Successful Tips for CARES Act Funding
While navigating our way through the COVID-19 pandemic, we understand that many individuals, small businesses, and local governments may have questions about to how to best use their Coronavirus Aid Relief and Economic Security Act (CARES Act) funding. When the funding was designed, its purpose was to give financial relief to small businesses and individuals that have been negatively impacted by COVID-19.
During this time, our team has been given the opportunity to assist several local governments in Florida through their CARES Act funding process. Within the past few months, we have acquired the knowledge, skills, and ability to use the funding in the most efficient and effective ways. We have written below successful tips on how to best utilize your CARES Act funding.
Establish a CARES Act team to include a certified public accountants (CPAs), consultants, attorneys, project professionals, and finance specialists.
Keep any receipts, invoices, proof of payment, and paid bills for any purchases you have made with CARES Act funding. This helps when going through the documentation process and minimizes disallowances. Also, make certain that you keep track of all costs.
Ensure that expenses were incurred between March 1 and December 30, 2020, and that expenses were related to public health. Remember that funds need to be expended by December 30, 2020.
Establish separate accounts for funds expended.
Make sure you have your documents including your ledgers to account for receipt of funds and disbursements of payments, budget records from 2019 and 2020, grant agreements, audit records, and any contracts and subcontracts you have entered. For accuracy and to avoid duplicates of documentation, designate a person to coordinate the accumulation of all necessary documentation.
Track any expenses for your payroll and timekeeping. This includes collecting your time records and human resource records to support these expenses.
Ensure that you review important requirement documents such as your procurement requirements, allowable costs, contract provisions, and monitoring documentation from the CARES Act and 2CFR 200. This will help you better understand what costs are eligible and what is allowable use for the CARES Act funds and those that are not.
DSI completely understands the importance of this funding, the tough times communities are going through, and how confusing this process can be. However, we are here to help you and support your team. For questions you may have on how to best spend your COVID-19 CARES Act funding, please reach out to Joe Myers or Linda Berry at info@dsideas.com.
For additional information, you can visit the FDEM site at https://floridapa.org/site/CARES-Act.cfm or the U.S. Small Business Administration site at www.sba.gov.