NYS OSC Issues Fiscal Oversight for School Districts and Local Governments
The Federal Coronavirus Aid, Relief, and Economic Security (CARES) Act was signed into law on March 27, 2020, to help address the economic effects of the coronavirus pandemic (pandemic). The purpose of the CARES Act is to provide financial aid to individuals; small businesses; large corporations; hospitals and public health; state and local governments; and education. With respect to local governments and school districts, the CARES Act is primarily focused on helping these entities fund unanticipated expenditures incurred due to the pandemic. CARES Act funds are not intended to bridge budget gaps that may result from a decrease in expected revenues (such as a reduction in State Aid in school districts) as a result of the pandemic.
This guidance document discusses the importance of proper fiscal oversight by local and school district officials during these unprecedented times. It also identifies various revenues available under the CARES Act to local governments and school districts in New York State (NYS). Lastly, it addresses how CARES Act revenues and pandemic-related expenditures should be accounted for by local governments and school district officials.