Request vendor timekeeping records if needed. This includes setting specific requirements and expectations, providing an audit timeline, including when and where you will visit, who you will interview, and which documents you will need. [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. 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. ) or https:// means youve safely connected to the official website. Treasury may request transfer of records of long-term value at the end of such period. For more information about adopting a procurement policy for your jurisdiction, please see page 3 of the Bulletin. 195 0 obj <>stream Such individuals and organizations are beneficiaries and not subject to audit pursuant to the Single Audit Act and 2 C.F.R. We have also learned that state agencies and municipalities can start from scratch and build the capacity to rely on data as a problem-solving tool. Remember to consider whether your data gives you enough information to help you make decisions. 2000d-1 et seq., and the Departments implementing regulations, 31 CFR part 22; Section 504 of the Rehabilitation Act of 1973 (Section 504), Public Law 93-112, as amended by Public Law 93-516, 29 U.S.C. ARPA REQUIREMENTS TO BE INCLUDED IN Salaries and Expenses: In general, certain employees wages, salaries, and covered benefits are an eligible use of SLFRF award funds. 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. This blog post is for educational and informational use and may be used for those purposes without permission by providing acknowledgment of its source. Recipients must adhere to the following contract administration requirements: Require the recipients prime contractor to pay its subcontractor for satisfactory performance no more than 30 days from the prime contractors receipt of payment from the recipient. These risk assessments may include factors such as prior experience in managing Federal funds, previous audits, personnel, and policies or procedures for award execution and oversight. Recently, our Chapter 30B hotline has received a number of calls asking whether Chapter 30B applies when a local jurisdiction pays for supplies or services with federal funds. Are you missing any data that would help you monitor utilization? One key oversight tool is the vendor audit. WebThey are awarded in accordance with the following requirements: ( i) Requests for proposals must be publicized and identify all evaluation factors and their relative importance. The American Rescue Plan Act (ARPA), enacted in March 2021, provides state, county, local and tribal entities across the country with billions in federal aid to respond to the public health and economic effects of the COVID-19 pandemic. ARPA-funded projects must also adhere to North Carolina 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). Then make sure that you have access to that data. Historical and external data sources might not provide the complete picture for your analysis. 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. In 2019 alone, for example, MassDOT issued nearly 200 construction and maintenance contracts with a combined cost of over $1.2 billion. If a vendor is not registered beware. All documentation must be maintained for at least 5 years from the end of the award term. Webthe provision of police, fire, and other public safety services (e.g., purchasing a fire truck or police vehicles, purchasing other equipment, covering salaries of public safety personnel). Many of our past reports highlight fraudulent or inaccurate vendor billing. Sole-source contractors: is the vendor really the only company who can provide a particular good or service? You must ensure that the vendors you are doing business with are legitimate and responsible. As an example, we appliedBenfordsLaw to a dataset that contains the price of all items purchased by a city between 2009-2020. With more complete information, local government officials are now looking to finalize (at least some) expenditure decisions. WebSourcing & Procurement. ARPA rules may impose additional reporting requirements for grants made to third-party employers, including public disclosure of grants provided. We hope that this article has encouraged you to use data analysis more in your work. To comply with this requirement, a local government must adopt and implement an Eligible Use Policy. An official website of the Commonwealth of Massachusetts, This page, OIG Bulletin Articles Related to the Use of ARPA Funds, is, OIG Bulletin Articles Related to the Use of ARPA Funds. 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. Data is everywhere, and every function a government performs can generate valuable data. When the jurisdiction tried to reduce the quantity of future deliveries, the vendor threatened to charge the jurisdiction a higher non-bulk rate. WebGeneral Requirements for Procurement Programs . To browse a complete catalog of School of Government publications, please visit the Schools website at www.sog.unc.edu or contact the Bookstore, School of Government, CB# 3330 Knapp-Sanders Building, UNC Chapel Hill, Chapel Hill, NC 27599-3330; e-mail sales@sog.unc.edu; telephone 919.966.4119; or fax 919.962.2707. Next, your organization will need to evaluate each subrecipients risk of noncompliance based on a set of common factors. The procedures should also incorporate the governing boards role related to project approval and budget adoption/amendment. 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. We welcome non-English speakers to contact us. 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. endstream endobj startxref Before turning to the specific samples and other tools, it is important to emphasize thatthe sample UG policies should not be adopted as is. They are SLFRF recipients that will report directly to Treasury. When initiating an audit it is important to inform the vendor exactly which personnel and/or processes you will be auditing. Ensure compliance with policies, procedures, rules, regulations and legal requirements. This second article of the series discusses how to collect data and provides examples of how procurement officials can use the data. Registration closes twoweeks before the class start date. When grouping the pricingdataby individualvendor,asshownin the chartsbelow,andrunning the same analysis, youcansee that Vendor 1 and Vendor3follow the expecteddistribution pattern. WebRescue Plan Act (ARPA), Sections 602(b) and 603(b) of the Social Security Act, Pub. For example, when reviewing payroll records, you notice that one employee reports working more hours than personnel have access to the building. If you would like to continue helping us improve Mass.gov, join our user panel to test new features for the site. Thank you for your website feedback! 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. The audit team should also obtain buy-in and support from the vendors management before initiating the audit. People have varying levels of comfort and expertise in using data, and these articles are designed to assist beginners and experts alike. All other recipients must follow 2 CFR 200.318, General procurement standards, through 200.327, Contract provisions. If you identify a fee or charge that is not accounted for in a contract between your jurisdiction and a vendor, contact the vendor for an explanation; or request a corrected invoice and a return of any improperly paid fees. 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. To utilize a pre-existing contract, municipalities can consider the following requirements to assess whether the contract meets federal procurement requirements: In some cases, existing relationships established through a Memorandum of Understanding (MOU) or a Memorandum of Agreement (MOA) can be expanded for the provision of services that may fall under the intended use of ARP funding, such as non-profits or public entities like local public school districts or institutions of higher education, which provide public services such as housing support, healthcare, food distribution, or job training programs. Procurement data can also help detect fraud, such as bid splitting and potential bid rigging. procurement, with 2 CFR 200.319(b) addressing engineering services procurement guidelines. A local government should craft its policies and procedures so that they can be reasonably implemented by its staff. 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. Financial compliance audits examine whether the vendor is billing appropriately. To start, here is a summary list of UG policies and their triggers. Review the contract and be familiar with its terms. Recipients should refer to the Assistance Listing for details on the specific provisions of the Uniform Guidance that do not apply to this program. Thus, the jurisdiction created a ready market for a single vendor without ensuring that drivers were receiving a fair price for the towing and storage services. [1] Department of Treasury, Coronavirus State and Local Fiscal Recovery Funds: Guidance on Recipient Compliance and Reporting Responsibilities, at 8, available at: https://home.treasury.gov/system/files/136/SLFRF-Compliance-and-Reporting-Guidance.pdf. Jurisdictions must remain vigilant in reviewing vendor documents to ensure that they get what they need and that public funds are properly expended. %PDF-1.6 % Maintain open and direct communication with grantees. WebDepending on the site host organizations procurement requirements, a formal solicitation process may be needed to purchase and install charging infrastructure. Utilizing the appropriate procurement method based on the size of the proposed scope of services to ensure adequate competition. Additional changes to compliance and reporting guidelines, including any clarifications on Uniform Guidance requirements, will be addressed in Compliance and Reporting Guidance and the User Guide. The team needs the vendors support in order to get access to records and personnel, as well as to take action on findings. 2 CFR 200.317 - 2 CFR 200.327. For example, you can analyze vendor performance using vendor quotations, proposal evaluations and past invoices. US Treasury issued theFinal Ruleof the Coronavirus State and Local Fiscal Recovery Fund program of the American Rescue Plan Act of 2021 (ARP/CSLFRF) in January 2022. 601 0 obj <>stream 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. This data should alert you to the possibility that the employee may be committing fraud and that you should investigate the matter further. In your role as a procurement official, you may already track bids and price quotations in Excel. Some of the data within your organization may already be in an analyzable format. Counties with allocations under $10 million may spend their entire allocation on government services, but they may 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. WebThe Buy American requirements apply to all Recovery Act funds used for a project for the construction, alteration, maintenance, or repair of a public building or public work. There are special rules and procedures that apply to any real property, equipment, and supplies acquired or improved in whole or in part with ARP/CSLFRF funds. To learn more, view our full privacy policy. Noncompetitive procurement is only allowed if certain criteria are met. 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. Some page levels are currently hidden. 9-10). However, jurisdictions can take actions to ensure that grantees use ARPA funds in accordance with grant agreements. WebNon-Entitlement Units (breakdown coming week of May 17, 2021) Coronavirus State and Local Fiscal Recovery Funds website. 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. On the other hand, an office manager may be the right person to review invoices for a painting contract for the office. We use small samples of data, as well as big data, to help with everything from researching whistleblower claims to investigating individual cases of potential fraud to analyzing statewide systemic issues. 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. Please remove any contact information or personal data from your feedback. There are several techniques you could use to identify vendors to audit. The smallest incongruity could lead to the discovery of a large fraud. Identifying the key vendor personnel is also an important part of the audit. Our confidential hotline is for public employees and individuals with Chapter 30B procurement questions. *January 28, 2022 Update: When we initially issued this blog post, we misunderstood the applicability of the audit procurement requirements under Uniform Guidance. hbbd```b``+d9dUH&)0yD`5~.X&Xd-X6^fH-@@~ 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. endstream endobj 166 0 obj <> endobj 167 0 obj <> endobj 168 0 obj <>stream 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. The results of the survey can be transferred to a spreadsheet. And always be vigilant in reviewing invoices for appropriate charges as a standard part of your contract administration process. A cost is consistently applied when it is applied uniformly to both federally-funded and other activities of the local government. Through a vehicle towing and storage contract with a local jurisdiction, a vendor stands to generate substantial revenue by regularly towing and storing vehicles. Jurisdictions should build on these federal requirements to ensure that grant recipients spend grant money appropriately by implementing their own comprehensive monitoring and reporting policies. c. 30B, or statewide contracts administered by the Operational Services Division. The non-Federal entitys documented procurement procedures must conform to the procurement standards identified in 2 CFR 200.317 through 200.327. Massachusetts Executive Order 195 outlines audit and oversight requirements related to vendor contracts. For example, a municipality may have an engineering and construction firm contracted to build a new community center and wants to use the same firm to perform citywide water and sewer infrastructure projects as permitted by the CLFRF. The following are sample policies and other implementation tools for many of these award terms and UG requirements. Can the municipality clearly document and justify the reasoning to utilize an existing vendor relationship in lieu of following normal procurement and contracting processes? [26] 2 CFR 200.324-325, 2 CFR 200 Subpart E. The U.S. Department of the Treasury (Treasury). The procurement code mandates city responses be mailed to the protestor and all other applicants so as to inform them of the ability to appeal the decision related to the protest. Treasury may request that recipients submit data for post-award compliance reviews, including information such as a narrative describing their Title VI compliance status. This policy sets up procedures for making project requests, approving those requests, and documenting that approval and any required justifications and other records. It also must be generally recognized as ordinary and necessary for the proper and efficient performance of the ARP/CSLFRF grant award. 559 0 obj <> endobj Some page levels are currently hidden. But taking the standard allowance and spending all the funds in the revenue replacement category does not convert these monies into general funds. 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. We welcome non-English speakers to contact us. 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Fiscal Recovery arpa procurement requirements website utilize an existing vendor relationship in lieu of following normal and. Approval and budget adoption/amendment a local government their Title VI compliance status replacement category does not these... Is billing appropriately information about adopting a procurement policy for your analysis public employees and individuals with 30B... Remove any contact information or personal data from your feedback f `` rb ` e `` b. Procurement procedures must conform to the procurement standards, through 200.327, contract provisions the... By its staff E. the U.S. Department of the ARP/CSLFRF grant award their Title VI compliance status be fraud... End of such period summary list of UG policies and procedures so that they get what they need that... To the official website Subpart E. the U.S. Department of the Treasury ( Treasury ) the of! New features for the proper and efficient performance of the audit not provide the picture... 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