Re: [Disasterrelief] When is a Cost Considered "Incurred" for Cares Funding Purposes?
We anticipate taking the position that if a contract has been signed but not completed by 12/30 then the cost has been incurred even if the money is not paid until after 12/30. I do not know if Treasury has plans to resolve this question, but that is our intent at the moment.
Best,
--Chris
From: Disasterrelief disasterrelief-bounces@lists.imla.org on behalf of Amanda Kellar akellar@imla.org
Date: Friday, September 4, 2020 at 2:55 PM
To: "Disasterrelief@lists.imla.org" Disasterrelief@lists.imla.org
Subject: [Disasterrelief] When is a Cost Considered "Incurred" for Cares Funding Purposes?
A member has purchased an ambulance with CARES funding. Where they are located has tough winters, and the ambulance needs an enclosed storage garage. While the construction materials for the storage garage can be purchased and received prior to 12/30, the structure itself cannot be built until after March or April.
Are other local governments using CARES funding for new public health-related construction that cannot be completed and put into use prior to the 12/30 deadline? The June 30th guidance on when a cost is considered to be incurred for purposes of the requirement that expenses be incurred within the covered period seems gray on this. We would appreciate any thoughts folks might have on this and I will pass your emails along to the inquiring member.
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Amanda Kellar
Deputy General Counsel / Director of Legal Advocacy
International Municipal Lawyers Association, Inc.
A 51 Monroe St., Suite 404, Rockville, MD, 20850
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We are taking the position that the good or service must be received by Dec 30. So in your scenario, we would pay for the building materials so long as they were received before Dec 30. However, there is no obligation to pay the contractor until they actually swing the hammers and construct the building. Thus, the obligation to pay the contractor for construction would not be incurred until after Dec 30, so we would not pay for that from CARES funds.
P.S. They can build over the winter, it just might cost a bit more. If it were us, we would be exploring the extra cost vs. not being able to use the money at all.
Nicholas Spiropoulos | Matanuska-Susitna Borough Attorney | nspiropoulos@matsugov.usmailto:nspiropoulos@matsugov.us | (907) 861-8677
From: Disasterrelief disasterrelief-bounces@lists.imla.org On Behalf Of Chris Balch
Sent: Friday, September 4, 2020 11:32 AM
To: Amanda Kellar akellar@imla.org; Disasterrelief@lists.imla.org
Subject: Re: [Disasterrelief] When is a Cost Considered "Incurred" for Cares Funding Purposes?
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We anticipate taking the position that if a contract has been signed but not completed by 12/30 then the cost has been incurred even if the money is not paid until after 12/30. I do not know if Treasury has plans to resolve this question, but that is our intent at the moment.
Best,
--Chris
From: Disasterrelief <disasterrelief-bounces@lists.imla.orgmailto:disasterrelief-bounces@lists.imla.org> on behalf of Amanda Kellar <akellar@imla.orgmailto:akellar@imla.org>
Date: Friday, September 4, 2020 at 2:55 PM
To: "Disasterrelief@lists.imla.orgmailto:Disasterrelief@lists.imla.org" <Disasterrelief@lists.imla.orgmailto:Disasterrelief@lists.imla.org>
Subject: [Disasterrelief] When is a Cost Considered "Incurred" for Cares Funding Purposes?
A member has purchased an ambulance with CARES funding. Where they are located has tough winters, and the ambulance needs an enclosed storage garage. While the construction materials for the storage garage can be purchased and received prior to 12/30, the structure itself cannot be built until after March or April.
Are other local governments using CARES funding for new public health-related construction that cannot be completed and put into use prior to the 12/30 deadline? The June 30th guidance on when a cost is considered to be incurred for purposes of the requirement that expenses be incurred within the covered period seems gray on this. We would appreciate any thoughts folks might have on this and I will pass your emails along to the inquiring member.
[photo]
Amanda Kellar
Deputy General Counsel / Director of Legal Advocacy
International Municipal Lawyers Association, Inc.
A 51 Monroe St., Suite 404, Rockville, MD, 20850
[cid:image003.jpg@01D682D1.E78C0FA0]http://www.facebook.com/IMLA-259977855541/ [cid:image004.jpg@01D682D1.E78C0FA0] http://www.linkedin.com/company/international-municipal-lawyers-association-inc./ [cid:image005.jpg@01D682D1.E78C0FA0] http://twitter.com/imlalegal [cid:image006.jpg@01D682D1.E78C0FA0] http://soundcloud.com/internationalmunicipallawyersassociation
P (202) 466-5424 ext. 7116
W www.imla.orghttp://www.imla.org/
Plan Ahead!
IMLA’s 85th Virtual Annual Conferencehttp://imla.org/events/conferences, September 21-October 16, 2020!
IMLA’s 2021 Mid-Year Seminarhttps://imla.org/events/seminars, April 23-26, 2021 in Washington, DC!
