July 23, 2020
Our payroll accounts are at a different bank than the one holding the PPP money. Do we need to show bank transfers that have the funds going out of the PPP account directly to the payroll account, or can we just show our payroll records to document our allowable uses of the PPP funds without showing the actual bank transfers?
Posted by Armanino Financial Advisory Team
You need to be able to show a clean audit trail of the use of funds. While direct bank transfers are not required, they do provide a clear path. Absent such transfers, you will need to provide the payroll records and demonstrate that you did not use the PPP funds for unauthorized purposes.