The Coronavirus Aid, Relief, and Economic Security ACT (CARES Act) provides much-needed relief to individuals, industries, and government entities impacted by the pandemic. With approximately $2 trillion available, there is an inherent risk of fraud, waste, abuse, and mismanagement. This risk is only further compounded by the pressures people, businesses, and governments across America are experiencing, which is one of the factors that create favorable conditions for fraud.
While monitoring and oversight activities are effective internal controls, they are also vital components to address transparency and accountability in relief programs. The CARES Act includes several oversight provisions, including, but not limited to, the following:
What remains uncertain is how and when compliance requirements, reporting measures, and other oversight and monitoring provisions will be implemented or expanded. In the meantime, it is imperative for individuals and entities participating in these programs to not only be knowledgeable of the regulations to ensure compliance, but also to be knowledgeable of best practices to prevent and deter the occurrence of fraud, waste, and abuse.
As the CARES Act is finalized, future legislation is developed, deadlines are updated, and additional challenges and opportunities are uncovered, P&N’s dedicated professionals are committed to understanding and applying this information to help our clients. Please contact us or connect with your P&N advisor to discuss your organization’s questions, concerns, and priorities.