nen, 1:17 AM ‘Stoo Woe Vigia Mal - Fwd: Use of nds reimbursed by CRF é 1 i Bramble, Bonny A Fwd: Use of funds reimbursed by CRF 1 message Lipford, Mary M To: Bonny A Bramble ‘Thu, Sep 15, 2022 at 11:13 AM Mary Lipford Office of Governor sim Justice Office: 304-558-2000 | ‘mary.mlipford@wv.gov | Governorwv.gov Email correspondence to and from this email address is subject tothe West Virginia Freedom of Information Act and may be disclosed, in whole ‘rin pat, to third partes by an authorized State ofc, It may aso be prilaged or otherwise protected by work product immunity or other legal rules Unauthorited disclosure of health, legally privileged, or otherwise confidential information, I prohibited by law. ifyou have recelved ‘this emailin error, please notify the sender immediately and delete ofthis eral. —— Forwarded message —— From: David Sull Date: Tue, Sep 13, 2022 at 1:02 PM Subject: RE: Use of funds reimbursed by CRF ‘To: Uring, Ann V , Kent Hartsog Ce: Vincent Smith , Mary Lipford@wv.gov , Audiing-ist Al, | returned the current IET in order for the additional supporting documentation to be added, David Sut Director of Audting - WVSAO Phone 558-2261 Ext. 2103 Davi sull@vvsao.gov "This E-mail and any of ts atlachments may contain WV State Auditor's Office proprietary information, which Is privileged, confidential, or subject to copyright belonging to the WV State Auditor's Office. This E-mail is intended solely for the use of the individual or entity to which itis addressed. If you are not the intended recipient ofthis E-mail, you are hereby notified that any dissemination, distribution, copying, or action taken in relation to the contents of and attachments to this E-mail is stricty prohibited and may be unlawful. I you have received this E-mail in error, please notify the sender immediately and permanently delete the original and any copy of or printout ofthis E-mail.” pa vimal google. com!malisO/7k=254-235501& eweptsceareh=allepermihid-ihvoad-1%3A17440460967S6645880%70nsg-MKSAI744048096756... 185911622, 11:17 AML Stato of Wes! Vigna al - Fd: Use of fr roinbursed by CRE From: Urling, Ann V Sent: Tuesday, September 13, 2022 12:56 PM ‘To: Kent Hartsog Ge: David Sull ; Vincent Smith ‘Subject: Re: Use of funds reimbursed by CRF External Emai ‘email of containing malicious links or attachments immediately report this email with the report phishing button. Will do (On Tue, Sep 13, 2022 at 12:54 PM Kent Hartsog wrote: ‘Ann, on the attached trensaction and similar in the future, could you please attach this email, plus @ memo from ‘counsel stating that this transfer is appropriate and not ‘to legislative appropriation. These two along with the letter from the Governor. these would have 3 attachments. As always, appreciate the help and please let me know if you would like to discuss. From: Urling, Ann V Sent: Tuesday, September 13, 2022 8:54 AM ‘To: Kent Hartsog ‘Subject: Fwd: Use of funds reimbursed by CRF ‘External Email: Please use caution when clicking embedded hyperlinks or opening attachments. f you suspect this email of containing malicious links or attachments immediately report this email wth the report phishing button. ‘Good moming Kent, ‘As requested, Im sharing the email below from BDO. Let me know if you have any questions or need anything ‘additional. ipsa. google commattuk=254c7056e |B ow=ptbsearch=allsparmitistvead1%3A17440400067EBS45960%7Cmsg-TK3A174404B088756, Please use caution wien clicking embedded hyperlinks or opening attachments. if you suspect this 26To: File <¢J From: Berkeley Bentley, General Counsel ‘Samantha Willis, Deputy General Counsel Re: CARES Act Monies and Legislative Appropriation is ‘This memorandum summarizes the posture of any monies received from the U.S. Department of Treasury by the State as Coronavirus Relief Funds (“CRF”) under the federal Coronavirus Aid, Relief, and Economic Security (“CARES”) Act (2020), with respect to forma] Legislative appropriation. In short, any CRF monies received by the State under the CARES Act are not subject to Legislative appropriation and may be expended for any lawful purpose at the direction of the Governor as the chief executive officer of the State. “The CARES Act implemented a variety of programs to address issues related to the onset of the COVID- 19 pandemic, and was passed by Congress on March 25, 2020, end signed into law on March 27, 2020. The Consolidated Appropriations Act (2021) was passed by Congress on December 21, 2020, and signed into law on December 27, 2020, and made certain changes to provisions relating to CRF funds (e.g, the date by ‘which expenses must have been incurred was extended from December 30, 2020, to December 31, 2021). ‘The CARES Act, as amended, requires that the payments from the Coronavirus Relief Fund only be used to cover expenses that meet the following criteria: 1. are necessary expenditures incurred due to the public health emergency with respect to the Coronavirus Disease 2019 (COVID-19); 2. were not accounted for in the budget most recently approved as of March 27, 2020 (the date of ‘enactment of the CARES Act) for the State or government; and 3. were incurred during the period that begins on March 1, 2020, and ends on December 31, 2021. Chapter 4, Article [1 ofthe West Virginia Code generally requires that federal funds be expended “pursuant to specific appropriations by the Legislature, except as may be hereinafter provided.” W. Va. Code §4-11-5(2). ‘The State received CRF funding from the US Department of Treasury on April 20, 2020. At the time this money was reccived, West Virginia Code § 4 -11-6(3) provided that “fJederal funds made available to the state for costs and damages resulting from natural disasters, civil disobedience or other occurrences declared State Capitol | 1900 Kanawha Bivd., ‘ast, Charleston, WV 25305 | (304) 558-2000Orrice oF THE Governor by the Governor asa state of emergency” were excluded from the provisions of Chapter 4, Article 11 of the ‘West Virginia Code. Govemor Justice declared a state of emergency relating to the COVID-19 pandemic on March 16, 2020, triggering the exclusion from Legislative appropriation of any federal funds made available to the State to help respond to the COVID-19 pandemic. During the 2021 Regular Session ofthe West Virginia Legislature, House Bill 2014 amended West Virginia, Code § 4-11-6, among other statutory provisions, striking the above-stated absolute exclusion from Legislative appropriation for federal funding granted in response to a state of emergency. In place of the absolute exclusion previously existing at West Virginia Code § 4-11-6, the Legislature amended provisions of West Virginia Code § 4-11-5, relating o appropriation authority when federal funds become available to a spending unit while the Legislature is not in session. Specifically, the Legislature provided, in a new subsection (¢), that “no amount of... federal funds . . . made available to the state for costs and damages resulting from an emergency .... that occur{s] and are received while the Legislature not in session and that are declared by the Governor as a state of emergency in excess of $150 million . .. may be expended without appropriation by the Legislature enacted following receipt of the funds.” W. Va. Code § 4-11-5(). Declared effective from passage on March 31, 2021, House Bill 2014 now mandates federal funds relating to an emergency, in excess of $150 million, be formally appropriated by the Legislature. During the development of House Bill 2014, and throughout the Legislative process, its application was consistently Gescribed to be prospective in nature only. That is, any federal emergency monies received prior to the effective date, March 31, 2021, were not to be affected and would remain excluded from the necessity of formal appropriation, but any federal emergency monies received after the effective date of House Bill 2014 ‘would be subject to its terms. Further, the triggering event described in West Virginia Code § 4-11-5(e) for when appropriation is appropriste for federal funds received for an emergency is the moment of the “receipt of the funds.” As described above, the State received CRF funds on Apri 20, 2020, and immediately began expending funds to respond to the COVID-19 pandemic in West Virginia. These monies, having been received prior to the effective date of House Bill 2014 (March 31, 2021), are subject to the law in existence atthe time of receipt of the funds. This treatment is consistent with the intent of House Bill 2014, as described during the 2021 Regular Session. It should also be noted that the Legislature has not attempted to appropriate any CRF funding received by the State, further evidencing this intent. In contrast, the Governor has submitted several bills to the Legislature and the Legislature has considered and passed appropriations bills for other federal funds provided in response to the COVID-19 pandemic that were received by the State afier the effective date of House Bill 2014 (March 31, 2021)—namely, Coronavirus State and Local Fiscal Recovery funds received by the State as a part of the American Rescue Plan Act. ‘The fact that the State must continue accounting for expenditures and processing transactions of CRF ‘monies does not change the conclusion that these monies are not subject to Legislative appropriation. As described herein, the controlling concept relating to the change in law occasioned under House Bill 2014 is ‘when the funds are received by the State from the federal government. The CRF monies were received April 20, 2020, prior to the effective date of House Bill 2014, and are therefore exempt from Legislative ‘appropriation. ‘Should anyone have questions, please direct them to the Governor's Office of General Counsel.September 22, 2022 WV State Auditor's Office 1900 Kanawha Boulevard, East Charleston, West Virginia 25305 To Whom It May Concer: Please be advised that the Governor’ Office has approved the transfer of $28,375,985.43 from Coronavirus Relief Fund 8700 to the Governor's Office Gifts, Grants and Donations Fund 1029. ‘Transfer is as follows: | From: 8700 0000 0100 1824 09900 3285 4440 - $27,334,157.73 To: 1029 0000 0100 GOV 6696 0000 - $27,334,157.73 From: 8700 INTR 0100 1824 09900 3285 4440 - $1,041,827.70 To: 1029 INTR 0100 GOV 6696 3285 4440 - $1,041,827.70 ‘Thank you for your attention to this matter. Sincerely, SE Lente EZ ¢ a Jim Justice Governor State Capitol | 1900 Kanawha Bivd., East, Charleston, WV 25305 | (304) 558-2000wa ai of pect Cash Balance Detail ‘Menu Bats Fund SubFund CashBalance Adjusted Cash Balance Available Cash Balance 8700 0000 §27,334,157.73, $27,334,157.73 $27,334,157.73, 8700 GEER so.04 s0.04 $0.04 8700 GERZ $0.00 $0.00 $0.00 8700 HOVE $0.00 $0.00 $0.00 8700 INTR $1,041,827.70 $1,041,827:70 $081,827.70 Fist Prev Noxt La Seatch Fund: 6700 Cash Balance : §77,934,157.73 Pending Increase Non-Cash : 0.99 Pending Decrease Non-Cash : $0,090 Pending Increase Cath : 50.00 Pending Decrease Cash $000 ‘Accepted increase Non-Cash : $0.00 ‘Accepted Decreate Non-Cash : 50,00 ‘Adjusted Cash Balance : §27,334,157 73 Cash Balance Minimum : $0.00 ‘Available Cash Balance : 527,334,187 73 # Cash Balance Detail Maintenance * Cash Balance Summary ee ee ‘psfprda11 woasis.goviprdin Advantage "