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Opioid Abatement Authority outlines new capital reporting and payment terms, and legal contingencies for harm-reduction awards
Summary
OA staff announced a new quarterly capital-cost progress report for capital-intensive awards, a phased payment schedule (initial 25% transfer, subsequent installments not less than 25% conditioned on milestones and encumbrance), and contingencies requiring harm-reduction projects to comply with state and federal law; staff also merged the carryforward trueup and annual report in the grants portal.
OA staff said the authority is implementing a new capital-cost progress report for projects that involve substantial capital purchases (building purchases, renovations, large vehicles such as mobile treatment units). The progress report will be required quarterly until the capital portion of a project is complete to improve oversight and support awardees.
Staff also described a phased payment approach for capital awards: the first transfer will be 25% after pre-transmittal contingencies are met, and subsequent installments will be not less than 25% as long as the most recent capital milestones have been submitted and evidence shows previously transmitted funds are encumbered for project use. Staff said the phased approach is intended to balance flexibility for recipients with safeguards against large sums sitting unused while administrative steps are completed.
On harm reduction, staff reiterated a standing contingency that certain harm-reduction projects must agree to comply with all applicable state and federal laws (transcript cites Virginia code sections without specifying numbers) and that services such as drug checking must be performed only for approved efforts and not in ways that would benefit drug dealers or other third parties. Staff also emphasized standard award contingencies: fiscal agents must maintain required contracts with subrecipients, demonstrate 80% encumbrance before carryforward transmission, and provide documentation for large sources of non-OA matching funds.
Administrative changes: staff announced a portal update that combines the carryforward trueup and annual report into a single submission to reduce administrative burden for localities and state agencies.
Attribution and next steps: these policy and procedural changes were presented by OA staff in the June 11 information session; they will be reflected in award terms beginning July 1, subject to final committee action at the June 15 meeting.
