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Health and Human Services Agency (HHSA), Community Services Division, recommending the Board approve and authorize the Chair to sign a Fiscal Year 2023-24 Budget Transfer Request (BTR) to move savings in budgeted County General Fund contributions from the Community Services Division’s Area Agencies on Aging Program to the Homeless Prevention Grants Sub Fund in the amount of $35,000. (4/5 vote required)
FUNDING: 100% County General Fund.
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DISCUSSION / BACKGROUND:
HHSA is recommending the Board approve the Chair to sign a budget transfer to reduce budgeted appropriations for Food Products in the AAA Program and shift the resulting savings in County General Fund contributions from CSD’s AAA Program to the Homeless Prevention Grants Sub Fund for Fiscal Year 2023-24.
The Emergency Solutions Grant (ESG) and Community Development Block Grant (CDBG), which fund homeless prevention activities, are awarded to HHSA on a reimbursement basis, where the costs associated with the grants are required to be expended and then reported to the administering agency for reimbursement. This creates a negative cash-flow related to these funding sources in the Homeless Prevention Grants Sub Fund, which results in charges accrued related to the cost of borrowing funds. Pursuant to Title 2 of the Code of Federal Regulations 200.449 (2 CFR 200), costs incurred for interest on borrowed capital, are not claimable to grant awards therefore must be funded by County General Fund.
There is currently $5,000 in County General Fund budgeted to cover these homeless prevention grant costs, however, it has been determined that this additional amount of $35,000 is needed due to the amount of cash being paid prior to reimbursement.
ALTERNATIVES:
Should the Board decline to approve this recommendation, HHSA would not have sufficient appropriations in General Fund Contributions to balance the grants in the Homeless Prevention Grants Sub Fund
PRIOR BOARD ACTION:
N//A
OTHER DEPARTMENT / AGENCY INVOLVEMENT:
N/A
CAO RECOMMENDATION:
Approve as recommended.
FINANCIAL IMPACT:
There is no additional General Fund associated with this item. This request is to move General Fund savings from one HHSA program to another.
CLERK OF THE BOARD FOLLOW UP ACTIONS
1) Obtain signature of Chair on the attached Budget Transfer Request; and
2) Submit the BTR to the CAO office for further processing.
STRATEGIC PLAN COMPONENT:
N/A
CONTACT
Olivia Byron-Cooper, MPH, Director, Health and Human Services Agency