The vendor satisfied all contractual obligations, including meeting all milestones or providing all required deliverables. Massachusetts jurisdictions received over $25 billion through ARPA. Procurement and contracting requirements are in place as best practices to mitigate the risk of fraud, waste, or abuse of federal funds and are designed to ensure that federally funded contracts are competitive and fair. Remember to check debarment lists, as well as the Secretary of the Commonwealths business registration database or a local municipal clerks office to determine if a business is properly registered to conduct business within Massachusetts. For more information about adopting a procurement policy for your jurisdiction, please see page 3 of the Bulletin. A lock icon ( One of the biggest errors that an audit team can make is not adequately understanding the vendors processes, especially the transaction process. The executive order requires that every goods or services contract or agreement must incorporate an auditing provision permitting the government to audit the vendors books, records and other compilations of data relative to the performance of any provision or requirement of the contract or agreement. Recipients of Federal financial assistance from the Treasury are required to meet legal requirements relating to nondiscrimination and nondiscriminatory use of Federal funds. Tie grant disbursements to deliverables, milestones or other reportable actions when possible. Equipment and Real Property Management. For purposes of the Federal procurement requirements, states are defined as the 50 states, the District of Federal regulations require a local jurisdiction to apply state and local procurement laws for federally funded procurements, provided that the procurements also conform to federal law and regulations. Identify and understand the intended uses of the funds in the grant award agreement. With the upcoming Project and Expenditure Report deadline fast approaching on April 30, join NACo and Government Finance Officers Association for an overview of what you need to know when it comes to reporting for the American Rescue Plan Act (ARPA) Coronavirus State and Local Fiscal Recovery Fund. Ensure that the vendor has provided identifying information on the invoice, including: Vendor name, address, phone number and email, Description, quantity, unit of measure and unit price of supplies delivered or services performed, Location of services performed, if applicable. Implement internal controls to prevent fraud, waste and abuse. To promote accountability, ARPA includes requirements for the administration, monitoring and reporting of funds. This information is invaluable to managers. By applying Chapter 30B to the procurement of services that are otherwise exempt, you help ensure that your jurisdiction obtains services from responsible and responsive vendors at the best price or best value for your residents, even when your jurisdiction is not paying the vendor directly. Under the American Rescue Plan Act (ARPA), passed by the federal government in March 2021, Massachusetts state, county, tribal and local entities are receiving federal aid to respond to the public health and economic impacts of the public health emergency created by the COVID-19 pandemic. In this case, the subaward to a nonprofit is based on the services that the recipient intends to provide (assistance to households experiencing homelessness), and the nonprofit is serving as the subrecipient, providing services on behalf of the recipient. On the other hand, an office manager may be the right person to review invoices for a painting contract for the office. We will update the policy if/when we receive more guidance from US Treasury. WebPrerequisite: None Class Level: Basic Instructional Method: Online - MCPPO Online Class Technical Specifications Advanced Prep: None Class dates and times: April 18, 2023, Therefore, when your jurisdiction uses federal funds to pay for supplies or services, you need to check your federal funding documents and any other federal guidance applicable to the type of funding you received to determine which procurement laws to follow. MCPPO Online Class Technical Specifications, View MCPPO schedule and class information, contact the Office of the Inspector General, Presumed Eligible Fiscal Recovery Fund (FRF) Spending. Taking incremental steps and continually finding areas for improvement will create a robust data program and help you make informed, data-driven decisions. Program Income. As part of those procedures, a local government should identify the core team who will perform the review processes and implement necessary controls. If a local government received less than $10 million in CSLFRF funds, it may take the c. 30B, 1(f). State Government websites value user privacy. clarified that funds made available under the American Rescue Plan Act (ARP) Coronavirus State and Local Fiscal Recovery Funds (CSLFRF) are subject to federal procurement requirements outlined in the Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance), found at Title 2 of the Code of Federal Regulations, Part 200 (2 CFR 200). Recipients should consult the final rule for further details if they seek to utilize SLFRF funds as a match for these projects. Simply having a contract, however, does not ensure that a vendor will always bill at the agreed-upon rates, deliver the correct quantity or quality of materials, or perform the necessary activities required in the contract or by law. In order to maintain the vendors trust and cooperation, the team should only ask for information necessary to achieve the goal of the audit and documents that have a true business justification. If this fails, contact your local jurisdictions legal counsel because the vendor may have breached the contract. Please limit your input to 500 characters. [3] Treasury reminds that recipients and subrecipients of this funding are required to have documented processes and procedures governing procurement and contracting under this award.[4]. For instance, recipients should note that SLFRF funds may not be used as the non-federal share for purposes of a states Medicaid and CHIP programs because the OMB has approved a waiver from this provision as requested by the Centers for Medicare & Medicaid Services pursuant to 2 CFR 200.102 of the Uniform Guidance and related regulations. Noncompetitive procurement is only allowed if certain criteria are met. As you may know, under Section 1(b)(21) of Chapter 30B contracts for the towing and storage of motor vehicles are exempt from the Uniform Procurement Act. When evaluating vendor invoices, jurisdictions may determine that some expenses require further review. Has the vendor demonstrated capacity and financial responsibility to provide the goods or services being sought? Ensure compliance with policies, procedures, rules, regulations and legal requirements. For example, you can analyze vendor performance using vendor quotations, proposal evaluations and past invoices. Webprocurement, with 2 CFR 200.319(b) addressing engineering services procurement guidelines. 128, 40064-40068. All other non-Federal entities, including subrecipients of a State, must follow the procurement standards in 200.318 through 200.327. WebARPA Policy and Procedures Manual. There is a visible correlation between the number of change orders and the contract length, which makes intuitive sense: generally, longer contracts have more change orders. After the official bid opening requiring a review of the bid submittals and verification of the bid results by a party not involved in the bid process. If you seek federal reimbursement for your supplies or services procurement meaning that you make the purchase first then you generally must abide by the requirements of Chapter 30B. Before engaging with any vendor, do your research and review your contract closely. As a result, your jurisdiction should consider using a competitive procurement process to ensure that there is open and fair competition with responsible vendors for these kinds of service contracts. You can access that post here. Confirm that the vendor billed at the rates stated in the contract or purchase order. This Job Opportunity Announcement may be used to fill other Management & Program Analyst (Talent Management Specialist) GS-0343-11/12 FPL: 12 positions within the Economic Finally, Kara hosted SOG Office Hours on Jan. 13, 2022, and the primary topic was the Final Rule and the change in lost revenue calculations. All rights reserved. This outlier may warrant further investigation. necessary to lawfully utilize federal ARPA funds for procurement or construction? Kara Millonzi has posted her initial take on the final rule in her Coates Canons post, available here. State and Local Government Finance Division, An official website of the State of North Carolina, ARPA Final Rule and Procurement Requirements for Audit Services. The right person to review an invoice depends on the type of contract, including its size and complexity. Recipients should note that NEUs and Non-UGLGs are not subrecipients under the SLFRF program. Publishing and documenting clear standards in procurement solicitations and evaluation criteria on how a municipality will determine a responsive and responsible. Municipalities should ensure that factors that may be overly restrictive to free and open competition are not included, such as placing unreasonable requirements on vendors to qualify or establishing any steps in the procurement process that are arbitrary or irrelevant to the award of contracts necessary and reasonable for the implementation of the use of funds under this award. The UG requirements are in addition to those imposed by the Final Rule related to project eligibility. The following is a sample policy to address any program income: Note that there are some grey areas related to how to identify program income, particularly fees for services assessed for water, sewer, or broadband assets constructed or improved with ARP/CSLFRF monies. Historical data regarding the use of a supply or service can help procurement teams project future procurement needs and build a more effective and accurate budget. These are common red flags for potential fraud and abuse. To ensure that jurisdictions get the supplies and services they need and to combat fraud, waste and abuse, it is essential that jurisdictions carefully review all vendor payment requests. Other important aspects to consider are the audit period, access to records and personnel, format of records, time needed, failure-to-produce penalties and notification requirements (planned versus surprise reviews). This day course provides an overview of the legal requirements in managing the ARP/CSLFRF award. Recipients that receive an aggregate amount of federal financial assistance in a given fiscal year that exceeds the Single Audit threshold are subject to the requirements in 2 CFR 200 Subpart F, Audit Requirements, unless However, there is one contract, indicated by the red circle, which hasa large number ofchange orders when compared to the length of the contract. procurement policies pursuant to 2 CFR 200.317 as well as comply with the procurement standards set forth at 2 CFR 200.321 through 2 CFR 200.323, and 2 CFR 200.327. Including right-to-audit clauses in vendor contracts and then performing effective audits can help reduce these risks. Review for compliance with federal procurement law requirements. Within the Office, we have learned through experience that a wide range of staff with varied backgrounds can use data effectively. Generally, Chapter 30B applies even when a local jurisdiction uses federal funds to pay for supplies or services. For example, a roadway repair and maintenance contract should not include unrelated supplies or services, such as classroom IT equipment or roadway paving in a location not specified in the contract. Next, your organization will need to evaluate each subrecipients risk of noncompliance based on a set of common factors. Most audits involve overcoming at least some animosity by parties who are resistant to having their work reviewed. Each of the considerations above, as well as operation and maintenance Process, financial, and regulatory compliance audits might evolve into a fraud audit based upon the audit findings. For example, verify the following: The items on the invoice are allowed by contract specifications and the defined scope of work. 3) Consider publishing all sole source requests for public notice. The funds can be used to purchase equipment that improves or enhances the delivery of daily Ensuring that submitted bids are sealed and secured physically or digitally until the bid opening. Adhering to local procurement and contracting policies, standards, or procedures, including applicable local or state laws. A right-to-audit clause allows a jurisdiction to request documents and engage in an active review process. 1681 et seq., and the Departments implementing regulations, 31 CFR part 28; Age Discrimination Act of 1975, Public Law 94-135, 42 U.S.C. hb```nB eaXT00.I T~hHZIs).oIuhJOJ-= Come with your questions and share your experiences and insights with colleagues across the State. Now is the time for school districts and municipalities across the Commonwealth to develop bid documents that are tailored to address the additional compliance requirements Local governments should review the requirements, compare them to their current policies and procedures, and consult with legal counsel to evaluate. In addition, we recommend that all ARPA awardees review 2 CFR Part 200 Subpart D, as this section describes the requirements most applicable to local governments. However, Chapter 30B does not apply to federally funded procurements if following Chapter 30B would conflict with federal laws or regulations. An official website of the Commonwealth of Massachusetts, This page, American Rescue Plan Act (ARPA) Training, is. 601 0 obj <>stream 3. Review for overall risk mitigation, including insurance, indemnification, limitation and/or waiver of In addition to Karas post, there is another new post on Procuring Single Audit services for ARPA funds. Fraud, waste and abuse can occur even when comprehensive contracts are in place. The contract did not entitle the vendor to charge an administrative fee and the housing authority rightly refused to pay it. Accordingly, your organization should develop written policies and procedures for subrecipient monitoring and risk assessment and maintain records of all award agreements identifying or otherwise documenting subrecipients compliance obligations. We then use this data to improve the Massachusetts Certified Public Purchasing Official Program. WebStates are required to follow their own procurement procedures as well as the Federal requirements for procurement of recovered materials and inclusion of required contract provisions per 2 C.F.R. See M.G.L. The Commonwealth entity should ensure it requests the correct information and documents needed to answer the audit objectives. Thank you for your website feedback! This may include justification of exigent or emergency circumstances, imminent threat to public health and safety, or substantive demonstration that no alternatives were feasible. Recipients should refer to the Assistance Listing for details on the specific provisions of the Uniform Guidance that do not apply to this program. Request vendor timekeeping records if needed. Vendors may charge fees and raise prices over the course of a contract, only if the contract allows for the same. Is the contract active and does it include the goods or services being sought? These practices will also ensure that ARPA funding is used for its intended purpose: helping communities recover from the devastating health and economic impacts of the COVID-19 pandemic. 5. WebYes; there is no requirement to prove a loss in revenue. The prevention and detection of fraud, waste and abuse of public funds always an important issue for government entities is even more critical now that jurisdictions are receiving billions of additional dollars in ARPA funding. Some online survey tools even analyze data for you. WebThe State will comply with 200.321, 200.322, and 200.323 and ensure that every purchase order or other contract includes any clauses required by 200.327. In addition, the vendor did not notify the housing authority before adding the fee to the invoice. Copyright 2009 to Present School of Government at the University of North Carolina. 6. Weve never been audited, so there are no benchmarks to assess our performance., Our regular business hours are third shift., We cannot remove documents from our office., Cross-charging multiple clients or departments for their staffs work, Improper employee classification e.g., junior staff hours billed at a supervisors hourly rate, Overlapping time vendor creates two or more timesheets for the employee for the same day, Schedule manipulation vendor routinely postpones or schedules jobs with higher overtime rates toward the end of the week, Over-purchasing materials for personal use, Product substitution - substituting lower-quality products for those agreed upon in the contract, Failure to apply discounts, refunds and rebates, Billing materials to one project but using for another project, Intentionally applying rates from one contract to another, Billing time and equipment rates in lump-sum, unit or fixed-price contracts. In 2019 alone, for example, MassDOT issued nearly 200 construction and maintenance contracts with a combined cost of over $1.2 billion. [2] Per 2 CFR 200.318(a), non-Federal entities, such as municipalities, must have and use documented procurement procedures, consistent with State, local, and tribal laws and regulations and the standards of this section, for the acquisition of property or services required under a Federal award or subaward. WebARPA established the Coronavirus State and Local Fiscal Recovery Fund (CSLFRF), which is a a program that provides funding over a two-year period to all states, counties, and See, e.g., 2 C.F.R. WebThe City of Detroit Office of Contracting and Procurement (OCP) requests proposals from qualified Respondents to provide procurement supportive services including reviewing &creating scopes of work, creating bid solicitations, contract development, contract negotiations and preparation of critical See more Buyers Requirements endstream endobj 166 0 obj <> endobj 167 0 obj <> endobj 168 0 obj <>stream two (2) subrecipients to carry these programs. The audit scope and appropriate approach depend on the type of audit performed. Then you can compile this information into a data-friendly format, like a spreadsheet. 9-10). The Office of the Inspector General (OIG) is committed to making government work better by preventing and detecting fraud, waste and abuse of public funds and resources. BenfordsLaw should not be applied to data sets that have stated minimum and maximum values or are assigned numbers, such as interest rates, telephone numbers or social security numbers. To comply with this requirement, a local government must adopt and implement an Eligible Use Policy. To promote appropriate and effective use of ARPA funds, jurisdictions should: Jurisdictionsshould also develop evidence-based methods of measuring performance and project goals to make sure that grantees meet those expectations. Yes. MOUs and MOAs should still include the required contract provisions,[24] monitoring and oversight requirements,[25] and cost principles[26] as identified by federal or local requirements, though they likely will not follow the same procurement process. Please do not include personal or contact information. 200.317-318. We also will be holding at least two courses this spring: April 4, 2022: Basics of ARP/CSLFRF and UG for Local Government Attorneys and Grant Managers. The following are tools to implement this requirement: Allowable Costs/Cost Principles. Further, a prequalification or screening process for vendors interested in providing certain services, such as towing and storage, helps ensure that the public is receiving services from a qualified vendor at a reasonable price. WebWhen it comes to using ARPA funds, there are layers of rules towns have to follow (the U.S. Treasury says so right here on page 8): - Local procurement rules - New York State Utilizing the appropriate procurement method based on the size of the proposed scope of services to ensure adequate competition. This second article of the series discusses how to collect data and provides examples of how procurement officials can use the data. Per 2 CFR Part 200.303, your organization must develop and implement effective internal controls to ensure that funding decisions under the SLFRF award constitute eligible uses of funds, and document determinations. A .mass.gov website belongs to an official government organization in Massachusetts. (Please note the email notification for new blog posts from the SOG is not functioning correctly at this time.). Registration closes twoweeks before the class start date. Require regular and thorough reporting from grantees relating to expenditures. Maintain open and direct communication with grantees. The particular industry, the types of goods or services involved, the size and complexity of the contract, and the applicable regulatory requirements are just a few factors that can increase an organizations risk of fraud, waste and abuse. To avoid such pitfalls, your jurisdiction should approve and implement a policy outlining how to procure towing and storage services, even though it is exempt from Chapter 30B. ApplyingBenfordsLaw is another way to find outliers in your data that should be flagged for further review. They are still federal grant funds, subject to all the award terms (be sure to read this document thoroughly) and most of the provisions of the federal Uniform Guidance (UG), which is the set of regulations that apply to the administration of federal awards. 200.317, 200.322, and 200.326. Municipalities may explore utilizing existing MOUs or MOAs, or establishing new MOUs or MOAs, with non-profits and public entities to provide additional services utilizing existing MOUs or MOAs, or establishing new MOUs or MOAs, with non-profits or public entities to provide additional services utilizing ARP funding. Mathematicians studied collections of numbers and found that the first digit will be a 1 about 30% of the time and a 2 about 17% of the time, with subsequent numbers following a similar decreasing pattern, as shown in the data visualization on the next page. Please see 2 CFR Part 200, Subpart E regarding the Cost Principles for more information. The economic relief package of $1.9 trillion became law on March 11, 2021. Financial compliance audits examine whether the vendor is billing appropriately. Therefore, support from potential stakeholders senior management, the Board of Directors, department decision-makers is important for a successful audit engagement. ARPA rules may impose additional reporting requirements for grants made to third-party employers, including public disclosure of grants provided. Please do not include personal or contact information. The following are a sample subaward policy, risk assessment, subaward agreement template, and subrecipient monitoring tool (they are all in a single Word file): Although there is a lot of federal red tape to navigate regardless of how a local government expends its ARP/CSLFRF funds, there are some opportunities to reduce a local units compliance burden. October 2015 Procurement Bulletin Article. ) or https:// means youve safely connected to the official website. Are there existing sources for that data? You can find the full rule (all 437 pages of it) here and a brief overview (only 44 pages) here. A lock icon or https:// means youve safely connected to the official website. The short answer is: it depends. contact the Office of the Inspector General. This scope is different than what is included in the current contract and may be considered noncompetitive. When initiating an audit it is important to inform the vendor exactly which personnel and/or processes you will be auditing. You skipped the table of contents section. Suggestions are presented as an open option list only when they are available. ARPA REQUIREMENTS TO BE INCLUDED IN Likewise, auditors and investigators should be prepared for individuals who become angry or aggressive in response to routine questions, or key vendor personnel who disappear during a critical part of the audit. Exceptions to requirements for small purchase or formal method competitive rules.
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