (COVID-19);

2) Were not accounted for in the budget most recently approved as of the date of enactment (March 27, 2020) of this section for the state or government; and

3) Were incurred during the period that begins on March 1, 2020 and ends on December 30, 2020.

The following slides will cover U.S. Treasury Guidelines on Permissible Uses of CRF.

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U.S. Treasury Title V Eligible Purposes


1. Necessary expenditures incurred due to the public health emergency:

• Expenses that must be incurred to take action to respond to the public health emergency

• Expenses incurred by tribes to respond directly to the emergency, such as:

• Addressing medical or public health needs; and

• Expenses incurred to respond to second-order effects of the emergency, such as providing economic support to those suffering from employment or business interruptions due to COVID-19 related business closures.

• CRF cannot be used to fill shortfalls in government revenue to cover expenditures that would not otherwise qualify under the statute.

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U.S. Treasury - Permissible Uses of CRF


1. Interpretation: Necessary expenditures incurred due to the public health emergency:

• This authorization is intended to address unforeseen expenditures that tribes had to incur to respond to the National Declaration of Emergency (March 20, 2020) to:

• Respond to the Nation Emergency (medical and health needs)

• Institute preparedness measures

• Institute preventative measures

• Institute response measures

• Shutdown of tribal programs & offices (tribal declaration of emergency)

• Shutdown or idle costs (salaries, fringe benefits, teleworking)

• Funds cannot be used to cover tribal revenue shortfalls resulting from the National Emergency

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2. Costs not accounted for in the budget most recently approved as of March 27, 2020:

• CARES Act authorizes that payments be used only to cover costs that were not accounted (unforeseen costs) for in the budget most recently approved as of March 27, 2020.

• A cost meets this requirement if either:

• The cost cannot lawfully be funded using a line item, allotment, or allocation within that budget, or

• The cost is for a substantially different use from any expected use of funds in such line item, allotment, or allocation.

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2. Costs not accounted for in the budget most recently approved as of March 27, 2020 (continued):

• A cost meets this requirement if either (continued)

• “Most Recently Approved Budget” means the budget for the “relevant” fiscal year for the particular government, without taking into account subsequent supplemental appropriations enacted or other budgetary adjustments made by that government in response to the COVID-19 public health emergency.

• A cost is not considered to have been accounted for in a budget merely because it could be met using a budgetary stabilization fund, rainy day fund, or similar reserve account.

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2. Interpretation: Costs not accounted for in the budget most recently approved as of March 27, 2020:

• Tribes (and states and local governments) that have established and approved budgets in place cannot amend those budgets to use COVID-19 funds to account for any losses in revenues caused by the COVID-19 pandemic

• This can also be interpreted to apply to budgets under federal awards, particularly Pub. L. 93-638 agreements where there are established program budgets in accordance with the approved PFSAs.

• A cost is not considered to have been accounted for in a budget merely because it could be met using a budgetary stabilization fund, rainy day fund, or similar reserve account.

• See OMB Exceptions #6 and #7 that provide for charging any unforeseen costs and interruption costs to existing federal awards.

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3. Costs incurred during the period that begins on March 1, 2020, and ends on December 9, 2020.

• A cost is “incurred: when the responsible unit of government has expended funds to cover the cost.

• U.S. Treasury provides six (6) categories of sample eligible expenditures. See the following slides.

29


Source: U. S. Department of the Treasury & Office of Management & Budget

3. Interpretation: Costs incurred during the period that begins on March 1, 2020, and ends on December 30, 2020.

• U.S. Treasury provides a general “catch all” but non-exclusive list of costs that may be chargeable to CRF; and which provides tribes with guidance on how to prepare their budgets to utilize their CRF allocations.

• General rule is that the CRF is designed to provide ready funding to address unforeseen financial needs and risks created by COVID-19 public emergency. For this reason, and as a matter of administrative convenience in light of the emergency nature of this program, states and local governments, including tribes, may presume that payroll costs for public health and public safety employees are payments for services substantially dedicated to mitigating or responding to COVID-19 public health emergency.

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Source: U. S. Department of the Treasury & Office of Management & Budget

1. Medical Expenses

• COVID-19 related expenses of public hospitals, clinics and similar facilities

• Expenses of establishing temporary public medical facilities and other measures to increase COVID-19 treatment capacity, including related construction costs

• Costs of providing COVID-19 testing, including serological testing

• Emergency medical response expenses, including emergency medical transportation, related to COVID-19

• Expenses for establishing and operating public telemedicine capabilities for COVID-19 related treatments

31

Examples of Eligible Expenditures

2. Public Health Expenses

• Expenses for communication and enforcement of public health orders

• Expenses for acquisition and distribution of medical and protective supplies, including sanitizing products and PPEs for medical personnel, police officers, social workers, child protection services, child welfare officers, direct service providers for elders and individuals with disabilities; and other public health workers in connection with COVID-19 public health emergency

• Expenses for disinfection of public areas and other facilities (e.g. nursing homes)

• Expenses for technical assistance to local authorities on mitigation of COVID-19 related threats to public health and safety

• Expenses for public safety measures in response to COVID-19

• Expenses for quarantining of individuals

32


3. Payroll Expenses

• Payroll expenses (and fringe benefits) for public safety, public health care, human services and similar employees whose services are substantially dedicated to mitigating or responding to this COVID-19 public health emergency.

• See Slide #30 that addresses payroll costs for public health and public safety employees that are considered as payments for services substantially dedicated to mitigating or responding to COVID-19 public health emergency, and therefore are allowable costs.

33


4. Expenses of Actions to Facilitate Compliance with COVID-19 Related Public Health Measures

• Expenses for food delivery to residents (senior citizens and other vulnerable populations) to enable compliance with COVID-19 public health precautions

• Expenses to facilitate distance learning, including technological improvements, in connection with school closings to enable compliance with COVID-19 precautions

• Expenses to improve telework capabilities for public employees to enable compliance with COVID-19 public health precautions

• Expenses of providing paid sick, paid family and medical leave to public employees to enable compliance with COVID-19 public health precautions

34


4. Expenses of Actions to Facilitate Compliance with COVID-19 Related Public Health Measures

• COVID-19-related expenses of maintaining state prisons and county jails, (tribal jails) including as relates to sanitation and improvement of social distancing measures to enable compliance with COVID-19 public health precautions

• Expenses for care for homeless populations provided to mitigate COVID-19 effects and enable compliance with COVID-19 public health precautions

35


5. Expenses associated with the provision of economic support in connection with the COVID-19 public health emergency.

• Expenditures related to the provision of grants to small businesses to reimburse the costs of business interruption caused by required closures

• Expenditures related to a state, local government, tribal government payroll support program

• Unemployment insurance costs related to the COVID-19 public health emergency if such costs will not be reimbursed by the federal government pursuant to the CARES Act or otherwise.

36


6. Any Other COVID-19 Related Expenses Reasonably Necessary to the Function of Government that Satisfy the Fund’s Eligibility Criteria

• Refer to Subpart E – Cost Principles of the OMB Uniform Guidance (2 CFR Part 200) for additional guidance.

• Refer to the OMB Memoranda (M-20-17) that provides certain exceptions to the OMB Uniform Guidance on the implementation of special COVID-19 federal awards; and provides guidance on allowable expenses on the use of uses of CRF funds.

• Further, tribes may have other unique costs that would be necessary to carry out the CRF funded projects and respond to the COVID-19 public emergency.

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7. Non-Exclusive Examples of Ineligible Expenditures

Here are some examples of costs that would not be eligible (or allowable) expenditure of payments from the CRF:

1. Expenses for the State’s share of Medicaid

2. Damages covered by insurance

3. Payroll or benefits expenses for employees whose work duties are not substantially dedicated to mitigating or responding to the COVID-19 public health emergency

4. Expenses that have been or will be reimbursed under any federal program, such as the reimbursement by the federal government pursuant to the CARES Act of contribution by States to State unemployment funds

5. Reimbursement to donors for donated items or services

6. Workforce bonuses other than hazard pay or overtime

7. Severance pay

8. Legal settlements

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Examples of Ineligible Expenditures

General Rules on Cost Allowability(2 CFR §200.400)

OMB Exceptions will also apply to new federal awards including Discretionary Grants and Entitlement Contracts. In determining the allowability of costs related to use of COVID-19 Relief Funds (CRF) think in terms of the following broad areas in the use of these funds:

1. Emergency Declaration Costs See OMB Exception No. 6 and 7 of the OMB Memorandum M-20-17 (Program Interruption)

• Use of Tribal Funds for Emergency Response Purposes

• Use of Funds for Emergency Response under Federal Awards

2. COVID-19 Prevention Costs

3. COVID-19 Preparedness Costs

4. COVID-19 Response Costs

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General Rules on Allowable Costs

Part 4

Office of Management & BudgetExceptions

“Administrative Relief for Recipients of Federal Financial Assistance Directly Impacted by the Novel Coronavirus

(COVID-19) due to Loss of Operations”March 19, 2020

40

Part 3 – Office of Management & Budget

Office of Management and Budget Memorandum M-20-17

March 19, 2020

OMB issued two memoranda to provide thirteen (13)administrative relief items for recipients with federal awardsaffected by the loss of operational capacity and increased costsdue to the COVID-19 Crisis.

The memoranda offer temporary relief for administrative, financialmanagement, and audit requirements under 2 CFR Part 200, OMBUniform Administrative Requirements, for federal awards withoutcompromising federal financial assistance accountabilityrequirements.

41


• Tribal nations operate two basic types of federal awards: (1)discretionary grant programs; and (2) entitlement programs, suchas Pub. L. 93-638 awards. We discussed the differences andsimilarities between the two types of federal awards in the firstwebinar.

• For the purpose of this webinar, “Deploying CARES Act Title VCOVID-19 Relief Funds (CRF) for Indian Tribes” we will only discussthe Entitlement Programs (Pub. L. 93-638 awards); and address theCOVID-19 impacts on tribal budgets (general fund).

• Federal agencies that award discretionary grants will issue theirown NOFOs to use their funding allocations for their respectiveCOVID-19 projects. See slides 9 through 15.

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43

DiscretionaryGrants

Entitlement Programs

Funded Through NOFOsEntitlement Programs

(Pub. L. 93-638)

• One-Time Grants• Formula Grants• Competitive Grants• At the discretion of agencies• No Entitlements• Funding Not Guaranteed• Capability Tests

• Tribes Entitled to Contracts & Grants• No Competition• Tribes Presumed Capable• Recurring Funding (Full Funding)• Funding Protections • Contract Support Costs (Indirect)• Other Entitlements

Tribes Operate Two Types of Federal Funded Programs

44

P OMB Administrative Relief

OMB Administrative ReliefMemorandum M-20-17

• March 19, 2020 – Office of Management & Budget issued a follow-up memorandum, M-20-17 “Administrative Relief for Recipients of Federal Financial Assistance Directly Impacted by the Novel Coronavirus (COVID-19) due to Loss of Operations, to expand the scope of exceptions.

• OMB issued 13 Exceptions provide relief for awardees under their current and provided guidance on new awards using CRF.

• Of the 13 Administrative Exceptions, two exceptions (Exception 6 and Exception 7) apply specifically to current federal awards; and will directly impact the use of CRF that will be released by BIA, BIE and IHS; and may affect HUD programs. Other Exceptions (#8 through #12) will have post-award impacts.

OMB Exceptions

1. Flexibility with SAM Registration (2 CFR §200.205)

2. Flexibility with Application Deadlines (2 CFR §200.202)

3. Waiver for Notice of Funding Opportunities (2 CFR §200.203)

4. No-Cost Extensions on Expiring Grant Awards (2 CFR §200.308)

5. Abbreviated Non-Competitive Continuation Requests (2 CFR §200.308)

6. Allowability of Salaries and Other Project Activities (2 CFR §200.403; 2 CFR §200.404; 2 CFR §200.405)

7. Allowability of Costs Not Normally Chargeable to Awards (2 CFR §200.403; 2 CFR §200.404; 2 CFR §200.405)

45

OMB Exceptions

OMB Exceptions

8. Prior Approval Requirement Waivers (2 CFR §200.407)

9. Exemptions of Certain Procurement Requirements (2 CFR §200.319(b); 2 CFR §200.321).

10. Extension of Financial, Performance, and Other Reporting (2 CFR §200.327; §200.328)

11. Extension of Currently Approved Indirect Cost Rates (2 CFR §200.414(c))

12. Extension of Closeout (2 CFR §200.343)

13. Extension of Single Audit Submission (2 CFR §200.512)

46

OMB Exceptions

OMB Exception 6 – Continuation of Salaries and Other Project Activities. (2 CFR §200.403; 2 CFR §200.404; 2 CFR §200.405)

• Agencies may allow tribes to continue to charge salaries and benefits to current federal awards under unexpected and extraordinary circumstances, in accordance with tribal policies, from all funding sources (federal and non-federal).

• Agencies may allow other costs to be charged to federal awards necessary to resume activities supported by the award, consistent with federal cost principles and benefits to the federal project.

47

OMB Exception & Impacts

OMB Exception 6 – Continuation of Salaries and Other Project Activities. (2 CFR §200. 403; 2 CFR §200.404; 2 CFR §200.405)

• Agencies will require tribes to maintain records and cost documentation as required under §200.302, Financial Management; and 2 CFR 200.333, Retention Requirement of Records, to substantiate the charging of any salaries and other project activities related to the interruption of operations and services.

• Agencies may also evaluate tribes’ ability to resume the project activity in the future and the appropriateness of future funding, as done under normal circumstances, and based on progress reports.

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Advisory: OMB Exception 6 – Continuation of Salaries and Other Project Activities.

• Put extra effort into providing full justification and explanation for the necessity to charge costs to all agreements, including Pub. L. 93-638 agreements during suspension of work (when work was suspended and when work resumed).

• Special CRF funds are used to meet necessary costs to respond to the COVID pandemic; and as such, are used to supplement existing tribal or federal grant funds; and not to supplant, or replace, or take in place of, funds that were made available for the same purposes.

• Keep records of emergency leave and extended leave, such as FMLA or Administrative Leave granted to employees because of extenuating circumstances related to COVID-19.

49


Advisory: OMB Exception 6 – Continuation of Salaries and Other Project Activities.

• Although OMB issued an exception on procurement rules regarding competition (Exception #9), purchases of goods and services must be done consistent with federal cost principles; and tribal procurement policies.

• No doubt Exemption #6 will come under close scrutiny of awarding agencies so it is important tribes follow the terms and conditions of federal awards, make sure documents are maintained that will stand the test of an audit, or special monitoring.

• Tribes that may have received special CRF funding and incorporated the funds into existing Pub. L. 93-638 agreements, make sure to separate and keep distinct records of all COVID-19 expenditures; and make sure the Annual Funding Agreement clearly identifies the separate COVID-19 related, approved work statements, and budgets.

50


OMB Exception 7 – Allowability of Costs not Normally Chargeable to Awards. (2 CFR §200.403; 2 CFR §200.404; 2 CFR §200.405).

• Awarding agencies may allow tribes that incur costs related to the cancellation of events, travel, or other activities necessary and reasonable for the performance of the award, or the pausing and restarting of funded activities due to the public health emergency, to charge these costs to grants without regard to 2 CFR §200.403, Factors affecting allowability of costs; 2 CFR §200.404, Reasonable costs; and 2 CFR §200.405, Allocable costs.

51


Advisory: OMB Exception 7 – Allowability of Costs not Normally Chargeable to Awards.

• Be mindful that funds may be limited, or may not be available to meet these needs. But expect that funding agencies will require additional documentation to ensure that expenses were actually incurred due to the cancellation of events, suspension of approved travel, and other related activities due to the pandemic.

• COVID-19 Relief Funds made available under the CARES Act are, or will be allocated to federal agencies serving Indian tribes. The agencies, in turn, will distribute the funds to the tribes in accordance to distribution plans. Other federal agencies also have funding that they will distribute to tribes, or will issue NOFOs to award discretionary grants.

52


Advisory: OMB Exception 7 – Allowability of Costs not Normally Chargeable to Awards.

• If CRF funds are added to Pub. L. 93-638 agreements as new awards or as amendments to existing agreement, keep in mind that under Pub. L. 93-638, tribes are entitled to full funding for Contract Support Costs. Contact your respective federal awarding officials for further advice and guidance. See OMB Exception #11 for discussion on Indirect Costs.

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54

Deploying COVID-19 Relief Funds

Part 5Deploying COVID-19 Relief Funds (CRF)

CARES Act COVID-19 Relief Funds (CRF) will be made available toIndian tribes through federal awards either as:

1.Entitlement Contracts or Agreements (i.e. Self-DeterminationContracts, Self-Governance Compacts and other Agreements) as:

(a) New Awards; or(b) Amendments to Existing Awards

2.Discretionary Grant Awards (Competitive Grants)

Self-Determination

Awards

(BIA, BIE, IHS, HUD)

Tribal General Fund Expenses

(Reimbursement of Expenses)

Federal Discretionary Grant Awards

55


Emergency Declaration

Response Costs

Emergency Declaration &Interruption

Costs

New Projects Under Approved

Grant Awards

Prevention, Preparedness,Response Costs

Prevention, Preparedness,Response Costs

BIA, BIE, IHSDirectly OperatedPrograms

See Slide #15

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What is the Process for Securing CRF?

• Indian Self-Determination Act (25 U.S.C. §5301 et seq.) provides that tribes may assume direct control of Programs, Services, Functions and Activities (PFSAs) under section 102(a)(1) and section 102(a)(2) of the Act.

• Indian Self-Determination Act statutes and regulations will apply to all awards with the Bureau of Indian Affairs and Indian Health Service

• Agreements between tribes a HUD will use HUD’s statutes and regulations (e.g. NAHASDA, Pub. L. 104-330)

• Self-Determination Agreements may be used to recoup program emergency and interruption expenses. See OMB Exceptions #6 and #7

• All of the above agreements may also be used to carry out the scope of work as defined by Title V of CARES Act.

57



• Indian Self-Determination Act (25 U.S.C. §5301 et seq.) provides that tribes may assume direct control of Programs, Services, Functions and Activities (PFSAs) under section 102(a)(1) and section 102(a)(2) of the Act.

• Section 102(a)(1) directs the Secretary (DOI & DHHS) to enter into a self-determination contract upon receipt of a proposal from a tribe, supported by a tribal resolution;

• Section 102(a)(2) authorizes the tribe to submit: (a) a new contract proposal, (b) a proposal to amend, or (c) a proposal to renew an agreement; and directs the Secretary to approve and award the self-determination within 90 days of receipt of the tribe’s proposal;

• Section 108 provides a template for a self-determination non-construction contract; and an Annual Funding Agreement.

58



• Indian Self-Determination Act Regulations at 25 CFR 900 provide guidance on how to apply, what information the proposals should contain, the declination procedures; and the responsibilities of the awarding agencies:

• Subpart C – Contract Proposal Contents; and

• Subpart D – Review and Approval of Contract Proposals

• Subpart E – Declination Procedures

• Subpart J – Construction (if appropriate)

59



• Indian Self-Determination Act - What should tribes do?

• Define the Scope of Work & Plan of Work

• Determine and define the use the CRF under Pub. L. 93-638 awards (either as new awards, or through amendments to existing agreements)

• Remember the allowable uses of CRF (see U.S. Treasury Guidelines and See Slide #51).

• Define how work will be accomplished

• Develop a Staffing Plan (and begin recruitment) if appropriate

• Highly recommend special staff be assigned (manager and accounting staff)

• Set up work offices/sites/equipment/vehicles

• Develop the Budget with Budget Justification

60



• Indian Self-Determination Act - What should tribes do?

• Prepare and secure authorizing tribal council resolution

• Submit the proposal to the appropriate approving and awarding agency via Certified Mail; and remember the 90-day requirement

• Negotiate directly with the federal awarding official

• Once awarded, draw funds down via appropriate EFTS

• Prepare banking arrangements

• Comply with appropriate reporting and close out requirements

• Keep detailed program and financial records; and be prepared for audits

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• Discretionary grant awards

• Research grant programs that may help you in meeting your needs to respond to COVID-19, particularly those that are available to Indian tribes

• Frequently check the Notices of Funding Opportunities (NOFO)

• Awarding agencies will have their own requirements regarding prescribed and acceptable uses of COVID-19 funds; grant proposal requirements, deadlines, etc.

• Remember the OMB Exceptions, particularly those that apply to discretionary grants, such as expiring SAM registration (Exception #1, #2, #3, #4, #5, #8, #10, #12)

• Follow the same preparedness activities outlined for Self-Determination awards.

Tips and Reminders: \

• Remember that CRF funds are one-time funds, not continuing funds although completion of projects may extend beyond Fiscal Year 2020/2021

• Consult with funding agencies as they may have special instructions• Consult with awarding agencies for further guidance especially on the

question of Allowable Costs• Maintain separate accounting of COVID-19 expenditures• If you propose to recoup Tribal Emergency Declaration Costs (Slide #51)

make sure you have detailed supportive expense reports• Do not “supplant” current funds with CRF funds• Use of COVID-19 funds will be special focus of annual audits • Document! Document! Document!

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Tips on Use of COVID-19 Funds

Question & Answer Session

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Discussion

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In Closing

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