Empathy List Archives

CT

Chuck Thompson

Tue, Jul 14, 2020 3:26 PM

I'm posting this on behalf of a member and we would welcome any help you can give.
A question has come up about where the reimbursement for expenses that qualified for CARES grants need to be applied. Much of our reimbursement funds received back were for wages expended (public works, first responders, etc). The intent was to deposit the reimbursement into a specific Disaster Relief Account the City has set up and previously funded. However, the question has been raised that the funds need to go back to the departments' accounts who expended the wages for which the City is being reimbursed. Does the CARES Act require any specific action with the funds received? If so, where would I locate that section/clause? Much thanks in advance for any input on this.

[photo]

Charles W. Thompson, Jr.
Executive Director/General Counsel
International Municipal Lawyers Association, Inc.

A 51 Monroe St., Suite 404, Rockville, MD, 20850
[cid:image003.jpg@01D659D1.ABA4F5C0]http://www.facebook.com/IMLA-259977855541/ [cid:image004.jpg@01D659D1.ABA4F5C0] http://www.linkedin.com/company/international-municipal-lawyers-association-inc./ [cid:image005.jpg@01D659D1.ABA4F5C0] http://twitter.com/imlalegal [cid:image006.jpg@01D659D1.ABA4F5C0] http://soundcloud.com/internationalmunicipallawyersassociation
P (202) 466-5424 ext. 7110 M (240)-876-6790
Direct (202)-742-1016

W www.imla.org http://www.imla.org
Plan Ahead!

IMLA's 85th Annual Conferencehttp://imla.org/events/conferences, September 23-27 in La Quinta, CA!
IMLA's 2021 Mid-Year Seminarhttps://imla.org/events/seminars, April 23-26, 2021 in Washington, DC!

I'm posting this on behalf of a member and we would welcome any help you can give. A question has come up about where the reimbursement for expenses that qualified for CARES grants need to be applied. Much of our reimbursement funds received back were for wages expended (public works, first responders, etc). The intent was to deposit the reimbursement into a specific Disaster Relief Account the City has set up and previously funded. However, the question has been raised that the funds need to go back to the departments' accounts who expended the wages for which the City is being reimbursed. Does the CARES Act require any specific action with the funds received? If so, where would I locate that section/clause? Much thanks in advance for any input on this. [photo] Charles W. Thompson, Jr. Executive Director/General Counsel International Municipal Lawyers Association, Inc. A 51 Monroe St., Suite 404, Rockville, MD, 20850 [cid:image003.jpg@01D659D1.ABA4F5C0]<http://www.facebook.com/IMLA-259977855541/> [cid:image004.jpg@01D659D1.ABA4F5C0] <http://www.linkedin.com/company/international-municipal-lawyers-association-inc./> [cid:image005.jpg@01D659D1.ABA4F5C0] <http://twitter.com/imlalegal> [cid:image006.jpg@01D659D1.ABA4F5C0] <http://soundcloud.com/internationalmunicipallawyersassociation> P (202) 466-5424 ext. 7110 M (240)-876-6790 Direct (202)-742-1016 W www.imla.org<http://www.imla.org> Plan Ahead! IMLA's 85th Annual Conference<http://imla.org/events/conferences>, September 23-27 in La Quinta, CA! IMLA's 2021 Mid-Year Seminar<https://imla.org/events/seminars>, April 23-26, 2021 in Washington, DC!

MP

Morgain Patterson

Tue, Jul 14, 2020 3:46 PM

We do not believe that the CARES Act dictates where the newly unallocated revenue must go. Instead, we've advised our cities to amend the budget ordinance at the next meeting of the legislative body to allocate the revenue. We've also encouraged them to apply as much as possible to rainy day funds, etc.

Morgain M. Patterson
Director of Municipal Law
Kentucky League of Cities

From: Disasterrelief disasterrelief-bounces@lists.imla.org On Behalf Of Chuck Thompson
Sent: Tuesday, July 14, 2020 11:27 AM
To: disasterrelief@lists.imla.org
Subject: [Disasterrelief] Reimbursement Question

I'm posting this on behalf of a member and we would welcome any help you can give.
A question has come up about where the reimbursement for expenses that qualified for CARES grants need to be applied. Much of our reimbursement funds received back were for wages expended (public works, first responders, etc). The intent was to deposit the reimbursement into a specific Disaster Relief Account the City has set up and previously funded. However, the question has been raised that the funds need to go back to the departments' accounts who expended the wages for which the City is being reimbursed. Does the CARES Act require any specific action with the funds received? If so, where would I locate that section/clause? Much thanks in advance for any input on this.

[photo]

Charles W. Thompson, Jr.
Executive Director/General Counsel
International Municipal Lawyers Association, Inc.

A 51 Monroe St., Suite 404, Rockville, MD, 20850
[cid:image008.jpg@01D659D3.8CE70450]http://www.facebook.com/IMLA-259977855541/ [cid:image009.jpg@01D659D3.8CE70450] http://www.linkedin.com/company/international-municipal-lawyers-association-inc./ [cid:image010.jpg@01D659D3.8CE70450] http://twitter.com/imlalegal [cid:image011.jpg@01D659D3.8CE70450] http://soundcloud.com/internationalmunicipallawyersassociation
P (202) 466-5424 ext. 7110 M (240)-876-6790
Direct (202)-742-1016

W www.imla.org http://www.imla.org
Plan Ahead!

IMLA's 85th Annual Conferencehttp://imla.org/events/conferences, September 23-27 in La Quinta, CA!
IMLA's 2021 Mid-Year Seminarhttps://imla.org/events/seminars, April 23-26, 2021 in Washington, DC!

We do not believe that the CARES Act dictates where the newly unallocated revenue must go. Instead, we've advised our cities to amend the budget ordinance at the next meeting of the legislative body to allocate the revenue. We've also encouraged them to apply as much as possible to rainy day funds, etc. Morgain M. Patterson Director of Municipal Law Kentucky League of Cities From: Disasterrelief <disasterrelief-bounces@lists.imla.org> On Behalf Of Chuck Thompson Sent: Tuesday, July 14, 2020 11:27 AM To: disasterrelief@lists.imla.org Subject: [Disasterrelief] Reimbursement Question I'm posting this on behalf of a member and we would welcome any help you can give. A question has come up about where the reimbursement for expenses that qualified for CARES grants need to be applied. Much of our reimbursement funds received back were for wages expended (public works, first responders, etc). The intent was to deposit the reimbursement into a specific Disaster Relief Account the City has set up and previously funded. However, the question has been raised that the funds need to go back to the departments' accounts who expended the wages for which the City is being reimbursed. Does the CARES Act require any specific action with the funds received? If so, where would I locate that section/clause? Much thanks in advance for any input on this. [photo] Charles W. Thompson, Jr. Executive Director/General Counsel International Municipal Lawyers Association, Inc. A 51 Monroe St., Suite 404, Rockville, MD, 20850 [cid:image008.jpg@01D659D3.8CE70450]<http://www.facebook.com/IMLA-259977855541/> [cid:image009.jpg@01D659D3.8CE70450] <http://www.linkedin.com/company/international-municipal-lawyers-association-inc./> [cid:image010.jpg@01D659D3.8CE70450] <http://twitter.com/imlalegal> [cid:image011.jpg@01D659D3.8CE70450] <http://soundcloud.com/internationalmunicipallawyersassociation> P (202) 466-5424 ext. 7110 M (240)-876-6790 Direct (202)-742-1016 W www.imla.org<http://www.imla.org> Plan Ahead! IMLA's 85th Annual Conference<http://imla.org/events/conferences>, September 23-27 in La Quinta, CA! IMLA's 2021 Mid-Year Seminar<https://imla.org/events/seminars>, April 23-26, 2021 in Washington, DC!

HN

Houston, Norma

Tue, Jul 14, 2020 10:41 PM

I read the CARES Act the same way as Morgain - it is silent on this question. The following excerpt from Treasury guidance is all that appears to be related generally to fiscal management requirements:

"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."

"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. 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."

Local governments in NC have been advised to account for CRF funds in the same manner as other federal funds consistent with applicable state finance laws for local governments, GASB accounting standards, and audit requirements (GASB guidance is available here: https://www.gasb.org/COVID19; GASB Emergency Toolbox is available here: https://www.gasb.org/cs/Satellite?c=Page&cid=1176174469582&pagename=GASB%2FPage%2FGASB%2FSectionPage). Under NC finance laws, local governments have been advised to budget and account for the funds in a special revenue fund (finance laws in other states may differ); the NC Treasurer's Office is providing guidance on fund accounting, fund transfers, and audit requirements to local governments and their auditors. If your state Treasurer's Office or a similar state agency (such as a State Auditor) is not providing guidance on fiscal management, your own auditor may be able to offer guidance.

I have now exhausted my knowledge of local government finance, GASB, and audit requirements.

[cid:image003.jpg@01D65A0E.72992750]Norma R. Houston
Lecturer in Public Law and Government
The University of North Carolina at Chapel Hill
Campus Box 3330, Knapp-Sanders Building
Chapel Hill, NC 27599-3330
T: 919.843.8930
www.sog.unc.edu http://www.sog.unc.edu
SOG TOGETHER FOR NChttps://www.sog.unc.edu/about/news/together-north-carolina-special-video-message

E-mails sent to or from this e-mail address that relate to the School of Government's work are public records and may be subject to public access under the North Carolina public records law.

From: Disasterrelief disasterrelief-bounces@lists.imla.org On Behalf Of Morgain Patterson
Sent: Tuesday, July 14, 2020 11:47 AM
To: disasterrelief@lists.imla.org
Subject: Re: [Disasterrelief] Reimbursement Question

We do not believe that the CARES Act dictates where the newly unallocated revenue must go. Instead, we've advised our cities to amend the budget ordinance at the next meeting of the legislative body to allocate the revenue. We've also encouraged them to apply as much as possible to rainy day funds, etc.

Morgain M. Patterson
Director of Municipal Law
Kentucky League of Cities

From: Disasterrelief <disasterrelief-bounces@lists.imla.org mailto:disasterrelief-bounces@lists.imla.org> On Behalf Of Chuck Thompson
Sent: Tuesday, July 14, 2020 11:27 AM
To: disasterrelief@lists.imla.org mailto:disasterrelief@lists.imla.org
Subject: [Disasterrelief] Reimbursement Question

I'm posting this on behalf of a member and we would welcome any help you can give.
A question has come up about where the reimbursement for expenses that qualified for CARES grants need to be applied. Much of our reimbursement funds received back were for wages expended (public works, first responders, etc). The intent was to deposit the reimbursement into a specific Disaster Relief Account the City has set up and previously funded. However, the question has been raised that the funds need to go back to the departments' accounts who expended the wages for which the City is being reimbursed. Does the CARES Act require any specific action with the funds received? If so, where would I locate that section/clause? Much thanks in advance for any input on this.

[photo]

Charles W. Thompson, Jr.
Executive Director/General Counsel
International Municipal Lawyers Association, Inc.

A 51 Monroe St., Suite 404, Rockville, MD, 20850
[cid:image006.jpg@01D65A0B.FAD1C580]http://www.facebook.com/IMLA-259977855541/ [cid:image008.jpg@01D65A0B.FAD1C580] http://www.linkedin.com/company/international-municipal-lawyers-association-inc./ [cid:image009.jpg@01D65A0B.FAD1C580] http://twitter.com/imlalegal [cid:image010.jpg@01D65A0B.FAD1C580] http://soundcloud.com/internationalmunicipallawyersassociation
P (202) 466-5424 ext. 7110 M (240)-876-6790
Direct (202)-742-1016

W www.imla.org http://www.imla.org
Plan Ahead!

IMLA's 85th Annual Conferencehttp://imla.org/events/conferences, September 23-27 in La Quinta, CA!
IMLA's 2021 Mid-Year Seminarhttps://imla.org/events/seminars, April 23-26, 2021 in Washington, DC!

I read the CARES Act the same way as Morgain - it is silent on this question. The following excerpt from Treasury guidance is all that appears to be related generally to fiscal management requirements: "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." "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. 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." Local governments in NC have been advised to account for CRF funds in the same manner as other federal funds consistent with applicable state finance laws for local governments, GASB accounting standards, and audit requirements (GASB guidance is available here: https://www.gasb.org/COVID19; GASB Emergency Toolbox is available here: https://www.gasb.org/cs/Satellite?c=Page&cid=1176174469582&pagename=GASB%2FPage%2FGASB%2FSectionPage). Under NC finance laws, local governments have been advised to budget and account for the funds in a special revenue fund (finance laws in other states may differ); the NC Treasurer's Office is providing guidance on fund accounting, fund transfers, and audit requirements to local governments and their auditors. If your state Treasurer's Office or a similar state agency (such as a State Auditor) is not providing guidance on fiscal management, your own auditor may be able to offer guidance. I have now exhausted my knowledge of local government finance, GASB, and audit requirements. [cid:image003.jpg@01D65A0E.72992750]Norma R. Houston Lecturer in Public Law and Government The University of North Carolina at Chapel Hill Campus Box 3330, Knapp-Sanders Building Chapel Hill, NC 27599-3330 T: 919.843.8930 www.sog.unc.edu<http://www.sog.unc.edu> SOG TOGETHER FOR NC<https://www.sog.unc.edu/about/news/together-north-carolina-special-video-message> E-mails sent to or from this e-mail address that relate to the School of Government's work are public records and may be subject to public access under the North Carolina public records law. From: Disasterrelief <disasterrelief-bounces@lists.imla.org> On Behalf Of Morgain Patterson Sent: Tuesday, July 14, 2020 11:47 AM To: disasterrelief@lists.imla.org Subject: Re: [Disasterrelief] Reimbursement Question We do not believe that the CARES Act dictates where the newly unallocated revenue must go. Instead, we've advised our cities to amend the budget ordinance at the next meeting of the legislative body to allocate the revenue. We've also encouraged them to apply as much as possible to rainy day funds, etc. Morgain M. Patterson Director of Municipal Law Kentucky League of Cities From: Disasterrelief <disasterrelief-bounces@lists.imla.org<mailto:disasterrelief-bounces@lists.imla.org>> On Behalf Of Chuck Thompson Sent: Tuesday, July 14, 2020 11:27 AM To: disasterrelief@lists.imla.org<mailto:disasterrelief@lists.imla.org> Subject: [Disasterrelief] Reimbursement Question I'm posting this on behalf of a member and we would welcome any help you can give. A question has come up about where the reimbursement for expenses that qualified for CARES grants need to be applied. Much of our reimbursement funds received back were for wages expended (public works, first responders, etc). The intent was to deposit the reimbursement into a specific Disaster Relief Account the City has set up and previously funded. However, the question has been raised that the funds need to go back to the departments' accounts who expended the wages for which the City is being reimbursed. Does the CARES Act require any specific action with the funds received? If so, where would I locate that section/clause? Much thanks in advance for any input on this. [photo] Charles W. Thompson, Jr. Executive Director/General Counsel International Municipal Lawyers Association, Inc. A 51 Monroe St., Suite 404, Rockville, MD, 20850 [cid:image006.jpg@01D65A0B.FAD1C580]<http://www.facebook.com/IMLA-259977855541/> [cid:image008.jpg@01D65A0B.FAD1C580] <http://www.linkedin.com/company/international-municipal-lawyers-association-inc./> [cid:image009.jpg@01D65A0B.FAD1C580] <http://twitter.com/imlalegal> [cid:image010.jpg@01D65A0B.FAD1C580] <http://soundcloud.com/internationalmunicipallawyersassociation> P (202) 466-5424 ext. 7110 M (240)-876-6790 Direct (202)-742-1016 W www.imla.org<http://www.imla.org> Plan Ahead! IMLA's 85th Annual Conference<http://imla.org/events/conferences>, September 23-27 in La Quinta, CA! IMLA's 2021 Mid-Year Seminar<https://imla.org/events/seminars>, April 23-26, 2021 in Washington, DC!