State and Local Government Archives - MGO CPA | Tax, Audit, and Consulting Services

You’ve Pre-Filed for the Energy Tax Credit, Now What?

Key Takeaways:

Navigate the crucial “now what?” phase after pre-filing by focusing on cost allocation, credit computation, and timely return filing by November 15.
Tackle complexities like multiple credits, thorough documentation, and tight timelines to maximize your clean energy tax benefits.
Leverage professional guidance to optimize your credits and potentially secure substantial refunds for reinvestment in your community.

You’ve taken the first step towards benefiting from clean energy tax credits by completing your pre-filing registration. But what comes next? For state or local government entities, navigating the world of energy tax credits can be complex. Let’s break down the crucial next steps to help you maximize your benefits and meet the necessary deadlines.

Understanding the Timeline

After pre-filing registration, you’re now in the “now what?” phase. This critical period involves two main steps:

Cost allocation and credit computation, and
Filing of the return (due November 15).

It’s essential to maintain momentum during this phase to receive the full benefits of the tax credit.

Cost Allocation and Credit Computation: Key Considerations

As you prepare to file your return, keep these important factors in mind:

Multiple Credits and Projects

If your entity is filing for more than one credit or managing multiple projects, the process becomes more intricate. Each credit may require separate forms and documentation, and careful management is needed to avoid errors that could delay your refund.

Documentation and Support

Given that this is a relatively new process for many governmental entities, thorough documentation is essential. From initial project costs to ongoing expenses, every financial detail must be meticulously recorded. Proper documentation not only supports your credit claims but also protects your entity in the event of an audit.

Timeline Considerations

The timeline for filing is tight. After prefiling registration, you have a few months to complete cost allocation, credit computation, and the final tax return. Missing the November 15 deadline could result in forfeiting your refund for the year. Working with knowledgeable tax professionals can help you streamline this process and meet all necessary deadlines.

MKT000200-Youve-filed-you-preregistration-now-what

How Professional Guidance Can Help Your Government

Given the complexities involved, your government may benefit from tax credits and incentives professionals to help you navigate the intricacies of:

Proper assessment of eligible expenses
Gathering and organizing necessary documentation
Verifying compliance with all IRS requirements
Maximizing your potential benefits

Filing the Return: The Final Step

Once your cost allocations and credit computations are complete, you’ll move on to filing your tax return. For 2023 tax filings, this return is due by November 15, 2024. Meeting this deadline is crucial to secure your refund.

A few key notes on filing your return:

Your filing must include the registration number(s) provided after your pre-filing registration review.
This is where you will make the formal election for elective pay (also referred to as “direct pay”).
Complete and accurate filing will help you receive the full value of your eligible credits.

What If You Missed the Pre-Filing Registration?

If you haven’t completed your pre-filing registration yet, it’s crucial to act quickly. While the IRS recommended a July 15 deadline, it’s not a hard cutoff. However, delays from a late pre-filing could impact your ability to meet the November 15 filing deadline. Contact a professional as soon as possible to avoid missing out on potential opportunities.

Elective Pay: A Quick Refresher

Elective pay allows governmental entities to benefit from certain clean energy tax credits. The amount of the credit is treated as a payment of tax, and any overpayment results in a refund. This means you can receive the full value of your investment tax credit even if you don’t owe other federal income taxes.

For example, a Northern California city recently computed over $6 million in credits for a $28 million clean energy project. This city stands to receive a substantial refund, which can be reinvested in further sustainable initiatives or other community needs.

Unlock the Full Potential of Your Energy Tax Credits

By staying informed and proactive, you can navigate this process successfully and maximize the benefits of clean energy investments for your community. As you move forward, remember that you don’t have to go it alone — engaging with a tax credits and incentives professional can help you optimize your credits and create a smooth process from start to finish.

How MGO Can Help

Need assistance with your cost allocation and credit computation to meet the filing deadline, or just want to learn more about what energy incentives could be applicable for your entity? Visit our Renewable Energy Investments and Credits page or reach out to our Tax Credits and Incentives team today.

Revolutionizing Your Risk Strategy: ERM for Modern Government

Key Takeaways:

Enterprise Risk Management (ERM) is a critical strategy for public sector entities, providing a comprehensive framework to identify, assess, and manage risks across the entire organization.

ERM offers numerous benefits, including enhanced risk awareness, improved operational efficiency, and better alignment of risk tolerance within acceptance levels.

ERM’s structured approach helps public sector leaders make informed management decisions, facilitate crucial conversations, and maintain a proactive stance in addressing emerging risks.

State and local government leaders face more complex challenges than ever before. Cybersecurity threats, regulatory complexity, budget constraints, and unexpected safety issues are just a few of the risks that can derail your ability to serve your community effectively. To manage these risks, you need a comprehensive strategy. That’s where Enterprise Risk Management (ERM) comes in.

ERM is a powerful tool that gives you a clear, organization-wide view of the risks you face. With ERM, you can identify, assess, and manage risks across your entire organization. This helps you make better decisions, allocate resources more effectively, and focus on what really matters — delivering essential services to your constituents.

The Need for ERM in the Public Sector

Governments, especially large and complex ones, often lack formal ERM programs. Yet, the breadth of internal and external services state and local governments provide, combined with the critical role they play in society, makes this risk management practice indispensable.

Unlike in the private sector — where ERM is more of a standard practice — organizations in the public sector frequently miss out on the benefits of a coordinated risk management strategy. The absence of ERM can lead to fragmented risk management efforts, where key risks are not addressed or are not managed within the organization’s risk appetite.

By implementing ERM, you can help management gain an organization-wide view of the risks they face. This approach creates a pragmatic, focused strategy for managing risks — where the most critical issues are addressed.

ERM also facilitates essential conversations and decision-making processes, encompassing board reporting and input, which ultimately links executive management’s risk handling to the board’s defined risk philosophy.

Benefits of ERM for Your Public Sector Entity

Implementing ERM in your organization brings several significant benefits:

Enhanced risk awareness and management: ERM fosters a culture of openness and transparency around risk management. This improved candor translates into better understanding and management of the critical challenges your state or local government faces.

Alignment to risk appetite: Through ERM, you can align your organization’s risk management practices within the organization’s risk threshold. This alignment helps you make informed decisions that reflect the organization’s capacity to manage risks effectively.

Improved operational efficiency: By managing risks proactively, ERM helps you better navigate tough decisions. This proactive approach reduces the likelihood of adverse events disrupting daily operations, leading to smoother and more efficient service delivery.

Comprehensive risk coverage: ERM encompasses a broad spectrum of risks, including operational, financial, information technology (IT) and cybersecurity, human capital, and compliance risks. This comprehensive focus helps prevent you from overlooking critical risk areas.

ERM Process for Public Sector Entities

Implementing ERM involves a systematic process that includes the following steps:

Understand the board’s philosophy: The first step is to gain a clear understanding of the board’s risk philosophy and approach. This involves discussing and defining what levels of risk are acceptable.

Risk assessment and prioritization: Conduct a thorough risk assessment to identify and prioritize the risks that should be included in the ERM program. This step involves evaluating the potential impact and likelihood of various risks.

Evaluate risk responses: Once risks are identified and prioritized, the next step is to document and evaluate the responses to these risks. This includes determining if the residual risk — risk remaining after management actions — is within the board’s acceptance levels.

Report to the board: Regular reporting to the board is crucial to keep them informed about risk management efforts and maintain alignment with their risk philosophy.

Continuous improvement: ERM is not a one-time activity. It requires continuous risk assessment, monitoring, and program improvement. Regular reviews and updates enable your ERM program to remain relevant and effective in addressing emerging risks.

Key Challenges and Roadblocks

While the benefits of ERM are clear, several challenges can impede its successful implementation in the public sector:

Board maturity around risk: The board’s understanding and commitment to risk management are critical. A mature and proactive board is essential for effective ERM implementation.

Management commitment: ERM requires buy-in and active participation from executive management. Without their commitment, the program is unlikely to succeed.

Accountability gaps: Clear roles and responsibilities must be established to address accountability when residual risks and organizational risk acceptance levels do not align.

Implementing ERM in Your Organization

ERM is not just a best practice; it is a critical strategy for navigating the complexities of modern governance. By adopting ERM, you can enhance risk management, improve operational efficiency, and better prepare your organization to serve the public effectively.

How MGO Can Help

Implementing an effective ERM program can be daunting, but you don’t have to do it alone. Our experienced team can assist you at every step of the ERM process:

Project management and facilitation: We can act as project managers, overseeing the entire ERM process from start to finish. This includes coordinating with your internal teams to align the program with your organizational goals.

Risk assessment: We can conduct comprehensive risk assessments, both initial and ongoing, to identify and prioritize the risks your organization faces. Our thorough approach aims to cover all critical risk areas.

ERM program development: We can help you develop and implement a robust ERM program tailored to your organization’s unique needs. This includes creating a risk management framework, defining risk tolerance levels, and establishing reporting mechanisms.

Continuous monitoring and improvement: ERM is an ongoing process, and we can provide support for continuous monitoring and improvement. This helps your ERM program remain effective and responsive to changing risk landscapes.

Training and capacity building: We can provide training and capacity building for your teams, equipping them with the skills and knowledge needed to sustain the ERM program independently.

If you are ready to take the next step in securing your organization’s future, we are here to help. Contact us today to learn more about how we can support your ERM journey.

How Your Government Internal Audit Team Can Prepare to Meet New Global Standards

Key Takeaways:

The Institute of Internal Auditors (IIA) has issued new Global Internal Audit Standards that will take effect in January 2025.
The new Standards introduce 15 guiding principles across five domains, while Topical Requirements provide another new element for internal auditors to be aware of for specific audit areas like cybersecurity.
Public sector organizations aligning with Red Book standards will need to evaluate and realign their internal auditing practices to comply with these changes and should consider engaging experienced advisors to assist with the transition.

The auditing landscape is evolving, and a significant shift is on the horizon with the new Global Internal Audit Standards set to take effect in January 2025. Issued by The Institute of Internal Auditors (IIA), these comprehensive updates aim to align internal audit with an evolving risk landscape and improve the consistency and quality of audit services across industries and sectors.

What does this evolution mean for your public sector internal auditing function? It’s an opportunity to elevate your practices, establish consistency with a global professional framework, and ultimately, deliver more valuable insights to your organization. However, it also presents a significant challenge — one that will require a strategic and proactive approach to achieve full compliance by the 2025 implementation deadline.

Navigating New Internal Auditing Standards

At the core of the Standards are 15 guiding principles aimed at enabling effective internal auditing across organizations of all sizes and sectors.

These principles are organized into five domains — which also include mandatory practices for internal auditing, considerations for implementation, and examples of ways to demonstrate the requirements have been implemented.

Here is a brief summary of each of the five domains:

Purpose and positioning: Emphasizes the importance of establishing your internal audit function’s role, mandate, and degree of organizational independence.

Operating with proficiency: You must possess the necessary knowledge, skills, and competencies to deliver reliable assurance and advisory services effectively.

Planning and performing engagements: Outlines requirements for risk-based planning, effective execution of audit engagements, and quality assurance mechanisms.

Communicating results: You must communicate your findings clearly, concisely, and promptly to relevant stakeholders, fostering transparency and action.

Monitoring and improving: Continuous improvement is key; your internal audit function must monitor performance and implement measures to enhance its value proposition.

The IIA has also introduced a new component called “Topical Requirements“, which are a set of specific methodologies your internal audit team must apply when assessing the effectiveness of governance, risk management, and controls on a particular area. Designed to provide structure and consistency for common, higher risk topics, Topical Requirements help to define the potential scope of an internal audit engagement.

The first Topical Requirement, focused on cybersecurity audits, is already under development, with a draft open for public comments until July 3, 2024. This initial release offers a glimpse into what’s to come as the IIA rolls out additional Topical Requirements over the coming years, covering other specific areas that may be critical to your public sector operations.

Applying the Standards in the Public Sector Environment

Noting that internal auditors in the public sector may work in environments that differ from those in the private sector, the Standards contain a section titled “Applying the Global Internal Audit Standards in the Public Sector”. This section describes strategies for conforming to the Standards in conditions unique to your work in the public sector.

Public-sector specific information includes:

Situations in which laws or regulations may affect the ability of internal audit functions to conform with the Standards
Examples of governance and organizational structures in which internal audit functions may need to adjust the application of some standards
Public sector conditions that may limit the way chief audit executives may spend allocated funds

Preparing Your Team for the Auditing Transition

Compliance with the new Global Internal Audit Standards will require a review and update of your current policies, procedures, and practices. Here’s a high-level overview of the steps your team should consider:

Conduct a thorough gap analysis by mapping your existing internal audit methodologies against the new Standards and Topical Requirements. As a result, identify areas requiring enhancement or development.
Develop an implementation roadmap to address identified gaps including revisions to audit policies, procedures, and templates, as well as training plans for your team.
Establish mechanisms for continuous monitoring and improvement, keeping your internal audit function compliant with evolving Standards and Topical Requirements.
Collaborate with executive management and the audit committee to secure necessary resources and support for this transformation journey.

While this process may seem daunting, it presents a valuable opportunity to enhance your internal audit function and align with global best practices. If this process seems overly complex or — like many in the public sector — your team is facing persistent staffing shortages, engaging experienced advisors well-versed in the new Standards and public sector auditing can be a strategic investment.

An advisory firm with dedicated government and internal audit practices can offer valuable support during your transition to the new Standards by providing:

Gap assessments and tailored roadmaps for Standards implementation
Policy and procedure revisions, aligning with the new requirements
Training and knowledge transfer to upskill your internal audit team
Quality assurance reviews to validate your adherence to the updated Standards
Strategic guidance on enhancing your internal audit function’s efficiency and effectiveness

Charting Your Course: Next Steps for Standards Compliance

While the journey ahead may seem challenging, embracing change is crucial to staying relevant and delivering impactful insights. As the January 2025 implementation date approaches, now is the time to assess your readiness and develop a comprehensive strategy for compliance with the new Global Internal Audit Standards.

How MGO Can Help

With extensive experience in public sector auditing and a dedicated State and Local Government team, our knowledgeable advisors can guide you through this transition — enhancing the capabilities of your internal audit function and minimizing disruptions to your organization. Reach out to our team today to discuss how we can help you.

How Your Government Finance Team Can Navigate Staffing Shortages

Key Takeaways:

State and local government finance departments are facing staffing shortages due to more professionals retiring and fewer new graduates entering the field of accounting.
Technology can help understaffed teams work more efficiently by streamlining processes and automating tasks, monitoring compliance, and providing data insights.
Innovative solutions like debt management software can empower finance teams to navigate challenges, optimize operations, and create a path forward despite personnel shortages.

State and local government finance departments are grappling with a daunting challenge: a shortage of skilled accounting professionals.

Your government finance team may already know the challenges all too well: long hours, mountains of paperwork, and a lack of qualified personnel — making even routine accounting tasks feel like an uphill battle.

The bad news is based on current trends, you can expect staffing shortages and challenges to increase over the next several years. The good news is there’s a solution that can both provide your team relief in the short term and help streamline your operations moving into the future.

The Accounting Staffing Shortage: A Perfect Storm

Recent headlines like “The Accounting Profession Is in Crisis” and “Why No One’s Going Into Accounting” may sound dramatic, but they reflect a field experiencing an increasing shortage of professionals resulting from a perfect storm of demographic shifts and changing career preferences.

Accounting is contending with an aging workforce. The CPA Journal reports the average age of a CPA partner in the United States is 52-53 years old. Meanwhile, the nation as a whole is experiencing a retirement wave, with the last of the Baby Boomers — the largest generation in American history — set to reach age 65 by 2030.

Compounding this challenge is an alarming decline in the number of younger accountants entering the profession. The American Institute of Certified Public Accountants (AICPA) reports a 33% decrease in first-time CPA exam candidates between 2016 and 2021 (AICPA 2021 Trends Report), while bachelor’s degree completions in accounting dropped by 7.8% from 2021 to 2022 (AICPA 2023 Trends Report).

An exodus of retiring professionals combined with a significant drop-off in new graduates entering the field could equal years of accounting staffing shortages throughout the nation. These shortages will have a greater impact on state and local government entities, which will be challenged to match the salaries offered by the private sector.

The Increasing Demands on Your Team

As if staffing woes were not enough, the accounting profession is also facing increasing complexity. New accounting standards, like Governmental Accounting Standards Board (GASB) 87 for leases and GASB 96 for subscription-based IT arrangements (SBITAs), have made compliance more time-consuming and difficult.

Meanwhile, the Bureau of Labor Statistics projects continued growth in demand for accountants and auditors, driven by factors like the “complex tax and regulatory environment.” This mounting pressure threatens to overwhelm your already understaffed team, potentially causing delays in critical tasks like completing timely audits — a requirement in many states and for federal funding.

The Solution: Implementing Technology to Help You Work Smarter

While staffing shortages pose a major challenge, there is a solution that can help ease the burden on your team: technology. By automating repetitive tasks, streamlining complex processes, and ensuring compliance, the right software empowers your team to work smarter and more efficiently — even with limited personnel.

Here are five ways debt management software can be a game-changer for your understaffed government finance department:

Automate data entry and reporting — Repetitive tasks like data entry and financial reporting are time-consuming yet essential. Debt management software automates these processes, reducing the risk of human error while freeing up your team’s time for higher-value activities.

Provide real-time access to financial data — Cloud-based debt management software gives your team real-time access to up-to-date financial records from anywhere. This centralized data improves collaboration and makes it easier for your team to work together or with external accounting firms, even remotely.

Simplify compliance — With new accounting standards for leases and SBITAs, ensuring compliance is more complex than ever. With built-in compliance, debt management software protects your organization from penalties and reputational damage — providing you peace of mind and making audits less intimidating.

Increase efficiency for lease and SBITA management — From generating lease schedules and tracking payments to calculating renewal options, debt management software automates and streamlines the many tasks involved in managing leases and SBITAs — helping you accurately track and manage all relevant information to reduce errors; and saving you valuable time and resources.

Deliver insightful reports and analytics — Go beyond just tracking data — debt management software generates reports and analytics that provide deep insights into your activity. You can use this business intelligence to make smarter financial decisions and strategies.

By leveraging debt management software, your understaffed team can achieve more with less. Automation frees them from tedious tasks, allowing them to focus on higher-level work that truly moves the needle.

Embracing Innovation to Create a New Path Forward

The accounting profession’s “perfect storm” of staffing shortages and increasing complexity shows no signs of letting up anytime soon. For state and local government finance departments already struggling with lack of personnel, the road ahead may seem daunting. But you don’t have to go it alone.

By embracing innovative technology solutions, you can empower your team to overcome today’s challenges while future-proofing your operations for tomorrow’s changes. Invest in the tools that will enable your team to work smarter, not harder.

One option to consider is DebtBook, a leading lease and debt management software for state and local governments. In partnership with DebtBook, MGO can assist you with implementing the system, entering your data, and educating your team on usage and maintenance*. Reach out to us today to learn more about how DebtBook can work for you.

*Services for audit clients are limited to those that do not impair independence, such as providing advice and validation services to ensure the integrity of the financial information that comes out of the system.

Treasury, IRS Release Final Regulations on Elective Pay Election for Energy Tax Credits

The Department of the Treasury and the IRS on March 5 released final regulations (TD 9988) on the elective pay election for certain energy tax credits under IRC Section 6417, added by the Inflation Reduction Act (IRA), which treats the credits as a payment against federal income tax liabilities.

The final regulations adopt the proposed regulations (REG-101607-23) with some modifications that clarify which applicable entities are eligible to make an elective pay election and how the election should be made.

The IRS also updated the elective payment frequently asked questions based on the final regulations. Finally, the IRS issued Notice 2024-27, which requests additional comments on any situations in which an elective payment election could be made for a clean energy credit that was purchased in a transfer, a sequence of events referred to as chaining.

Background

The IRA introduced, for tax years beginning after December 31, 2022, the ability for some entities to monetize applicable tax credits via an “elective pay” election under IRC Section 6417. This allows applicable entities to treat certain credits as payment against their federal income tax liabilities and to receive a refund of any excess payment.

Eligible Credits and Entities

The IRA specifies that only some credits and entities as eligible for the elective pay election under Section 6417. Applicable credits include:

Credit for Alternative Fuel Vehicle Refueling/Recharging Property (Section 30C)
Renewable Electricity Production Credit (Section 45)
Carbon Oxide Sequestration Credit (Section 45Q)
Zero-Emission Nuclear Power Production Credit (Section 45U)
Clean Hydrogen Production Credit (Section 45V)
Commercial Clean Vehicle Credit (Section 45W) – Tax exempt entities only
Advanced Manufacturing Production Credit (Section 45X)
Clean Electricity Production Credit (Section 45Y)
Energy Credit (Section 48)
Qualifying Advanced Energy Project Credit (Section 48C)
Clean Electricity Investment Credit (Section 48E)

Eligible entities, referred to as “applicable entities,” include:

Tax-exempt organizations
Any state, the District of Columbia, or political subdivision
An Indian Tribal government or subdivision
Any Alaska Native Corporation
The Tennessee Valley Authority
Rural electric cooperatives
An agency or instrumentality of certain applicable entities

Partnerships

While the final regulations bring clarity to the issue of determining which entities are eligible to make an elective pay election, they notably exclude partnerships from making such an election (except with respect to Section 45V, 45Q, and 45X credits). This exclusion has significant implications for the renewable energy sector, where projects are commonly structured as partnership entities to pool capital, diversify risk, and combine the expertise of various entity partners.

During the comment period on the proposed regulations, several commenters advocated for the inclusion of mixed partnerships – that is, partnerships that consist of both applicable entity and non-applicable entity partners — as applicable entities to allow for an elective payment election equal to the applicable entity partner’s allocable credit. However, Treasury and the IRS rejected those suggestions and adopted the regulations as originally proposed.

However, the final regulations do allow entities to make a valid election out of Subchapter K as a means for these entities to make an elective pay election. Feedback from commenters highlights the complexities and burdensome requirements that arise from making such an election out of Subchapter K, limiting its usefulness. Treasury and the IRS acknowledged such challenges and simultaneously issued proposed regulations under Section 761 for renewable energy projects that validly elect out of Subchapter K. Under the proposed regulations, exceptions would allow certain unincorporated organizations to make an elective pay election.

Tax-Exempt Grants & Loans

The final regulations adopt special rules regarding qualified energy property acquired using certain tax-exempt grants and forgivable loans. The rules state that (1) tax-exempt amounts are includable in the basis of the property and (2) “no excess benefit” can be derived from the use of restricted tax-exempt amounts used towards acquiring investment-related credit property.

The addition of the “no excess benefit” rule effectively limits the amount of the applicable credit that can be claimed such that the sum of any restricted tax-exempt amount(s) and the applicable credit does not exceed the cost of the investment-related credit property. This rule applies only to tax-exempt amounts that are restricted for the specific use of purchasing, constructing, reconstructing, erecting, or acquiring the investment-related credit property. The final regulations include examples to illustrate this rule.

Making the Election

To participate in the elective pay election, all credits must undergo a prefiling registration process and the applicable entity must secure a valid registration number. Credits can be registered as early as the first day of the taxable year in which the qualified energy property is placed in service. Any election received by the IRS without a valid registration number will be deemed ineligible. As currently established, a “short form” renewal process for multiyear credits such as the production tax credit is not available. A new registration must be submitted each year a credit is generated.

Applicable entities that already file an annual tax return would continue to file that return with the appropriate tax credit form and Form 3800 completed. Applicable entities that do not file an annual information return with the IRS would utilize Form 990-T. Note that the elective pay election must be made on an originally filed return (including extensions) and cannot be made on an amended return.

The final regulations also confirm that fiscal year organizations that do not normally have tax filing requirements may adopt a tax year-end different from its current accounting year-end. Such organizations are required to maintain adequate books and records of any differences between its normal fiscal year-end books and adopted tax year-end books. This provides increased opportunity for organizations that placed qualified energy property in service early in 2023 and otherwise would have been excluded from a tax credit benefit.

Processing of Payments

Treasury and the IRS opted not to define a specific time frame for processing payment of an elective pay election, instead indicating in the preamble that the prefiling registration process is designed to verify certain limited information in advance and mitigate the risk of delayed payment processing by the IRS.

The final regulations additionally confirm that applicable entities that choose to make this election will receive payment in one lump sum as opposed to multiple payments. Some commenters had suggested an accelerated payment mechanism that would enable applicable entities to submit the election as early as the placed-in-service date of the qualified energy property, thus enabling the IRS to provide pre-payment of a portion of the applicable credit based on a review of the prefiling registration information. Given that the elective payment amount is treated as made when a credit claim or the annual tax return is filed, Treasury and the IRS concluded that it would not be possible to implement this mechanism.

Learn more about how your can government benefit from clean energy tax credits with elective pay.

3 Steps Your Government Can Take to Establish Greater ESG Oversight

Executive Summary

As ESG issues gain prominence, state and local governments must increase oversight, planning, collaboration, and transparency around these topics to maintain public trust and access financing.
Governments should develop, maintain, and regularly update public climate action plans outlining ESG risks, opportunities, impacts, and integration strategies.
Entities should explore green bonds as a growing option to raise ESG-tied funding while increasing related financial disclosures to satisfy investor expectations.

Environmental, social, and governance (ESG) issues are taking center stage globally, and U.S. state and local governments — especially those issuing municipal bonds — are facing rising expectations from constituents and investors alike to manage these concerns. To maintain public trust and access to financing, your government should make ESG an increased area of focus, discussion, and disclosure.

Here are a trio of ways your government can bring ESG efforts to the forefront:

1. Prioritize Leadership and Collaboration

The most successful government entities not only have designated ESG leaders (typically the “chief sustainability officer” or “head of environmental affairs”), but they have also established a direct line of oversight and communication with the government entity’s leadership teams (e.g., the mayor’s office, the office of the comptroller, etc.).

While ESG strategy and risk identification will always be owned by the head of the environmental and social functions, collaboration with the finance functions is also vital. Collaboration ensures that financial professionals can contribute their knowledge and experience to assess the financial impact of ESG initiatives and align them with broader strategies of the government.

Collaboratively embedding ESG efforts throughout your entity and not just siloing them to one specific department or group of individuals will give ESG the attention and investment it needs to make an impact.

2. Develop and Maintain a Climate Action Plan

At present, most medium-to-large government entities have formally documented “climate action plans” available on their websites — indicating this type of transparency will be considered “table stakes” moving forward.

Within the climate action plan, a clear strategy to identify and prioritize risks and opportunities is critical. A robust plan should specifically measure both the actual and potential impacts of ESG-related opportunities and risks on the government entity (such as on its financial planning and budgeting) and its stakeholders (e.g., investors and the communities the entity serves). Establishing and publicly communicating these on the entity’s website — or attached in the climate action plan — is key for accountability and understanding of these aspects of sustainability integration.

Additionally, a subset of government entities with climate action plans are also proactively updating their plans — effectively recognizing the plan should be a living and breathing document that continues to evolve with the emergence of new risks and the shifting interest of investors, regulators, and the public at large.

3. Explore the Potential of Green Bonds

Due to the increasing importance of sustainability and ESG for state and local governments, the issuance of green bonds by government entities will also continue to grow. Investors are expecting more financial disclosures to help them make decisions and track both opportunity and risk.

A green bond is a fixed income debt instrument occurring when an issuer (in this case, a state or local government) borrows a large amount of money from investors to use in projects focused solely on sustainability. They are similar in function to traditional bonds, except the funds acquired through them can only be dedicated to projects dedicated to energy efficiency or sustainability requirements and frameworks.

Because investors face risk when it comes to investing in municipal securities (like green bonds), it is crucial for these municipalities to have dedicated ESG leaders, offices, and transparent budgets.

Embracing ESG Principles and Building Positive Public Perception

With intensifying investor and community demands, state and local governments can no longer view ESG as an afterthought. Implementing robust oversight frameworks with designated leadership, continually updated climate action plans, and increased financial disclosures can help you meet expectations, mitigate risks, and contribute to long-term fiscal sustainability.

Need assistance implementing and managing your government’s ESG efforts? Our State and Local Government Practice offers ESG materiality and benchmark assessment, reporting and disclosure, data lineage and integrity, and net zero strategy development and monitoring. Reach out to our team today to learn how we can help you achieve your goals.

5 Ways Automated Debt Management Can Benefit Your Government Finance Team

Executive Summary:

Many state and local governments today are short on resources, limiting their ability to effectively manage a growing amount of complex debt, leases, and subscriptions.
Technology solutions like debt management software can help by centralizing data, automating complex tasks, and mitigating risk of errors.
Automated systems save significant time preparing financial statements and disclosures compared to manual processes, enabling teams to focus on strategic initiatives.

Government finance teams have never faced more obligations with fewer resources. As key personnel retire or leave for other opportunities, organizations risk losing institutional knowledge around managing critical finance functions like debt service and reporting. At the same time, new accounting standards around items like leases and subscriptions have added layers of complexity to already overstretched personnel.

If your state or local government finance team is still tracking your accounting and disclosures manually or relying on trustees to notify you about debt service payments, technology solutions may provide a way to ease key pain points and help you better manage your debt.

The Quicksand of Spreadsheets and Shortage of Government Talent

Many finance teams currently rely on elaborate Excel spreadsheets to track balances, payments, and disclosures related to municipal bonds, notes, loans, and other debt obligations. This reliance introduces a high degree of risk, as a departure or error by the one staff member familiar with the spreadsheet structure can lead to miscalculations and missed payments. Excel’s limitations in providing an audit trail and reporting functionality further hinder robust financial management.

Amid growing debt and lease burdens, state and local governments are also suffering acute talent losses as employees seek better compensation or workplace flexibility elsewhere. Governments face a shortage of personnel skilled in specialized areas like defeasance, premium amortization, and derivative valuation — aggravated by constant turnover and migration between organizations. This lack of a stable workforce poses a threat to effective fiscal management, leaving critical positions vacant. Relying on a sole employee or only a few individuals for complex accounting and debt management exposes your organization to the risk of disruption if those key people leave.

Relieving Pain Points by Reducing Reliance on Manual Systems

With manual systems taxing finance teams, increasing the potential for error, and becoming more challenging as demands on human resources grow, many state and local governments have turned to debt management software as a solution. This technology offers a lifeline for state and local governments by automating key elements of the debt lifecycle while improving controls and staff productivity. Municipal debt management software handles complex calculations and disclosures — including amortization schedules, refunding eligibility, premium and discount calculations, gains or losses on refunding calculations, costs of issuance amortization, defeasance tracking, and custom reporting.

Here are five critical ways debt management automation can help improve your efficiency and empower your team:

1. Centralizing Data in One Single Source of Truth

Many government finance teams rely on multiple disconnected data sources — from Excel spreadsheets to paper records in filing cabinets. By eliminating decentralized information and data silos, automated systems provide a consolidated view and a single source of truth, thereby significantly decreasing the likelihood of using outdated or conflicting information.

2. Mitigating Risk through Comprehensive Automation

Manual financial calculations (such as premium/discount amortization) open the door for errors. A few mistakes can lower trust and confidence in the data, raising questions around the accuracy of the reporting. Acting as a safeguard against errors in high-stakes financial transactions, automated systems ensure precise calculations — reducing the potential for human error and the chances of missing a debt service payment or creating material misstatements.

3. Eliminating Reliance on Excel Wizards

The professionals on your team who are “Excel wizards”, creating intricate formulas to simplify accounting tasks, are great… until they leave or retire, and other people have to step into their roles and recreate or unravel their work. Automated systems provide consistency and accuracy, reducing the risk associated with relying on intricate Excel systems and mitigating disruptions due to sudden departures.

4. Facilitating Compliance with GASB-87 and GASB-96

Many finance teams are still struggling to put processes in place to remain compliant with new lease and subscription accounting standards from the Governmental Accounting Standards Board (GASB). Automated cloud-based software significantly eases the implementation workload, helping track contracts, aggregate data, and generate reports required for GASB-87 and GASB-96 compliance.

5. Freeing Your Team to Focus on Productivity

Time is a valuable commodity for any professional. This is particularly true for state and local government finance teams, which are often understaffed and crunched for resources. Automated solutions reduce reliance on manual processes, enabling your finance team to focus more on strategic initiatives rather than routine data entry. With less time drained by debt management, your people can focus more on critical operations.

Moving from Manual to Automated Debt Management

With state and local governments facing expanding responsibilities and diminishing resources, automating critical finance functions like debt management presents a timely opportunity. Establishing more modern systems and streamlining processes allows state and local governments to manage debt and lease data more easily and accurately. By eliminating manual busywork, finance staff can focus their efforts on the important strategic projects and high value-add work that moves governments forward. And governments can make decisions founded on complete and consistent financial data.

How We Can Help Implement a System that Supports Complex Accounting

One option to consider is DebtBook, a leading lease and debt management software for state and local governments that centralizes information and reporting. Public finance teams use DebtBook to create a durable system of record to track all current and historical debt obligations, including all changes over time (reallocation, defeasance, refinancing, etc.). DebtBook helps generate efficiencies across the organization — delivering data consistency and accuracy, while boosting collaboration across internal and external teams.

MGO, in partnership with DebtBook, can assist you with implementation of the system, entering your data, and educating your team on usage and maintenance*. Reach out to us today to learn more about how DebtBook can work for your state or local government.

Defense Wins Championships – Why Your Government Needs Internal Auditing on Its Team

Executive Summary:

State and local governments need defensive strategies to protect against risks like fraud, financial loss, and reputational damage, and checks to ensure those strategies are working.
The Three Lines Model executes three levels of protection designed to prevent risks from disrupting your operations and causing damage or loss.
As the third-line defense, internal auditing analyzes the entire field to identify potential weaknesses and ensure your defensive strategies are effective at averting risks.

At the start of the football season, sports analysts spend a lot of time talking about who will be the player to lead their team to a championship. Yet, as we learn year after year, championships are not won by a single player. It is a collective effort, based on an assembly of individuals pooling their talents together in pursuit of a common goal.

In sports, the common goal is a championship. In business, the goal is to generate profit by establishing customer loyalty for your products or services. In government, the goal is to make our communities ideal places to live, work, and play. To win in all these instances, you need a strong team with contributions from every player.

Football fans often hear the refrain, “offense wins games, but defense wins championships.” Government teams looking to achieve their goals should not overlook the necessity of a robust defense — with internal auditing giving you the upper hand over your opponent.

What is Internal Auditing?

According to The Institute of Internal Auditors (IIA), internal auditing is an independent, objective assurance and consulting activity designed to add value and improve an organization’s operations. Internal auditing provides a systematic approach to evaluating and improving the effectiveness of governance, risk management, and controls processes.

To simplify: Your organization has goals (objectives). However, obstacles (risks) may exist that keep your organization from reaching its goals. You should develop strategies (internal controls) to prevent those obstacles from occurring, and continuously check to make sure your strategies are working properly (monitoring). To avoid confirmation bias — where you only seek and accept information that supports your goals — you should seek validation from an objective entity (internal audit) to evaluate if your strategies truly position your organization to succeed.

To accomplish all this, you need a coalition of talented individuals that can identify risks, strategize against them, prevent or detect risk infiltration, and consistently monitor emerging risks to provide guidance on how to stay ahead of the curve. In football terms, you need a strong defensive line!

Three Lines of Defense

Let’s say that risk is the offensive team. Its goal is to get into your organization’s end zone to disrupt operations. The quarterback could be a hacker, fraudster, or unintentional human error. The offensive team also has other formidable players: fraud risks, cyber-attack risks, liquidity risks, etc.

Organizations need a more skilled, agile, and experienced defensive team to counteract the activity of the risk offense. Enter IIA’s Three Lines Model. This defensive strategy executes three levels of protection designed to keep risk from causing extreme financial or other damage.

The Three Lines Model defines defensive roles and responsibilities as follows:

First Line of Defense – develops strategies to address risks
Second Line of Defense – monitors strategies
Third Line of Defense – provides assurance that strategies are truly effective at mitigating risks

Let’s look at the organizational playbook to understand the goals of the offensive and defensive teams and the Three Lines defensive strategy.

Understanding the Offensive Opponent

Organizations are trying to prevent risks from disrupting operations and causing financial and/or other damages. If the risk team scores in your end zone, that means they have exposed a weakness in your organization. Depending on the weakness, it could cost you a little (inefficient operations) or it could cost you a lot (major cyberbreach with financial and reputational damages) … but it will cost you!

Defining Each Line of Defense

First Line of Defense: Management, Staff, and Internal Controls

The first line of defense consists of the organizational staff associated with daily operations, delivery of goods and services, and identifying and addressing risks. For example, to minimize the risk of hacking via password breaches, this line would create a password policy and accompanying procedure, set up systems requirements accordingly, and follow the policy and procedures in daily operations.

Second Line of Defense: Risk Management and Compliance Functions

The second line of defense consists of the organizational staff that monitor your organization’s adherence to its own policies and procedures and other required guidance (e.g., regulations, laws, etc.). For example, to ensure that your organization is following its policies and procedures for minimizing hacking via password breaches, this line would periodically analyze data to ensure compliance with internal guidance, industry best practices, etc.

Third Line of Defense: Internal Audit

The third line of defense consists of internal audit professionals with knowledge in various industries. Internal audit conducts real-time assessments and communicates any weaknesses in the first two lines. Using the prevention of hacking example from above, in addition to assessing password protocols and practice, internal audit may identify that your organization has improper access controls that increase the risk of hackers infiltrating your organization’s systems. Internal audit would provide recommendations for improvement and express urgency for corrective action.

Defensive Benefits of Internal Auditing

Internal audit is not an adversary, it is part of your team. Internal audit collaborates with your management and staff, in real time, to understand your organizational goals, concerns, strengths, and weaknesses. Where external audit provides your management with an analysis of a snapshot in time, internal audit continuously and systematically provides value-added feedback to your management and your board and/or audit committee.

Internal audit assists with ensuring your organizational playbook(s) remain relevant. As the third or last line of defense, it analyzes the entire field (the organization) to make sure your defensive strategies (internal controls) are effective at averting risks from scoring (causing financial, operational, reputational, etc., losses).

Part of the analyses conducted by internal audit include (but are not limited to):

Conducting risk assessments to identify the likelihood and potential impact of risks to assist the organization in focusing resources on prioritized areas for improvement.
Assessing your information technology and cybersecurity environments to identify and advise on protecting organizational data, improving IT infrastructure, preparing disaster recovery strategies, etc.
Assisting in preparing for external audits by assessing if the organization’s financial statements are accurate, complete, compliant with regulations, and free from material misstatement.
Conducting performance assessments to identify areas for efficiency and effectiveness improvements.

Internal audit strengthens your organization’s improvement efforts by bringing reinforcements to your already stellar team. The internal audit group delivers additional resource capacity, skills, and perspectives — including extensive knowledge about various industry standards as internal audit professionals are required to maintain continuing education in their specific areas of focus.

How MGO Can Strengthen Your Team’s Defense

MGO has a defensive line that is ready and motivated to support your organization. Stacked with professionals experienced in areas like state and local government, fraud, audit and assurance, government audit, and cybersecurity, our team is diverse in thought, knowledge, and culture — and we bring those perspectives to the field for you. Contact us today to learn how our internal auditing solutions can boost your organization’s defense.

Is Your Government Overlooking ESG Disclosure in Financial Reporting?

Executive Summary:

Environmental, social, and governance (ESG) information helps investors, regulators, and the public-at-large understand and interpret a government entity’s risk profile and its ability to drive positive impact.
To present this information publicly, government entities are developing robust “Climate Action Plans,” which are reviewed and refreshed on a periodic basis.
As disclosing ESG-related information to the public becomes more common, government entities are also expanding ESG-related disclosures within annual financial reports.

Coined in a 2004 United Nations report, the term “environmental, social, and governance” (and its accompanying acronym “ESG”) is less than 20 years old. Yet, you would be hard-pressed to find a boardroom today where ESG is not top of mind. It is not just businesses either — ESG is also an increasingly important topic of discussion within government organizations.

State and local governments use ESG-related information as a mechanism to measure and track priorities, footprints, and targets. As governments have matured, ESG reporting and presented information more consistently with year-to-year comparability, investors*, regulators, and the public-at-large have sought out this reporting to help them understand risk and the government entity’s ability to drive positive impact.

*Note: The term “investors” refers to those who are exploring and/or holding investments in government-issued securities (e.g., hedge funds, institutions, individuals, etc.).

The Increasing Importance of “Climate Action Plans”

To present ESG-related information to the public, many government entities develop and communicate robust “Climate Action Plans”. These plans highlight a myriad of information, including (but not limited to):

Governance structures (e.g., communication and reporting lines from environmental leadership into the mayor’s office)
Strategies to adapt to and combat climate change
Specific climate-related risks, which impact the government entity
Targets, metrics, and key performance indicators (KPIs) used to measure progress

As Climate Action Plans continue to evolve, governments are commanding and allocating more financial resources to activate these plans. With the increased focus on climate-related initiatives presented in Climate Action Plans, we are seeing an expansion of ESG-related information disclosed within “Annual Comprehensive Financial Reports” across the country — a sign that financial disclosures are maturing to meet growing interests from investors, regulators, and the public-at-large.

A Growing Push from Investors and Regulators

The focus on non-financial risks (including, but not limited to, ESG-related risks) by investors and regulators continues to intensify. When we take a step back to analyze the trend, a few things become clear:

Interest in ESG-related information will only continue to grow with the increasing awareness of climate-related risks.

Escalating interest will lead to new or expanded disclosures related to ESG information.

As ESG-related disclosures continue to grow and expand, the finance functions within government entities will need to become more involved — helping to ensure that ESG-related information presented alongside traditional financial information is complete, accurate, and robust (i.e., considered “investor grade”).

To dive deeper into that last point, where would a finance function start? The short answer is by increasing the integration and collaboration between a government entity’s environmental leaders and the finance functions. The longer answer is that government entities need to develop holistic approaches to collecting and reporting robust ESG-related information to meet the expectations of investors, regulators, and the public-at-large.

The bottom line: As the issuance of and investment in municipal securities continues to grow, the quality of ESG-related information disclosed to the public will need to be enhanced to meet the demands of investors.

Transparency in Budgets and Financial Reporting

With an increase in ESG-related disclosures in annual financial reports by government entities, recent interpretive guidance from the Governmental Accounting Standards Board (GASB) indicates that government entities can expect further scrutiny and regulation as these types of disclosures become more commonplace.

Essentially, it is important for your government to have a robust, well-communicated ESG “story” within a Climate Action Plan — but you also must provide investor-grade transparency within audited financial statements. Government entities are already beginning to meet this challenge. Two examples of local governments with a growing presence of ESG-related information in their Annual Comprehensive Financial Reports are the City and County of San Francisco and the City of Fremont.

The City and County of San Francisco transparently discloses both environmental and social initiatives, capturing details related to its Environmental Protection Fund, as well as specific details related to revenues received from state, federal, and other sources for the preservation of the environment.

The City of Fremont — which is much smaller in terms of population (~230,000) and financial resources (roughly $1.5 billion in total primary government assets from “government activities”) — depicts ESG-related information throughout its annual report, including but not limited to qualitative information in the “management discussion and analysis” section, as well as quantitative information related to “community development and environmental services.”

The Path Forward: Enhancing Your ESG Reporting

With ESG-related information becoming more integrated into investor decision-making, your government needs to focus on enhancing its Climate Action Plans and developing “investor grade” disclosures related to ESG risks and opportunities for inclusion within your traditional financial reporting. These initiatives will require additional financial resources and human capital to create and maintain — and further collaboration between environmental, social, and financial leaders will be needed to drive the change.

How MGO Can Help

Incorporating ESG disclosures into financial reporting can pose challenges to states and local governments unfamiliar with ESG reporting standards. With experience providing ESG solutions, our State and Local Government Practice will work with your team to meet requirements and make information “investor-ready,” while also ensuring accountability and transparency.

Opioid Settlement Fund Reporting – What Your Government Needs to Know

Executive Summary

States and local governments are receiving billions in funding from opioid settlements over the next two decades to fight the opioid epidemic through approved abatement strategies.
To avoid misuse, settlements mandate 85% of funds must go toward addressing the opioid crisis, and governments must report annually on expenditures.
Understanding state reporting rules, deadlines, and processes is critical for local governments to comply with settlement agreements.

States and local governments are starting to receive the first round of funding from recent settlements with opioid manufacturers, distributors, and retailers. These funds present an important opportunity to make progress against the ongoing opioid crisis through expanded treatment and prevention efforts.

To ensure states and local governments seize the opportunity to combat the opioid epidemic, settlement creators established acceptable uses for how the money can be spent. These requirements were put in place to avoid a repeat of the tobacco settlement of the 1990s, where states reportedly only spent a small portion of funding on tobacco prevention and cessation programs.

The National Opioids Settlement includes specific language to prevent similar misuse, mandating that “at least 85% of the funds going directly to participating states and subdivisions must be used for abatement of the opioid epidemic.” Most states also require local governments to report annual settlement fund expenditures.

As your agency begins to receive, access, and report on funding from opioid settlements, here is an overview of allowable uses, as well as a detailed look at potential reporting requirements.

Spreading Billions of Dollars Across States and Subdivisions to Battle the Opioid Epidemic

The opioid crisis has grown exponentially throughout the 2000s, ravaging communities and depleting resources. In response to this, more than 3,000 states and local governments filed lawsuits against opioid makers and distributors to recover tax dollars spent addressing the epidemic. The suits allege that these companies marketed opioids in misleading ways — downplaying risks, exaggerating benefits, and engaging in reckless distribution practices.

As a result of these lawsuits, several opioid manufacturers, distributors, and retailers agreed to pay settlements totaling more than $50 billion to states, counties, and municipalities. The payouts for these settlements will be made incrementally over periods ranging from 6-18 years. Each state’s share of the total settlements is calculated based on factors such as overall population, opioid shipment volumes, opioid use disorder rates, and overdose deaths. Distribution metrics vary from state to state as determined by state legislatures.

Allowable Uses of Opioid Settlement Funds

The settlements require that funds are to be used for “opioid remediation” activities. To paint a clearer picture of what constitutes a remediation activity, the National Settlement Agreements provide Exhibit E, which outlines allowed uses. Exhibit E has two sections: Schedule A lists high-priority, evidence-based Core Strategies; and Schedule B lists an additional set of broader Approved Uses.

Here are examples of allowable uses for opioid settlement funds from both Schedule A and Schedule B:

Schedule A (Core Strategies)

Expand access to naloxone and medications for opioid use disorder (MOUD)
Support treatment programs, particularly for pregnant/postpartum women and incarcerated populations
Fund recovery services and connections (“warm hand-off” programs)
Broaden evidence-based addiction prevention efforts

Schedule B (Approved Uses)

Treat opioid use disorder (OUD)
Connect people who need help to the help they need
Prevent overdose deaths and other harms
Educate law enforcement or other first responders

State Limitations on How Funds Are Used

Many states add further limitations on how these funds can be used. For example, California created its own High Impact Abatement Activities (HIAAs) list, and the state requires participating subdivisions to spend no less than 50% of their funds on HIAAs.

HIAA strategies (applicable to California only) include:

Creating new or expanding substance use disorder (SUD) treatment infrastructure
Addressing the needs of communities of color and vulnerable populations
Diversion of people with SUD from the justice system into treatment
Interventions to prevent drug addiction in vulnerable youth
Purchase of naloxone for distribution and efforts to expand access to naloxone

Prohibited Uses of Opioid Settlement Funds

The idea is to ensure settlement fund expenditures are connected to addressing opioid misuse, treating opioid disorders, and mitigating the epidemic’s effects.

For example, the State of California Department of Health Care Services (DHCS) prohibits spending settlement funds on the following:

Salaries for staff not involved in abatement activities
General government administrative costs more than 10% of the total allocation
Law enforcement not related to treatment
Unapproved medications or treatments
Infrastructure unrelated to prevention, treatment, or recovery
Any costs not tied to approved abatement strategies

Understanding Your State’s Opioid Fund Reporting Requirements

Local governments receiving settlement funds must prioritize effective reporting as they move forward. The specific reporting criteria you need to meet will depend on your state. Texas subdivisions currently have no reporting obligations, whereas California subdivisions will need to report expenditures annually.

What and how you report about your fund expenditures will also vary by state. For example, here are six aspects of settlement fund reporting specific to California that may or may not apply to your state (but nonetheless should be on your radar):

Annual Expenditures – Most local governments will file annual reports. These reports typically break down dollars spent on approved abatement strategies over the past year. States may also ask for planned expenditures for the coming year as well. Make sure you add your report submission due dates to the calendar. These dates will vary from state to state, but are expected to be the same each year moving forward.

Unused Funds – In California, local governments must still complete annual reporting even if no settlement funds were spent or committed during a given fiscal year. The reports should show any dollars being carried over or reserved for future abatement activities. Unused funds can be retained year to year, but must be fully expended within five to seven years (depending on the type of expenditure).

Transferred Funds – In California, if settlement funds are transferred from one participating government to another, both must report the transaction. The sender reports the transfer amount while the recipient reports the funds as money received from another subdivision.

Online Reporting – Many states, like California, are creating online reporting systems to track opioid settlement expenditures. Governments will need to familiarize themselves with these reporting tools as they come online.

Non-Compliance – Meeting your reporting obligations is essential to maintaining access to this funding. Failure to submit timely reports or spending on unallowable activities may result in an audit of fund usage or legal action. Accurate reporting also demonstrates good stewardship to the mission of the National Opioids Settlement.

Audit Requirements – The Single Audit Act requires an annual audit of non-federal entities that spend $750,000 or more of federal funds in a fiscal year. Opioid settlement funds are not federal funds and therefore not subject to Single Audit Act requirements.

Maximizing the Impact of Your Government’s Opioid Settlement Funds

The opioid epidemic’s staggering cost defies calculation, with an estimated $1.5 trillion in damages in 2020 alone. Beyond the numbers lie lives lost, families shattered, and communities ravaged. While the National Opioids Settlement can never truly compensate for this immeasurable loss, it does offer states and local governments a chance to reshape the future.

With billions in abatement funding flowing to local communities over the next two decades, ensuring compliance with opioid settlement guidelines will enable you to maximize the impact of every dollar while avoiding the risks of non-compliance. Our experienced state and local government advisors can assist you in tracking allowable spending and meeting reporting requirements so that you can get the most out of these vital funds. Contact our practice today to learn more about how we can help your government achieve its goals.