Process for Reviewing and Approving Spending Authority for Executive Orders for Disaster Emergencies involving DMVA and National Guard

Parties are involved in approving Disaster Emergencies:

• Governor’s Office – Office of State Planning and Budgeting (OSPB)
• Governor’s Office – Legal Office
• Department of Military and Veterans Affairs (DMVA)
• Department of Public Safety – Division of Homeland Security and Emergency Management (DHSEM)
• Department of Public Safety – Office of the Controller
• Department of Personnel & Administration – Executive Director’s Office
• Department of Personnel & Administration – Office of the State Controller (OSC)

Purpose

The parties listed above developed this process for reviewing and approving spending authority for Executive Orders (EOs) related to Disaster Emergencies involving DMVA and the National Guard specifically related to wildfires, floods, and other natural disasters; i.e., not public health response such as COVID19 response. This document contains the agreed upon process to ensure the: 

• National Guard is paid on time (i.e. next biweekly pay schedule).
• Allow DMVA to move quickly to pay deployment costs with minimal rework.
• Allow DHSEM time to provide better cost estimates of emergency disasters to OSPB.
• Improve the management of the disaster emergency fund through regular review.
• Provide the Governor’s Office more information on emergency disaster earlier in the process.
• Provide long-term institutional support by engaging OSC in process oversight.    

Background and Process

Section, 24-33.5-704, C.R.S. provides that the Governor has the authority to declare a disaster emergency by executive order (EO) or proclamation to activate response and recovery needs.  The Governor becomes the commander-in-chief of the militia and may utilize all available resources of the State and each political subdivision as reasonably necessary.  

Section 24-37-304, C.R.S. provides that OSPB shall execute the appropriations acts or other acts having fiscal implications in compliance with expenditure limitation by source of funds, personnel authorization, contingency and performance requirements, and legislative intent.  OSPB has delegated the responsibility for reviewing and approving spending authority in the State’s accounting system to the State Controller (OSC) where OSPB approval of the associated appropriation transaction is documented. 

When a disaster emergency occurs, The Division of Homeland Security (DHSEM) notifies the Governor’s Office and if the Governor approves to proclaim a disaster, then the Governor’s Office notifies DHSEM, and DHSEM, in turn, notifies the appropriate state departments via email, establishes a 213rr number which is linked to an incident ID, and uses the 213rr number to manage and track the disaster.  The 213rr provides the amount of spending authority.  If the National Guard exceeds this amount it needs to submit an additional resource request to DHSEM to increase the spending authority.  DMVA shall provide the reporting and documentation required by DHSEM to support requests for federal reimbursement. 

The process runs in parallel including the Legal/EO process and deployment process.  The parallel process allows the State to begin to address the disaster emergency promptly while also providing financial and legal review and controls.  The Legal/EO process involves drafting the EO with input from the Legal Office, OSPB, and DHSEM.  The deployment process involves DMVA obtaining spending authority from the OSC, deploying and paying the National Guard and vendors, creating active duty orders, and recording expenditures. 

Each Executive Order identifies the fund that will cover the costs for the disaster emergency.  Each fund has a fund category (see the table below).  To respond timely to the disaster emergency, DMVA uses the 213rr number, rather than the EO number to set up funding profiles and request reimbursement.  DMVA codes expenses and A/R (intrafund revenue 9A0R) within fund 2600.  If the EO authorizes the use of Fund 2600, DMVA will not need to make any adjustments to the revenue code. If, however it authorized another fund, then DMVA will need to adjust the revenue code to interfund revenue 900R.  See table below:

The Legal Office prepares the EO which includes an EO number as well as the 213rr number.  OSC grants spending authority based on the email notification from DHSEM with the 213rr number.  This is an exception to the regular process where the OSC grants spending authority only upon issuance of an executive order.  DMVA records all expenditures in the Disaster Emergency Fund and is reimbursed by CDPS from the funds identified in the executive order.  This is an exception to positive coding where expenditures are recorded in the fund supporting the cost.  DMVA adjusts the funds based on the final EO.  
 

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