These questions were submitted during a live Q & A at the CARES Act Webinar on July 17, 2020. The responses have been submitted by the Texas Department of Emergency Management.
Q1: For TDEM review of purchases- is that only for entities that receive their allocation from the state?
A1: Yes, TDEM is only reviewing purchases made by entities who received their allocation from the state. Regarding counties and cities who received CRF funding as a direct allocation from the US Treasury, TDEM does not have oversight of those funds.
Q2: These forms (Josh Davies is going over) are not required if funds have been received through the County right?
A2: These forms are required for entities that received their allocation through the state. Regarding counties and cities who received CRF funding as a direct allocation from the US Treasury, TDEM does not have oversight of those funds. Please contact these jurisdictions for additional information on the implementation of their programs.
Q3: The July 8 Treasury CARES act FAQ said in response to question whether fund payments may 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 case of COVID-19 in the workplace that if the cost of an employee was allocated to administrative leave to a greater extent than was expected, the cost of such administrative leave may be covered using payments from the fund. Which category does this fall under? Does it depend on the category of the employee, i.e. public health or safety vs other areas?
A3: Payments for leave would fall under the category of expenses of actions to facilitate compliance with COVID-19-related public health measures. It depends on a tie to COVID-19 rather than the category of the employee.
Q4: What documents are we expected to see if a city obtained funding from a county?
A4: Regarding counties and cities who received CRF funding as a direct allocation from the US Treasury, TDEM does not have oversight of those funds. Please contact these jurisdictions for additional information on the implementation of their programs.
Q5: Could the funds be used to pay a certified Covid-19 doctor as a consultant for advising the Mayor and Council for decisions
A5: Yes. Those costs would be categorized as technical assistance to local authorities on mitigation of COVID-19-related threats to public health and security.
Q6: Does the 25% allocation relate to the total amount awarded to the local municipality? Does the 25% allocation relate to the amount that is ultimately received? i.e. – award is $2mm so 25% is $500k or Municipality only receives a $1mm so 25% is $250k
A6: The 25% rule is calculated based off of the total amount of eligible expenditures. In your example that would be the $250k.
Q7:What is the COVID surcharge that employees were paying?
A7: This is not a question for TDEM. This question was related to another speaker.
Q8: We are looking for software for our purchasing division to enhance social distancing because of COVID. This would allow bids to be received electronically and purchasing staff to communicate without being in the same location. Is this an eligible expense?
A8:Due to the Treasury Department guidance noting that jurisdictions are responsible for making determinations as to what expenditures are necessary due to the COVID-19 public health emergency, this expense would be eligible if the city so determines it to be necessary. However, the extent and quantity of the expenditures should be limited to those necessary to responding to or mitigating COVID-19. This could be problematic with the software described, because it could clearly provide a benefit to the purchasing division beyond the immediate threat of COVID-19. TDEM recommends the city prepare a justification related to the system components specifically needed as a result of COVID-19 and maintain the justification in its project files in the event of an audit.
Q9: Would capital costs for repairs and updates to an existing City owned building to set up offices enabling us to social distance qualify?
A9:The CARES Act provides that payments from the Fund may only be used to cover costs that—
1. are necessary expenditures incurred due to the public health emergency with respect to the Coronavirus Disease 2019 (COVID–19);
2. 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; and
3. were incurred during the period that begins on March 1, 2020, and ends on December 30, 2020
Treasury Department guidance notes that jurisdictions are responsible for making determinations as to what expenditures are necessary due to the public health emergency with respect to COVID-19. Therefore, CRF funding could be used for these costs if the city makes such a determination and the expense meets the other eligibility criteria. Additionally, expenditures should only be limited to those that are necessary due to COVID-19. Any portion of capital costs that is not related to facilitating social distancing would not be eligible.
Q10: I would like to get more information on $70 credit card for residents to spend on Local Business?
A10: This is not a question for TDEM. This question was related to another speaker.
Q11: How often are we allowed to submit reimbursement requests?
A11: All reimbursement requests will be submitted through the GMS system. The County may submit reimbursement requests as frequently as necessary.
Q12: How do you register for the training through TDEM?
A12: Training for GMS is available Tuesdays and Thursdays at 1:00 PM CDT through 2:00 PM CDT.
Please find the registration link here:
https://zoom.us/meeting/register/tJYpfu6urDgvG93eNoD578Ldt7F0yjOQnto8.
Q13: May we submit a percentage of total salaries for Public Safety or do we need to identify specific employees?
A13: You may choose to only request reimbursement for a portion of the payroll hours. However, you would be required to submit the same information for each employee claimed for reimbursement regardless how you wish to submit the claim. Reimbursement for personnel costs is based off of actual direct costs that are adequately documented.
Q14: I would I help on setting the $70 Credit Card for citizens to use on local business.
A14: This is not a question for TDEM. This question was related to another speaker.
Q15: Are funds dedicated to public funeral expenses reimbursable?
A15: Yes, this would be eligible if your jurisdiction determines them to be necessary costs as a result of the COVID-19 public health emergency. The key would be documenting how the work is specifically COVID-related and claiming reimbursement only for the COVID-related costs.
Q16: Can CRF funds be used as the 25% match for FEMA assistance?
A16: The Department of Treasury has confirmed that CRF can be used to match the FEMA non-federal share.
Q17: How should interest earnings being handled or tracked on pre funded CRF?
A17: Jurisdictions should be using their initial 20% advance of CRF funding for eligible expenditures based on the COVID-19-related needs in their respective communities. After December 30, TDEM will recover any portion of advance funding that is unused by jurisdictions. TDEM will not seek to recover associated interest.
Q18: The FAQ from Treasury states that as a matter of administrative convenience the government may presume that payroll costs for public safety are payments for services substantially dedicated to mitigating or responding to COVID. Does this include straight time costs?
A18: Yes, straight time is eligible for public health and public safety employees.
Costs must be:
1) necessary expenditures due to the public health emergency with respect to the Coronavirus Disease 2019 (COVID-19);
2) 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;
3) incurred on the period that begins March 1, 2020 and ends on December 30, 2020
Keep in mind that the “not accounted for in the budget” criteria can be met by the employees being deployed with substantially different job responsibilities related to COVID-19. Costs incurred for a “substantially different use” include, but are not necessarily limited to, costs of personnel and services that were budgeted for in the most recently approved budget but which, due entirely to the COVID-19 public health emergency, have been diverted to substantially different functions. This would include, for example, the costs of redeploying corrections facility staff to enable compliance with COVID-19 public health precautions through work such as enhanced sanitation or enforcing social distancing measures; the costs of redeploying police to support management and enforcement of stay-at-home orders; or the costs of diverting educational support staff or faculty to develop online learning capabilities, such as through providing information technology support that is not part of the staff or faculty’s ordinary responsibilities.
Q19: so 100% of public safety salary expense would be eligible? not just the overtime incurred in support of the public health emergency?
A19: Yes, unless a jurisdiction has made a determination that rebuts the presumption that all public safety and public health payroll is substantially dedicated to responding to or mitigating the COVID-19 public health emergency.
Q20: Are costs effective as of March 1 for all or as of our City’s declaration?
A20: Costs must be incurred during the period that begins on March 1, 2020, and ends on December 30, 2020. This is a requirement written into the CARES Act.
Q21: Can we recover indirect costs against salary costs charged to CARES funds, using our approved cost studies?
A21: Yes, but bear in mind that Fort Worth received a direct allocation of CRF from the Treasury Department and, accordingly, TDEM does not have oversight of those funds.
Q22: Is the qualification for an eligible expense “But for COVID, we would not be doing this activity or spending this money in this way or using our employees in this manner?” We are a municipal utility, so we are in a bit of a unique situation working directly with the City. For example, we have our Facilities team conducting routine fogging and desanitization procedures upon a positive test. Would this be possibly eligible as a payroll expense, or everything submitted as public health?
A22: The payroll costs of any employee who are substantially dedicated to responding to or mitigating COVID-19 would be eligible.
The Treasury Department guidance allows jurisdictions to presume that payroll costs for public health and public safety employees are payments for services substantially dedicated to mitigating or responding to the COVID-19 public health emergency, unless the chief executive (or equivalent) of the relevant government determines that specific circumstances indicate otherwise.
For non-public health or public safety employees, the city would need to provide timesheets/activity logs that document that the employees’ work duties were substantially dedicated to COVID-19 during the period or periods of time claimed for reimbursement.
Materials and equipment utilized by these employees for COVID-19 related fogging and sanitizing would fall under public health expenses.
Q23: We plan to hire a consultant to assist with managing the CRF grant. Will their services have to be completed by Dec 30th?
A23: The CARES Act provides that payments from the Fund may only be used to cover costs that were incurred during the period that begins on March 1, 2020, and ends on December 30, 2020. Costs incurred after 12/30/20 are not eligible for reimbursement under the CRF funding.
Q24: Does payroll related to expanded sick leave and expanded FMLA due to COVID exposure and self quarantine qualify for CRF?
A24: Based on current Treasury Department guidance, the CRF could be used to fund paid sick and expanded family medical leave when these costs are related to COVID-19 and meet basic CRF eligibility criteria that costs are:
1) necessary expenditures due to the public health emergency with respect to the Coronavirus Disease 2019 (COVID-19);
2) 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;
3) incurred on the period that begins March 1, 2020 and ends on December 30, 2020
Q25: For budgeted County Judge and budget emergency management department employees, is 100% of their salary and benefits for reimbursement under Cares Act or only their overtime?
A25: Payroll costs (including straight time, overtime, and benefits) are eligible for reimbursement if an employee’s duties are substantially dedicated to responding to or mitigating the COVID-19 public health emergency. In the case described here, the COVID-19-related time – straight or overtime – could be claimed as long as timesheets or activity logs can be provided to demonstrate that the employee was substantially dedicated to responding to or mitigating COVID-19 during the period or periods of time claimed for reimbursement.
Q26: Regarding eligible public safety payroll costs, what if funds for public safety are already budgeted, but redirected to COVID response? In other words, can a city get CRF money for base salaries for police and fire?
A26: The Treasury Department has issued guidance that notes the unbudgeted requirement can be met if either (a) the cost cannot lawfully be funded using a line item, allotment, or allocation within that budget, or (b) the cost is for a substantially different use from any expected use of funds in such a line item, allotment, or allocation.
The Treasury Department additionally has noted that costs incurred for a “substantially different use” include, but are not necessarily limited to, costs of personnel and services that were budgeted for in the most recently approved budget but which, due entirely to the COVID-19 public health emergency, have been diverted to substantially different functions. This would include, for example, the costs of redeploying corrections facility staff to enable compliance with COVID-19 public health precautions through work such as enhanced sanitation or enforcing social distancing measures; the costs of redeploying police to support management and enforcement of stay-at-home orders; or the costs of diverting educational support staff or faculty to develop online learning capabilities, such as through providing information technology support that is not part of the staff or faculty’s ordinary responsibilities.
Finally, the Treasury Department has noted that as a matter of administrative convenience in light of the emergency nature of this program, a jurisdiction may presume that payroll costs for public health and public safety employees are payments for services substantially dedicated to mitigating or responding to the COVID-19 public health emergency, unless the chief executive (or equivalent) of the relevant government determines that specific circumstances indicate otherwise.
Absent a determination by a jurisdiction rebutting the presumption that public health and public safety employees are substantially dedicated to mitigating or responding to COVID-19, their duties would constitute a substantially different use from their expected budgeted use. Accordingly, straight time, overtime, and associated benefits could be reimbursed through the CRF.
Q27: Does small cities apply with TDEM or with County? thank you!
A27: The U.S. Treasury sent funding directly to city governments of cities and counties, including Harris County, with population over 500,000. Please note that the Coronavirus Relief Fund available through this application are for jurisdictions (counties and municipalities) who did not receive a direct payment from the Department of Treasury or are not located within a county that received a direct payment. As your city is located within Harris County, please contact the county for additional information on how it will distribute its direct allocation of CRF funds.
Funding is distributed by the State of Texas government to those remaining county, city and town governments using an allocation based on their populations. Each jurisdiction with an allocation will apply individually. Details can be found at the TDEM CRF website: https://tdem.texas.gov/crf/
Q28: My city received direct allocation from our county. Can a city develop a cost allocation plan for personnel expense or must we track direct time spent on the response?
A28: Please inquire with your county that received a direct allocation, as its program may be governed by terms and conditions that differ from those jurisdictions receiving an allocation from TDEM
Q29: I think this was answered but are the same forms required if you must get your funds from the County? Is documentation sent to the County then?
A29: Each County in Texas with a population of over 500,000 (Bexar, Collin, Dallas, Denton, El Paso, Fort Bend, Harris, Hidalgo, Montgomery, Tarrant, Travis, and Williamson) received a direct allocation of CRF funds from the Treasury Department and has established their own CRF programs without oversight from TDEM. If you are situated in a county that received a direct allocation, you will need to submit your reimbursement requests through the county. Please contact the county in which you are located to determine additional information about their CRF programs, including what forms may be required.
Q30: IF any of our employees has to travel to take the COVID test, can we cover the travel and test as necessary
A30: Yes, if the expenses are not paid by any other funding source and the city determines them to be necessary expenses.
Q31: Additionally, we were working on a travel trailer for our linemen. This trailer was originally budgeted for. However, once the COVID pandemic hit, we made the decision to repurpose this trailer in the event that we needed to sequester employees while on standby or if we needed to move our dispatch crew into a 24/7 on site living quarter. Would this be something that the TDEM consultants could give guidance on?
A31: The CARES Act provides that payments from the Fund may only be used to cover costs that—
1. are necessary expenditures incurred due to the public health emergency with respect to the Coronavirus Disease 2019 (COVID–19);
2. 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; and
3. were incurred during the period that begins on March 1, 2020, and ends on December 30, 2020.
Treasury Department guidance notes that jurisdictions are responsible for making determinations as to what expenditures are necessary due to the public health emergency with respect to COVID-19. Therefore, CRF funding could be used for these costs if the city makes such a determination and the expense meets the other eligibility criteria. Additionally, the expenditures should be limited to those that are necessary due to COVID-19.
Q32: Could a city replace HVAC equipment that is specifically designed to kill this and other airborne pathogens? It would be only in public areas where people gather – such as a community center, senior center, conference center.
A32: Yes, if the city determines it to be a necessary expense and the expenditures and quantities are limited to those amounts necessary to respond to or mitigate COVID-19. Some of the facilities described may be a problematic use of the funds, however. For example, as community centers and conference centers are generally shut down currently, it is unclear how the use of CRF funds to replace their HVAC systems could be considered responding to or mitigating COVID-19 between March 1 and December 30.
Q33: Would gear dryer, PPE washer and/or extricator replaced as part of a Fire Station renovation project qualify
A33: These stand-alone items could be eligible if a jurisdiction determines the expenditures necessary to respond to or mitigate COVID-19. However, the way this question is worded suggests the possibility that these expenses were already budgeted as part of a pre-existing renovation project. If that is true, they would not qualify because they are not unbudgeted costs.
Q34: Are the CARES funds tied to a CFDA #
A34: The CFDA number assigned to the Fund is 21.019.
Q35: Could nonprofit organizations being used to store or distribute COVID-19 supplies from the city be reimbursed for expenses?
A35: Yes, assuming the specific COVID-19-related expenses are adequately documented, a jurisdiction could reimburse a nonprofit for its expenses and subsequently seek reimbursement through the CRF.
Q36: Is the $55 per capita up to the county’s discretion for allocation to cities that are receiving their funds from the county?
A36: Under the CRF administered by TDEM, the $55 per capita is solely used to determine the amount of each individual jurisdiction’s CRF allocation. However, counties with populations over 500,000, including Williamson County, received direct payments from the Department of Treasury. These counties’ CRF funds are not administered by TDEM or bound to the TDEM terms and conditions. Please inquire with the county for additional information.
Q37: We are a small City that would not be able to pay hazard pay with CARES. Can we back pay this now that we have received funds?
A37: Yes, if the city determines hazard pay to be a necessary expense due to COVID-19. Additionally, because hazard pay is a form
of payroll expense, CRF funds may only be used for the hazard pay of 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.
Q38: How do we go about getting pre-approval for consulting contracts?
A38: Yes. Please submit a request to TDEM for pre-approval, including a justification of why the consulting contract is needed and a copy of the contract. CRF@tdem.texas.gov
Q39: If we purchase eligible equipment from a grant surplus vendor would the city cost be reimbursable?
A39: Yes this would be reimbursable assuming your jurisdiction determines it to be a necessary expenditure for COVID-19 and the expense meets the other CRF eligibility criteria. You would need to follow standard documentation requirements for federal funding, including procurement documentation, proof of expenditure and payment.
Q40: Can County restrictions on eligible payroll costs be different or more restrictive than TDEM?
A40: As TDEM does not have oversight of the CRF that the Treasury Department directly provided to Travis and Dallas Counties, it is possible that those counties have implemented their programs in ways that differ from the CRF that TDEM is managing.
Q41: Do payroll costs include fringe benefits (health insurance, retirement, etc.) like all other grants?
A41: Yes, payroll costs include unbudgeted straight time, overtime, and associated benefits.
Q42: Are increase in waste tipping fees reimbursable?
A42: Costs due to an increase in solid waste as a result of the public health emergency are eligible, provided the connection to COVID-19 can be adequately documented.
Q43: If an expenditure is audited and found to be ineligible will the city be assessed any fine or penalty or just be asked to reimburse the expenditure?
A43: It would depend on the nature of the finding, but at a minimum, the jurisdiction would need to repay TDEM for any ineligible expenditures.
Q44: What about single audit costs where these federal dollars caused the city to exceed the single audit threshold?
A44: Federal regulations require a single audit each year for jurisdictions that expend $750,000 or more in federal funds in a fiscal year. In general, federal cost principles allow subrecipients to claim a reasonable proportionate share of single audit costs against their federal award.
Q45: Can you please share your guidance about investment earnings with me as well?
A45: El Paso is located in a county that received a direct allocation of CRF funds from the Treasury Department. Accordingly, TDEM has no oversight of those CRF funds and the terms and conditions may differ from TDEM’s.
Q46: If we don’t use all the advanced funds by 12/30/2020, what will that return process look like?
A46: All funding not expended must be returned to TDEM.
Q47: Would facility renovations due to the response-ac units just discussed-be limited to category 4 and the 25%?
A47: Because the Treasury guidance on eligible costs categories is broad, certain expenditures could conceivably fit under multiple categories. HVAC upgrades for the purposes of providing extra air filtration in public facilities that are currently in use could be considered a public health expense under the 75%. Care should be taken with any capital improvement projects to ensure the scope and extent of expenses is only that which is necessary to address the current COVID-19 public health emergency. CRF funds may not be used for projects that broadly provide potential economic development benefits to a jurisdiction.
Q48: When using the CRF for economic development assistance (rental payments, food, medical..) what is the level of oversight a municipality needs to have with the subrecipients? If the city is passing funds through a not-for-profit organization to citizens, is there a responsibility for the city to demonstrate that the citizens are using the funds in accordance to its purpose? or does this responsibility falls on the not-for-profit?
A48: As El Paso is located in a county that received a direct allocation of funding from the Treasury Department, the terms and conditions of the funding may differ from the CRF that TDEM administers. Please contact your county for additional information.
Q49: If we intended to use a portion of the funds for economic support for small businesses, could non-profits apply and receive a portion of the funds, if they can prove that their finances were negatively impacted by the public health emergency and/or closures?
A49: Yes. Treasury Department guidance is broad and makes clear that each individual jurisdiction should assess its community needs with respect to COVID-19, provided that expenditures comply with CRF eligibility criteria. The scenario described would be acceptable assuming there is sufficient supporting documentation maintained.
Q50: What information should a utility payment assistance application include?
A50: Each jurisdiction has the discretion to implement economic support programs, including utility payment assistance, as appropriate based on their community needs with respect to COVID-19. Treasury Department guidance notes that CRF payments may not be used for government revenue replacement, including the replacement of unpaid utility fees. However, CRF payments may be used for subsidy payments to electricity account holders to the extent that the subsidy payments are deemed by the jurisdiction to be necessary expenditures incurred due to the COVID-19 public health emergency and meet the other CRF eligibility criteria. For example, if determined to be a necessary expenditure, a government could provide grants to individuals facing economic hardship to allow them to pay their utility fees and thereby continue to receive essential services. Some jurisdictions may wish to hire consultants with grant management experience to provide assistance in establishing compliant economic assistance grant programs.