For example, a municipality may have an existing contract for providing workforce development services that they wish to use starting July 1, 2021, but the contract expired in March 2021. Your organization must agree to provide or make available such records to Treasury upon request, and to the Government Accountability Office (GAO), Treasurys Office of Inspector General (OIG), and their authorized representative in order to conduct audits or other investigations. ARPA REQUIREMENTS TO BE INCLUDED IN WebPrerequisite: None Class Level: Basic Instructional Method: Online - MCPPO Online Class Technical Specifications Advanced Prep: None Class dates and times: April 18, 2023, An official website of the Commonwealth of Massachusetts, This page, American Rescue Plan Act (ARPA) Training, is. 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. Two significant areas that did not change are the applicability of Uniform Grant Guidance to ARPA funds and the federal audit requirements over these funds. While data includes these things, data also includes things such as time sheets, bank statements, survey responses and water meter readings. Right-to-audit clauses should be specific, yet not overly restrictive, to allow the procuring entity the ability to interview key vendor personnel and review applicable documentation and records. 3) Consider publishing all sole source requests for public notice. Ensuring that the contract structure is appropriate for the goods and/or services rendered, that prices are fair based on an independent cost or price analysis, and that a cost-plus-percentage-of-cost method is not used for federally-funded contracts. It also will identify grey areas that may require further legal scrutiny before finalizing expenditure decisions. Treasury may request transfer of records of long-term value at the end of such period. To ensure that the cost items within an eligible project are proper, a local government must adopt and implement an Allowable Costs and Cost Principles Policy. Once the data has been transformed into auser-friendlyformat, it can be used in a variety of ways to assist with future procurements and other business decisions. The question, therefore, is whether the project is for a public building or public work, not who is performing the work. Now that you understand some specific techniques for visualizing and analyzing data, we encourage you to apply these techniques to procurements or other business decisions facing your jurisdiction. bWlLLiBg`x m Thank you for your website feedback! 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. 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. Becoming overly friendly threatens the auditors independence in performing their review. When evaluating vendor invoices, jurisdictions may determine that some expenses require further review. Still, working with data at all levels of government can be challenging. We also plan to give an overview of some of these techniques in the next article on data in an upcoming edition of the OIG Bulletin. 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. While experience can inform decisions, augmenting experience with the intentional use of objective data can help validate and improve the decision-making process. Government entities that have received ARPA funding may be able to award grants to third parties. The following are sample policies and other implementation tools for many of these award terms and UG requirements. The team should consider gaining direct access to the vendors systems to facilitate its review. October 2017 Procurement Bulletin Article, Recently, our Office learned that a vendor included administrative fees in invoices issued to a housing authority under a revenue-generating contract. Maintaining clear policies governing conflicts of interest for Recipients should note that SLFRF funds available under the revenue loss eligible use category generally may be used to meet the non-federal cost-share or matching requirements of other federal programs. Some page levels are currently hidden. A .mass.gov website belongs to an official government organization in Massachusetts. As a result, that staff member should be able to determine if the invoice accurately reflects the contractors work. If you do not follow Chapter 30B because of federal requirements, make sure you document this in writing in your procurement file. To start, here is a summary list of UG policies and their triggers. In that case, the vendor offered to provide the jurisdiction with the towing and storage services at no cost. Impaired independence can hinder an auditors professional judgment or create the appearance that his professional judgment has been compromised. Also, remember the following: 1. Massachusetts Executive Order 195 outlines audit and oversight requirements related to vendor contracts. The regulations related to allowable costs and cost principles are complex. For example, someone from the public works department who supervises roadway paving should know whether the contractor completed the work and used the correct materials. 3. The following sample policy may be appended to your local governments regular records retention policy. Recipients of SLFRF funds should calculate, document, and record the organizations program income. The U.S. Department of the Treasury (Treasury) 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). Exceptions to requirements for small purchase or formal method competitive rules. Adhering to local procurement and contracting policies, standards, or procedures, including applicable local or state laws. Confirm that an invoice for labor accurately reflects the time that the vendor or its employees worked. With the addition of the standard allowance, authorizing many NC local governments to expend their entire ARP/CSLFRF allocation for almost any purpose authorized by state law, counties and municipalities across the state have an even greater opportunity to make the best strategic investments for their communities with these one-time funds. Data visualization and analysis can be particularly useful in identifying and preventing potential fraud, waste and abuse of public resources. Are you missing any data that would help you monitor utilization? 117- 2 (March 11, 2021). Below are a few examples of the range of schemes that vendors may engage in. Therefore, support from potential stakeholders senior management, the Board of Directors, department decision-makers is important for a successful audit engagement. Mass.gov is a registered service mark of the Commonwealth of Massachusetts. T:919.600.7874. 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. Please include this language separately in the bid solicitation. 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 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 c. 30B, (1)(b)(9). 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. However, jurisdictions can take actions to ensure that grantees use ARPA funds in accordance with grant agreements. Suggestions are presented as an open option list only when they are available. 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. Are there special requirements for capital Navigating all these requirements may be overwhelming, particularly for local governments with limited staff capacity. These are common red flags for potential fraud and abuse. One key oversight tool is the vendor audit. There is no sure-fire method to uncover vendor fraud; therefore, it is the audit teams responsibility to remain alert and practice professional skepticism throughout the engagement. ) or https:// means youve safely connected to the official website. Costs must follow the requirements in 2 CFR 200 Subpart E, Cost Principles, including procurement standards. Fraud audits encompass some or all of the elements of the above compliance audits, with a primary focus on the financial aspects and implications. [26] 2 CFR 200.324-325, 2 CFR 200 Subpart E. The U.S. Department of the Treasury (Treasury). A lock icon ( If you need assistance, please contact the Office of the Inspector General. This policy sets up procedures for making project requests, approving those requests, and documenting that approval and any required justifications and other records. First, your organization must clearly identify to the subrecipient: (1) that the award is a subaward of SLFRF funds; (2) any and all compliance requirements for use of SLFRF funds; and (3) any and all reporting requirements for expenditures of SLFRF funds. WebProcurement Recipients are responsible for ensuring that any procurement using SLFRF funds, or payments under procurement contracts using such funds, are consistent with the procurement standards set forth in the Uniform Guidance at . Quality of contracts and documents: identify vendors with poorly written contracts or payment documents. Yes. The record retention requirements for ARP/CSLFRF-related records are more stringent than those imposed under State law. ApplyingBenfordsLaw is another way to find outliers in your data that should be flagged for further review. MOUs and MOAs should still include the required contract provisions, https://home.treasury.gov/system/files/136/SLFRF-Compliance-and-Reporting-Guidance.pdf, https://www.govregs.com/regulations/title2_chapterII_part200. This blog post is for educational and informational use and may be used for those purposes without permission by providing acknowledgment of its source. Broadly speaking, data is any fact about an object or concept. Each recipient should review program requirements, including Treasurys final rule and the recipients Award Terms and Conditions, to determine and record eligible uses of SLFRF funds. This may include justification of exigent or emergency circumstances, imminent threat to public health and safety, or substantive demonstration that no alternatives were feasible. It is a red flag that the business may not be legitimate or well established. Review the contract and be familiar with its terms. Without thinking much about it, you gathered data and made a decision based on that data. Because ARP/CSLFRF in the revenue replacement category may be spent on any government service authorized under state law (assuming allowable cost items), a local government may use ARP/CSLFRF to supplant employees salaries and benefits during the award term, thus freeing up general fund or enterprise fund monies to be spent on more complex capital projects or programs. 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. endstream endobj startxref For this program, the city of Scranton has elected to award . Further, the individuals who review and approve invoices must know the contract terms, conditions and specifications. 165 0 obj <> endobj 9-10). 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. [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]. The feedback will only be used for improving the website. For example, the OIG asks participants in our classes to complete surveys at the end of each class. These awards are as follows: Bid manipulation undermines fair competition, can cost your jurisdiction money and, in many instances, is illegal. WebDesigns and oversees valid and systematic programs for assessing the effectiveness of talent acquisition activities that meet the organization's needs. Determine if billings are accurate and in compliance with contract terms. Each of the considerations above, as well as operation and maintenance Administrative costs: Recipients may use funds for administering the SLFRF program, including costs of consultants to support effective management and oversight, including consultation for ensuring compliance with legal, regulatory, and other requirements. Justifying and documenting the selection of vendors, including: (1) that a vendor is responsive to the requirements outlined in the procurement, (2) responsible, (3) not debarred from doing business with the federal government, and (4) offering a reasonable, competitive cost, based on cost or price analysis completed by the municipality. WebGeneral Requirements for Procurement Programs . As part of its contract administration process, the housing authority discovered the improper charges when it reviewed its invoices closely. Our confidential hotline is for public employees and individuals with Chapter 30B procurement questions. A helpful starting point is to pull data from current and historical sources and compile it into a more data-friendly format, such as an Excel spreadsheet file. Webprocurement, with 2 CFR 200.319(b) addressing engineering services procurement guidelines. Require regular and thorough reporting from grantees relating to expenditures. 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. Within the Office, we have learned through experience that a wide range of staff with varied backgrounds can use data effectively. Treasury may request that recipients submit data for post-award compliance reviews, including information such as a narrative describing their Title VI compliance status. A different person should have the authority to approve payment, and that person must also know the terms of the contract to effectively review invoices. Once you have access, you can use the data to inform your decisions and manage risks. infrastructure, potential enhancements of state funding resources, We welcome non-English speakers to contact us. Your local jurisdiction creates a demand for towing services because local officials have the authority to have vehicles towed when there are parking violations on public property or drivers need emergency roadside assistance. Has the vendor demonstrated capacity and financial responsibility to provide the goods or services being sought? If a local government received less than $10 million in CSLFRF funds, it may take the c. 30B, 1(d). 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. The audit team must explore and understand the vendors policies and procedures to adequately perform their assessment. For instance, data analysis can reveal patterns in payroll expenditures or purchasing, track whether employees are following policies and procedures, or measure staff or vendor performance. ARPA REQUIREMENTS TO BE INCLUDED IN Insufficient reportingrequirements or processes, or lack of attention to grant administration, can lead to a wide range of negative results, including project mismanagement, inappropriate use of funds and failure to comply with legal requirements. Payment reviews are a key part of contract administration, and insufficient reviews leave your jurisdiction vulnerable to improper or questionable payments to vendors. Share sensitive information only on official, secure websites. 200.317, 200.322, and 200.326. Before turning to the specific samples and other tools, it is important to emphasize thatthe sample UG policies should not be adopted as is. People often make business decisions based on intuition, anecdotes or institutional lore. If a recipient has a current Negotiated Indirect Costs Rate Agreement (NICRA) established with a Federal cognizant agency responsible for reviewing, negotiating, and approving cost allocation plans or indirect cost proposals, then the recipient may use its current NICRA. 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. Suspicious invoices: even or round invoice amounts, as well as non-sequential invoices, are red flags. 6. Financial compliance audits examine whether the vendor is billing appropriately. 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 Recipients should note that NEUs and Non-UGLGs are not subrecipients under the SLFRF program. As outlined in the Uniform Guidance at 2 CFR Part 200, Subpart E regarding Cost Principles, allowable costs are based on the premise that a recipient is responsible for the effective administration of Federal awards, application of sound management practices, and administration of Federal funds in a manner consistent with the program objectives and terms and conditions of the award. Describing their Title VI compliance status improper or questionable payments to vendors 195 outlines audit and oversight requirements to! 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