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Commonwealth's Counties

Treasury Provides Additional Guidance on Coronavirus Relief Fund

The Department of the Treasury issued updated guidance on the timing of expenditure of Coronavirus Relief Fund dollars on June 30 and provided an additional answer to its list of Frequently Asked Questions on July 8.

The new guidance pertains to the requirement that Coronavirus Relief Fund dollars may only be used to cover costs incurred during the period that begins March 1, 2020, and ends December 30, 2020. Of particular interest to local governments, Treasury writes, “Initial guidance released on April 22, 2020, provided that the cost of an expenditure is incurred when the recipient has expended funds to cover the cost. Upon further consideration and informed by an understanding of State, local, and tribal government practices, Treasury is clarifying that for a cost to be considered to have been incurred, performance or delivery must occur during the covered period but payment of funds need not be made during that time (though it is generally expected that this will take place within 90 days of a cost being incurred).” VACo has requested clarification from the Northam Administration regarding how this additional flexibility will be incorporated into the state’s requirements for local governments receiving distributions of Coronavirus Relief Fund dollars from the state.

Treasury’s updated Frequently Asked Questions document was released on July 8. The new information is found on page 9 and answers the question, “May Fund payments be used to cover increased administrative leave costs of public employees who could not telework in the event of a stay at home order or a case of COVID-19 in the workplace?”

VACo Contact: Katie Boyle

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