Assurance Services • Published 5/06/2020 Coronavirus Relief Fund: Questions and Answers

Last updated on 5/6/2020

The CARES Act authorized $150 billion for the Coronavirus Relief Fund (CRF) intended to assist state and local governments with the cost of the COVID-19 pandemic, of which $1.8 billon is allocated to Louisiana. Local governments will share in the funds. According to the Act, the funds may be used for 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
3. were incurred during the period that begins on March 1, 2020, and ends on December 30, 2020.

Related Article: CARES Act Funding for State & Local Governments

On the surface, the restrictions in the Act may appear to be self-explanatory. However, many questions have arisen, answers to which can potentially maximize cost recoveries under this program. Examples include:

• How do I know if the cost was in the budget?
• What is a necessary expenditure?
• What records do I need to keep?

U.S. Department of the Treasury provides answers

The Department of the Treasury has created several resources related to clarifying the CRF, including a listing of eligible units of local government, CRF guidance for governments, FAQs, and more.

Access the Treasury Guidance and Resources

P&N has extensive experience in governmental accounting, auditing, and grants administration services. If you have questions about CRF funds or any other CARES Act funding, please contact us for assistance.