Grant Acceptance Agreement
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CITY OF TUCSON
HIGH INTENSITY DRUG TRAFFICKING AREA (HIDTA)
PROGRAM
GRANT AGREEMENT CFDA NUMBER: 95.001
AWARD NUMBER (FAIN): G25SA0007A COT Grant Number HT-25-2922A
This Grant Agreement is made this first day of January 2025 by and between the CITY OF TUCSON hereinafter
called “CITY” and GOVERNING BODY, through the Glendale Police Department, hereinafter called “GRANTEE”.
The CITY enters into this Agreement pursuant to its authority under the provisions of A.R.S. § 11-951, et seq., and the
City of Tucson’s Resolution number 21460, having satisfied itself as to the qualification of the GRANTEE.
NOW, THEREFORE, it is agreed between the parties as follows:
1. This Agreement will commence on January 1, 2025, and terminate on December 31, 2026. This Agreement
expires at the end of the award period unless prior written approval for an extension has been obtained from the
CITY. A request for extension must be received by the CITY sixty (60) days prior to the end of the award period.
The CITY may approve an extension that furthers the goals and objectives of the program and shall determine
the length of any extension within Office of National Drug Control Policy (ONDCP) guidelines.
2. The GRANTEE agrees that grant funds will be used for the West Valley Drug Enforcement Task Force
(WVDETF).
3. The CITY will monitor the performance of the GRANTEE against goals and performance standards outlined in the
grant application. Sub-standard performance as determined by the CITY will constitute non-compliance with this
Agreement. The GRANTEE shall operate in a manner consistent with and in compliance with the provisions and
stipulations of the approved grant application and this Agreement. If the CITY finds non-compliance, the
GRANTEE will receive a written notice that identifies the area of non-compliance, and the appropriate corrective
action to be taken. If the GRANTEE does not respond within thirty calendar days to this notice and does not
provide sufficient information concerning the steps that are being taken to correct the problem, the CITY may
suspend funding; permanently terminate this Agreement and/or revoke the grant. Any deviation or failure to
comply with the purpose and/or conditions of this Agreement without prior written CITY approval may constitute
sufficient reason for the CITY to terminate this Agreement; revoke the grant; require the return of all unspent
funds; perform an audit of expended funds; and require the return of any previously spent funds which are
deemed to have been spent in violation of the purpose or conditions of this grant.
4. This Agreement may be modified only by a written amendment signed by the parties. Any notice given pursuant
to this Agreement shall be in writing and shall be considered to have been given when actually received by the
following addressee or their agents or employees:
A.
If to the City of Tucson:
City of Tucson
ATTN: Business Services
Police Satellite Office (Finance)
Tucson Police Department
270 South Stone Avenue
Tucson, Arizona 85701-1917
High Intensity Drug Trafficking Area Grant Number HT-25-2922A Page 2
B. If to the GRANTEE:
Glendale Police Department
6135 N. 57th Drive
Glendale, AZ 85301
Attention: Colby Brandt, Interim Chief of Police
5. The GRANTEE may make budget adjustments only after written notification with signature approval from the
Arizona HIDTA Director is provided to the CITY. A grant adjustment notice (GAN) will be issued to the GRANTEE
notifying the GRANTEE of the approval. Adjustments or reprogramming of the Grantee’s budget in an initiative
or any reprogramming between initiative and/or agencies; in any amount, require the approval of the Board, the
AZ HIDTA Director, and/or the ONDCP in accordance with HIDTA Program Policy and Budget Guidance.
APPROVED LINE-ITEM PROGRAM BUDGET
Personnel:
Salaries
Fringe Benefits
Overtime
Travel
Facilities
Services
Operating Expenses:
Supplies
Other
Equipment
TOTAL
$0.00
$0.00
$85,000.00
$0.00
$0.00
$26,000.00
$0.00
$5,000.00
$0.00
$116,000.00
See Attached Budget Detail Sheet
6. The GRANTEE understands that financial reports are required for reimbursement of expenditures.
7. Every payment obligation of the CITY under this Agreement is conditioned upon the availability of funds
appropriated or allocated for the payment of such obligation. If funds are not allocated and available for the
continuance of this Agreement, this Agreement may be terminated by the CITY. No liability shall accrue to the
CITY in the event this provision is exercised, and the CITY shall not be obligated or liable for any future payments
or for any damages as a result of termination under this paragraph.
8. The GRANTEE understands that prior to the expenditure of confidential funds, an authorized official of the
GRANTEE shall sign a certification indicating that he or she has read, understands, and agrees to abide by all the
conditions pertaining to confidential fund expenditures as set forth in HIDTA Program Policy and Budget Guidance
Para. 6.16.2
High Intensity Drug Trafficking Area Grant Number HT-25-2922A
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9. The GRANTEE certifies that it will comply with Uniform Administrative Requirements, Cost Principles, and Audit
Requirements for Federal Awards 2 CFR 200 as codified in 2 CFR Part 3603 and HIDTA Program Policy & Budget
Guidance - January 6, 2020.
Link: Electronic Code of Federal Regulations: http://www.ecfr.gov
10. The GRANTEE agrees to account for interest earned on Federal grant funds and shall remit interest earned in
excess of the allowable amount as detailed in 2 CFR, Part 200, §200.305 Payment, and all unexpended grant
funds to the CITY within 30 days after receipt of a written request from the CITY. The GRANTEE agrees to
expend all encumbered funds within 90 days of expiration of this award.
11. The GRANTEE agrees to retain all books, account reports, files and other records, (paper and/or electronic)
relating to this Agreement and the performance of this Agreement for no less than five (5) years from the last
financial report submitted to the CITY. All such documents shall be subject to inspection and audit at reasonable
times.
12. For the purpose of this grant, a capital expenditure is $5,000 or above. If the GRANTEE’S policy defines a capital
expenditure as less than $5,000, the GRANTEE will use its own policy.
The GRANTEE shall maintain a tracking system, in accordance with HIDTA Program Policy & Budget Guidance –
January 6, 2020, Section 8, to account for all HIDTA purchased equipment, vehicles, and other items valued at
$5000 or more per unit at the time of purchase. GRANTEE is encouraged to include lower cost, high-risk items,
electronic devices and software, such as but not limited to digital cameras, palm pilots, and GPS devices in the
tracking system.
The GRANTEE agrees to abide by Section 8, that those using HIDTA funds to purchase equipment must maintain
a current inventory of HIDTA-purchased equipment and must provide that inventory to the HIDTA Director or an
ONDCP employee, and/or the CITY upon request. A 100-percent physical inventory of HIDTA-purchased
equipment must be conducted at least every two years.
13. The GRANTEE agrees to follow equipment disposition policies outlined in Uniform Administrative Requirements,
Cost Principles, and Audit Requirements for Federal Awards 2 CFR 200 Subpart D- Post Federal Award
Requirements, §§ 310-316- Property Standards when the equipment is no longer needed for the grant program.
When no longer needed for the original program, the equipment may be used in other activities supported by
the Office of National Drug Control Policy.
Link: Electronic Code of Federal Regulations http://www.ecfr.gov
The GRANTEE agrees that the purchasing agency shall comply with ONDCP HIDTA Program Policy & Budget
Guidance – January 6, 2020 Section 8 in determining the end of the useful life and disposition of HIDTA purchased
equipment. Purchasing agencies must retain documentation of the disposition and provide to the HIDTA Director
and the CITY.
14. The GRANTEE agrees to keep time and attendance sheets signed by the employee and supervisory official having
firsthand knowledge of the work performed by the grant funded employees. The GRANTEE agrees to track
overtime expenses in accordance with ONDCP HIDTA Program Policy & Budget Guidance – January 6, 2020.
15. The GRANTEE will comply with the audit requirements of Uniform Administrative Requirements, Cost Principles,
and Audit Requirements for Federal Awards, 2 CFR 200 Subpart F- Audit Requirements and provide the CITY
with the audit report and any findings within 90 days of receipt of such finding. If the report contains no findings,
the GRANTEE must provide notification that the audit was completed.
Link: Electronic Code of Federal Regulations http://www.ecfr.gov
High Intensity Drug Trafficking Area Grant Number HT-25-2922A
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16. The GRANTEE agrees that it will submit financial reports and supporting documentation to the CITY through the
AZ HIDTA Finance Manager on forms/format provided by the CITY, documenting the activities supported by
these grant funds. In the event reports are not received on or before the indicated date(s), funding will be
suspended until such time as delinquent report(s) are received. These reports are submitted according to the
following schedule:
Report Period Month of:
Due Date:
Report Period Month of:
Due Date:
January 1 - 31
February 1 - 29
March 1 – 30
April 1 - 30
May 1 - 31
June 1 - 30
February 25
March 25
April 25
May 25
June 25
July 25
July 1 – 31
August 1 - 31
September 1 – 30
October 1 - 31
November 1 - 30
December 1 - 31
August 25
September 25
October 25
November 25
December 25
January 25
More frequent reports may be required for the GRANTEES that are considered high risk.
17. All goods and services purchased with grant funds must be received by the GRANTEE within 60 days of the
expiration of this award.
18. The GRANTEE agrees to check the U.S. General Service Administration (GSA) Excluded Parties Listing Service as
required by Executive Order 12549, as defined in 2 CFR 180 et. seq. for individuals, agencies, companies and
corporations debarred or suspended from doing business with recipients receiving Federal funds. The GRANTEE
agrees not to do business with any individual, agency, company or corporation listed in the Excluded Parties
Listing Service.
Link: Excluded Parties Listing System http://sam.gov
19. No funds shall be used to supplant federal, state, county or local funds that would otherwise be made available
for such purposes. Supplanting means the deliberate reduction of State or local funds because of the existence
of Federal funds.
20. The GRANTEE assigns to the CITY any claim for overcharges resulting from antitrust violations to the extent that
such violations concern materials or services applied by third parties to the GRANTEE in exchange for grant funds
provided under this Agreement.
21. The parties agree to use arbitration in the event of disputes in accordance with the provisions of A.R.S. § 12-
1501 et seq.
22. The laws of the State of Arizona apply to questions arising under this Agreement and any litigation regarding this
Agreement must be maintained in Arizona courts, except as provided in paragraph 25 of this Agreement
pertaining to disputes, which are subject to arbitration.
23. The GRANTEE understands that grant funds will not be released until all required reports and reversion of funds
from the prior year grant are submitted to the CITY.
24. The GRANTEE (as “Indemnitor”) agrees to indemnify, defend and hold harmless the CITY (as “Indemnitee”) from
and against any and all claims, losses, liability, costs, or expenses, (including reasonable attorney’s fees)
(hereinafter collectively referred to as “Claims”) arising out of bodily injury of any person (including death) or
property damage, but only to the extent that such Claims which result in vicarious/derivative liability to the
Indemnitee are caused by the act, omission, negligence, misconduct, or other fault of the Indemnitor, its officers,
officials, agents, employees, or volunteers. If the GRANTEE is a state agency or entity, this paragraph does not
apply.
High Intensity Drug Trafficking Area Grant Number HT-25-2922A
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25. Unless the GRANTEE’s contractor or subcontractor is a State agency or entity, the GRANTEE shall cause its
contractor(s) and subcontractors, if any to indemnify defend, save and hold harmless the City of Tucson, any
jurisdictions or agency issuing any permits for any work arising out of this Agreement, and their respective
directors, officers, officials, agents, and employees from and against any and all claims, actions, liabilities,
damages, losses or expenses (including court costs, attorneys’ fees, and costs of claim processing, investigation
and litigation) (hereinafter referred to as “Claims” ) for bodily injury or personal injury (including death), or loss
or damage to tangible or intangible property caused, or alleged to be caused, in whole or in part, by the negligent
or willful acts or omissions of the GRANTEE’S contractor or any of the directors, officers, agents, or employees
or subcontractors of such contractor. This indemnity includes any claim or amount arising out of or recovered
under the Worker’s Compensation Law or arising out of the failure of such contractor to conform to any federal,
state, or local law, statute, ordinance, rule, regulation or court decree. It is the specific intention of the parties
that the Indemnitee shall, in all instances, except for Claims arising solely from the negligence or willful acts or
omissions of the Indemnitee, be indemnified by such contractor from and against any and all claims. It is agreed
that such contractor will be responsible for primary loss investigation, defense and judgment costs where this
indemnification is applicable. Insurance requirements for any contractor used by the GRANTEE are incorporated
herein by this reference and attached to this Agreement as Exhibit “A”.
26. If the GRANTEE is a governmental political subdivision, the GRANTEE will, to the extent possible and practical
share criminal justice information with other authorized criminal justice agencies. The process control number
(PCN) shall be used in accordance with A.R.S. § 41-1750 when sharing data with other criminal justice agencies
as electronic data systems are developed or improved.
27. The GRANTEE agrees to comply with the non-discrimination requirements of the Omnibus Crime Control and Safe
Streets Act of 1968, as amended; 42 USC 3789(d); Title VI of the Civil Rights Act of 1964, as amended; Section
504, Rehabilitation Act of 1973, as amended; Subtitle A, Title II of the Americans with Disabilities Act (ADA)
(1990); Title IX of the Education Amendments of 1972 and the Department of Justice regulations 28 CFR Part
54; The Age Discrimination Act of 1975; Department of Justice Non-Discrimination Regulations, 28 CFR Part 42,
Subparts C, D, E, G and I; Department of Justice regulations on disability discrimination 28 CFR Part 35; all
applicable state laws of A.R.S. § 41-1463; and Executive Orders 2009-09 and 2007-21. These laws prohibit
discrimination on the basis of race, color, religion, sex and national origin including Limited English Proficiency
(LEP) in the delivery of service. In the event that a Federal or State court or Federal or State administrative
agency makes a finding of discrimination after a due process hearing against the GRANTEE, the GRANTEE will
forward a copy of the findings to the Office for Civil Rights, Office of Justice Programs and the CITY.
28. The GRANTEE agrees to formulate and keep on file an Equal Employment Opportunity Plan (EEOP) (if Grantee
is required pursuant to 28 CFR 42.302). The GRANTEE certifies that they have forwarded to the Office for Civil
Rights, Office of Justice Programs the EEOP, or certifications that they have prepared and have on file an EEOP,
or that they are exempt from EEOP requirements. Failure to comply may result in suspension of the receipt of
grant funds. Copies of all submissions such as certifications to or correspondence with the Office for Civil Rights,
Office of Justice Programs regarding this requirement must be provided to the CITY by the GRANTEE.
29. The GRANTEE certifies it will comply with the Drug-Free Workplace Act of 1988, as implemented in 2 CFR Part
182.
30. The GRANTEE agrees to complete and keep on file, as appropriate, Immigration and Naturalization Forms (I-9).
This form is to be used by recipients to verify that persons are eligible to work in the United States. Additionally,
the GRANTEE ensures compliance with Executive Order 2005-30 federal immigration laws by state employees
and contractors.
31. The GRANTEE agrees to notify the Arizona HIDTA Director and provide written notification to the CITY within ten
(10) days in the event that the project official is replaced during the award period.
High Intensity Drug Trafficking Area Grant Number HT-25-2922A Page 6
32. No rights or interest in this Agreement shall be assigned by GRANTEE without prior written approval of the CITY.
33. The GRANTEE agrees that no funds provided, or personnel employed under this Agreement shall be in any way
or to any extent engaged in conduct of political activities in violation of U.S.C. Title 5, Part II, Chapter 15, Section
1502.
34. The GRANTEE certifies that it presently has no financial interest and shall not acquire any financial interest, direct
or indirect, which would conflict in any manner or degree with the performance of services required under this
Agreement.
35. The Grantee certifies that no federal funds will be paid, by or on behalf of, to any person for influencing or
attempting to influence an officer or employee of any agency, a Member of Congress, an officer or employee of
Congress, or an employee of a Member of Congress in connection with the awarding of any Federal contract, the
making of any Federal grant, the making of any Federal loan, the entering into of any cooperative agreement,
and for the extension, continuation, renewal, amendment, or modification of any Federal contract, grant, loan or
cooperative agreement. If any funds other than Federal funds are paid or will be paid to any person for
influencing or attempting to influence an officer or employee of Congress, or an employee of a Member of
Congress in connection with this Federal award, grant loan, or cooperative agreement, the GRANTEE will
complete and submit to the CITY Standard Form-LLL, “Disclosure Form to Report Lobbying” in accordance with
its instructions
36. This Agreement is subject to cancellation pursuant to the provision of A.R.S. § 38-511.
37. This Agreement may be cancelled at the CITY’s discretion if not returned with authorized signatures to the CITY
within 90 days of commencement of the award.
38. If any provision of this Agreement is held invalid the remainder of the Agreement shall not be affected thereby
and all other parts of this Agreement shall be in full force and effect.
39. Pursuant to resolution number 21460, adopted by Mayor and Council December 15, 2009, the Tucson Police
Chief is authorized to enter into contracts and grant agreements for HIDTA operations.
40. In accordance with A.R.S. §41-4401, the GRANTEE warrants compliance with E-Verify and all federal immigration
laws and regulations relating to employees and warrants compliance with A.R.S. § 23-214A.
41. (Added by the Grantee) Nothing herein shall be interpreted as an express or implied waiver of either party’s
sovereign immunity in any forum or jurisdiction.
High Intensity Drug Trafficking Area Grant Number HT-25-2922A
Page 7
IN WITNESS WHEREOF, the parties have made and executed the Agreement the day and year
first above written.
FOR GRANTEE:
Kevin R. Phelps, City Manager
Date
Note: If applicable, the Agreement must be approved by the appropriate county supervisory board
or municipal council and appropriate local counsel (i.e. county or city attorney). Furthermore, if
applicable, resolutions and meeting minutes must be forwarded to the CITY with the signed
Agreement.
ATTEST:
_______________________________________
Julie K. Bower, City Clerk (SEAL)
Approved as to form and authority to enter into Agreement:
Michael D. Bailey, City Attorney
Date
INDICATE STATUTORY OR OTHER LGAL AUTHORITY TO ENTER AGGREMENT BELOW
A.R.S. 11-952
_________________________________________________________________
Appropriate A.R.S., ordinance, or reference
High Intensity Drug Trafficking Area Grant Number HT-25-2922A
Page 8
INDICATE STATUTORY OR OTHER LEGAL AUTHORITY TO ENTER AGREEMENT BELOW:
Appropriate A.R.S., ordinance, or charter reference
FOR CITY OF TUCSON:
Chad Kasmar, Chief of Police
Date
City of Tucson Police Department
Principal Assistant City Attorney
Date
City of Tucson Police Department
Approved as to form.
CITY OF TUCSON
GRANT AGREEMENT
Insurance Requirements
Exhibit “A”
Insurance Requirements for Governmental Parties to a Grant Agreement:
None.
Insurance Requirements for Any Contractors Used by a Party to the Grant Agreement:
(Note: this applies only to Contractors used by a governmental entity, not to the governmental entity itself.) The insurance
requirements herein are minimum requirements and in no way limit the indemnity covenants contained in the
Intergovernmental Agreement. The City of Tucson in no way warrants that the minimum limits contained herein are
sufficient to protect the governmental entity or Contractor from liabilities that might arise out of the performance of the
work under this Contract by the Contractor, his agents, representatives, employees or subcontractors, and Contractor and
the governmental entity are free to purchase additional insurance.
A.
MINIMUM SCOPE AND LIMITS OF INSURANCE: Contractor shall provide coverage with limits of liability not
less than those stated below.
1. Commercial General Liability – Occurrence Form
Policy shall include bodily injury, property damage, personal injury and broad form contractual
liability.
•
General Aggregate
$2,000,000
•
Products – Completed Operations Aggregate
$1,000,000
•
Personal and Advertising Injury
$1,000,000
•
Blanket Contractual Liability – Written and Oral
$1,000,000
•
Fire Legal Liability
$50,000
•
Each Occurrence
$1,000,000
a.
The policy shall be endorsed to include the following additional insured language: “The City
of Tucson, its departments, agencies, boards, commissions, universities and its
officers, officials, agents, and employees shall be named as additional insureds with
respect to liability arising out of the activities performed by or on behalf of the
Contractor".
(Note that the other governmental entity(ies) is/are also required to be additional insured(s) and
they should supply the Contractor with their own list of persons to be insured.)
b.
Policy shall contain a waiver of subrogation against the City of Tucson, its departments,
agencies, boards, commissions, universities and its officers, officials, agents, and employees
for losses arising from work performed by or on behalf of the Contractor.
Exhibit “A” Page 2
2. Automobile Liability
Bodily Injury and Property Damage for any owned, hired, and/or non-owned vehicles used in the
performance of this Contract.
Combined Single Limit (CSL) $1,000,000
a. The policy shall be endorsed to include the following additional insured language: “The City of
Tucson, its departments, agencies, boards, commissions, universities and its officers,
officials, agents, and employees shall be named as additional insured with respect to
liability arising out of the activities performed by or on behalf of the Contractor,
involving automobiles owned, leased, hired or borrow ed by the Contractor".
(Note that the other governmental entity(ies) is/are also required to be additional insured(s) and
they should supply the Contractor with their own list of persons to be insured.)
3. Worker's Compensation and Employers' Liability
Workers' Compensation
Statutory
Employers' Liability
Each Accident
$500,000
Disease – Each Employee
$500,000
Disease – Policy Limit $1,000,000
a. Policy shall contain a waiver of subrogation against the City of Tucson, its departments, agencies,
boards, commissions, universities and its officers, officials, agents, and employees for losses
arising from work performed by or on behalf of the Contractor.
b. This requirement shall not apply to: Separately, EACH contractor or subcontractor exempt under
A.R.S. 23-901, AND when such contractor or subcontractor executes the appropriate waiver
(Sole Proprietor/Independent Contractor) form.
B. ADDITIONAL INSURANCE REQUIREMENTS: The policies are to contain, or be endorsed to contain, the following
provisions:
1. The City of Tucson, its departments, agencies, boards, commissions, universities and its officers, officials, agents,
and employees and the other governmental entity shall be additional insureds to the full limits of liability purchased
by the Contractor even if those limits of liability are in excess of those required by the Contract.
2. The Contractor's insurance coverage shall be primary insurance with respect to all other available sources.
3. The Contractor's insurance shall apply separately to each insured against whom claim is made or suit is brought,
except with respect to the limits of the insurer's liability. Coverage provided by the Contractor shall not be limited
to the liability assumed under the indemnification provisions of its Contract with the other governmental entity(ies)
party to the Grant Agreement.
Exhibit “A” Page 3
C. NOTICE OF CANCELLATION: Each insurance policy required by the insurance provisions of this Contract shall not
be suspended, voided, cancelled, reduced in coverage or in limits except after thirty (30) days prior written notice has
been given the City of Tucson. Such notice shall be sent directly to the GRANTEE and shall be sent by certified mail,
return receipt requested.
D. ACCEPTABILITY OF INSURERS: Insurance is to be placed with duly licensed or approved non-admitted insurers in
the State of Arizona with an “A.M. Best” rating of not less than A- VII. The City of Tucson in no way warrants that the
above-required minimum insurer rating is sufficient to protect the Contractor from potential insurer insolvency.
E. VERIFICATION OF COVERAGE: Contractor shall furnish the GRANTEE with certificates of insurance (ACORD form
or equivalent approved by the State of Arizona) as required by this Contract. The certificates for each insurance policy
are to be signed by a person authorized by that insurer to bind coverage on its behalf.
All certificates and endorsements are to be received and approved before work commences. Each insurance policy
required by this Contract must be in effect at or prior to commencement of work under this Contract and remain in
effect for the duration of the project. Failure to maintain the insurance policies as required by this Contract, or to
provide evidence of renewal, is a material breach of contract.
All certificates required by this Contract shall be sent directly to the GRANTEE. The City of Tucson’s project/contract
number and project description are to be noted on the certificate of insurance. The City of Tucson reserves the right
to require complete, certified copies of all insurance policies required by this Contract at any time. DO NOT SEND
CERTIFICATES OF INSURANCE TO THE CITY OF TUCSON’S RISK MANAGEMENT SECTION.
F. SUBCONTRACTORS: Contractor's certificate(s) shall include all subcontractors as insureds under its policies or
Contractor shall furnish to the county or local government agency responsible separate certificates for each
subcontractor. All coverage’s for subcontractors shall be subject to the minimum requirements identified above.
G. APPROVAL: Any modification or variation from the insurance requirements must have prior approval from the City of
Tucson, Risk Management Section, whose decision shall be final. Such action will not require a formal contract
amendment but may be made by administrative action.
H. EXCEPTIONS: In the event the Contractor or sub-contractor(s) is/are a public entity, then the Insurance Requirements
shall not apply. Such public entity shall provide a Certificate of Self-Insurance. If the contractor or sub-contractor(s)
is/are a City of Tucson agency, board, commission, or university then none of the above shall apply.
CITY OF TUCSON
HIGH INTENSITY DRUG TRAFFICKING AREA (HIDTA)
GRANT AGREEMENT
Confidential Funds Certification
Exhibit “B”
CONFIDENTIAL FUNDS CERTIFICATION
1) This is to certify that I have read, understand, and agree to abide by all of the conditions for confidential funds as set
forth in the effective edition of the Office of National Drug Control Policy Financial and Administrative Guide.
2) My agency is/is not authorized to disburse confidential funds.
Grant Number: HT-25-2922A
Date: _____________________
Signature: ___________________________
Colby Brandt, Interim Police Chief
PROCEDURES
Each project agency authorized to disburse confidential funds must develop and follow internal procedures, which
incorporate the following elements:
Deviations from these elements must receive prior approval of the ONDCP.
1. Imprest Fund. The funds authorized will be established in an imprest fund, which is controlled by a
bonded cashier.
2. Advance of Funds: The supervisor of the unit to which the imprest funds is assigned must authorize all
advances of funds for the P/I. Such authorization must specify the information to be received, the
amount of expenditures and assumed name of the informant.
3. Informant Files: Informant files are confidential files of the true names, assumed
names, and signature of all informants to whom payments of confidential expenditures have been made. To the extent
possible, pictures and/or fingerprints of the informant payee should also be maintained. Refer to Informant Files
“Documentation” (2) for a list of required documents for the informant files.
4. Cash Receipts.
a. The cashier shall receive from the agent or officer authorized to make a confidential payment receipt
for cash advanced to him/her for such purposes.
b. The agent or officer shall receive from the informant payee a receipt for cash paid to him/her.
Exhibit “B” Page 2
5. Receipts for Purchase of Information. An Informant Payee Receipt shall identify the exact amount paid to and received
by the informant payee on the date executed. Cumulative or anticipatory receipts are not permitted. Once the receipt
has been completed no alteration is allowed. The agent shall prepare an Informant Payee
Receipt containing the following information:
a. The jurisdiction initiating the payment.
b. A description of the information/evidence received.
c. The amount of payment, both in numeral and word form.
d. The date on which the payment was made.
e. The signature of the informant payee.
f. The signature of the case agent or officer making payment.
g. The signature of at least one other officer witnessing the payment.
h. The signature of the first-line supervisor authorizing and certifying the payment.
6. Review and Certification. The signed Informant Payee Receipt with a memorandum detailing the
information received shall be forwarded to the agent or officer in charge. The agent or officer in
charge shall compare the signatures. He/she shall also evaluate the information received in relation to
the expense incurred and add his/her evaluation remarks to the report of the agent or officer who
made the expenditure from the imprest funds. The certification will be witnessed by the agent or
officer in charge based on the report and Informant Payee’s Receipt.
7. Reporting of Funds. Each project shall prepare a reconciliation report on the imprest funds on a quarterly
basis. Information to be included in the reconciliation report will be the assumed name of the informant payee, the
amount received, the nature of the information given, and to what extent this information contributed to the
investigation. Recipients/subrecipients shall retain the reconciliation report in their files and shall be available for
review unless the State agency requests that the report be submitted to them on a quarterly basis.
8. Record and Audit Provisions. Each project and member agency must maintain specific records of each
confidential fund transaction. At a minimum, these records must consist of all documentation concerning the request for
funds, processing (to include the review and approve/disapprove), modifications, closure or impact material, and receipts
and/or other documentation necessary to justify and track all expenditures. Refer to Informant Files Documentation (2)
for a list of documents, which should be in an informant’s file. In projects where funds are used for confidential
expenditures, it will be understood that all the above records, except the true name of the informant, are subject to the
record and audit provision of grantor agency legislation.
INFORMANT FILES
1. Security. A separate file should be established for each informant for accounting purposes. Informant
files should be kept in a separate and secure storage facility, segregated from any other files, and under
the exclusive control of the supervisor or an employee designated by him/her. The facility should be
always locked when unattended. Access to these files should be limited to those employees who have a
necessary legitimate need. An informant file should not leave the immediate area except for review by
a management official or the handling agent and should be returned prior to the close of business hours.
Sign-out logs should be kept indicating the date, informant number, time in and out, and the signature
of the person reviewing the file.
Exhibit “B” Page 3
2. Documentation. Each file should include the following information:
a. Informant Payment Record - kept on top of the file. This record provides a
summary of informant payments.
b. Informant Establishment Record - including complete identifying and location data, plus any other
documents connected with the informant’s establishment.
c. Current photograph and fingerprint card (or FBI/State Criminal Identification Number).
d. Agreement with cooperating individual.
e. Receipt for P/I.
f.
Copies of all debriefing reports (except for the Headquarters case file).
g. Copies of case initiation reports regarding the utilization of the informant (except for the Headquarters case file).
h. Copies of statements signed by the informant (unsigned copies will be placed in appropriate investigative files).
i.
Any administrative correspondence pertaining to the informant, including documentation of any representations
made on his behalf or any other non-monetary considerations furnished.
j.
Any deactivation report or declaration of any unsatisfactory informant.
INFORMANT MANAGEMENT AND UTILIZATION
All persons who will be utilized as informants should be established as such. The specific procedures required in establishing
a person as an informant may vary from jurisdiction to jurisdiction but, at a minimum, should include the following:
1. Assignment of an informant code name to protect the informant’s identity.
2. An informant code book controlled by the supervisor or his/her designee containing:
a) Informant’s code number.
b) Type of information (i.e., informant, defendant/informant, restricted use/informant).
c) Informant’s true name.
d) Name of establishing law enforcement officer.
e) Date the establishment is approved.
f)
Date of deactivation.
3. Establish each informant file in accordance with Informant File Documentation (2).
4. For each informant in an active status, the agent should review the informant file on a quarterly basis
to assure it contains all relevant and current information. Where a MATERIAL face that was earlier
reported on the Establishment Record is no longer correct (e.g., a change in criminal status, means of
locating him/her, etc.), a supplemental establishing report should be submitted with the correct entry.
5. All informants being established should be checked in all available criminal indices. If verified FBI.
number is available, request a copy of the criminal records from the FBI. Where a verified FBI number
is not available, the informant should be fingerprinted with a copy sent to the FBI and appropriate
state authorities for analysis. The informant may be utilized on a provisional basis while awaiting a
response from the FBI
Exhibit “B” Page 4
PAYMENTS TO INFORMANTS
1. Any person who is to receive payments charged against PE/PI funds should be established as an informant. This
includes a person who may otherwise be categorized as sources of information or informants under the control of
another agency. The amount of payment should be commensurate with the value of services and/or information
provided and should be based on the following factors:
a. The level of the targeted individual, organization, or operation.
b. The amount of the actual or potential seizure.
c. The significance of the contribution made by the informant to the desired objectives.
2. There are various circumstances in which payments to informants may be made.
a. Payments for Information and/or Active Participation. When an informant assists in developing
an investigation, either through supplying information or actively participating in it, he/she may
be paid for his/her service either in a lump sum or in staggered payments. Payments for
information leading to a seizure, with no defendants, should be held to a minimum
b. Payment for Informant Protection. When an informant needs protection, law enforcement
agencies may absorb the expenses of relocation. These expenses may include travel for the
informant and his/her immediate family, movement and/or storage of household goods, and
living expenses at the new location for a specific period (not to exceed 6 months). Payments
should not exceed the amounts authorized by law enforcement employees for these activities.
c. Payments to Informants of Another Agency. To use or pay another agency’s informant, he/she
should be established as an informant. These payments should not be a duplication of a payment
from another agency, however, sharing a payment is acceptable
3. Documentation of payments to informants is critical and should be accomplished on a
Informant Payee Receipt. Payment should be made and witnessed by two law enforcement officers and authorized
payment amounts should be established and reviewed by at least the first line supervisory level. In unusual
circumstances, a non-officer employee or an officer of another law enforcement agency may serve as witness. In all
instances, the original signed receipt must be submitted to the project director for review and record keeping.
ACCOUNTING AND CONTROL PROCEDURES
Special accounting and control procedures should govern the use and handling of confidential expenditures, as described
below:
1. It is important that expenditures which conceptually should be charged to PE/PI/PS are charged. It
is only in this manner that these funds may be properly managed at all levels, and accurate forecasts of
projected needs be made.
2. Each law enforcement entity should apportion its PE/PI/PS allowance throughout its jurisdiction and
delegate authority to approve PE/PI/PS expenditures to those offices, as it deems appropriate.
3. Headquarters management should establish guidelines authorizing offices to spend up to a predetermined limit of their
total allowance on any buy or investigation.
4. In exercising his/her authority to approve these expenditures, the supervisor should consider:
a. The significance of the investigation.
b. The need for this expenditure to further the investigation.
c. Anticipated expenditures in other investigations.
Exhibit “B” Page 5
Funds for PE/PI/PS expenditures should be advanced to the officer for a specific purpose. If they are not expended for
that purpose, they should be returned to the cashier. They should not be used for another purpose without first returning
them and repeating the authorization and advance process based on the new purpose.
5. Funds for PE/PI/PS expenditure should be advanced to the officer on suitable receipt form. Informant
Payee Receipt or a voucher for P/E should be completed to document funds used in the purchase of
evidence or funds paid or advanced to an informant.
6. For security purposes there should be a 48-hour limit on the amount of time funds advanced for PE/PI/PS expenditure
may be held outstanding. If it becomes apparent at any point within the 48-hour period that the expenditure will not
materialize, the funds should be returned to the cashier as soon as possible. An extension of the 48-hour limit may
be granted by the level of management that approved the advance. Factors to consider in granting such an extension
are:
a. The amount of funds involved.
b. The degree of security under which the funds are being held.
c. How long an extension is required.
d. The significance of the expenditure.
Such extensions should be limited to 48 hours. Beyond this, the funds should be returned and readvanced, if
necessary. Regardless of circumstances, within 48 hours of the advance, the cashier should be presented with
either the unexpended funds, an executed Informant Payee Receipt or purchase of evidence or written notification
by management that an extension has been granted.
7. P/S expenditures, when not endangering the safety of the officer or informant, need
to be supported by canceled tickets, receipts, lease agreements, etc. If not available, the supervisor, or his immediate
subordinate, must certify that the expenditures were necessary and justify why supporting documents were not
obtained.