Capital Outlay Presented by: Rebecca Martinez,

Criteria for FundingCapital Outlay Request Application Critically Needed Projects-- $10,000 Threshold
Situation in which immediate action is necessary.
The situation would disrupt a senior center from operating.
The situation endangers the safety of clients.
Failure is imminent if the issue(s) are not corrected in a timely manner.
The situation was not a direct cause of poor maintenance or neglect and steps were taken to prevent, alleviate and/or correct the situation.
The resources required to correct the situation were unavailable.<br>

Capital Outlay Request Application Funding Categories A-1: Improvements for Code Compliance
A-2: Renovations
A-3: Meals Equipment/Other Equipment
A-4: Vehicle Purchase & Equip
A-5: New Construction/Major Addition
A-6: Plan & Design<br>

Capital Outlay Request Application Requirements & Attachments Executive Order 2013-006 Compliance
Operating and Use Agreement (applicable to non-profit providers only)
Infrastructure Capital Improvement Plan (ICIP 2019-2023)
Chief Elected Official Certification
Asset Management Listings For: Meals Equipment, Vehicles & Facility/Fixtures Project Evaluation-Subject Matter Expert Certification
Quotes or Cost Estimates for the Proposed Project(s)
Schematic Designs (applicable to construction related projects)<br>

Capital Outlay Request Application (Cont’d) Project readiness:
Is the project realistic?
Can the project be substantiated by a Subject Matter Expert?
Mandatory quotes/cost estimates provided?
How are the operating and maintenance costs provided?
Phased projects
When do we consider phasing a project?
What constitutes a phased project<br>

Capital Outlay Request Application Training Goal To improve the overall quality of applications submitted.
Training materials & presentations on website 1/15/2018 http://www.nmaging.state.nm.us/capital-outlay.aspx
Recorded video training presentation.
Area Agencies on Aging and Councils of Governments to assist with application technical assistance.<br>

2019 STB Capital Outlay Request Application Training & Technical Assistance Schedule Release of Request Application 1/15/2018 http://www.nmaging.state.nm.us/capital-outlay.aspx
4-6 Training sessions will be scheduled around the State.
WEBINAR<br>

How to Submit a Successful Application<br>

Community/Staff InvolvementWho should be involved? Project Development Team
Present needs and assess priorities
Determine if they can be phased
Look for other funding sources
Fact Gathers
Solicit professional guidance
Determine cost estimates
Develop timelines
Action Group
Assist in preparing the application
Seek community input<br>

Project Development Team Needs

How did we determine the urgency

Can we pay for the project

Is it a major project or can it be phased Are they critical in nature
What is the effect on clients
Asset management listings
Code compliance issue
Professional opinion

Do we have any O & M funds available


Is there a need to phase the project. Can we spend the funds within 2 years<br>

Fact Gathers Solicit professional opinions


Determine preliminary cost estimates


Develop Timeline What type of professional do we need
Roofing, flooring, structural, plumbing

Obtain a cost proposal or estimate from one or more professionals
Better to get a couple to compare
Develop a realistic timeline
Determine if project needs to be phased
If phased a working phase must be complete<br>

Action Team Who should be responsible for completing the application

How much time should we dedicate



What to expect after submission Mayor, finance director, senior center director, etc.,,,

Plan on this taking around 3 months to complete the process
Schedule professionals at the start
Hold meetings twice a month and progress closer to submission time
Do we call the agency or do you notify us<br>

Timelines for Project Funding Revised application made available in mid-January
Applications are due in April
Agency reviews and rates projects April through June
Agency meets with Cabinet Secretary in June and submits ICIP by July 1
Capital Outlay Hearings are conducted in October and November by DFA and LFC
Projects are considered and DFA submits the list of projects to grant writers in December in anticipation of the Legislative Session
If successful, the bill is passed.
STB will fund by June same year
GOB will go to voters on November ballot – if successful the funds will be available in June following year<br>

Scoring Criteria For the 2018 GOB Application, there was a possible scoring value of 115 points<br>

Project Prioritization System 1. Application Narrative Summary & Background-The applicant provided a clear and concise project summary and narrative background regarding the proposed project.
2. Criticality of Need-Does the applicant provide a compelling explanation on how the project will eliminate a risk or hazard to public health and/or safety that immediately endangers occupants of a premises such that corrective action is urgent and unavoidable?
The proposed project was evaluated by a subject matter expert who clearly documented the criticality of need for the project and a copy of the evaluation is provided.
Is the proposed project a code compliance issue which addresses an emergency situation?
The applicant documented the outcome of not receiving this funding and that the intended corrective action proposed is considered critical, urgent and/or unavoidable.
3. Funding-The applicant provides leverage to the project with local, federal or other sources to fully fund the proposed project.
The project budget provided specific information on the sources for matching funds including the amount leveraged and effective date(s).
Do the requested funds complete a fully functional phase of the project or complete a project previously funded by a legislative appropriation?<br>

Project Prioritization System 4. Readiness to Proceed-The proposed project is realistic and is substantiated by the subject matter expert evaluation.
The applicant provided mandatory quotes/cost estimates for the proposed project?
Does the applying entity describe how operating and maintenance costs will be provided for upon completion of the project?
5. Project Oversight-Are there oversight mechanisms built in that would ensure timely construction and completion of project on budget?
6. Cost Benefit-Has the applicant provided information on the anticipated number of direct beneficiaries of the project compared to the amount of funding being requested?
7. Project Management-per contract requirements for currently funded capital projects through ALTSD, is the applicant:
Reporting project status timely into the CPMS?
Submitting requests for payment within the quarter that the expenditure was made?
Adhering to spend down requirements per SBOF Rule (5% encumbered and/or 85% expended)<br>

Applications Deemed Ineligible – May Be Due To: Application is not signed by a Chief Elected Official
Applicant did not provide mandatory forms
Applicant did not provide mandatory quotes, cost estimates
Applicant did not provide sufficient justification of critical need
Project is not eligible for funding
Unable comply with NM Constitution “Anti-Donation” clause
Project was funded in a prior year (duplicate)
Project was not realistic<br>

Projects that are Funded You will receive a bond project questionnaire from SBOF – complete timely
When you should sign or choose to wait for a later bond sale
Bonds will be sold about a month later
Once bonds are sold, DFA will prepare budgets and notify Agency when complete
ALTSD will prepare Notice of Grant Award requesting compliance with special conditions (if applicable) and request a scope of work
Upon receipt, ALTSD will review documentation and then initiate grant agreement

Then the clock starts ticking – BOND RULES<br>

State Board of Finance Bond Project Spend Down Requirements<br>

Grants Management<br>

Responsibilities of the Grantee Effective dates of the grant agreement(no extensions will be given)
Notice of Obligation – ALTSD, State Board of Finance obligation requirements 5% - 6 months 85% - 18 months
Timelines
Allowable uses of the funding
Timely expenditures – Quarterly
Reporting – Monthly
Scope of work<br>

Notice of Obligation Article II of the grant agreement –
Submit copy of third party obligation to ALTSD upon execution
(contract, cost estimate, quote, contract, purchase order)
Department can issue Notice of obligation or request additional documents to justify the expense
Notice of obligations will not be issued if ALTSD does not feel the expenditure will occur before reversion
Notice of obligation will be effective on the date issued by ALTSD.<br>

Timelines To the extent possible please adhere to timelines set by staff when receiving written correspondence
Questionnaires – response period is approximately 1 week
Request for additional information – if no date indicated then we need the information immediately
Memo sent from our office will include a respond by date or submit by date
Scope of work will include a return by date
Special condition documentation – release of grant is dependent on approval
Use or Operating agreements – release of grant is dependent on approval<br>

Expenditures Ensure that expenditures are only for the intended purpose
Contact ALTSD if you have questions if an item to be purchased or constructed is an allowable expense.
Expenditures must be made and item received on or before the reversion date to qualify for reimbursement
ALTSD will provide written denial for items that are not allowed.<br>

Capital Projects Monitoring System CPMS is a web-based system used for reporting and monitoring of capital outlay appropriations
will be used by the Legislative Finance Committee (LFC)
agency needs to begin reporting once funding is appropriated
local entity needs to begin reporting once a grant agreement has been executed on progress of project.
CPMS can be accessed through the DFA website at the following link: http://cpms.dfa.state.nm.us<br>

Reporting Paper reports are due on or before the last day of the month
Online reports should be entered on or before the last day of the month
Additional request for information will be requested in writing
Reports must be informative.
Lack of reporting can prevent a reimbursement from being processed by ALTSD
Reporting periods prior to the Legislative session are the most important.<br>

Requests for Reimbursement Reimbursement must be requested 20 days from the end of the quarter in which the expenditure took place
SBOF limits request to $1500 or more unless this is the end of the fiscal year or it is the last reimbursement request
End of fiscal year deadlines will be earlier than the July 15 date to allow time for corrections and internal processing
Exhibit 1 must be typed and computation must be correct – include AIPP if applicable – see grant
Copy of invoice, purchase orders, cancelled checks, and title for vehicles must be included<br>

Close Out Project Ensure that all expenditures have been reimbursed prior to submission to request close out
Upon submission of final pay request send a letter requesting that the project be closed
ALTSD will mail a close out letter detailing the expenditures and any reversions
Make sure that the completion dates are entered into CPMS database (provide copy of report)<br>

Questions????? Rebecca Martinez, 505-476-4768, rebeccas.martinez@state.nm.us

Barbara J. Romero at 505-476-4704, barbara.Romero@state.nm.us<br>