Colorado nonprofits serving people struggling with addiction have been waiting months for tens of thousands of dollars in refunds after the state's Department of Behavioral Health repeatedly changed the rules of a critical grant. They claim the organization was on the verge of closure.
Raquel Garcia, CEO of Castle Rock-based Hard Beauty, said the organization's bank account was down to about $700 in January, and the peer mentoring group was on the verge of shutting down completely. He said he went as far as The nonprofit spends the money for approved uses and expects the state to reimburse it, she said. And if the money is delayed, you won't be able to cover your expenses.
“For this long, all we can say (to creditors) is, 'Hey, the state will pay, it's coming,'” Garcia said.
The Denver Post spoke to seven people who work for or work for nonprofits that received grants administered by the Department of Behavioral Health, all of whom reported delays in payments or complaints from state authorities after the contract was signed. reported dissatisfaction with unexpected changes requested by
Colorado Department of Behavioral Health faces controversy after its first director was fired and another state agency head temporarily replaced, other staff turnover near the top and ambitious deadlines met. The first two years were difficult. The second permanent committee member will be appointed later this month.
In HardBeauty's case, Garcia identified what appeared to be minor issues in the information her organization submitted a few months later, and the entire $50,000 the nonprofit was due to receive that month was withdrawn. He said he would refuse to make it public. Like many small nonprofits, the organization didn't have an employee dedicated to administering grants, so it had to hire additional fiscal support, she said.
Garcia said the agency has recovered several months of payments but has yet to repay the group more than $100,000 for December and January.
The agency's funding comes from the American Rescue Plan Act, a $1.9 trillion federal economic stimulus package passed in 2021. Each state will receive a portion of the funds, which they must designate for specific purposes by the end of this year and spend by January 2027.
The Department of Behavioral Health has distributed more than $145 million in American Rescue Plan grants to more than 100 organizations across the state, which will help improve programs for children, youth, and people in the criminal justice system. This creates an “unprecedented opportunity” to expand, said department spokeswoman Stephanie Bush.
The agency did not respond to The Post's questions about nonprofits' concerns about delayed grant payments and frequent rule changes.
“BHA works with providers on the challenges they face, including creating resources to guide them through the claims process and one-on-one meetings and office hours that allow providers to ask questions and receive real-time assistance.” “I am committed to that,” she said. In a statement.
“It was very frustrating.”
Gabe Cohen, executive director of Rifle-based Discovery Café, which serves incarcerated people with substance use disorders in western Colorado, said the Department of Behavioral Health signed a contract late last year to provide funding for the grant. He said he had started making payments.
So far, the agency has only repaid Discovery Café costs since October and owes the nonprofit about $59,000 over several months — the contract states that the state will pay for it. Despite having a 45-day deadline to repay the debt, Cohen said, Under the agreement, the organization submits a proposed budget for specific projects and goals, and the agency agrees to reimburse salaries, equipment and other costs in line with that budget.
To make up the difference, Discovery Café essentially drew down its savings and took out a line of credit, Cohen said. He said state officials continue to change the rules for the use of funds, repeatedly requiring organizations to resubmit documents and delaying payments. Officials at other nonprofit organizations told the Post they believed the federal government was responsible for most of the changes.
“I'm sure they'll pay us, but it's been very frustrating,” Cohen said. “If you're going to issue a subsidy and say you're going to pay it within 45 days, you should do what you say you're going to do.”
Brea Kinsella, executive director of the Colorado Provider Association, a trade group representing mental health and addiction care providers, said the problem is widespread.
“All of my providers who received these ARPA funds are having problems,” she said. “She can't wait 75 to 90 days for these small organizations to get this funding.”
Kinsella said federal funding always brings new layers of documentation and reporting, and states seem to be especially careful to make sure the federal government doesn't find a problem and demand repayment. The Department of Behavioral Health has been around for just over two years and has dealt with leadership changes in that time, but she said she hopes the new director will bring stability.
“I think we're on the right path,” she said.
“It was already past the deadline.”
An accountant who works with nonprofits, speaking on the condition of anonymity to avoid jeopardizing relationships with state agencies, said grant terms could be slightly adjusted or payments could be delayed for a short period of time. said it is a common occurrence. But she has never seen an institution request major changes, such as wanting grantees to focus on another part of their region, after the grantee had already spent the grant. He said no.
Some customers have had to cut costs elsewhere and aren't sure if they'll be able to apply for future grants to expand services, she said.
The accountant said states can make grant requirements more stringent than the federal government if they wish, and most nonprofits are willing to comply. The problem, she says, is that the Department of Behavioral Health hasn't been upfront about its expectations.
“They're retroactively changing the rules, but they're not communicating that,” she said. “It's a guessing game.”
The state is supposed to pay within 45 days, but some of the accountant's clients have not yet received reimbursements for October expenses, he said. The trend of changing rules and requiring new documentation is partly responsible for the delays, but in some cases states have not asked for clarification for more than two months, he said.
“The deadline had already passed before we started reviewing it,” she said of state officials.
A Colorado addiction recovery organization needed to secure a six-figure loan line to stay afloat as it waits for overdue grant funding, but even that has run out. said the Executive Director. He spoke on condition of anonymity because he did not want to jeopardize his future fundraising, assuming his organization survives immediate financial difficulties.
The nonprofit organization has not yet been paid for the work it did in November, the executive director said. The organization now has to repay its loan facility, and if the grant isn't paid soon, the director said it may have to lay off staff and close.
“We basically had to shut down the state for the entire month of November,” he said.
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