COVID-19 Update: CDC Guidance for Schools, State Guidance, PPP Accounting, Unemployment

(from NPR) No field trips. No game rooms. No teddy bears. These are some of the CDC's guidelines for reopening schools, childcare centers and day camps safely in places where coronavirus cases are on the decline. The guidance says that where coronavirus is spreading rapidly, child care should only serve the children of essential workers. This is the case today in much of the country, which the guidelines refer to as "Phase 1". In Phase 2, programs can expand to serve all children with enhanced social distancing measures, and in Phase 3, with a lower risk, social distancing will continue. The guidance was obtained by The Associated Press, which reports that the White House tried to keep it from coming to light. The CDC does not have authority to enforce its guidance, which is intended for public information only; the actual policy decisions are up to state and local governments.

More from NPR and the Associated Press

(from the U.S. Chamber of Commerce) The U.S. Chamber of Commerce has developed a new interactive map that allows users to click on their state and see relevant business reopening guidance. Guidance varies widely. In some states, for example, masks are required; in others, they’re suggested. In some states, mask requirements apply only to employees, while in others, customers must wear them, too. In some states, employers are required to screen employees before shifts begin; in others, it’s required after each shift. In still others, it’s not required at all. Meanwhile, some states are leaning on questionnaires, but even then, the questions and retention rules vary.

More from the U.S. Chamber of Commerce 

(from CliftonLarsonAllen) Schools that have accepted PPP loans will need to begin grappling with the accounting for them. Sarah Reichling, principal at CliftonLarsonAllen has shared the following: 

1. The PPP loan is treated as a debt obligation until forgiveness has been granted by the lender. Given most schools have a June 30 year-end and are just getting funding in April, it’s extremely likely that all schools that received this funding will have debt on their balance sheet at the end of the current year. This means schools should start preliminary calculations of any debt service coverage ratios and discuss with their banks now in the event a waiver will be needed.
2. The PPP loan is federal money through the SBA. Schools are asking, does this trigger the need of an OMB federal compliance audit? Right now this is unknown, and we’re awaiting issued guidance on this specific question from the GAQC/AICPA. If funding is subject to this audit, schools would likely have an additional audit of these funds as of June 30, which would be an additional cost that was unknown at time of application. This gives us hope there will be a waiver on this type of funding.

More from CliftonLarsonAllen and blumshapiro

(from the DOL) The Department of Labor has updated its guidance to respond to new questions which have arisen as the economic focus has shifted from the initial concerns of becoming unemployed to concerns about returning to work. The following questions have now been addressed in the FAQ:

• I run a nonprofit organization and am a reimbursing employer under my state’s unemployment insurance program. Due to the economic impacts of the COVID-19 pandemic, I am worried that I may be unable to timely reimburse the state for unemployment benefits it provides to my employees. What should I do?
• My employer has remained open because it is essential. I’m not sick, nor is anyone in my household sick. I do not have children or care for someone who cannot care for themselves. However, I’m afraid of getting coronavirus from customers coming to the store, so I quit and filed for unemployment. Can I obtain benefits under the CARES Act?
• I was furloughed by my employer, but they have now reopened and asked me to return to my job. Can I remain on unemployment?
• One of my workers quit because he said he would prefer to receive the unemployment compensation benefits under the CARES Act. Is he eligible for unemployment? If not, what can I do?

More from the DOL