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CARES Act funding: eligible expenses for Indiana governments

On May 14, 2020, the State of Indiana announced that $300 million of its Coronavirus Aid, Relief, and Economic Security (CARES) Act funding for local governments would be made available to certain political subdivisions based on population. This provides relief funding opportunities to counties, cities and towns that did not receive their own direct funding under the CARES Act. Click here to view the list of allocations by political subdivision.

Note: Currently, allocations have not yet been extended to political subdivisions such as school corporations, libraries, townships and special districts.

Eligible costs are reimbursable by request through the Indiana Finance Authority (IFA). Guidance on eligible costs and the process for requesting relief can be found on the IFA’s website.

Reimbursable expenses must be:

  • A necessary expenditure incurred due to COVID-19
  • Not already accounted for in the budget most recently approved for your political subdivision on or before March 27, 2020
  • Incurred and paid between March 27, 2020 and Dec. 31, 2020
  • Not reimbursed by insurance, legal settlement or any other emergency COVID-19 supplemental funding (whether state, federal or private in nature)

COVID-19-related expenses considered necessary to support government functions that satisfy CARES Act fund eligibility criteria are reimbursable. Expense items that may be reimbursed include:

Medical expenses:

  • Expenses of public hospitals, clinics and similar facilities
  • Expenses of establishing temporary public medical facilities and other measures to increase COVID-19 treatment capacity, including related construction costs
  • Costs of providing COVID-19 testing, including serological testing
  • Emergency medical response expenses, including emergency transportation
  • Expenses for establishing and operating public telemedicine capabilities for COVID-19-related treatment

Public health expenses:

  • Communication and enforcement expenses by state, territorial, local and tribal governments of public health orders
  • 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
  • Expenses for disinfection of public areas and other facilities (e.g., nursing homes)
  • Expenses for technical assistance to local authorities or other entities on mitigation of COVID-19-related threats to public health and safety
  • Expenses for public safety measures undertaken in response to COVID-19
  • Expenses for quarantining individuals

Unforeseen payroll expenses:

  • Applicable for public safety, public health, healthcare, human services and similar employees whose services are substantially dedicated to mitigating or responding to the COVID-19 public health emergency
  • Overtime hours associated with these types of expenses will be prioritized for reimbursement

Expenses to facilitate compliance with COVID-19-related public health measures:

  • Expenses for food delivery to residents, including, for example, senior citizens and other vulnerable populations
  • Expenses to facilitate distance learning, including technology improvements in connection with school closings
  • Expenses to improve telework capabilities for public employees
  • Expenses to maintain state prisons and county jails, including sanitation and improvement of social distancing measures
  • Expenses to care for homeless populations
  • Note: Expenses to provide paid sick and paid family and medical leave to public employees are not eligible for reimbursement

Expenses associated with the provision of economic support to nongovernmental entities or persons in connection with the COVID-19 public health emergency are not reimbursable except such expenses that are associated with the provision of economic support to small businesses in connection with the COVID-19 public health emergency and shall be limited to only the costs of personal protective equipment.

Proper documentation will be required for reimbursement such as copies of invoices, payroll records (with all personal information properly redacted) and other supporting documentation.

For more information on this topic, or to learn how Baker Tilly public sector specialists can assist with the reimbursement process, contact our team.

Jeffrey P. Rowe
Partner, CPA
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