06/15/2020 BOARD OF SELECTMEN Agenda Packet

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r CCC=:=E I, stir .�,�,, �� bl... e TO: Rodney C. Collins, Town Manager From: Dawn Thayer, Finance Director Cate: 5/8/2020 Re: Request to Deficit Spend FEMA&CARES Act Funds As I have mentioned previously, accounting guidelines/processes/requirements relative to the COVID-19 federal funds are constantly being updated. I have applied for round one of the CARES Act Relief funds for FY '2020 and hope to be receiving them soon. Bulletin 2020-07 released last week by the Division of Local Services (DLS), outlines the accounting methods they would like us to use for recording expenses under FEMA reimbursement and the CAFES Act. We are hoping to receive our CARES Act funding soon however, historically, the FEMA process has been cumbersome, time consuming and slow i disbursement of funds. Due to the pace of the FEMA process, we anticipate the FEMA reimbursement fund will be in "deficit"on 5/30. The majority of this deficit will be the result of moving expenditures from the operating budget, to the FEMA and CARES Act funds, in anticipation of receipt of those federal funds. There will NOT be a deficit in the general operating budget. Under the provisions of MGL Chapter 44, section 31, departments financed by municipal revenue or taxation, may not incur liabilities in excess of appropriation except in cases of major disasters. The Governor declared a state of emergency due to COVID-19 on March 10, 2020, allowing us to deficit spend with the approval of the Director of Accounts of the Division of Local Services. Our DLS representative has advised us to request approval to deficit spend within the FEMA and CAFES Act funds, in case we have not received those funds by 6/30. To request approval, our Selectboard must vote to submit to the Director of Accounts, the following: • a spending estimate to address the emergency situation 0 a description of the types of expenditure anticipated to be made At their next scheduled meeting, which I-believe is going to be on 6/15/20, 1 would like to ask if you could request the Board of Selectmen vote to. 1} Submit to the Director of accounts of the Division of Local Services, a request under Chapter 44, section 31 of the Massachusetts General Laws, for emergency expenditure authorization for FY 2020 COVID-1 9 related expenses. 2) The estimated amount of expenditures is$707,875. 3) These funds will be used for overtime associated with first responders, personal protective equipment, compliance/reporting staff costs, telework costs, school distance learning expenditures, cleaning &disinfecting, communication with the public, and senior meal delivery and wellness checks. Once the BOS has voted, I will submit a written request for approval to"deficit"spend, to the Director of Accounts. Thank you.