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9 <br /> <br />the public health emergency. Expenses related to developing a long-term plan to reposition a recipient’s <br />convention and tourism industry and infrastructure would not be incurred due to the public health <br />emergency and therefore may not be covered using payments from the Fund. <br /> <br />May a State provide assistance to farmers and meat processors to expand capacity, such to cover <br />overtime for USDA meat inspectors? <br />If a State determines that expanding meat processing capacity, including by paying overtime to USDA <br />meat inspectors, is a necessary expense incurred due to the public health emergency, such as if increased <br />capacity is necessary to allow farmers and processors to donate meat to food banks, then such expenses <br />are eligible expenses, provided that the expenses satisfy the other requirements set forth in section 601(d) <br />of the Social Security Act outlined in the Guidance. <br />The guidance provides that funding may be used to meet payroll expenses for public safety, public <br />health, health care, human services, and similar employees whose services are substantially dedicated <br />to mitigating or responding to the COVID-19 public health emergency. May Fund payments be used to <br />cover such an employee’s entire payroll cost or just the portion of time spent on mitigating or <br />responding to the COVID-19 public health emergency? <br />As a matter of administrative convenience, the entire payroll cost of an employee whose time is <br />substantially dedicated to mitigating or responding to the COVID-19 public health emergency is eligible, <br />provided that such payroll costs are incurred by December 30, 2020. An employer may also track time <br />spent by employees related to COVID-19 and apply Fund payments on that basis but would need to do so <br />consistently within the relevant agency or department. <br /> <br />Questions Related to Administration of Fund Payments <br />Do governments have to return unspent funds to Treasury? <br />Yes. Section 601(f)(2) of the Social Security Act, as added by section 5001(a) of the CARES Act, <br />provides for recoupment by the Department of the Treasury of amounts received from the Fund that have <br />not been used in a manner consistent with section 601(d) of the Social Security Act. If a government has <br />not used funds it has received to cover costs that were incurred by December 30, 2020, as required by the <br />statute, those funds must be returned to the Department of the Treasury. <br />What records must be kept by governments receiving payment? <br />A government should keep records sufficient to demonstrate that the amount of Fund payments to the <br />government has been used in accordance with section 601(d) of the Social Security Act. <br />May recipients deposit Fund payments into interest bearing accounts? <br />Yes, provided that if recipients separately invest amounts received from the Fund, they must use the <br />interest earned or other proceeds of these investments only to cover expenditures incurred in accordance <br />with section 601(d) of the Social Security Act and the Guidance on eligible expenses. If a government <br />deposits Fund payments in a government’s general account, it may use those funds to meet immediate <br />cash management needs provided that the full amount of the payment is used to cover necessary <br />expenditures. Fund payments are not subject to the Cash Management Improvement Act of 1990, as <br />amended. <br />May governments retain assets purchased with payments from the Fund?