So far, more than 1.2 million companies received PPP loans under the CARES Act, and now that funding has been replenished, that number is expected to increase significantly. The final regulations regarding the forgiveness provisions are not yet out. Even so, companies need to make sure that they are implementing appropriate controls to ensure funds are used for their intended purpose. While the CARES Act made a lot of money available to companies expeditiously, it also created additional oversight, audit functions, and penalties to identify and punish fraud and abuses that are expected to be prevalent under the Act. Those companies that are not diligent in monitoring the appropriate use of the PPP loan could find themselves having to pay back funds and then some. The hard part is that while the regulations may not be entirely clear, companies have a responsibility to be prudent with government funds. We have attached some information regarding the bite behind the CARES Act and what companies need to be wary of. If you have any questions, please do not hesitate to call Ken Cerini, Managing Partner of Cerini & Associates at 516-381-9395.
Kenneth R. Cerini, CPA, CFP, FABFA
Ken is the Managing Partner of Cerini & Associates, LLP and is the executive responsible for the administration of our not-for-profit and educational provider practice groups. In addition to his extensive audit experience, Ken has been directly involved in providing consulting services for nonprofits and educational facilities of all sizes throughout New York State in such areas as cost reporting, financial analysis, Medicaid compliance, government audit representation, rate maximization, board training, budgeting and forecasting, and more.