Since many states require sub-recipients to apply for grants to obtain the remaining funds, it is important to establish a clear allocation plan. Of course, it`s easier said than done. A properly prepared grant application requires that you meet deadlines, clearly provide your organization`s results, and organize data into reportable results. Local governments with a population of more than 500,000 and tribal nations can receive direct distributions from the U.S. Treasury. The remaining funds are then transferred to the governments of the federal states, with part of which is allocated by each state to local governments (sub-recipients) that have not received direct funding. These institutions may use the funds for medical needs, equipment and other services related to COVID-19. The process of verifying completed applications in a timely manner must be clear and transparent. The review of the application can be carried out directly or by the governing body of another court (city council, commission council) through an interlocal agreement; However, the granting entity must retain the authority to approve prices, based on the recommendations of the audit committee or the technical committee, in order to comply with the guidelines of the CARES Act. Examples of subcontracting agreements are local government contracts with organizations such as an Economic Development Council (EDC), an association development organization (ADO) or a local chamber of commerce to manage a small business subsidy program based on reimbursement. In these examples, the local government is responsible for the supervision of the subcontractor.
To meet federal requirements, sub-recipients of FRC resources may need to change their internal control structure, which can be a complex undertaking. From compliance with uniform guidelines to compliance with the “Integrated Internal Control Framework” published by the Committee of Sponsorship Organizations of the Treadway Commission (COSO), it is necessary to create, implement and document your internal control system for lifetime and labour grants that you may not have during the current pandemic. For audit purposes, small businesses are the “recipients” of careS funding grants. However, when a local government chooses to allocate the management of small business grants to a third party, the third party will become a sub-recipient and the local government would be required to carefully monitor the third-party verification and recommendation procedure to ensure compliance with the CRITERIa for the allocation of the CARES Act and the obtaining of assistance documents prior to the filing of the refund. If you are a beginner – or have passed only one exam, but need additional support – you are looking for a team to help you prepare. For example, ask for help in planning federal bonuses or developing the documents, agreements and assistance needed for program testing. When a city or county directly manages CARES reimbursement grants to small businesses, the local government must itself establish internal monitoring and monitoring procedures to ensure that assistance documents are obtained to verify the claim.