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21 <br /> In general,no. If capital improvement projects are not necessary expenditures incurred due to the <br /> COVID-19 public health emergency,then Fund payments may not be used for such projects. <br /> However,Fund payments may be used for the expenses of,for example,establishing temporary public <br /> medical facilities and other measures to increase COVID-19 treatment capacity or improve mitigation <br /> measures,including related construction costs. <br /> The Guidance includes workforce bonuses as an example of ineligible expenses but provides that <br /> hazard pay would be eligible if otherwise determined to be a necessary expense. Is there a specific <br /> definition of"hazard pay"? <br /> Hazard pay means additional pay for performing hazardous duty or work involving physical hardship, in <br /> each case that is related to COVID-19. <br /> The Guidance provides that ineligible expenditures include "[playroll or benefits expenses for <br /> employees whose work duties are not substantially dedicated to mitigating or responding to the <br /> COVID-19 public health emergency." Is this intended to relate only to public employees? <br /> Yes. This particular nonexclusive example of an ineligible expenditure relates to public employees. A <br /> recipient would not be permitted to pay for payroll or benefit expenses of private employees and any <br /> financial assistance(such as grants or short-term loans)to private employers are not subject to the <br /> restriction that the private employers' employees must be substantially dedicated to mitigating or <br /> responding to the COVID-19 public health emergency. <br /> May counties pre pay with CARES Act funds for expenses such as a one or two year facility lease, <br /> such as to house staff hired in response to C011ID-19? <br /> A government should not make prepayments on contracts using payments from the Fund to the extent that <br /> doing so would not be consistent with its ordinary course policies and procedures. <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 /> 6 <br />