Like with all allocated federal funds, it is subject to audit and like with the American Recovery and Reinvestment Act of 2009, audits created issues.
There are still many questions regarding 'Allowability of Cost' and requirements for the forgivable loan programs.
That's why we are developing a uniform guidance on allowable costs and all required accounting processes.
We can advise your organization on how to identify which money will your organization or agency will qualify and how to account for the distribution and spending of those funds.
We are prepared to assist tribes in addressing long-term and short-term challenges that may arise once the funding is secured, such as effects on financial planning models, audit, compliance and accountability structures.
Here is a breakdown of our services related to the tribal stimulus funding:
1. Identifying the funding options made available through the CARES act
- The funding made available through this legislative package presents unique resources designed to provide relief to tribal entities whose operations have been impacted due to the pandemic.
- Tribes and their enterprises are eligible for the $454 billion loan guarantee funds and $349 billion under the U.S Small Business Administration (SBA) Loan 7(a) Program.
- The Paycheck Protection Program (PPP) authorizes up to $349 billion in forgivable loans to small businesses to pay their employees during COVID-19 crisis.
- Funds can cover unbudgeted costs to purchase of protective equipment (PPE), increasing staff and cover the costs of overtime, staffing, transportation, cleaning supplies, water, food, Information Technology, broadband/internet service increase for telework and other COVID-19 activities.
2. Work with your Tribal organizations through the application process
- Understanding the congressional bill and the statements from SBA and other agencies regarding distribution of funds.
- Staying current with what state and local governments are doing.
- Exploring other opportunities for the aid besides the Relief Fund.
- Recommending additional support and resources to build a comprehensive plan and strategy.
3. Develop the accounting processes for proper the reporting, accountability and compliance issues this new money will create.
- Documentation for accounting including receipts, financial and other data.
- Accounting for expenditures incurred that meet the requirements for "allowablility".
- Develop a simple and understandable process that is transparent and able to withstand scrutiny.
4. Assist the tribe with audit related issues that are created from these new funds.
- Challenges may arise once the funding is secured, such as effects on financial planning models, audit, compliance and accountability structures.
Contact us, and together we can respond to this crisis effectively and efficently.
Sean McCabe, CPA