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Agenda 11/10/2020 Item #11A (Proposal to Secure the remaining allocation of Coronavirus - CARES program)11/10/2020 EXECUTIVE SUMMARY Recommendation to approve a proposal to secure the remaining $36M+ allocation of Coronavirus Relief Funds (CRF) to Collier County, direct staff to continue implementing the Collier CARES program and authorize necessary budget amendments. OBJECTIVE: To place the County in the best position possible to be eligible for up to $36,939,338 in CARES Act funding by obtaining Board direction on allocation of funding due to changes in State guidance and deadlines for reimbursement submission given further clarity around State -imposed deadlines. CONSIDERATIONS: At the October 27, 2020 BCC meeting (Item 1 LQ, the Board approved the Phase II amendment to the agreement with the Florida Division of Emergency Management (FDEM) to receive a second direct payment of $13,432, 486 of Coronavirus Relief Funds for the Collier CARES program. This second amendment brought the total CARES Act funding paid directly to the County to $30,223,094.34. Staff continues to process payments and applications according to the program approved, and subsequently amended, by the Board. Staff also advised at the October meeting that FDEM's deadline requires that by November 16, 2020, all documentation for Phase 1 and Phase 2 be submitted, or the County will not qualify for Phase 3 funding. This puts the County at risk of being ineligible for up to $36,939,339 in CRF funding allocated to Collier County. On October 30, 2020 staff was granted access to the Florida CARES Act Management System (FLCARES), the state system of record for CRF programs. Through FLCARES, counties can submit requests for funding and upload any required support documentation. Staff will need to upload Requests for Advance Validation (RAV) for funds already received by the County and Requests for Reimbursement (RFR) for the remainder of the funding on a reimbursement basis. Staff was also given clarity that the State would implement a December 3, 2020 deadline for all RFRs to be submitted in the system. This leaves little time, approximately three weeks, to identify and submit reimbursement requests and the Board does not meet again until December 8, 2020, five days after the deadline for RFR submission. Over the past two weeks, staff have worked together with the State -hired FDEM consultant to enact an approved spending plan with the state and gain access to the reimbursement system. The latest Treasury guidance and State have advised that as a matter of administrative convenience, all public health and safety employees meet the substantially dedicated test, and as such their entire payroll costs are eligible to be covered by the CRF. Board authorization to file these eligible requests for reimbursements prior to the new state deadlines will optimize the County's prospects of receiving the final $36M+ allocated through the CRF. Staff recommends that reimbursements recovered using this methodology be set aside in a project fund which can be used to continue to execute the Board approved Collier CARES program beyond the current December 31, 2020 funding deadline, or as otherwise directed by the Board. Implementation will require amending the budget. FISCAL IMPACT: The total CARES Act allocation for the County is $67,162,432. The initial 25% Phase 1 advance of $16,790,608 was issued when the agreement was first executed with FDEM. The Phase 2 allocation executed for the County is an advance of another $13,432,486, bringing the total funding released to $30,223,094. Board approval of the plan proposed in this Executive Summary will allow the staff to apply for reimbursements for the remaining $36M+ allocated to Collier County by the Packet Pg. 289 11/10/2020 December 3' filing deadline. Funding has been made available within the Human Services Grant Fund (707), Project 33699 to administer funds effectively. Staff will distribute funds for eligible expenditures in accordance with the CARES Act and related guidance. Other expenses incurred by the County and associated with the administration of this agreement will be accounted for and are expected to be fully reimbursable. A list of eligible expenses and full U.S. Treasury guidance is attached as an addendum to this Executive Summary. GROWTH MANAGEMENT IMPACT: There is no growth management impact associated with this item. LEGAL CONSIDERATIONS: This item is approved in form and legality and requires a majority vote for approval- JAB RECOMMENDATION: To approve a proposal to secure the remaining $36M+ allocation of Coronavirus Relief Funds (CRF) to Collier County, direct staff to continue implementing the Collier CARES program and authorize necessary budget amendments. Prepared By: Sean Callahan, Executive Director, Corporate Business Operations ATTACHMENT(S) 1. Coronavirus-Relief-Fund-Guidance-for-State-Territorial-Local-and-Tribal-Governments (3) (PDF) 2. Coronavirus-Relief-Fund-Frequently-Asked-Questions October 19 (PDF) 3. State of FL CRF Local Government Recipient Guidelines (PDF) 4. FL Local Government Webinar Changes (flat) (PDF) 5. Quick Spend Guidance FL CARES 10_20_2020 (PDF) Packet Pg. 290 11.A 11/10/2020 COLLIER COUNTY Board of County Commissioners Item Number: I LA Doe ID: 14108 Item Summary: Recommendation to approve a proposal to secure the remaining $36M+ allocation of Coronavirus Relief Funds (CRF) to Collier County, direct staff to continue implementing the Collier CARES program and authorize necessary budget amendments. (Sean Callahan, Executive Director, Corporate Business Operations) Meeting Date: 11/10/2020 Prepared by: Title: — Corporate Business Operations Name: Sean Callahan 11/02/2020 1:14 PM Submitted by: Title: County Manager — County Manager's Office Name: Leo E. Ochs 11/02/2020 1:14 PM Approved By: Review: Corporate Business Operations Community & Human Services Community & Human Services Corporate Business Operations Grants Office of Management and Budget Grants County Attorney's Office County Manager's Office Board of County Commissioners Jennifer Reynolds Additional Reviewer Kristi Sonntag Additional Reviewer Maggie Lopez Additional Reviewer Sean Callahan Additional Reviewer Erica Robinson Level 2 Grants Review Debra Windsor Level 3 OMB Gatekeeper Review Therese Stanley Additional Reviewer Jeffrey A. Klatzkow Level 3 County Attorney's Office Review Leo E. Ochs Level 4 County Manager Review MaryJo Brock Meeting Pending Completed 11/02/2020 1:20 PM Completed 11/02/2020 1:40 PM Completed 11/02/2020 2:05 PM Completed 11/02/2020 2:18 PM Completed 11/02/2020 2:57 PM Completed 11/02/2020 3:30 PM Completed 11/03/2020 11:22 AM Completed 11/04/2020 9:02 AM Completed 11/04/2020 11:42 AM 11/10/2020 9:00 AM Packet Pg. 291 11.A.a Coronavirus Relief Fund Guidance for State, Territorial, Local, and Tribal Governments Updated September 2, 2020' c The purpose of this document is to provide guidance to recipients of the funding available under section 601(a) of the Social Security Act, as added by section 5001 of the Coronavirus Aid, Relief, and Economic Security Act ("CARES Act"). The CARES Act established the Coronavirus Relief Fund (the "Fund") W and appropriated $150 billion to the Fund. Under the CARES Act, the Fund is to be used to make v payments for specified uses to States and certain local governments; the District of Columbia and U.S. o Territories (consisting of the Commonwealth of Puerto Rico, the United States Virgin Islands, Guam, American Samoa, and the Commonwealth of the Northern Mariana Islands); and Tribal governments. M The CARES Act provides that payments from the Fund may only be used to cover costs that- 1. are necessary expenditures incurred due to the public health emergency with respect to the Coronavirus Disease 2019 (COVID-19); 2. were not accounted for in the budget most recently approved as of March 27, 2020 (the 0 date of enactment of the CARES Act) for the State or government; and 3. were incurred during the period that begins on March 1, 2020, and ends on December 30, 2020.2 The guidance that follows sets forth the Department of the Treasury's interpretation of these limitations on the permissible use of Fund payments. Necessary expenditures incurred due to the public health emergency The requirement that expenditures be incurred "due to" the public health emergency means that expenditures must be used for actions taken to respond to the public health emergency. These may include expenditures incurred to allow the State, territorial, local, or Tribal government to respond directly to the emergency, such as by addressing medical or public health needs, as well as expenditures incurred to respond to second -order effects of the emergency, such as by providing economic support to those suffering from employment or business interruptions due to COVID-19-related business closures. Funds may not be used to fill shortfalls in government revenue to cover expenditures that would not otherwise qualify under the statute. Although a broad range of uses is allowed, revenue replacement is not a permissible use of Fund payments. The statute also specifies that expenditures using Fund payments must be "necessary." The Department of the Treasury understands this term broadly to mean that the expenditure is reasonably necessary for its intended use in the reasonable judgment of the government officials responsible for spending Fund payments. c ' On June 30, 2020, the guidance provided under "Costs incurred during the period that begins on March 1, 2020, and ends on December 30, 2020" was updated. On September 2, 2020, the "Supplemental Guidance on Use of s Funds to Cover Payroll and Benefits of Public Employees" and "Supplemental Guidance on Use of Funds to Cover Administrative Costs" sections were added. Q 2 See Section 601(d) of the Social Security Act, as added by section 5001 of the CARES Act. Packet Pg. 292 11.A.a Costs not accounted for in the budget most recently approved as of March 27, 2020 The CARES Act also requires that payments be used only to cover costs that were not accounted for in the budget most recently approved as of March 27, 2020. A cost meets this requirement if either (a) the cost cannot lawfully be funded using a line item, allotment, or allocation within that budget or (b) the cost is for a substantially different use from any expected use of funds in such a line item, allotment, or allocation. LL W The "most recently approved" budget refers to the enacted budget for the relevant fiscal period for the v particular government, without taking into account subsequent supplemental appropriations enacted or o other budgetary adjustments made by that government in response to the COVID-19 public health emergency. A cost is not considered to have been accounted for in a budget merely because it could be met using a budgetary stabilization fund, rainy day fund, or similar reserve account. Costs incurred during the period that begins on March 1, 2020, and ends on December 30, 2020 Finally, the CARES Act provides that payments from the Fund may only be used to cover costs that were incurred during the period that begins on March 1, 2020, and ends on December 30, 2020 (the "covered period"). Putting this requirement together with the other provisions discussed above, section 601(d) may be summarized as providing that a State, local, or tribal government may use payments from the Fund only to cover previously unbudgeted costs of necessary expenditures incurred due to the COVID-19 public health emergency during the covered period. Initial guidance released on April 22, 2020, provided that the cost of an expenditure is incurred when the recipient has expended funds to cover the cost. Upon further consideration and informed by an understanding of State, local, and tribal government practices, Treasury is clarifying that for a cost to be considered to have been incurred, performance or delivery must occur during the covered period but payment of funds need not be made during that time (though it is generally expected that this will take place within 90 days of a cost being incurred). For instance, in the case of a lease of equipment or other property, irrespective of when payment occurs, the cost of a lease payment shall be considered to have been incurred for the period of the lease that is within the covered period but not otherwise. Furthermore, in all cases it must be necessary that performance or delivery take place during the covered period. Thus the cost of a good or service received during the covered period will not be considered eligible under section 601(d) if there is no need for receipt until after the covered period has expired. Goods delivered in the covered period need not be used during the covered period in all cases. For example, the cost of a good that must be delivered in December in order to be available for use in January could be covered using payments from the Fund. Additionally, the cost of goods purchased in bulk and delivered during the covered period may be covered using payments from the Fund if a portion of the goods is ordered for use in the covered period, the bulk purchase is consistent with the recipient's usual procurement policies and practices, and it is impractical to track and record when the items were used. A recipient may use payments from the Fund to purchase a durable good that is to be used during the current period and in subsequent periods if the acquisition in the covered period was necessary due to the public health emergency. Given that it is not always possible to estimate with precision when a good or service will be needed, the U touchstone in assessing the determination of need for a good or service during the covered period will be reasonableness at the time delivery or performance was sought, e.g., the time of entry into a procurement E contract specifying a time for delivery. Similarly, in recognition of the likelihood of supply chain s disruptions and increased demand for certain goods and services during the COVID-19 public health 2 emergency, if a recipient enters into a contract requiring the delivery of goods or performance of services Q by December 30, 2020, the failure of a vendor to complete delivery or services by December 30, 2020, W Packet Pg. 293 11.A.a will not affect the ability of the recipient to use payments from the Fund to cover the cost of such goods or services if the delay is due to circumstances beyond the recipient's control. This guidance applies in a like manner to costs of subrecipients. Thus, a grant or loan, for example, provided by a recipient using payments from the Fund must be used by the subrecipient only to purchase (or reimburse a purchase of) goods or services for which receipt both is needed within the covered period and occurs within the covered period. The direct recipient of payments from the Fund is ultimately responsible for compliance with this limitation on use of payments from the Fund. Nonexclusive examples of eligible expenditures Eligible expenditures include, but are not limited to, payment for: 1. Medical expenses such as: • COVID-19-related expenses of public hospitals, clinics, and similar facilities. • Expenses of establishing temporary public medical facilities and other measures to increase COVID-19 treatment capacity, including related construction costs. • Costs of providing COVID-19 testing, including serological testing. • Emergency medical response expenses, including emergency medical transportation, related to COVID-19. • Expenses for establishing and operating public telemedicine capabilities for COVID-19- related treatment. 2. Public health expenses such as: • Expenses for communication and enforcement by State, territorial, local, and Tribal governments of public health orders related to COVID-19. • Expenses for acquisition and distribution of medical and protective supplies, including sanitizing products and personal protective equipment, for medical personnel, police officers, social workers, child protection services, and child welfare officers, direct service providers for older adults and individuals with disabilities in community settings, and other public health or safety workers in connection with the COVID-19 public health emergency. • Expenses for disinfection of public areas and other facilities, e.g., nursing homes, in response to the COVID-19 public health emergency. • Expenses for technical assistance to local authorities or other entities on mitigation of COVID-19-related threats to public health and safety. • Expenses for public safety measures undertaken in response to COVID-19. • Expenses for quarantining individuals. 3. Payroll expenses for public safety, public health, health care, human services, and similar employees whose services are substantially dedicated to mitigating or responding to the COVID- 19 public health emergency. C Q Packet Pg. 294 11.A.a 4. Expenses of actions to facilitate compliance with COVID-19-related public health measures, such as: • Expenses for food delivery to residents, including, for example, senior citizens and other vulnerable populations, to enable compliance with COVID-19 public health precautions. • Expenses to facilitate distance learning, including technological improvements, in connection ' with school closings to enable compliance with COVID-19 precautions. LL W • Expenses to improve telework capabilities for public employees to enable compliance with v COVID-19 public health precautions. o T • Expenses of providing paid sick and paid family and medical leave to public employees to enable compliance with COVID-19 public health precautions. M • COVID-19-related expenses of maintaining state prisons and county jails, including as relates to sanitation and improvement of social distancing measures, to enable compliance with COVID-19 public health precautions. c • Expenses for care for homeless populations provided to mitigate COVID-19 effects and enable compliance with COVID-19 public health precautions. 5. Expenses associated with the provision of economic support in connection with the COVID-19 public health emergency, such as: • Expenditures related to the provision of grants to small businesses to reimburse the costs of business interruption caused by required closures. • Expenditures related to a State, territorial, local, or Tribal government payroll support program. • Unemployment insurance costs related to the COVID-19 public health emergency if such costs will not be reimbursed by the federal government pursuant to the CARES Act or otherwise. 6. Any other COVID-19-related expenses reasonably necessary to the function of government that satisfy the Fund's eligibility criteria. Nonexclusive examples of ineligible expenditures' M The following is a list of examples of costs that would not be eligible expenditures of payments from the Fund. 13 1. Expenses for the State share of Medicaid.' 2. Damages covered by insurance. 3. Payroll or benefits expenses for employees whose work duties are not substantially dedicated to mitigating or responding to the COVID-19 public health emergency. L ' In addition, pursuant to section 5001(b) of the CARES Act, payments from the Fund may not be expended for an c elective abortion or on research in which a human embryo is destroyed, discarded, or knowingly subjected to risk of o injury or death. The prohibition on payment for abortions does not apply to an abortion if the pregnancy is the result V of an act of rape or incest; or in the case where a woman suffers from a physical disorder, physical injury, or physical illness, including a life -endangering physical condition caused by or arising from the pregnancy itself, that would, as certified by a physician, place the woman in danger of death unless an abortion is performed. s Furthermore, no government which receives payments from the Fund may discriminate against a health care entity 0 on the basis that the entity does not provide, pay for, provide coverage of, or refer for abortions. Q 4 See 42 C.F.R. § 433.51 and 45 C.F.R. § 75.306. 4 Packet Pg. 295 11.A.a 4. Expenses that have been or will be reimbursed under any federal program, such as the reimbursement by the federal government pursuant to the CARES Act of contributions by States to State unemployment funds. 5. Reimbursement to donors for donated items or services. 6. Workforce bonuses other than hazard pay or overtime. 7. Severance pay. 8. Legal settlements. Supplemental Guidance on Use of Funds to Cover Payroll and Benefits of Public Employees As discussed in the Guidance above, the CARES Act provides that payments from the Fund must be used only to cover costs that were not accounted for in the budget most recently approved as of March 27, 2020. As reflected in the Guidance and FAQs, Treasury has not interpreted this provision to limit eligible costs to those that are incremental increases above amounts previously budgeted. Rather, Treasury has interpreted this provision to exclude items that were already covered for their original use (or a substantially similar use). This guidance reflects the intent behind the Fund, which was not to provide general fiscal assistance to state governments but rather to assist them with COVID-19-related necessary expenditures. With respect to personnel expenses, though the Fund was not intended to be used to cover government payroll expenses generally, the Fund was intended to provide assistance to address increased expenses, such as the expense of hiring new personnel as needed to assist with the government's response to the public health emergency and to allow recipients facing budget pressures not to have to lay off or furlough employees who would be needed to assist with that purpose. Substantially different use As stated in the Guidance above, Treasury considers the requirement that payments from the Fund be used only to cover costs that were not accounted for in the budget most recently approved as of March 27, 2020, to be met if either (a) the cost cannot lawfully be funded using a line item, allotment, or allocation within that budget or (b) the cost is for a substantially different use from any expected use of funds in such a line item, allotment, or allocation. Treasury has provided examples as to what would constitute a substantially different use. Treasury provided (in FAQ A.3) that costs incurred for a substantially different use would include, for example, the costs of redeploying educational support staff or faculty to develop online learning capabilities, such as through providing information technology support that is not part of the staff or faculty's ordinary responsibilities. Substantially dedicated Within this category of substantially different uses, as stated in the Guidance above, Treasury has included payroll and benefits expenses for public safety, public health, health care, human services, and similar employees whose services are substantially dedicated to mitigating or responding to the COVID- 19 public health emergency. The full amount of payroll and benefits expenses of substantially dedicated employees may be covered using payments from the Fund. Treasury has not developed a precise definition of what "substantially dedicated" means given that there is not a precise way to define this term a� c a_ W 0 00 0 T T C Q Packet Pg. 296 11.A.a across different employment types. The relevant unit of government should maintain documentation of the "substantially dedicated" conclusion with respect to its employees. If an employee is not substantially dedicated to mitigating or responding to the COVID-19 public health a� emergency, his or her payroll and benefits expenses may not be covered in full with payments from the Fund. A portion of such expenses may be able to be covered, however, as discussed below. Public health and public safety a_ v In recognition of the particular importance of public health and public safety workers to State, local, and o tribal government responses to the public health emergency, Treasury has provided, as an administrative accommodation, that a State, local, or tribal government may presume that public health and public safety employees meet the substantially dedicated test, unless the chief executive (or equivalent) of the relevant v government determines that specific circumstances indicate otherwise. This means that, if this presumption applies, work performed by such employees is considered to be a substantially different use than accounted for in the most recently approved budget as of March 27, 2020. All costs of such c L employees may be covered using payments from the Fund for services provided during the period that begins on March 1, 2020, and ends on December 30, 2020. cn In response to questions regarding which employees are within the scope of this accommodation, Treasury is supplementing this guidance to clarify that public safety employees would include police officers (including state police officers), sheriffs and deputy sheriffs, firefighters, emergency medical responders, correctional and detention officers, and those who directly support such employees such as dispatchers and supervisory personnel. Public health employees would include employees involved in providing medical and other health services to patients and supervisory personnel, including medical staff assigned to schools, prisons, and other such institutions, and other support services essential for patient care (e.g., laboratory technicians) as well as employees of public health departments directly engaged in matters related to public health and related supervisory personnel. Not substantially dedicated As provided in FAQ A.47, a State, local, or tribal government may also track time spent by employees related to COVID-19 and apply Fund payments on that basis but would need to do so consistently within the relevant agency or department. This means, for example, that a government could cover payroll expenses allocated on an hourly basis to employees' time dedicated to mitigating or responding to the COVID-19 public health emergency. This result provides equitable treatment to governments that, for example, instead of having a few employees who are substantially dedicated to the public health emergency, have many employees who have a minority of their time dedicated to the public health emergency. Covered benefits w Payroll and benefits of a substantially dedicated employee may be covered using payments from the Fund to the extent incurred between March 1 and December 30, 2020. 0 L Payroll includes certain hazard pay and overtime, but not workforce bonuses. As discussed in FAQ A.29, 0 U hazard pay may be covered using payments from the Fund if it is provided for performing hazardous duty or work involving physical hardship that in each case is related to COVID-19. This means that, whereas E payroll and benefits of an employee who is substantially dedicated to mitigating or responding to the s COVID-19 public health emergency may generally be covered in full using payments from the Fund, 2 hazard pay specifically may only be covered to the extent it is related to COVID-19. For example, a Q recipient may use payments from the Fund to cover hazard pay for a police officer coming in close R1 Packet Pg. 297 11.A.a contact with members of the public to enforce public health or public safety orders, but across-the-board hazard pay for all members of a police department regardless of their duties would not be able to be covered with payments from the Fund. This position reflects the statutory intent discussed above: the Fund was intended to be used to help governments address the public health emergency both by providing funds for incremental expenses (such as hazard pay related to COVID-19) and to allow governments not to have to furlough or lay off employees needed to address the public health emergency but was not intended to provide across-the-board budget support (as would be the case if hazard pay regardless of its relation to COVID-19 or workforce bonuses were permitted to be covered using payments from the Fund). Relatedly, both hazard pay and overtime pay for employees that are not substantially dedicated may only be covered using the Fund if the hazard pay and overtime pay is for COVID-19-related duties. As discussed above, governments may allocate payroll and benefits of such employees with respect to time worked on COVID- 1 9-related matters. Covered benefits include, but are not limited to, the costs of all types of leave (vacation, family -related, sick, military, bereavement, sabbatical, jury duty), employee insurance (health, life, dental, vision), retirement (pensions, 401(k)), unemployment benefit plans (federal and state), workers compensation insurance, and Federal Insurance Contributions Act (FICA) taxes (which includes Social Security and Medicare taxes). Supplemental Guidance on Use of Funds to Cover Administrative Costs General Payments from the Fund are not administered as part of a traditional grant program and the provisions of the Uniform Guidance, 2 C.F.R. Part 200, that are applicable to indirect costs do not apply. Recipients may not apply their indirect costs rates to payments received from the Fund. Recipients may, if they meet the conditions specified in the guidance for tracking time consistently across a department, use payments from the Fund to cover the portion of payroll and benefits of employees corresponding to time spent on administrative work necessary due to the COVID-19 public health emergency. (In other words, such costs would be eligible direct costs of the recipient). This includes, but is not limited to, costs related to disbursing payments from the Fund and managing new grant programs established using payments from the Fund. As with any other costs to be covered using payments from the Fund, any such administrative costs must be incurred by December 30, 2020, with an exception for certain compliance costs as discussed below. Furthermore, as discussed in the Guidance above, as with any other cost, an administrative cost that has been or will be reimbursed under any federal program may not be covered with the Fund. For example, if an administrative cost is already being covered as a direct or indirect cost pursuant to another federal grant, the Fund may not be used to cover that cost. Compliance costs related to the Fund As previously stated in FAQ B.11, recipients are permitted to use payments from the Fund to cover the expenses of an audit conducted under the Single Audit Act, subject to the limitations set forth in 2 C.F.R. § 200.425. Pursuant to that provision of the Uniform Guidance, recipients and subrecipients subject to the Single Audit Act may use payments from the Fund to cover a reasonably proportionate share of the costs of audits attributable to the Fund. 7 d c U_ W 0 00 0 T C Q Packet Pg. 298 11.A.a To the extent a cost is incurred by December 30, 2020, for an eligible use consistent with section 601 of the Social Security Act and Treasury's guidance, a necessary administrative compliance expense that relates to such underlying cost may be incurred after December 30, 2020. Such an expense would include, for example, expenses incurred to comply with the Single Audit Act and reporting and C M recordkeeping requirements imposed by the Office of Inspector General. A recipient with such necessary :a administrative expenses, such as an ongoing audit continuing past December 30, 2020, that relates to a LL Fund expenditures incurred during the covered period, must report to the Treasury Office of Inspector W General by the quarter ending September 2021 an estimate of the amount of such necessary v administrative expenses. o T r M C a) E t C� Q Packet Pg. 299 11.A.b Coronavirus Relief Fund Frequently Asked Questions Updated as of October 19, 2020' The following answers to frequently asked questions supplement Treasury's Coronavirus Relief Fund ("Fund") Guidance for State, Territorial, Local, and Tribal Governments, updated as of September 2, 2020 ("Guidance").2 Amounts paid from the Fund are subject to the restrictions outlined in the Guidance and set forth in section 601(d) of the Social Security Act, as added by section 5001 of the Coronavirus ,. Aid, Relief, and Economic Security Act ("CARES Act"). M A. Eligible Expenditures 3 u_ 1. Are governments required to submit proposed expenditures to Treasury for approval? v No. Governments are responsible for making determinations as to what expenditures are necessary c due to the public health emergency with respect to COVID-19 and do not need to submit any proposed expenditures to Treasury. CD 2. The Guidance says that funding can be used to meet payroll expenses for public safety, public health, health care, human services, and similar employees whose services are substantially c dedicated to mitigating or responding to the COVID-19 public health emergency. How does a government determine whether payroll expenses for a given employee satisfy the "substantially dedicated" condition? o The Fund is designed to provide ready funding to address unforeseen financial needs and risks created by the COVID-19 public health emergency. For this reason, and as a matter of administrative convenience in light of the emergency nature of this program, a State, territorial, local, or Tribal government may presume that payroll costs for public health and public safety employees are payments for services substantially dedicated to mitigating or responding to the COVID-19 public health emergency, unless the chief executive (or equivalent) of the relevant government determines that specific circumstances indicate otherwise. 3. The Guidance says that a cost was not accounted for in the most recently approved budget if the 4- cost is for a substantially different use from any expected use of funds in such a line item, allotment, or allocation. What would qualify as a "substantially different use"for purposes of the Fund eligibility? d Costs incurred for a "substantially different use" include, but are not necessarily limited to, costs of personnel and services that were budgeted for in the most recently approved budget but which, due L entirely to the COVID-19 public health emergency, have been diverted to substantially different functions. This would include, for example, the costs of redeploying corrections facility staff to c enable compliance with COVID-19 public health precautions through work such as enhanced `o sanitation or enforcing social distancing measures; the costs of redeploying police to support v management and enforcement of stay-at-home orders; or the costs of diverting educational support staff or faculty to develop online learning capabilities, such as through providing information s technology support that is not part of the staff or faculty's ordinary responsibilities. M Q 1 On August 10, 2020, these Frequently Asked Questions were revised to add Questions A.49-52. On September 2, 2020, Questions A.53-56 were added and Questions A.34 and A.38 were revised. On October 19, 2020, Questions A.57-59 and B.13 were added and Questions A.42, 49, and 53 were revised. 2 The Guidance is available at hgps://home.treasM.gov/system/files/136/Coronavirus-Relief-Fund-Guidance-for- State-Territorial-Local-and-Tribal-Governments.pdf. Packet Pg. 300 11.A.b Note that a public function does not become a "substantially different use" merely because it is provided from a different location or through a different manner. For example, although developing online instruction capabilities may be a substantially different use of funds, online instruction itself is not a substantially different use of public funds than classroom instruction. 4. My a State receiving a payment transfer funds to a local government? Yes, provided that the transfer qualifies as a necessary expenditure incurred due to the public health emergency and meets the other criteria of section 601(d) of the Social Security Act. Such funds would be subject to recoupment by the Treasury Department if they have not been used in a manner consistent with section 601(d) of the Social Security Act. 5. My a unit of loaal government receiving a Fund payment transfer. funds to another unit of government? Yes. For example, a county may transfer funds to a city, town, or school district within the county and a county or city may transfer funds to its State, provided that the transfer qualifies as a necessary expenditure incurred due to the public health emergency and meets the other criteria of section 601(d) of the Social Security Act outlined in the Guidance. For example, a transfer from a county to a constituent city would not be permissible if the funds were intended to be used simply to fill shortfalls in government revenue to cover expenditures that would not otherwise qualify as an eligible expenditure. 6. Is a Fund payment recipient required to transfer funds to a smaller, constituent unit of government within its borders? No. For example, a county recipient is not required to transfer funds to smaller cities within the county's borders. 7. Are recipients required to use other federal funds or seek reimbursement under other federal programs before using Fund payments to satisfy eligible expenses? No. Recipients may use Fund payments for any expenses eligible under section 601(d) of the Social Security Act outlined in the Guidance. Fund payments are not required to be used as the source of funding of last resort. However, as noted below, recipients may not use payments from the Fund to cover expenditures for which they will receive reimbursement. 8. Are there prohibitions on combining a transaction supported with Fund payments with other CARES Act funding or COVID-19 relief Federal funding? Recipients will need to consider the applicable restrictions and limitations of such other sources of funding. In addition, expenses that have been or will be reimbursed under any federal program, such as the reimbursement by the federal government pursuant to the CARES Act of contributions by States to State unemployment funds, are not eligible uses of Fund payments. 2 A c aD E s Q Packet Pg. 301 11.A.b 9. Are States permitted to use Fund payments to support state unemployment insurance funds generally? To the extent that the costs incurred by a state unemployment insurance fund are incurred due to the COVID-19 public health emergency, a State may use Fund payments to make payments to its respective state unemployment insurance fund, separate and apart from such State's obligation to the unemployment insurance fund as an employer. This will permit States to use Fund payments to prevent expenses related to the public health emergency from causing their state unemployment insurance funds to become insolvent. 10. Are recipients permitted to use Fund payments to pay for unemployment insurance costs incurred by the recipient as an employer? Yes, Fund payments may be used for unemployment insurance costs incurred by the recipient as an employer (for example, as a reimbursing employer) related to the COVID-19 public health emergency if such costs will not be reimbursed by the federal government pursuant to the CARES Act or otherwise. 11. The Guidance states that the Fund may support a "broad range of uses" including payroll expenses for several classes of employees whose services are "substantially dedicated to mitigating or responding to the COVID-19 public health emergency. " What are some examples of types of covered employees? The Guidance provides examples of broad classes of employees whose payroll expenses would be eligible expenses under the Fund. These classes of employees include public safety, public health, health care, human services, and similar employees whose services are substantially dedicated to mitigating or responding to the COVID-19 public health emergency. Payroll and benefit costs associated with public employees who could have been furloughed or otherwise laid off but who were instead repurposed to perform previously unbudgeted functions substantially dedicated to mitigating or responding to the COVID-19 public health emergency are also covered. Other eligible expenditures include payroll and benefit costs of educational support staff or faculty responsible for developing online learning capabilities necessary to continue educational instruction in response to COVID- 1 9-related school closures. Please see the Guidance for a discussion of what is meant by an expense that was not accounted for in the budget most recently approved as of March 27, 2020. 12. In some cases, first responders and critical health care workers that contract COVID-19 are eligible for workers' compensation coverage. Is the cost of this expanded workers compensation coverage eligible? Increased workers compensation cost to the government due to the COVID-19 public health emergency incurred during the period beginning March 1, 2020, and ending December 30, 2020, is an eligible expense. 13. If a recipient would have decommissioned equipment or not renewed a lease on particular office space or equipment but decides to continue to use the equipment or to renew the lease in order to respond to the public health emergency, are the costs associated with continuing to operate the equipment or the ongoing lease payments eligible expenses? Yes. To the extent the expenses were previously unbudgeted and are otherwise consistent with section 601(d) of the Social Security Act outlined in the Guidance, such expenses would be eligible. A Q Packet Pg. 302 11.A.b 14. May recipients provide stipends to employees for eligible expenses (for example, a stipend to employees to improve telework capabilities) rather than require employees to incur the eligible cost and submit for reimbursement? Expenditures paid for with payments from the Fund must be limited to those that are necessary due to the public health emergency. As such, unless the government were to determine that providing assistance in the form of a stipend is an administrative necessity, the government should provide such assistance on a reimbursement basis to ensure as much as possible that funds are used to cover only eligible expenses. c M 15. May Fund payments be used for COVID-19 public health emergency recovery planning? Yes. Expenses associated with conducting a recovery planning project or operating a recovery u_ coordination office would be eligible, if the expenses otherwise meet the criteria set forth in section v 601(d) of the Social Security Act outlined in the Guidance. CO 16. Are expenses associated with contact tracing eligible? Yes, expenses associated with contact tracing are eligible. CD L d 17. To what extent may a government use Fund payments to support the operations of private hospitals? p N Governments may use Fund payments to support public or private hospitals to the extent that the c costs are necessary expenditures incurred due to the COVID-19 public health emergency, but the v form such assistance would take may differ. In particular, financial assistance to private hospitals Cy could take the form of a grant or a short-term loan. 18. May payments from the Fund be used to assist individuals with enrolling in a government benefit program for those who have been laid off due to COVID-19 and thereby lost health insurance? Yes. To the extent that the relevant government official determines that these expenses are necessary and they meet the other requirements set forth in section 601(d) of the Social Security Act outlined in the Guidance, these expenses are eligible. 19. May recipients use Fund payments to facilitate livestock depopulation incurred by producers due to supply chain disruptions? Yes, to the extent these efforts are deemed necessary for public health reasons or as a form of economic support as a result of the COVID-19 health emergency. 20. Would providing a consumer grant program to prevent eviction and assist in preventing homelessness be considered an eligible expense? Yes, assuming that the recipient considers the grants to be a necessary expense incurred due to the c COVID-19 public health emergency and the grants meet the other requirements for the use of Fund E payments under section 601(d) of the Social Security Act outlined in the Guidance. As a general matter, providing assistance to recipients to enable them to meet property tax requirements would not 19 be an eligible use of funds, but exceptions may be made in the case of assistance designed to prevent Q foreclosures. 4 Packet Pg. 303 11.A.b 21. May recipients create a `payroll support program "for public employees? Use of payments from the Fund to cover payroll or benefits expenses of public employees are limited to those employees whose work duties are substantially dedicated to mitigating or responding to the COVID-19 public health emergency. 22. May recipients use Fund payments to cover employment and training programs for employees that have been furloughed due to the public health emergency? Yes, this would be an eligible expense if the government determined that the costs of such d c employment and training programs would be necessary due to the public health emergency. -tea 23. May recipients use Fund payments to provide emergency financial assistance to individuals and U_ families directly impacted by a loss of income due to the COVID-19 public health emergency? t� Yes, if a government determines such assistance to be a necessary expenditure. Such assistance could CO include, for example, a program to assist individuals with payment of overdue rent or mortgage payments to avoid eviction or foreclosure or unforeseen financial costs for funerals and other emergency individual needs. Such assistance should be structured in a manner to ensure as much as CD possible, within the realm of what is administratively feasible, that such assistance is necessary. 0 24. The Guidance provides that eligible expenditures may include expenditures related to the provision 0 ofgrants to small businesses to reimburse the costs of business interruption caused by required c closures. What is meant by a "small business, " and is the Guidance intended to refer only to expenditures to cover administrative expenses of such a grant program? Governments have discretion to determine what payments are necessary. A program that is aimed at Cy assisting small businesses with the costs of business interruption caused by required closures should Y be tailored to assist those businesses in need of such assistance. The amount of a grant to a small a business to reimburse the costs of business interruption caused by required closures would also be an eligible expenditure under section 601(d) of the Social Security Act, as outlined in the Guidance. C 25. The Guidance provides that expenses associated with the provision of economic support in connection with the public health emergency, such as expenditures related to the provision of grants to small businesses to reimburse the costs of business interruption caused by required closures, would constitute eligible expenditures of Fund payments. Would such expenditures be eligible in the absence of a stay-at-home order? d Fund payments may be used for economic support in the absence of a stay-at-home order if such expenditures are determined by the government to be necessary. This may include, for example, a ' grant program to benefit small businesses that close voluntarily to promote social distancing measures c or that are affected by decreased customer demand as a result of the COVID-19 public health o emergency. 0 c 26. May Fund payments be used to assist impacted property owners with the payment of their property d taxes? s M Fund payments may not be used for government revenue replacement, including the provision of Q assistance to meet tax obligations. Packet Pg. 304 11.A.b 27. May Fund payments be used to replace foregone utility fees? If not, can Fund payments be used as a direct subsidy payment to all utility account holders? Fund payments may not be used for government revenue replacement, including the replacement of unpaid utility fees. Fund payments may be used for subsidy payments to electricity account holders to the extent that the subsidy payments are deemed by the recipient to be necessary expenditures incurred due to the COVID-19 public health emergency and meet the other criteria of section 601(d) of the Social Security Act outlined in the Guidance. For example, if determined to be a necessary expenditure, a government could provide grants to individuals facing economic hardship to allow them to pay their utility fees and thereby continue to receive essential services. 28. Could Fund payments be used for capital improvement projects that broadly provide potential economic development in a community? In general, no. If capital improvement projects are not necessary expenditures incurred due to the COVID-19 public health emergency, then Fund payments may not be used for such projects. However, Fund payments may be used for the expenses of, for example, establishing temporary public medical facilities and other measures to increase COVID-19 treatment capacity or improve mitigation measures, including related construction costs. 29. The Guidance includes workforce bonuses as an example of ineligible expenses but provides that hazard pay would be eligible if otherwise determined to be a necessary expense. Is there a specific definition of "hazard pay"? Hazard pay means additional pay for performing hazardous duty or work involving physical hardship, in each case that is related to COVID-19. 30. The Guidance provides that ineligible expenditures include "[playroll or benefits expenses for employees whose work duties are not substantially dedicated to mitigating or responding to the COVID-19 public health emergency. " Is this intended to relate only to public employees? Yes. This particular nonexclusive example of an ineligible expenditure relates to public employees. A recipient would not be permitted to pay for payroll or benefit expenses of private employees and any financial assistance (such as grants or short-term loans) to private employers are not subject to the restriction that the private employers' employees must be substantially dedicated to mitigating or responding to the COVID-19 public health emergency. 31. May counties pre pay with CARES Act funds for expenses such as a one or two year facility lease, such as to house staff hired in response to COVID-19? A government should not make prepayments on contracts using payments from the Fund to the extent that doing so would not be consistent with its ordinary course policies and procedures. 32. Must a stay-at-home order or other public health mandate be in effect in order for a government to provide assistance to small businesses using payments from the Fund? No. The Guidance provides, as an example of an eligible use of payments from the Fund, expenditures related to the provision of grants to small businesses to reimburse the costs of business interruption caused by required closures. Such assistance may be provided using amounts received from the Fund in the absence of a requirement to close businesses if the relevant government determines that such expenditures are necessary in response to the public health emergency. 0 A c d E s Q Packet Pg. 305 11.A.b 33. Should States receiving a payment transfer funds to local governments that did not receive payments directly from Treasury? Yes, provided that the transferred funds are used by the local government for eligible expenditures under the statute. To facilitate prompt distribution of Title V funds, the CARES Act authorized Treasury to make direct payments to local governments with populations in excess of 500,000, in amounts equal to 45% of the local government's per capita share of the statewide allocation. This statutory structure was based on a recognition that it is more administratively feasible to rely on States, rather than the federal government, to manage the transfer of funds to smaller local governments. Consistent with the needs of all local governments for funding to address the public health emergency, States should transfer funds to local governments with populations of 500,000 or less, using as a benchmark the per capita allocation formula that governs payments to larger local governments. This approach will ensure equitable treatment among local governments of all sizes. For example, a State received the minimum $1.25 billion allocation and had one county with a population over 500,000 that received $250 million directly. The State should distribute 45 percent of the $1 billion it received, or $450 million, to local governments within the State with a population of 500,000 or less. 34. May a State impose restrictions on transfers of funds to local governments? Yes, to the extent that the restrictions facilitate the State's compliance with the requirements set forth in section 601(d) of the Social Security Act outlined in the Guidance and other applicable requirements such as the Single Audit Act, discussed below. Other restrictions, such as restrictions on reopening that do not directly concern the use of funds, are not permissible. 35. If a recipient must issue tax anticipation notes (TANs) to make up for tax due date deferrals or revenue shortfalls, are the expenses associated with the issuance eligible uses of Fund payments? If a government determines that the issuance of TANs is necessary due to the COVID-19 public health emergency, the government may expend payments from the Fund on the interest expense payable on TANs by the borrower and unbudgeted administrative and transactional costs, such as necessary payments to advisors and underwriters, associated with the issuance of the TANs. 36. May recipients use Fund payments to expand rural broadband capacity to assist with distance learning and telework? Such expenditures would only be permissible if they are necessary for the public health emergency. The cost of projects that would not be expected to increase capacity to a significant extent until the need for distance learning and telework have passed due to this public health emergency would not be necessary due to the public health emergency and thus would not be eligible uses of Fund payments. 37. Are costs associated with increased solid waste capacity an eligible use of payments from the Fund? Yes, costs to address increase in solid waste as a result of the public health emergency, such as relates to the disposal of used personal protective equipment, would be an eligible expenditure. 7 A c d s Q Packet Pg. 306 11.A.b 38. May payments from the Fund be used to cover across-the-board hazard pay for employees working during a state of emergency? No. Hazard pay means additional pay for performing hazardous duty or work involving physical hardship, in each case that is related to COVID-19. Payments from the fund may only be used to cover such hazard pay. 39. May Fund payments be used for expenditures related to the administration of Fund payments by a State, territorial, local, or Tribal government? Yes, if the administrative expenses represent an increase over previously budgeted amounts and are limited to what is necessary. For example, a State may expend Fund payments on necessary administrative expenses incurred with respect to a new grant program established to disburse amounts received from the Fund. 40. May recipients use Fund payments to provide loans? Yes, if the loans otherwise qualify as eligible expenditures under section 601(d) of the Social Security Act as implemented by the Guidance. Any amounts repaid by the borrower before December 30, 2020, must be either returned to Treasury upon receipt by the unit of government providing the loan or used for another expense that qualifies as an eligible expenditure under section 601(d) of the Social Security Act. Any amounts not repaid by the borrower until after December 30, 2020, must be returned to Treasury upon receipt by the unit of government lending the funds. 41. May Fund payments be used for expenditures necessary to prepare for a future COVID-19 outbreak? Fund payments may be used only for expenditures necessary to address the current COVID-19 public health emergency. For example, a State may spend Fund payments to create a reserve of personal protective equipment or develop increased intensive care unit capacity to support regions in its jurisdiction not yet affected, but likely to be impacted by the current COVID-19 pandemic. 42. May funds be used to satisfy non-federal matching requirements under the Stafford Act? Yes, payments from the Fund may be used to meet the non-federal matching requirements for Stafford Act assistance, including FEMA's Emergency Management Performance Grant (EMPG) and EMPG Supplemental programs, to the extent such matching requirements entail COVID-19-related costs that otherwise satisfy the Fund's eligibility criteria and the Stafford Act. Regardless of the use of Fund payments for such purposes, FEMA funding is still dependent on FEMA's determination of eligibility under the Stafford Act. 43. Must a State, local, or tribal government require applications to be submitted by businesses or individuals before providing assistance using payments from the Fund? Governments have discretion to determine how to tailor assistance programs they establish in response to the COVID-19 public health emergency. However, such a program should be structured in such a manner as will ensure that such assistance is determined to be necessary in response to the COVID-19 public health emergency and otherwise satisfies the requirements of the CARES Act and other applicable law. For example, a per capita payment to residents of a particular jurisdiction without an assessment of individual need would not be an appropriate use of payments from the Fund. A c as E s M Q Packet Pg. 307 11.A.b 44. May Fund payments be provided to non profits for distribution to individuals in need of financial assistance, such as rent relief? Yes, non -profits may be used to distribute assistance. Regardless of how the assistance is structured, the financial assistance provided would have to be related to COVID-19. 45. May recipients use Fund payments to remarket the recipient's convention facilities and tourism industry? Yes, if the costs of such remarketing satisfy the requirements of the CARES Act. Expenses incurred to publicize the resumption of activities and steps taken to ensure a safe experience may be needed due to the public health emergency. Expenses related to developing a long-term plan to reposition a recipient's convention and tourism industry and infrastructure would not be incurred due to the public health emergency and therefore may not be covered using payments from the Fund. 46. May a State provide assistance to farmers and meat processors to expand capacity, such to cover overtime for USDA meat inspectors? If a State determines that expanding meat processing capacity, including by paying overtime to USDA meat inspectors, is a necessary expense incurred due to the public health emergency, such as if increased capacity is necessary to allow farmers and processors to donate meat to food banks, then such expenses are eligible expenses, provided that the expenses satisfy the other requirements set forth in section 601(d) of the Social Security Act outlined in the Guidance. 47. The guidance provides that funding maybe used to meet payroll expenses for public safety, public health, health care, human services, and similar employees whose services are substantially dedicated to mitigating or responding to the COVID-19 public health emergency. May Fund payments be used to cover such an employee's entire payroll cost or just the portion of time spent on mitigating or responding to the COVID-19 public health emergency? As a matter of administrative convenience, the entire payroll cost of an employee whose time is substantially dedicated to mitigating or responding to the COVID-19 public health emergency is eligible, provided that such payroll costs are incurred by December 30, 2020. An employer may also track time spent by employees related to COVID-19 and apply Fund payments on that basis but would need to do so consistently within the relevant agency or department. 48. May Fund payments be used to cover increased administrative leave costs of public employees who could not telework in the event of a stay at home order or a case of COVID-19 in the workplace? The statute requires that payments be used only to cover costs that were not accounted for in the budget most recently approved as of March 27, 2020. As stated in the Guidance, a cost meets this requirement if either (a) the cost cannot lawfully be funded using a line item, allotment, or allocation within that budget or (b) the cost is for a substantially different use from any expected use of funds in such a line item, allotment, or allocation. If the cost of an employee was allocated to administrative leave to a greater extent than was expected, the cost of such administrative leave may be covered using payments from the Fund. 0 A c d E s Q Packet Pg. 308 11.A.b 49. Are States permitted to use Coronavirus Relief Fund payments to satisfy non-federal matching requirements under the Stafford Act, including "lost wages assistance" authorized by the Presidential Memorandum on Authorizing the Other Needs Assistance Program for Major Disaster Declarations Related to Coronavirus Disease 2019 (August 8, 2020)? Yes. As previous guidance has stated, payments from the Fund may be used to meet the non-federal matching requirements for Stafford Act assistance to the extent such matching requirements entail COVID-19-related costs that otherwise satisfy the Fund's eligibility criteria and the Stafford Act. States are fully permitted to use payments from the Fund to satisfy 100% of their cost share for lost wages assistance recently made available under the Stafford Act. If a State makes a payment to an individual under the "lost wages assistance" program and later determines that such individual was ineligible for the program, the ineligibility determination has the following consequences: • The State incurs an obligation to FEMA in the amount of the payment to the ineligible individual A State's obligation to FEMA for making an improper payment to an individual under the "lost wages assistance" program is not incurred due to the public health emergency and, therefore, payments made pursuant to this obligation would not be an eligible use of the Fund. • The "lost wages assistance" payment to the ineligible individual would be deemed to be an ineligible expense for purposes of the Fund, and any amount charged to the Fund (e.g., to satisfy the initial non-federal matching requirement) would be subject to recoupment. 50. At what point would costs be considered to be incurred in the case of a grant made by a State, local, or tribal government to cover interest and principal amounts of a loan, such as might be provided as part of a small business assistance program in which the loan is made by a private institution? A grant made to cover interest and principal costs of a loan, including interest and principal due after the period that begins on March 1, 2020, and ends on December 30, 2020 (the "covered period"), will be considered to be incurred during the covered period if (i) the full amount of the loan is advanced to the borrower within the covered period and (ii) the proceeds of the loan are used by the borrower to cover expenses incurred during the covered period. In addition, if these conditions are met, the amount of the grant will be considered to have been used during the covered period for purposes of the requirement that expenses be incurred within the covered period. Such a grant would be analogous to a loan provided by the Fund recipient itself that incorporates similar loan forgiveness provisions. As with any other assistance provided by a Fund recipient, such a grant would need to be determined by the recipient to be necessary due to the public health emergency. 51. If governments use Fund payments as described in the Guidance to establish a grant program to support businesses, would those funds be considered gross income taxable to a business receiving the grant under the Internal Revenue Code (Code)? Please see the answer provided by the Internal Revenue Service (IRS) available at https://www. irs. gov/newsroom/cares-act-coronavirus-relief-fund-frequently-asked-questions. 52. Ifgovernments use Fund payments as described in the Guidance to establish a loan program to support businesses, would those funds be considered gross income taxable to a business receiving the loan under the Code? Please see the answer provided by the IRS available at hgps://www.irs.gov/newsroom/cares-act- coronavirus-relief-fund-frequently-asked-questions. 10 A Q Packet Pg. 309 11.A.b 53. May Fund recipients incur expenses associated with the safe reopening of schools? Yes, payments from the Fund may be used to cover costs associated with providing distance learning (e.g., the cost of laptops to provide to students) or for in -person learning (e.g., the cost of acquiring personal protective equipment for students attending schools in -person or other costs associated with meeting Centers for Disease Control guidelines). Treasury recognizes that schools are generally incurring an array of COVID- 1 9-related expenses to either provide distance learning or to re -open. To this end, as an administrative convenience, Treasury will presume that expenses of up to $500 per elementary and secondary school student are eligible expenditures, such that schools do not need to document the specific use of funds up to that amount. If a Fund recipient avails itself of the presumption in accordance with the previous paragraph with respect to a school, the recipient may not also cover the costs of additional re -opening aid to that school other than those associated with the following, in each case for the purpose of addressing COVID-19: • expanding broadband capacity; • hiring new teachers; • developing an online curriculum; • acquiring computers and similar digital devices; • acquiring and installing additional ventilation or other air filtering equipment; • incurring additional transportation costs; or • incurring additional costs of providing meals. Across all levels of government, the presumption is limited to $500 per student, e.g., if a school is funded by a state and a local government, the presumption claimed by each recipient must add up to no more than $500. Furthermore, if a Fund recipient uses the presumption with respect to a school, any other Fund recipients providing aid to that school may not use the Fund to cover the costs of additional aid to schools other than with respect to the specific costs listed above. The following examples help illustrate how the presumption may or may not be used: Example 1: State A may transfer Fund payments to each school district in the State totaling $500 per student. State A does not need to document the specific use of the Fund payments by the school districts within the State. Example 2: Suppose State A from example 1 transferred Fund payments to the school districts in the State in the amount of $500 per elementary and secondary school student. In addition, because State A is availing itself of the $500 per elementary and secondary school student presumption, State A also may use Fund payments to expand broadband capacity and to hire new teachers, but it may not use Fund payments to acquire additional furniture. 54. May Fund recipients upgrade critical public health infrastructure, such as providing access to running water for individuals and families in rural and tribal areas to allow them to maintain proper hygiene and defend themselves against the virus? Yes, fund recipients may use payments from the Fund to upgrade public health infrastructure, such as providing individuals and families access to running water to help reduce the further spread of the virus. As required by the CARES Act, expenses associated with such upgrades must be incurred by 11 A Q Packet Pg. 310 11.A.b December 30, 2020. Please see Treasury's Guidance as updated on June 30 regarding when a cost is considered to be incurred for purposes of the requirement that expenses be incurred within the covered period. 55. How does a government address the requirement that the allowable expenditures are not accounted for in the budget most recently approved as of March 27, 2020, once the government enters its new budget year on July 1, 2020 (for governments with June 30 fiscal year ends) or October 1, 2020 (for governments with September 30 year ends)? As provided in the Guidance, the "most recently approved" budget refers to the enacted budget for the relevant fiscal period for the particular government, without taking into account subsequent supplemental appropriations enacted or other budgetary adjustments made by that government in response to the COVID-19 public health emergency. A cost is not considered to have been accounted for in a budget merely because it could be met using a budgetary stabilization fund, rainy day fund, or similar reserve account. Furthermore, the budget most recently approved as of March 27, 2020, provides the spending baseline against which expenditures should be compared for purposes of determining whether they may be covered using payments from the Fund. This spending baseline will carry forward to a subsequent budget year if a Fund recipient enters a different budget year between March 27, 2020 and December 30, 2020. The spending baseline may be carried forward without adjustment for inflation. 56. Does the National Environmental Policy Act, 42 U.S. C. § 4321 et seq, (NEPA) apply to projects supported by payments from the Fund? NEPA does not apply to Treasury's administration of the Fund. Projects supported with payments from the Fund may still be subject to NEPA review if they are also funded by other federal financial assistance programs 57. Public universities have incurred expenses associated with providing refunds to students for education -related expenses, including tuition, room and board, meal plans, and other fees (such as activities fees). Are these types of public university student refunds eligible uses of Fund payments? If the responsible government official determines that expenses incurred to refund eligible higher education expenses are necessary and would be incurred due to the public health emergency, then such expenses would be eligible as long as the expenses satisfy the other criteria set forth in section 601(d) of the Social Security Act. Eligible higher education expenses may include, in the reasonable judgment of the responsible government official, refunds to students for tuition, room and board, meal plan, and other fees (such as activities fees). Fund payments may not be used for expenses that have been or will be reimbursed by another federal program (including, for example, the Higher Education Emergency Relief Fund administered by the Department of Education). 58. May payments from the Fund be used for real property acquisition and improvements and to purchase equipment to address the COVID-19 public health emergency? The expenses of acquiring or improving real property and of acquiring equipment (e.g., vehicles) may be covered with payments from the Fund in certain cases. For example, Treasury's initial guidance referenced coverage of the costs of establishing temporary public medical facilities and other measures to increase COVID-19 treatment capacity, including related construction costs, as an eligible use of funds. Any such use must be consistent with the requirements of section 601(d) of the Social Security Act as added by the CARES Act. 12 A Q Packet Pg. 311 11.A.b As with all uses of payments from the Fund, the use of payments to acquire or improve property is limited to that which is necessary due to the COVID-19 public health emergency. In the context of acquisitions of real estate and acquisitions of equipment, this means that the acquisition itself must be necessary. In particular, a government must (i) determine that it is not able to meet the need arising from the public health emergency in a cost-effective manner by leasing property or equipment or by improving property already owned and (ii) maintain documentation to support this determination. Likewise, an improvement, such as the installation of modifications to permit social distancing, would need to be determined to be necessary to address the COVID-19 public health emergency. Previous guidance regarding the requirement that payments from the Fund may only be used to cover costs that were incurred during the period that begins on March 1, 2020, and ends on December 30, 2020 focused on the acquisition of goods and services and leases of real property and equipment, but the same principles apply to acquisitions and improvements of real property and acquisitions of equipment. Such acquisitions and improvements must be completed and the acquired or improved property or acquisition of equipment be put to use in service of the COVID-19-related use for which it was acquired or improved by December 30. Finally, as with all costs covered with payments from the Fund, such costs must not have been previously accounted for in the budget most recently approved as of March 27, 2020. 59. If a small business received a Small Business Administration (SBA) Payment Protection Program (PPP) or Economic Injury Disaster Loan (EIDL) grant or loan due to COVID-19, may the small business also receive a grant from a unit ofgovernment using payments from the Fund? Receiving a PPP or EIDL grant or loan for COVID-19 would not necessarily make a small business ineligible to receive a grant from Fund payments made to a recipient. As discussed in previous Treasury guidance on use of the Fund, a recipient's small business assistance program should be tailored to assist those businesses in need of such assistance. In assessing the business' need for assistance, the recipient would need to take into account the business' receipt of the PPP or EIDL loan or grant. If the business has received a loan from the SBA that may be forgiven, the recipient should assume for purposes of determining the business' need that the loan will be forgiven. In determining the business' eligibility for the grant, the recipient should not rely on self -certifications provided to the SBA. If the grant is being provided to the small business to assist with particular expenditures, the business must not have already used the PPP or EIDL loan or grant for those expenditures. The assistance provided from the Fund would need to satisfy all of the other requirements set forth in section 601(d) of the Social Security Act as discussed in Treasury's guidance and FAQs, and the business would need to comply with all applicable requirements of the PPP or EIDL program. Treasury's Office of Inspector General has provided the following guidance in its FAQ no. 65 on reporting and recordkeeping that would apply to the recipient: The prime recipient is responsible for determining the level and detail of documentation needed from the sub -recipient of small business assistance to satisfy [the requirements of section 601(d) of the Social Security Act], however, there would need to be some proof that the small business was impacted by the public health emergency and was thus eligible for the CRF funds. In the above OIG FAQ, "sub -recipient" refers to the beneficiary of the assistance, i.e., the small business. 13 A c d E s Q Packet Pg. 312 11.A.b B. Questions Related to Administration of Fund Payments 1. Do governments have to return unspent funds to Treasury? Yes. Section 601(f)(2) of the Social Security Act, as added by section 5001(a) of the CARES Act, provides for recoupment by the Department of the Treasury of amounts received from the Fund that have not been used in a manner consistent with section 601(d) of the Social Security Act. If a government has not used funds it has received to cover costs that were incurred by December 30, 2020, as required by the statute, those funds must be returned to the Department of the Treasury. 2. What records must be kept by governments receiving payment? A government should keep records sufficient to demonstrate that the amount of Fund payments to the government has been used in accordance with section 601(d) of the Social Security Act. 3. May recipients deposit Fund payments into interest bearing accounts? Yes, provided that if recipients separately invest amounts received from the Fund, they must use the interest earned or other proceeds of these investments only to cover expenditures incurred in accordance with section 601(d) of the Social Security Act and the Guidance on eligible expenses. If a government deposits Fund payments in a government's general account, it may use those funds to meet immediate cash management needs provided that the full amount of the payment is used to cover necessary expenditures. Fund payments are not subject to the Cash Management Improvement Act of 1990, as amended. 4. May governments retain assets purchased with payments from the Fund? Yes, if the purchase of the asset was consistent with the limitations on the eligible use of funds provided by section 601(d) of the Social Security Act. 5. What rules apply to the proceeds of disposition or sale of assets acquired using payments from the Fund? If such assets are disposed of prior to December 30, 2020, the proceeds would be subject to the restrictions on the eligible use of payments from the Fund provided by section 601(d) of the Social Security Act. 6. Are Fund payments to State, territorial, local, and tribal governments considered grants? No. Fund payments made by Treasury to State, territorial, local, and Tribal governments are not considered to be grants but are "other financial assistance" under 2 C.F.R. § 200.40. 7. Are Fund payments considered federal financial assistance for purposes of the Single Audit Act? Yes, Fund payments are considered to be federal financial assistance subject to the Single Audit Act (31 U.S.C. §§ 7501-7507) and the related provisions of the Uniform Guidance, 2 C.F.R. § 200.303 regarding internal controls, §§ 200.330 through 200.332 regarding subrecipient monitoring and management, and subpart F regarding audit requirements. 14 A Q Packet Pg. 313 11.A.b 8. Are Fund payments subject to other requirements of the Uniform Guidance? Fund payments are subject to the following requirements in the Uniform Guidance (2 C.F.R. Part 200): 2 C.F.R. § 200.303 regarding internal controls, 2 C.F.R. §§ 200.330 through 200.332 regarding subrecipient monitoring and management, and subpart F regarding audit requirements. 9. Is there a Catalog of Federal Domestic Assistance (CFDA) number assigned to the Fund? Yes. The CFDA number assigned to the Fund is 21.019. 10. If a State transfers Fund payments to its political subdivisions, would the transferred funds count toward the subrecipients' total funding received from the federal government for purposes of the Single Audit Act? Yes. The Fund payments to subrecipients would count toward the threshold of the Single Audit Act and 2 C.F.R. part 200, subpart F re: audit requirements. Subrecipients are subject to a single audit or program -specific audit pursuant to 2 C.F.R. § 200.501(a) when the subrecipients spend $750,000 or more in federal awards during their fiscal year. 11. Are recipients permitted to use payments from the Fund to cover the expenses of an audit conducted under the Single Audit Act? Yes, such expenses would be eligible expenditures, subject to the limitations set forth in 2 C.F.R. § 200.425. 12. If a government has transferred funds to another entity, from which entity would the Treasury Department seek to recoup the funds if they have not been used in a manner consistent with section 601(d) of the Social Security Act? The Treasury Department would seek to recoup the funds from the government that received the payment directly from the Treasury Department. State, territorial, local, and Tribal governments receiving funds from Treasury should ensure that funds transferred to other entities, whether pursuant to a grant program or otherwise, are used in accordance with section 601(d) of the Social Security Act as implemented in the Guidance. 13. What are the differences between a subrecipient and a beneficiary under the Fund for purposes of the Single Audit Act and 2 C.F.R. Part 200, Subpart F regarding audit requirements? The Single Audit Act and 2 C.F.R. Part 200, Subpart F regarding audit requirements apply to any non-federal entity, as defined in 2 C.F.R. 200.69, that receives payments from the Fund in the amount of $750,000 or more. Non-federal entities include subrecipients of payments from the Fund, including recipients of transfers from a State, territory, local government, or tribal government that received a payment directly from Treasury. However, subrecipients would not include individuals and organizations (e.g., businesses, non -profits, or educational institutions) that are beneficiaries of an assistance program established using payments from the Fund. The Single Audit Act and 2 C.F.R. Part 200, Subpart F regarding audit requirements do not apply to beneficiaries. Please see Treasury Office of Inspector General FAQs at https://www.treasury_gov/about/organizational- structure/ig/Audit%20Reports%20and%2OTestimonies/OIG-CA-20-028.pdf regarding reporting in the GrantSolutions portal. 15 A Q Packet Pg. 314 tate of Florida Coronavirus Relief Fund (CRF Local Government Recipient Guidelines 11.A.c Table of Contents I. Applicability......................................................................................................................................... 4 II. Background...........................................................................................................................................4 A. The Coronavirus Aid, Relief, and Economic Security (CARES) Act..............................................4 B. U.S. Department of Treasury CARES Act Guidance....................................................................... 5 III. U Roles and Responsibilities................................................................................................................ 5 A. U.S. Department of the Treasury...................................................................................................... 5 B. Office of Inspector General............................................................................................................... 5 U- W C. State Government.............................................................................................................................. U 6 D. Local Governments........................................................................................................................... ao 0 6 E. Florida Administering and Disbursing Entity................................................................................... 77 6 F. State Allocation................................................................................................................................. 7 c G. Small Local Government Allocations............................................................................................... 7 a) a H. Large Local Government Allocations............................................................................................... 8 U r IV. Use of Funds..................................................................................................................................... 8 c 2 A. Necessary expenditures incurred due to the public health emergency .............................................. 9 B. Costs not accounted for in the budget most recently approved as of March 27, 2020...................... 9 c C. Costs incurred during the period that begins on March 1, 2020, and ends on December 30, 2020 10 a� E L V. Eligible Expenses................................................................................................................................ I I 0 A. Medical Expenses........................................................................................................................... I 1 01 B. Public Health Expenses................................................................................................................... I 1 J C. Payroll Expenses.............................................................................................................................12 U- W tU D. Public Health Compliance Expenses..............................................................................................12 -j E. Economic Support Expenses...........................................................................................................13 0 m F. Other Expenses...............................................................................................................................13 U) VI. Ineligible Expenses.........................................................................................................................13 VII. Fund Payment Terms and Conditions............................................................................................. 14 m E A. Legal Authority to Apply................................................................................................................14 z r r Q B. Period of Performance....................................................................................................................14 C. Financial Management....................................................................................................................14 D. Record Retention............................................................................................................................15 E. Audits and Reviews........................................................................................................................15 F. Compliance with Federal Laws and Regulations............................................................................15 2 1 P a g e Packet Pg. 316 11.A.c G. Amendments and Changes to Terms and Conditions.....................................................................16 H. Remedies for Non-Compliance.......................................................................................................16 I. Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards....................................................................................................................................................17 VIII. Payments and Required Documentation.........................................................................................17 A. Florida CARES Act Management System ("FLCARES").............................................................17 B. Request for Advance Validation (RAV) Form...............................................................................17 C. Request for Reimbursement (RFR) Form.......................................................................................17 c M D. Required Supporting Documentation..............................................................................................17 0 IX. Closeout of Funds...........................................................................................................................18 U. U X. Appendices..........................................................................................................................................19 0 A. FLCARES Funding Methodology/Allocations r B. FLCARES Request for Reimbursement Form C. FLCARES Frequently Asked Questions (FAQs) D. FL Terms and Conditions/Funding Agreement E. U.S. Treasury CRF Guidance for State, Territorial, Local, and Tribal Governments F. U.S. Treasury CRF Frequently Asked Questions G. Single Audit Act H. 2 CFR 200.303 Internal Controls I. 2 CFR 200.330-332 Subrecipient Management and Monitoring J. 2 CFR 200 Subpart F Audit Requirements K. Direct Treasury Allocations 3 1 P a g e Packet Pg. 317 11.A.c I. II. Applicability These guidelines outline the terms and conditions that apply to eligible recipients of payments distributed in the form of "other financial assistance" under 2 CFR §200.40 from the State of Florida's Coronavirus Relief Fund ("CRF") established within section 601 of the Social Security Act, as added by section 5001 of the Coronavirus Aid, Relief, and Economic Security Act ("CARES Act")'. An eligible recipient is defined as a unit of local government (county, city or municipality) located in the state of Florida with populations below 500,000, excluding the portions of municipalities located within jurisdictions that received direct allocations from the US Treasury. The interests and responsibilities of the State will be executed by the Florida Division of Emergency Management, unless otherwise indicated herein or as required by law. The recipient's official representative, who will acknowledge and agree to the terms and conditions outlined in this guidance document, will execute the interest and responsibilities of the recipient. These requirements are in addition to any that can be found within the Florida CARES Act Management System ("FLCARES"), to which recipients agree when accepting the transfer. Other state and federal requirements and conditions may apply to the transfer, including but not limited to certain sections of 2 C.F.R. Part 200 referenced herein, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, and applicable subparts; the state funding announcement under which transfer payments are distributed; and any applicable documents referenced in the documents and sources listed above. To the extent the terms and conditions outlined in this guidance do not address a particular circumstance or are otherwise unclear or ambiguous, such terms and conditions are to be construed consistent with the general objectives, expectations and purposes of this manual and in all cases, according to its fair meaning. The parties acknowledge that each party and its counsel have reviewed these guidelines and that any rule of construction to the effect that any ambiguities are to be resolved against the drafting party shall not be employed in the interpretation of these guidelines. Any vague, ambiguous or conflicting terms shall be interpreted and construed in such a manner as to accomplish the purpose of the guidelines. Background A. The Coronavirus Aid, Relief, and Economic Security (CARES) Act Under Title V of the CARES Act, the Social Security Act was amended to establish the CRF, a $150B appropriation used to make payments for specified uses to states, Tribal governments, territories, and large units of local government. The total CRF fimding allocated to the state of Florida is approximately $8.328B. The U.S. Treasury managed the initial distribution of these funds to states and local governments with populations above 500,000 using a relative state population proportion methodology, as defined in the Act and distributed $5.85 billion to the state. ' https://www.congress.gov/116/bills/hr748/BILLS-116hr748enr.pdf 4 1 P a g e m c M U. U 00 0 Packet Pg. 318 11.A.c The State of Florida is making available approximately $1.27513 from the State's CRF balance to eligible local governments. An initial 25% advance has been allocated to each of these local governments and can be found in the appendices at the end of the guidelines. B. U.S. Department of Treasury CARES Act Guidance The U.S. Department of the Treasury has released the following CARES Act guidance via their website2. ■ Data sources and the distribution methodology for units of local government ■ Listing of eligible units of local government ■ Coronavirus Relief Fund Guidance for State, Territorial, Local, and Tribal Governments ■ Coronavirus Relief Fund Frequently Asked Questions ■ Guidance on Treatment of Alaska Native Corporations ■ Coronavirus Relief Fund Tribal Allocation Methodology ■ Payments to States and Eligible Units of Local Government ■ Tribal Employment and Expenditure Submission Instructions ■ Frequently Asked Questions on Tribal Population The State of Florida encourages all recipients to review this guidance to understand the Treasury's allocation methodology, covered cost criteria, and eligible and ineligible expenditures. III. Roles and Responsibilities A. U.S. Department of the Treasury The U.S. Department of the Treasury is the national treasury of the federal government of the United States and serves as an executive department. The Treasury was directed by the U.S. Congress under the CARES Act to make payments available to States, Tribal governments, territories, and units of local government via the CRF totaling $15013 for fiscal year 2020 no later than 30 days after enactment of the Act. B. Office of Inspector General The Office of Inspector General ("OIG") conducts independent audits, investigations and reviews to help the Treasury Department accomplish its mission; improve its program and operations; promote economy, efficiency and effectiveness; and prevent and detect fraud and abuse. Under the CARES Act, the OIG was directed by the U.S. Congress to conduct monitoring and oversight of the receipt, disbursement, and use of funds made available by the CRF. If the OIG determines that a State, Tribal government, or unit of local government has failed to comply with the eligible use of funds requirement in the CARES Act, the amount equal to the amount of funds z httl2s:Hhome.treasury gov//policy-issues/cares/state-and-local-governments 5 1 P a g e Packet Pg. 319 11.A.c used in violation of such requirement shall be booked as a debt of such entity owed to the Federal Government. Amounts recovered shall be deposited into the general fund of the Treasury. The U.S. Congress appropriated $35M to OIG to carry out oversight and recoupment activities under the CRF. C. State Government Under the CARES Act, the term "State" means the 50 States, the District of Columbia, the Commonwealth of Puerto Rico, the United States Virgin Islands, Guam, the Commonwealth of the Northern Mariana Islands, and American Samoa. The State of Florida has the authority to use the funds provided under the CRF to cover eligible costs of the State. Total CRF funds available to the State are $5.85613 ($8.328B minus $2.472B already provided as direct allocations to large local governments). Please see Sections V and VI below for a description of eligible expenses. The State is making available approximately $1.27513 of their available CRF funding to smaller local governments for their eligible expenditures related to coronavirus response activities. Please see the appendices below for a summary of these available amounts. D. Local Governments Under the CARES Act, the term "unit of local government" means a county, city, municipality, town, township, village, parish, borough, or other unit of general government below the State level with a population that exceeds 500,000. Within Florida, local governments with a population that exceed 500,000, referred herein as "large local governments", include Miami -Dade County, Broward County, Palm Beach County, Hillsborough County, Orange County, Pinellas County, Jacksonville City/Duval County, Lee County, Polk County, Brevard County, Pasco County, and Volusia County. These large local governments received direct payments from the U.S. Treasury and have the authority to use the funds provided under the CRF to cover eligible costs of the local government. As a result, they are not subject to the requirements of these recipient guidelines. Within Florida, other local governments, referred herein as "small local governments", are those remaining local governments (i.e., counties) throughout Florida who did not receive direct payments from the U.S. Treasury and are eligible to request funding from the State of Florida to cover their eligible costs. While additional funds may be available later, this program is intended to provide funding for local governments who did not receive an initial direct distribution. E. Florida Administering and Disbursing Entity The Florida Division of Emergency Management (FDEM) will manage the disbursement process for the State of Florida's Coronavirus Relief Fund Local Government Program. Funds will be disbursed through the State of Florida accounting system, the Florida Accounting Information Resource (FLAIR). The Florida Department of Financial Services will issue payment based on the method requested by the applicant in MyFlorida Marketplace (MFMP). 6 1 P a g e Packet Pg. 320 11.A.c F. State Allocation The State of Florida was allocated a total of $8,328,221,072 in Coronavirus Relief Fund assistance under the CARES Act. A total of $2,472,413,692 was directly allocated to large local governments in the state, leaving a total of $5,855,807,380 remaining to be expended by the State for eligible coronavirus response activities. G. Small Local Government Allocations a� The State has made $1.275B of CRF funds available to county governments with populations M fewer than 500,000 from the state allocation from the U.S. Treasury. Funds have been allocated to each jurisdiction on a per capita basis based on census data reflecting 2018 population. U. W Funding will be provided with a phased approach, including Phase 1, Phase 2 and Phase 3. Phase �? 1 included a 25% disbursement of funds. Following Phase 1, Phase 2 will include a 20% o 0 disbursement. Phase 3 will be on a reimbursement basis of up to the remaining 55% allocation. T v Advanced Funds — Phase 1 and Phase 2 v, Phase 1 included an initial advance payment of 25% of each county's total allocation. In Phase 1, all 55 eligible counties were required to execute a funding agreement with the Florida Division of Emergency Management. Upon execution, the Florida Division of Emergency Management disbursed 25% of each county's allocated amount to be used for eligible expenses related to responding to COVID-19. Per the terms of the Funding Agreement, each county must submit a quarterly report detailing expenses incurred by the county during the covered period of March 1, 2020 through December 30, 2020 from the initial 25% disbursement. Expenses must be reported by quarter. Although most counties did not receive funding until July 2020, any expenses incurred during the quarter March 1 to June 30 must be reported separately. These reports were due beginning September 25, 2020 and are to be submitted through the Florida Division of Emergency Management Grants Portal. Quarterly reports must include expenses as defined by the US Treasury "an expenditure is the amount that has been incurred as a liability of the entity (the service has been rendered or the good has been delivered to the entity). As outlined in Treasury's Coronavirus Relief Fund Guidance for State, Territorial, Local, and Tribal Governments, performance or delivery must occur between March 1 and December 30, 2020 in order for the cost to be considered incurred; payment of funds need not be made during that time (though it is generally expected that payment will take place within 90 days of a cost being incurred)." Phase 2 includes an additional advance payment of 20% of the county's total allocation if specific conditions are met. The conditions include providing documentation on how funds were expended from the initial 25% advance, providing a spending plan for the Phase 2 allocation, and executing the amendment to the Funding Agreement between the county and the Florida Division of Emergency Management. In order to access the additional 20% disbursement, counties must provide documentation that they have fully exhausted the cash from the initial 25% disbursement. Counties may demonstrate that the disbursement was either fully expended or demonstrate a lack of cash on hand through both expenses and encumbrances. The quarterly reports submitted by the county in accordance with Phase 1 will be used to determine whether a County has fully expended the initial 25%. 7 1 P a g e Packet Pg. 321 11.A.c Counties must also submit a spending plan specific to how the county intends to use the next 20%. The spend plan must include the breakdown of intended expenses, and a narrative describing the use of these funds for those purposes. The spend plan must also include a written statement of how the County intends to use the CARES Act funding to satisfy the Single Audit requirement. The Single Audit must be conducted by a third party and while it is assumed counties will generally use administrative costs for this purpose, it must be specified in the spend plan. The amended Funding Agreement increased the "shall not exceed" amount to include the full allocation to each county. This amendment must be executed by the Chairman of the Board of M County Commission or designee. If the designee is signing on behalf of the County, the County must ensure that the Florida Division of Emergency Management has a Delegation of AuthorityU. C9 (DOA) on file specific to the CARES Act Funding Agreement. U Upon meeting the requirements for Phase 2, the County will be eligible to begin submitting for co reimbursement in Phase 3. The County will be required to subsequently submit supporting T_ documentation into the FLCARES system to substantiate the use of funds from Phase 1 and Phase 2. If the County has not fully substantiated the funds used in Phase 1 and Phase 2 by November 16, 2020, the County will not be eligible to continue submitting reimbursement requests in Phase 3. Reimbursement -Based Funds — Phase 3 Once a county has satisfied the conditions set forth in Phase 1 and Phase 2, the county can then begin submitting for reimbursement up to the remaining 55% of the county's allocation. All Requests for Reimbursement (RFR) will be submitted within the FLCARES system. Supporting documentation must be provided to substantiate all funds requested on a reimbursement basis. Additionally, all reimbursement requests must be submitted by December 3, 2020. However, RFRs may include claims for anticipated cost through December 30, 2020. Recipients must provide proof of payment and progress towards delivery of goods and services by December 30, 2020 for reimbursement for RFRs that include anticipated costs. H. Large Local Government Allocations The following large local governments within Florida were provided direct allocations from the U.S. Treasury, the sum of which was deducted from the State of Florida's total allocation as shown within appendix for Direct Treasury Allocations. IV. Use of Funds The CARES Act provides that payments from the CRF may only be used to cover costs that: (1) are necessary expenditures incurred due to the public health emergency with respect to the Coronavirus Disease 2019 (COVID-19); (2) were not accounted for in the budget most recently approved as of March 27, 2020 (the date of enactment of the CARES Act) for the State or government; and 8 1 P a g e Packet Pg. 322 11.A.c (3) were incurred during the period that begins on March 1, 2020 and ends on December 30, 2020.3 The guidance that follows sets forth the Department of the Treasury's interpretation of these limitations. A. Necessary expenditures incurred due to the public health emergency The requirement that expenditures be incurred "due to" the public health emergency means that 6 expenditures must be used for actions taken to respond to the public health emergency. These may r_ include expenditures incurred to allow the State, territorial, local, or Tribal government to respond directly to the emergency, such as by addressing medical or public health needs, as well as expenditures incurred to respond to second -order effects of the emergency, such as by providing U. economic support to those suffering from employment or business interruptions due to COVID-19- related business closures. Fund payments may be used for economic support in the absence of a o stay-at-home order if such expenditures are determined by the government to be necessary. This r may include, for example, a grant program to benefit small businesses that close voluntarily to y promote social distancing measures or that are affected by decreased customer demand as a result c of COVID-19 public health emergency. Funds may not be used to fill shortfalls in government revenue to cover expenditures that would c9 not otherwise qualify under the statute. Although a broad range of uses is allowed, revenue replacement is not a permissible use of Fund payments. a The statute also specifies that expenditures using Fund payments must be "necessary." The Department of the Treasury understands this term broadly to mean that the expenditure is m reasonably necessary for its intended use in the reasonable judgment of the government officials c responsible for spending Fund payments. B. Costs not accounted for in the budget most recently approved as of March 27, 2020 The CARES Act also requires that payments be used only to cover costs that were not accounted for in the budget most recently approved as of March 27, 2020. A cost meets this requirement if either (a) the cost cannot lawfully be funded using a line item, allotment, or allocation within that budget or (b) the cost is for a substantially different use from any expected use of funds in such a line item, allotment, or allocation. The "most recently approved" budget refers to the enacted budget for the relevant fiscal period for the particular government, without taking into account subsequent supplemental appropriations enacted or other budgetary adjustments made by that government in response to the COVID-19 public health emergency. A cost is not considered to have been accounted for in a budget merely because it could be met using a budgetary stabilization fund, rainy day fund, or similar reserve account. (Note: Costs incurred for a "substantially different use" include, but are not necessarily limited to, costs of personnel and services that were budgeted for in the most recently approved budget but s See Section 601(d) of the Social Security Act, as added by section S001 of the CARES Act. 9 1 P a g e Packet Pg. 323 11.A.c which, due entirely to the COVID-19 public health emergency, have been diverted to substantially different functions. This would include, for example, the costs of redeploying corrections facility staff to enable compliance with COVID-19 public health precautions through work such as enhanced sanitation or enforcing social distancing measures; the costs of redeploying police to support management and enforcement of stay-at-home orders; or the costs of diverting educational support staff or faculty to develop online learning capabilities, such as through providing information technology support that is not part of the staff or faculty's ordinary responsibilities. Note that a public function does not become a "substantially different use" merely because it is provided from a different location or through a different manner. For example, although M developing online instruction capabilities may be a substantially different use of funds, online M instruction itself is not a substantially different use of public funds than classroom instruction.) 0 LL U C. Costs incurred during the period that begins on March 1, 2020, and ends on 00 December 30, 2020 T v Finally, the CARES Act provides that payments from the Fund may only be used to cover costs y that were incurred during the period that begins on March 1, 2020 and ends on December 30, 2020 c (the "covered period"). Putting this requirement together with the other provisions discussed above, section 601(d) may be summarized as providing that a State, local, or tribal government may use payments from the Fund only to cover previously unbudgeted costs of necessary expenditures incurred due to the COVID-19 public health emergency during the covered period. Initial guidance released on April 22, 2020, provided that the cost of an expenditure is incurred when the recipient has expended funds to cover the cost. Upon further consideration and informed by an understanding of State, local, and tribal government practices, Treasury is clarifying that for a cost to be considered to have been incurred, performance or delivery must occur during the covered period but payment of funds need not be made during that time (though it is generally expected that this will take place within 90 days of a cost being incurred). For instance, in the case of a lease of equipment or other property, irrespective of when payment occurs, the cost of a lease payment shall be considered to have been incurred for the period of the lease that is within the covered period, but not otherwise. Furthermore, in all cases it must be necessary that performance or delivery take place during the covered period. Thus the cost of a good or service received during the covered period will not be considered eligible under section 601(d) if there is no need for receipt until after the covered period has expired. Goods delivered in the covered period need not be used during the covered period in all cases. For example, the cost of a good that must be delivered in December in order to be available for use in January could be covered using payments from the Fund. Additionally, the cost of goods purchased in bulk and delivered during the covered period may be covered using payments from the Fund if a portion of the goods is ordered for use in the covered period, the bulk purchase is consistent with the recipient's usual procurement policies and practices, and it is impractical to track and record when the items were used. A recipient may use payments from the Fund to purchase a durable good that is to be used during the current period and in subsequent periods if the acquisition in the covered period was necessary due to the public health emergency. Given that it is not always possible to estimate with precision when a good or service will be needed, the touchstone in assessing the determination of need for a good or service during the 101Page Packet Pg. 324 11.A.c V. covered period will be reasonableness at the time delivery or performance was sought, e.g., the time of entry into a procurement contract specifying a time for delivery. Similarly, in recognition of the likelihood of supply chain disruptions and increased demand for certain goods and services during the COVID-19 public health emergency, if a recipient enters into a contract requiring the delivery of goods or performance of services by December 30, 2020, the failure of a vendor to complete delivery or services by December 30, 2020, will not affect the ability of the recipient to use payments from the Fund to cover the cost of such goods or services if the delay is due to circumstances beyond the recipient's control. This guidance applies in a like manner to costs of subrecipients. Thus, a grant or loan, for example, provided by a recipient using payments from the Fund must be used by the subrecipient only to purchase (or reimburse a purchase of) goods or services for which receipt both is needed within the covered period and occurs within the covered period. The direct recipient of payments from the Fund is ultimately responsible for compliance with this limitation on use of payments from the Fund. Eligible Expenses Eligible expenditures include, but are not limited to, payment for: A. Medical Expenses Eligible expenditures include, but are not limited to, payment for medical expenses such as: ■ COVID-19-related expenses of public hospitals, clinics, and similar facilities. ■ Expenses of establishing temporary public medical facilities and other measures to increase COVID-19 treatment capacity, including related construction costs. ■ Costs of providing COVID-19 testing, including serological testing. ■ Emergency medical response expenses, including emergency medical transportation, related to COVID-19. ■ Expenses for establishing and operating public telemedicine capabilities for COVID-19 related treatment. B. Public Health Expenses Eligible expenditures include, but are not limited to, payment for public health expenses such as: Expenses for communication and enforcement by State, territorial, local, and Tribal governments of public health orders related to COVID-19. Expenses for acquisition and distribution of medical and protective supplies, including sanitizing products and personal protective equipment, for medical personnel, police officers, social workers, child protection services, and child welfare officers, direct service providers for older adults and individuals with disabilities in community settings, and other public health or safety workers in connection with the COVID-19 public health emergency. Expenses for disinfection of public areas and other facilities, e.g., nursing homes, in response to the COVID-19 public health emergency. 11 I Page Packet Pg. 325 11.A.c ■ Expenses for technical assistance to local authorities or other entities on mitigation of COVID- 1 9-related threats to public health and safety. ■ Expenses for public safety measures undertaken in response to COVID-19. ■ Expenses for quarantining individuals. ■ Expenses for contact tracing. ■ Expenses for conducting a recovery planning project or operating a recovery coordination office, if the expenses otherwise meet the criteria set forth in section 601(d) of the Social Security Act outlined in the guidance. m c C. Payroll Expenses c� Eligible expenditures include, but are not limited to, payment for payroll expenses for public safety, U. public health, health care, human services, and similar employees whose services are substantially v dedicated to mitigating or responding to the COVID-19 public health emergency. Hazard pay (as co defined in the guidance) and overtime for these groups would also be eligible. Additionally, for workers in these groups, increased workers compensation cost to the government due to the COVID-19 public health emergency incurred during the period beginning March 1, 2020, and CD ending December 30, 2020, is an eligible expense. c Moreover, payroll and benefit costs, as well as training program costs, associated with public employees who could have been furloughed or otherwise laid off but who were instead repurposed to perform previously unbudgeted functions substantially dedicated to mitigating or responding to the COVID-19 public health emergency are also covered. Other eligible expenditures include payroll and benefit costs of educational support staff or faculty responsible for developing online learning capabilities necessary to continue educational instruction in response to COVID-19- related school closures. Refer to the guidance for a discussion of what is meant by an expense that was not accounted for in the budget most recently approved as of March 27, 2020. (Note: The Fund is designed to provide ready funding to address unforeseen financial needs and risks created by the COVID-19 public health emergency. For this reason, and as a matter of administrative convenience in light of the emergency nature of this program, a State, territorial, local, or Tribal government may presume that payroll costs for public health and public safety employees are payments for services substantially dedicated to mitigating or responding to the COVID-19 public health emergency, unless the chief executive (or equivalent) of the relevant government determines that specific circumstances indicate otherwise) Payroll costs and hazard pay are only applicable to public health and safety employees as specified in the Treasury guidance and FA Qs (which are attached to these guidelines as appendices). D. Public Health Compliance Expenses Eligible expenditures include, but are not limited to, payment for expenses of actions to facilitate compliance with COVID- I 9-related public health measures, such as: ■ Expenses for food delivery to residents, including, for example, senior citizens and other vulnerable populations, to enable compliance with COVID-19 public health precautions. ■ Expenses to facilitate distance learning, including technological improvements, in connection with school closings to enable compliance with COVID-19 precautions. 121Page Packet Pg. 326 11.A.c VI. ■ Expenses to improve telework capabilities for public employees to enable compliance with COVID-19 public health precautions. ■ Expenses of providing paid sick and paid family and medical leave to public employees to enable compliance with COVID-19 public health precautions. ■ COVID- I 9-related expenses of maintaining state prisons and county jails, including as it relates to sanitation and improvement of social distancing measures, to enable compliance with COVID-19 public health precautions. ■ Expenses for care for homeless populations provided to mitigate COVID-19 effects and enable compliance with COVID-19 public health precautions. c M E. Economic Support Expenses Eligible expenditures include, but are not limited to, the provision of economic support in U. v connection with the COVID-19 public health emergency. Additionally, local governments are not 00 permitted to seek payment for expenses under this program that may be provided under other state T- CRF funding programs. v F. Other Expenses Eligible expenditures include any other COVID-19 related expenses reasonably necessary to the function of government that satisfy the Fund's eligibility criteria. Ineligible Expenses The following is a list of examples of costs that would not be eligible expenditures of payments from the Fund. • Government revenue replacement, including the provision of assistance to meet individual tax obligations such as property taxes and unpaid utility fees. • Expenses for the State share of Medicaid. • Damages covered by insurance. • Payroll or benefits expenses for employees whose work duties are not substantially dedicated to mitigating or responding to the COVID-19 public health emergency. • Expenses that have been or will be reimbursed under any federal program, such as the reimbursement by the federal government pursuant to the CARES Act of contributions by States to State unemployment funds. (Note: Recipients may use Fund payments for any expenses eligible under section 601(d) of the Social Security Act outlined in the Guidance. Fund payments are not required to be used as the source offunding of last resort. However, as noted above, recipients may not use payments from the Fund to cover expenditures for which they will receive reimbursement. All expenses submitted will be subject to review by Florida Division of Emergency Management for eligibility or prior claims for Stafford Act Public Assistance. If eligible for Stafford Act Public Assistance, claims will be processed through FDEM, NOT CRF. The State of Florida will coverall local cost -share for Stafford Act claims, which is otherwise % of the non-federal cost -share or 12.5% of the total claim) • Reimbursement to donors for donated items or services. 131Page Packet Pg. 327 11.A.c • Workforce bonuses, other than hazard pay or overtime, as noted in Section VI.0 above. • Severance pay. • Legal settlements. • Government prepayments on contracts not consistent with its ordinary course policies and procedures. The State of Florida has also determined the purchase of real property and the construction of permanent buildings to be ineligible expenses under the FL CARES Act Local Government program. The State of c Florida CRF strategy will not include purchase of real property or construction of permanent facilities. If 2 a county submits costs for either of these, it will be subject to rejection and other expenditures will need to be submitted for consideration in order to meet the requirements of the Florida Division of Emergency U. Management for CRF disbursement. The state will consider purchase requests based on the county's v ability to demonstrate there is no feasible option for renting or leasing property within a reasonable radius c of the base of operations which is supporting pandemic response and mitigation of spread. T v VII. Fund Payment Terms and Conditions This section does not supersede the executed CARES Act Funding Agreement between the recipient and the State. A. Legal Authority to Apply Legal authority for fund payment terms and conditions is stated within the CARES Act Funding Agreement that has been executed between the recipient and the State. B. Period of Performance Funding has been authorized for eligible expenditures incurred between March 1, 2020 and December 30, 2020. All expenditures must be incurred within the performance period. The State will not provide funding or reimbursement for expenses incurred after the performance period and the recipient shall return to the State all funds received and not expended by the recipient and approved by the State on or before the performance period end date of December 30, 2020. A cost is incurred when the goods or services have been received by the responsible unit of government. C. Financial Management Recipients must keep financial records sufficient to demonstrate that the expenditure of funds they have received are in accordance with section 601(d) of the Social Security Act. The recipient is responsible for the integrity of the fiscal and programmatic management of the funds; accountability for all funds received; and compliance with state guidelines, policies and procedures and applicable federal and state laws and regulations. The recipient agrees to maintain an accounting system integrated with adequate internal fiscal and management controls to capture and report data with accuracy, providing full accountability of 141Page Packet Pg. 328 11.A.c funds use. This system shall provide reasonable assurance that the recipient is managing federal and state financial assistance programs in compliance with all applicable laws and regulations. Recipients must also adhere to all conditions outlined in the Funding Agreement and any amendments between the county and the Florida Division of Emergency Management. See appendices for the Funding Agreement and amendment as of the date of the recipient guidelines — October 13, 2020. Any and all amendments subsequent must also be followed by the recipients. Recipients must be established as a vendor of the state with a validated pay location by the am Department of Financial Services prior to receiving any payments from the Fund. M Funding for the State's Coronavirus Relief Fund is appropriated under the Coronavirus Aid, Relief, and Economic Security Act, 2020 (Public Law 116-136) enacted on March 27, 2020, as amended, U. to facilitate protective measures for and recovery from the public health emergency in areas affected v by COVID-19, which are Presidentially -declared major disaster areas under Title IV of the Robert T. Stafford Disaster Relief and Emergency Assistance Act (42 U.S.C. 5121 et seq.). All o expenditures under the Fund must be made in accordance with these guidelines and any other T applicable laws, rules or regulations. Further, all funds are subject to recapture and repayment for y non-compliance. D. Record Retention Recipients must maintain appropriate records to provide accountability and facilitate review of all expenditures claimed and funding provided from the State of Florida under the Fund. Records maintained by the recipient will, at a minimum, identify the supporting documentation prepared by the recipient to permit an audit of its accounting systems and payment verification with respect to the expenditure of any funds. E. Audits and Reviews All records and expenditures are subject to, and the recipient agrees to comply with, monitoring and/or audits conducted by the United States Department of Treasury Office of Inspector General (OIG), Florida Office of the Governor, Florida Treasury, and the Florida Division of Emergency Management. Further, should a federal audit (OIG) later find that an expense was unallowable, the recipient must return the associated funds to the State. The recipient shall maintain adequate records for examination by these entities. The record retention period is 5 years. All conditions and requirements in the Funding Agreement between the county and the Florida Division of Emergency Management as it relates to audits and review must also be followed. F. Compliance with Federal Laws and Regulations The recipient acknowledges that all federal financial assistance will be used in accordance with the CARES Act and accompanying U.S. Department of Treasury guidance. The recipient will comply with all applicable federal law, regulations, executive orders, policies, procedures, and directives. 151Page Packet Pg. 329 11.A.c Fund payments are federal financial assistance subject to the Single Audit Act (31 U.S.C. §§ 7501- 7507) and the related provisions of the Uniform Guidance, specifically 2 C.F.R. § 200.303 regarding internal controls, §§ 200.330 through 200.332 regarding subrecipient monitoring and management, and subpart F regarding audit requirements. Fund payments count toward the threshold of the Single Audit Act and 2 C.F.R. part 200, subpart F regarding audit requirements. Recipients are subject to a single audit or program -specific audit pursuant to 2 C.F.R. § 200.501(a) when they spend $750,000 or more in federal awards during their fiscal year. Any recipient expending $750,000 or more in federal funds during their entity's fiscal year must have a single or program -specific audit in accordance with Single Audit Requirements in 2 CFR, M Part 200, Subpart F — Audit Requirements, found at: https://www.ecfr.2ov/c2i-bin/text- idx?tpl=/ecfrbrowse/Title02/2cfr200_main 02.t�l. C9 U. The audit must be completed and the data collection and reporting package described in 2 CFR v 200.512 must be submitted to the Federal Audit Clearinghouse ("FAC") within 30 calendar days co after receipt of the auditor's report(s), or nine months after the end of the audit period, whichever T_ is earlier. G. Amendments and Changes to Terms and Conditions The Florida Division of Emergency Management may make changes to these terms and conditions at any time. Changes include, but are not limited to, modifying the scope of the funds, adding funds to previously un-awarded cost items or categories, changing funds in any awarded cost items or category, reallocating awarded funds or changing Fund officials. In the event the Florida Division of Emergency Management determines that changes are necessary to the award document after an award has been made, including changes to period of performance or terms and conditions, recipients will be notified of the changes in writing. Notwithstanding this requirement, it is understood and agreed by the parties hereto that changes in local, state and federal rules, regulations or laws applicable hereto may occur during the term of this agreement and that any such changes shall be automatically incorporated into this agreement without written amendment hereto, and shall become a part hereof as of the effective date of the rule, regulation or law. The recipient has no right or entitlement to payment or reimbursement with federal funds. The recipient agrees that any act, action or representation by either party, their agents or employees that purports to waive or alter the terms of this agreement or increase the maximum liability of the State is void unless an amendment to this agreement is documented in FLCARES. The recipient agrees that nothing in this agreement will be interpreted to create an obligation or liability of the State in excess of the availability of funds for initial payment and reimbursement as provided in the funding announcement. H. Remedies for Non -Compliance The Florida Division of Emergency Management shall have the right to terminate a recipient's funding and require repayment of any funds spent in a manner that is not allowed under these guidelines and all applicable laws, rules, and regulations. 161Page Packet Pg. 330 11.A.c Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards Fund payments are subject to the following requirements in the Uniform Guidance (2 C.F.R. Part 200): 2 C.F.R. § 200.303 regarding internal controls, 2 C.F.R. §§ 200.330 through 200.332 regarding subrecipient monitoring and management, and subpart F regarding audit requirements. Please refer to the Appendix for copies of these regulations. VIII. Payments and Required Documentation A. Florida CARES Act Management System ("FLCARES") Coronavirus Relief Funds will be reimbursed through the Florida CARES Act Management System ("FLCARES") online portal. FLCARES is a user-friendly tool that allows recipients to submit Requests for Reimbursement and upload the necessary supporting documentation for each request. FLCARES will allow recipients to monitor the status of these requests and keep track of the remaining available funds in each phase of funding. FLCARES will also be used to substantiate the funds disbursed in Phase 1 & Phase 2 funding. The following sections include further description of the portal's functions. B. Request for Advance Validation (RAV) Form The module enables the recipient to attach supporting documentation and monitor the approval process. This module will be used to substantiate the funds used from Phase 1 & Phase 2 disbursement. The County must submit RAVs equal to the total amount allocated from Phase 1 and Phase 2 by November 16', 2020. If RAVs are not completed by the deadline, the County will not be allowed to draw further funding from Phase 3. C. Request for Reimbursement (RFR) Form The module enables the recipient to attach supporting documentation, monitor the approval process, and the subsequent payment. This module should also be used to access additional funds to reimburse eligible expenses and encumbrances. Once a recipient has received all allocated funds, they may continue to submit additional RFRs for eligible expenses they have incurred. These claims will only be processed should additional funds be made available, but no guarantees are made at this time. D. Required Supporting Documentation FLCARES will provide the user with the ability to upload the necessary supporting documentation related to each phase of funding. For expenditures, such documentation shall include, but not be limited to copies of checks issued for payment, certified payroll records (such as time sheets), itemized vendors' and suppliers' invoices or vouchers, a description of the purpose of the expenditure, and other supporting documentation. For encumbrances, documentation must demonstrate an obligation to incur the expenses such as a description of the purpose of the encumbrance, executed agreements and unpaid invoices. Proof of payment must be submitted once 171Page Packet Pg. 331 11.A.c received. The Request for Reimbursement process will require the user to upload supporting documentation for the expenses they would like to access reimbursement funds for. This exchange of information through FLCARES will streamline the reimbursement processes and help accelerate the transfer of funds to the recipient. IX. Closeout of Funds The funding provided to a recipient will be closed -out when all available funds have been distributed, required administrative actions have been completed, and all supporting documentation M has been provided by that recipient. The Florida Division of Emergency Management will perform a final accounting of funds provided to the recipient and all access to FLCARES previously provided to the recipient will be cancelled. The recipient must promptly refund any balances of U. v unspent funds that were paid in advance. Recipients are not authorized to retain funds for any future use. All advances must be spent and supporting documentation must be submitted by November o 16`h, or those funds may be subject to reallocation. Additionally, no claim submitted after December r 3' will be reimbursed 181Page Packet Pg. 332 11.A.c X. Appendices A. FLCARES Funding Methodology/Allocations B. FLCARES Request for Reimbursement Form c C. FLCARES Frequently Asked Questions (FAQs) c� D. FL Terms and Conditions/Funding Agreement V 0 E. U.S. Treasury CRF Guidance for State, Territorial, Local, and Tribal r Governments y F. U.S. Treasury CRF Frequently Asked Questions G. Single Audit Act H. 2 CFR 200.303 Internal Controls I. 2 CFR 200.330-332 Subrecipient Management and Monitoring J. 2 CFR 200 Subpart F Audit Requirements K. Direct Treasury Allocations 191Page Packet Pg. 333 W C/7 LU nro Q LL O O a.., O v M O 4) _0 C O Cu '— E . CM E (D Ln Ln D U O .— F— N DC C— V) rC � O � I U Q � I %,o =�� � M O CZ— 4D F— (D Ln F— 4D O z 0- Ln o 11.A.d U- U Co 0 v Packet Pg. 334 11.A.e CRF Spending Guide Treasury and OIG have defined 18 categories for eligible expenses under CARES Act CRF. While all 18 are potentially eligible under the Florida Local Government program, the categories below are likely most relevant to all and we encourage counties to submit the eligible expense types below to maximize their funding. These represent the most common expenses that have already been incurred by many Local Government entities since the beginning of the eligible period, March 1, C 2020. Again, your submissions are not limited to these categories below, but we wanted to provide targeted guidance for some of the most relevant categories. 2 0 1. Public Health & Safety Payroll (March 1, 2020 to December 30, 2020) - After the most recent U- W guidance release, Treasury and OIG have now aligned in the fact that the public health and v public safety employees are presumed to be substantially dedicated to the mitigation of COVID- c 19. Counties can submit ALL public health and safety payroll (from March 1, 2020 to December 30, 2020) to be 100% reimbursed. Public Health & Safety Employees (as defined by U.S. Treasury) - Public safety employees would include police officers (including state police officers), sheriffs and deputy sheriffs, firefighters, emergency medical responders, correctional and detention officers, and those who directly support such employees such as dispatchers and supervisory personnel. Public health employees would include employees involved in providing medical and other health services to patients and supervisory personnel, including medical staff assigned to schools, prisons, and other such institutions, and other support services essential for patient care (e.g., laboratory technicians) as well as employees of public health departments directly engaged in matters related to public health and related supervisory personnel. Eligible Time - Payroll from March 1, 2020 to December 30, 2020 Public Health & Safety Payroll Narrative: The narrative can simply state which employees in which department you are submitting a reimbursement request. See below for example. "The County is requesting reimbursement for the payroll of XXX employees in our city fire department for the period March 1, 2020 - March 30, 2020." Example Documentation: The documents you will need to attach to payroll RFRs are listed below. • Payroll register for dates claimed • Employee roster - including assigned department, employee title, employee pay rates, and fringe benefit rates • Payroll policy Packet Pg. 335 11.A.e 2. Unbudgeted Administrative Leave (March 1, 2020 to December 30, 2020) This could be considered for employees who were forced to quarantine due to COVID-19 or if your office went to a rotating schedule, you may go ahead and submit that as well. It will be in the "public health expense" category and will required the same documentation as Public Health and safety payroll above plus: • COVID leave policy Brief summary of the situation that led to the employee needed to take unbudgeted administrative leave. a� o For example: "On August 4, 2020, our county clerk was informed that a member of her household had contracted COVID and she had been exposed. -a To prevent spread in the county facilities, our employee quarantined at home ' from 8/5/2020 to 8/11/2020 and was unable to work. Per our attached U_ COVID-19 administrative leave policy, we continued to pay the full salary and U benefits for this employee for this week until they were able to safely return 00 to work. Our policy is not to require employees to take their allocated sick or administrative leave for COVID-related illness or quarantine, and so we consider this an unbudgeted expense." N 3. Personal Protective Equipment (PPE) -(March 1, 2020 to December 30, 2020) -Personal Protective equipment is defined as equipment worn to minimize exposure hazards that may lead to the spread or contraction of COVID-19. Items may be disposable (gloves) or durable goods (cloth masks). a. Mask b. Gloves c. Face shields Example Narrative for PPE: "This request of mask and gloves is to be used as personal protective equipment for employees in the department to protect both employees and the public with whom they interact from potential spread of COVID-19 in compliance with CDC guidelines regarding COVID mitigation. The masks were received on XX/XX/XXXX by (employee name) and the gloves were received on XX/XX/XXXX by (employee name). These expenses were not in the county budget as of March 27, 2020." Supporting Documentation • Invoice/receipt supporting expenses claimed including: o Date of purchase o Vendor name and address o Brief description of items purchased o Cost of items • Shipping/receiving documents showing date of receipt • Check copy or other proof of payment (if purchased by credit card, online receipt with copy of credit card statement or ACH receipt will suffice). Packet Pg. 336 11.A.e 4. Public Health Expenses -(March 1, 2020 to December 30, 2020) -Public health expenses are eligible expenditures that include, but are not limited to: • Expenses for communication and enforcement of public health orders related to COVID 19 • Expenses for disinfection of public areas and other facilities, e.g. nursing homes, in response to the COVID-19 public health emergency. • Expenses for public safety measures undertaken in response to COVID-19, e.g. installing plexiglass dividers in public facilities to protect employees and the public from exposure to COVI D-19. a� c • Expenses for quarantining individuals - see Unbudgeted Administrative Leave above. a. Hand sanitizer ' 0 b. Hand sanitizer dispensers U_ c. Plexiglass dividers U d. Thermometers co e. Other changes in public buildings to improve social distancing or prevent possible transmission of COVID-19 f. Measures to increase social distancing and safety of public employees N Public Health Expense Narrative: "Prior to March 1, our county water office payments counter was an open window with only 18" of space between customers paying their water bills and county employees accepting payments or dealing with customer account issues. The county installed a plexiglass divider to divide the space between the employee and the customer and protect both from the potential spread of COVID-19. The county also installed six (6) touchless hand sanitizer dispensers at various locations accessible to both employees and customers in the county offices to allow for hand sanitization after touch points. The window installation was started on XX/XX/XXXX and completed on XX/XX/XXXX by (insert vendor name). The touchless hand sanitizer dispensers were delivered on XX/XX/XXXX and installed by (insert name) on XX/XX/XXXX. Neither of these expenses were accounted for in the county's budget as of March 27, 2020." Supporting Documentation • Invoice/receipt - with vendor name and address, date of purchase, description of items, and cost of purchases. • Proof of payment • Proof of delivery/receipt - *Note - If item was purchased at brick -and -mortar location and picked up there, the receipt for payment will also serve as proof of delivery/receipt. 5. Improve Telework Capabilities of Public Employees Expense to stand up online meeting capabilities, e.g. the purchase of Zoom subscriptions as public/department meetings are conducted digitally, or employees are forced to work remotely. Purchase of equipment to assist with teleworking such as laptops, WiFi hotspots, webcams, etc. Packet Pg. 337 11.A.e IT costs related to upkeep and maintenance of newly purchased equipment - additional cloud storage, more bandwidth for network, etc. *NOTE - Subscription service expense will need to be prorated for the eligible period, March 1, 2020 - December 30, 2020. For example, if a one year Zoom subscription was purchased on April 1, 2020 for $120.00, then $90.00 would be eligible for reimbursement ($120.00 x 9 months, April - December). Licenses which are a one-time fee entitling user to lifetime use of the product are eligible for 100% reimbursement so long as the expense was eligible and incurred in the appropriate period. Example Narrative: " County purchased 12 laptops to allow our department F employees to work from home to promote social distancing in our office and mitigate the COVID-19 public health emergency. The computers have the minimum capabilities necessary .a for the employees using them to access our department's crucial programs and conduct the business of the government without interruption of service. These employees worked on W desktops in the office before COVID, so the acquisition of laptops is considered necessary v due to COVID-19 and not accounted for in our Jurisdiction's budget as of March 1, 2020. The o laptops were delivered on XX/XX/XXXX and received by (employee name)." Supporting Documentation • Invoice or receipt • Proof of payment • Proof of delivery - *Note- If item was purchased at brick -and -mortar location and picked up there, the receipt for payment will also serve as proof of delivery/receipt. Packet Pg. 338