The use of opioid settlement funds by local governments is governed by the North Carolina Memoradum of Agreement (NC MOA). Key provisions of the NC MOA include the following:
[1] Special Revenue Fund: The NC MOA states that every local government receiving opioid settlement funds must create a separate special revenue fund that is designated for the receipt and accounting of opioid settlement funds.
[2] Spending Authorization: Before spending opioid settlement funds in the special revenue fund, a local government must adopt a resolution that identifies the specific strategy or strategies the local government intends to fund and states the amount dedicated to each strategy over a specified period of time. In addition to this MOA requirement, the local government must abide by budgeting, preaudit, and other expenditure control requirements in North Carolina law.
[3] Option A and Option B: A local government must spend opioid settlement funds on opioid remediation activities authorized under Option A or Option B as detailed in the MOA.
- Under Option A, a local government may fund one or more strategies from MOA Exhibit A, which is a shorter list of high-impact strategies to address the epidemic. This option allows for but does not require collaborative strategic planning at the local level. To learn more, read the FAQ on Option A Strategies in the NC MOA.
- Under Option B, a local government:
- Engages in the collaborative strategic planning process described in MOA Exhibit C;
- Drafts a report and recommendations (R&R), the contents of which are described in the right-hand column of MOA Exhibit C;
- Formally presents the R&R to its governing body; and
- Submits the R&R to the Community Opioid Resources Engine (CORE-NC).
Once the R&R have been formally presented to the local governing body, the local governing body may then decide to fund one or more strategies from the shorter list of high-impact strategies listed in NC MOA Exhibit A or the longer list of strategies from the national settlement agreements in NC MOA Exhibit B.
[4] Reporting Requirements: A local government must understand and follow all reporting requirements, described below.
[5] Annual Meeting: The NC MOA requires that each county receiving settlement funds hold at least one annual meeting open to the public, with all municipalities in the county invited to the meeting. The purposes of the meeting are to receive input on proposed uses of the opioid settlement funds and to encourage collaboration among local governments.
MORE ON REPORTING REQUIREMENTS: To comply with the MOA, local governments submit the following reports to the Community Opioid Resources Engine (CORE-NC):
[1] Local Spending Authorization Report: The local spending authorization report is due to CORE-NC within 90 days of the date a local government adopts a resolution authorizing the expenditure of opioid settlement funds. See how local governments plan to spend opioid settlement funds.
[2] Option B Report and Recommendations: If a local government chooses to proceed under Option B, the Option B report and recommendations (R&R) are due to CORE-NC within 90 days of presentation to the governing body. The contents of the R&R are described in the right-hand column of Exhibit C to the MOA. R&Rs, when applicable, are available in the document library.
[3] Annual Financial Report: A local government that receives, holds, or spends opioid settlement funds during a fiscal year must file an annual financial report with CORE-NC within 90 days of the end of the fiscal year. The contents of the report are detailed in Exhibit E to the MOA (as modified by the Coordination Group). See how local governments have spent opioid settlement funds.
[4] Annual Impact Report: A local government that receives, holds, or spends opioid settlement funds during a fiscal year must file an annual impact report with CORE-NC within 90 days of the end of the fiscal year. The contents of the report are detailed in Exhibit F to the MOA (as modified by the Coordination Group. Annual impact reports are available in the document library.
To learn more, read the FAQ on the NC MOA, the full text of the NC MOA, the FAQ on Option A Strategies in the NC MOA, NC MOA Exhibit A, NC MOA Exhibit B, NC MOA Exhibit C, NC MOA Exhibit E, and NC MOA Exhibit F.