Eligible and Ineligible Costs for Incurred Expenses

Section 700.60  Eligible and Ineligible Costs for Incurred Expenses a)         Funding Allotments Under Section 700.80(a), (b) and (c) 1)         Eligible incurred expenses for funding allotments received under Section 700.80(a), (b) and (c) include the following five categories of costs and meet the restrictions on use of Local CURE Program funds (see Section 700.50): A)        Medical expenses, including, but not limited to, expenses of establishing temporary public medical facilities and other measures to increase COVID-19 treatment capacity, costs of providing COVID-19 testing, and emergency medical response expenses; B)        Public health expenses, including, but not limited to, expenses for communication and enforcement by local governments of public health orders related to COVID-19; C)        Payroll expenses for public safety, public health, health care, human services, and similar employees whose services were substantially dedicated to mitigating or responding to COVID-19; D)        Expenses for actions taken to facilitate compliance with COVID-19 related public health measures, including purchases by local governments to implement public health recommendations at local businesses; and E)        Any other COVID-19 related expenses reasonably necessary to the function of government that satisfy the Local CURE Program eligibility criteria (see Section 700.40), including, but not limited to, administrative expenses.  Local governments must document how expenses are related to COVID-19. 2)         Ineligible costs for incurred expenses by local governments for funding allotments received under Section 700.80(a), (b) and (c) include the following: A)        Governmental revenue shortfall replacement, unless applicable federal law or guidance allows for these expenses; B)        Damages covered by insurance; C)        Payroll or benefits expenses for employees whose work duties are not substantially dedicated to mitigating or responding to the COVID-19 public health emergency or whose work is not an eligible administrative expense; D)        Expenses associated with the provision of economic support in connection with COVID-19, except for eligible administrative expenses; E)        Reimbursement to donors for donated items or services; F)         Workforce bonuses other than hazard pay or overtime; G)        Severance pay; H)        Legal settlements; I)         Indirect costs; and J)         Incurred expenses that have been or will be reimbursed through another State or federal funding opportunity. b)         Economic Support Payments Grants under Sections 700.80(e) and 700.120 1)         The following business types are excluded from receiving funding from Economic Support Payments Grants: A)        a private club or business that limits membership for reasons other than capacity; B)        a government-owned business entity (except for businesses owned or controlled by a Native American tribe); C)        a business that derives at least 33% of its gross annual revenue from legal gambling activities, unless, subject to the Department's approval, the business is a restaurant with gaming terminals; D)        a business engaged in pyramid sales, in which a participant's primary incentive is based on the sales made by an ever-increasing number of participants; or E)        payday lenders. 2)         A business shall be ineligible to receive funding through an Economic Support Payments Grant if it: A)        is delinquent on payment of any State of Illinois tax obligation; B)        is engaged in a business that is unlawful under Illinois or federal law; C)        has already received assistance, or notice of award of assistance, under the BIG Program; D)        is on the federal System for Award Management excluded parties list; or E)        does not meet any other eligibility criteria established in a financial assistance application. 3)         Eligible incurred expenses for the Economic Support Payments Grants must meet the restrictions on the use of Local CURE Program funds (see Section 700.50) and reimburse the cost of business interruption. 4)         Ineligible expenditures under the Economic Support Payments Grants include: A)        expenses that have been or will be reimbursed under any State, local, or federal program, such as expenses or losses that were reimbursed by a loan forgiven under the CARES Act's Paycheck Protection Program; B)        damages covered by insurance; C)        expenditures prohibited by section 5001(b) of the CARES Act; D)        reimbursement to donors for donated items or services; E)        workforce bonuses other than hazard pay or overtime; F)         severance pay; G)        legal settlements; H)        indirect costs; I)         administrative expenses of the local government, except that administrative expenses related to the Economic Support Payments Grants may be reimbursed only through funding received by the local governments under Section 700.80(a); and J)         any other expense not reasonably incurred due to the COVID-19 emergency. c)         The categories of eligible and ineligible expenditures set forth in this Section will be modified by the Department, in accordance with the IAPA, if: 1)         the CARES Act, or the U.S. Department of the Treasury guidance, or other applicable federal law authorizes different eligible expenditures that affect the administration of the Local CURE Program; 2)         expenditures are consistent with the applicable State laws; and 3)         Local CURE Program funds remain unspent at the time of such changes in the eligible uses of funds.