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Federal Requirements for CARES Act

*NEW*

According to guidance from the Federal Government, any entity seeking to receive Federal funding must meet all Federal Requirements, including obtaining a Dun & Bradstreet (DUNS) number and a Commercial and Government Entity (CAGE) code. Your entity must submit this information back to the State Controller’s Office by Monday, August 3, 2020 (forms available below).

CARES Act Federal Requirements

CARES Act Supporting Information

The CARES Act provides that payments from the Fund may only be used to cover costs that:

Are necessary expenditures incurred due to the public health emergency with respect to the Coronavirus Disease 2019 (COVID–19).

The Department of the Treasury broadly defines “necessary" as an expenditure that is “…reasonably necessary for its intended use in the reasonable judgement of the government officials responsible for spending Fund payments."
Funds may not be used to fill shortfalls in government revenue to cover expenditures that would not otherwise qualify under the CARES Act.

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.

An expenditure meets this criteria if it “cannot lawfully be funded" by the most recently approved budget or if the cost is for a “substantially different use from any expected use of funds".
Do not take into account subsequent supplemental appropriations or budgetary adjustments made in response to the COVID-19 emergency.

Were incurred during the period that begins on March 1, 2020, and ends on December 30, 2020. A cost is “incurred" when the responsible unit of government has expended funds to cover the cost.

U.S. Department of the Treasury Resources

Examples of eligible COVID-19-related expenditures include, but are not limited to:

Example	Potential Level 3 Accounts
COVID-19-related expenses of public hospitals, clinics, and similar facilities	Very broad: supplies, personnel, leases, etc.
Expenses of establishing temporary public medical facilities and other measures to increase COVID-19 treatment capacity, including related construction costs	Capital Expenditures: Building Improvements-1099M Reportable Alarm/Security Contractor Construction Design and Bid Preparation Electrical Services Engineering Services Hazardous Materials HVAC Services Interior Design Services Mechanical Services Other Construction Fees & Services Project Management Signage Utilities Operating Expenditures: Electrical Gas Trash Water Sewer
Costs of providing COVID-19 testing, including serological testing	Medical - Exams, Hospital, Doctor, Nurse, Dentist Human Blood Testing Building-Supplies Only Paint & Protective Coating Supplies Medical Drugs & Pharmaceuticals Medical & Lab Supplies Medical Transportation Reimbursements to Guardians
Emergency medical response expenses, including emergency medical transportation, related to COVID-19	Vehicles-Rent/Lease Transportation Costs - Institutional
Expenses for establishing and operating public telemedicine capabilities for COVID-19-related treatment	Capital Expenditures: Personal Computer Hardware Server & Storage Hardware Mainframe Computer Hardware Networking Hardware Cyber-Security Hardware Peripheral Equipment Telephone & VOIP Equipment Other Computer Equipment Software Operating Expenditures: Postal & Mail VOIP Hosted Data Line Charges Phone/Fax Local Line & Equipment Charges Telephone 800 Service Audio/Video Conference Calls Personal Computer Hardware Maintenance Server & Storage Hardware Maintenance Networking Hardware Maintenance Cyber-Security Hardware Maintenance Personal Computer Software Maintenance Server & Storage Software Maintenance Networking Software Maintenance Cyber-Security Software Maintenance Personal Computer Software Server & Storage Software Mainframe Computer Software Networking Software Cyber-Security Software Enterprise Resource Planning (ERP) Personal Computer Hardware Server & Storage Hardware Mainframe Computer Hardware Networking Hardware Cyber-Security Hardware Peripheral Equipment

Example	Potential Level 3 Accounts
Expenses for communication and enforcement by State, territorial, local, and Tribal governments of public health orders related to COVID-19	Personnel Expenditures: Employees Shift Differential Operating Expenditures: Radio Equipment - Mobile Radio Cellular/Wireless Voice Service Radio Equipment - Microwave Security Patrol or Alarm Services Enforcement Supplies
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	Safety Supplies PPE (Personal Protection Equipment)
Expenses for disinfection of public areas and other facilities, e.g., nursing homes, in response to the COVID-19 public health emergency.	Sanitation/Cleaning Services Sanitation/Cleaning Supplies
Expenses for technical assistance to local authorities or other entities on mitigation of COVID-19-related threats to public health and safety.	Consultant - Medical Consulting, Counseling, Prevention, Wellness
Expenses for public safety measures undertaken in response to COVID-19.	Very broad: supplies, personnel, leases, etc.
Expenses for quarantining individuals	Very broad: supplies, personnel, leases, etc.

Example

Potential Level 3 Accounts

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

Gross Salary & Wage

Employees

Employees-Emergency Help

Employees-Temp

Payroll Reimbursements

Shift Differential

Overtime Covered by FLSA

Overtime Exempt from FLSA

Compensatory Leave Balance

Board/Commission Members

Hazard Pay

Staff Isolation Accommodation

Employee Benefits

Group Insurance Life

Group Insurance Health & Accident

Employer Retirement Contribution

Unemployment

Retirement Sick Leave

F. I. C. A.

Childcare for Essential Employees

Example	Potential Level 3 Accounts
Expenses for food delivery to residents, including, for example, senior citizens and other vulnerable populations, to enable compliance with COVID-19 public health precautions.	Contracted Food Services
Expenses to facilitate distance learning, including technological improvements, in connection with school closings to enable compliance with COVID-19 precautions.	Capital Expenditures Personal Computer Hardware Server & Storage Hardware Mainframe Computer Hardware Networking Hardware Cyber-Security Hardware Peripheral Equipment Telephone & VOIP Equipment Other Computer Equipment Software Operating Expenditures Media Postal & Mail VOIP Hosted Data Line Charges Phone/Fax Local Line & Equipment Charges Radio Equipment - Mobile Radio Telephone 800 Service Audio/Video Conference Calls Personal Computer Hardware Maintenance Server & Storage Hardware Maintenance Networking Hardware Maintenance Cyber-Security Hardware Maintenance Personal Computer Software Maintenance Server & Storage Software Maintenance Networking Software Maintenance Cyber-Security Software Maintenance In-house Program Design & Development Project Management Services Hardware Design & Configuration Hosted Services Software As A Service (SAAS) Infrastructure As A Service (IAAS) Other Computer Services Personal Computer Software Server & Storage Software Mainframe Computer Software Networking Software Cyber-Security Software Enterprise Resource Planning (ERP) Personal Computer Hardware Server & Storage Hardware Mainframe Computer Hardware Networking Hardware Cyber-Security Hardware Peripheral Equipment
Expenses to improve telework capabilities for public employees to enable compliance with COVID-19 public health precautions.	Capital Expenditures Personal Computer Hardware Server & Storage Hardware Mainframe Computer Hardware Networking Hardware Cyber-Security Hardware Peripheral Equipment Telephone & VOIP Equipment Other Computer Equipment Software Operating Expenditures Media Postal & Mail VOIP Hosted Data Line Charges Phone/Fax Local Line & Equipment Charges Radio Equipment - Mobile Radio Telephone 800 Service Audio/Video Conference Calls Personal Computer Hardware Maintenance Server & Storage Hardware Maintenance Networking Hardware Maintenance Cyber-Security Hardware Maintenance Personal Computer Software Maintenance Server & Storage Software Maintenance Networking Software Maintenance Cyber-Security Software Maintenance In-house Program Design & Development Project Management Services Hardware Design & Configuration Hosted Services Software As A Service (SAAS) Infrastructure As A Service (IAAS) Other Computer Services Personal Computer Software Server & Storage Software Mainframe Computer Software Networking Software Cyber-Security Software Enterprise Resource Planning (ERP) Personal Computer Hardware Server & Storage Hardware Mainframe Computer Hardware Networking Hardware Cyber-Security Hardware Peripheral Equipment
Expenses of providing paid sick and paid family and medical leave to public employees to enable compliance with COVID-19 public health precautions.	Gross Salary & Wage Employees Employees-Emergency Help Employees-Temp Payroll Reimbursements Shift Differential Overtime Covered by FLSA Overtime Exempt from FLSA Compensatory Leave Balance Board/Commission Members Hazard Pay Staff Isolation Accommodation Employee Benefits Group Insurance Life Group Insurance Health & Accident Employer Retirement Contribution Unemployment Retirement Sick Leave F. I. C. A. Childcare for Essential Employees
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.	Inmate Clothing & Personal Care Patient Clothing & Personal Care Bulk Food & Dietary Bulk Fresh Food-Dairy Products Laundry & Linen Housekeeping & Janitorial Other Institutional & Resident Support
Expenses for care for homeless populations provided to mitigate COVID-19 effects and enable compliance with COVID-19 public health precautions	Lodging & Meals for Homeless

Examples of ineligible COVID-19-related expenditures include, but are not limited to:

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.
Reimbursement to donors for donated items or services.
Workforce bonuses other than hazard pay or overtime.
Severance pay.
Legal settlements.

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SCOContent LeftColumn TopHeader​​​​Federal Requirements for CARES Act

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Federal Requirements for CARES Act