Government Financial Aid - Optimal Strategies in Crisis Situations
In the wake of the COVID-19 pandemic, public entities and healthcare providers worldwide have been grappling with unprecedented challenges. The U.S., for instance, has seen significant impact, with the federal government providing over $2 trillion in financial stimuli and emergency grants through the CARES Act.
One crucial aspect that requires careful attention is the management of these funds. This article outlines leading practices for entities to follow in their expenditures related to the COVID-19 crisis.
Firstly, it's essential to ensure adequate documentation for all grant funding. A lack of documentation or missing supporting documents can lead to a significant loss in eligible grant funding. Each expenditure should be recorded and referenced to its supporting source documentation.
Secondly, clarity in accounting for how different funding sources are utilized is paramount. Unclear accounting may result in the loss of an eligible grant. To address this, it's recommended to establish a separate account for recording revenue and expenditures, preferably by department.
Thirdly, designate a person or team with federal grant management experience to coordinate emergency-related activities and record-keeping. This dedicated individual or group will ensure that all processes are carried out correctly and efficiently.
The Department of Housing and Urban Development (HUD) has published guidance on the use of Community Development Block Grant (CDBG) funds for eligible infectious disease responses. Entities should familiarise themselves with this guidance to ensure they are using their funds appropriately.
Moreover, the Federal Emergency Management Agency (FEMA) has been activated by the federal government to assist with the COVID-19 response. Proper processes, such as procurement or timekeeping, are essential for activities funded by FEMA. Improper processes may not be eligible for reimbursement.
To maintain transparency, entities should document critical communications, changes to internal policies, and photos of project sites or items purchased. Lack of transparency in documentation and communication of operational decisions with relevant stakeholders could jeopardise an organisation's reputation and lead to the loss of eligible grant funding.
It's also important to define key emergency timelines. Certain requirements may be waived during the designated disaster/emergency period. Creating an emergency response documentation library with a clear file structure for easy navigation will facilitate this process.
Lastly, the COVID-19 crisis has created uncertainties about the continuity of operations and the costs of overcoming associated challenges. Documenting these challenges and the measures taken to address them will provide valuable insights for future planning.
In conclusion, adhering to these best practices will help entities manage their COVID-19 response funding effectively and ensure they are making the most of the available resources.
