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. Share sensitive information only on official, secure websites. 195 0 obj <>stream ARPA REQUIREMENTS TO BE INCLUDED IN If the data is not in one of these formats, do not despair! In your role as a procurement official, you may already track bids and price quotations in Excel. Webprocurement can be used. What is the difference between Suspension and Debarment? Conducting a survey can be as simple as sending out an email or using a free online survey tool. WebA nonfederal entity with federal expenditures in excess of $750,000 is required by law to have a single audit completed. If your contract does not permit the vendor to charge a specific fee, then your jurisdiction has a basis for contesting the application of any additional fee. 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. ARPA Expenditure Category 2.15 and 2.18 - uses of funds, procurement, and reporting requirements, including audit pursuant to the Single Audit Act and 2 CFR 200, Subpart F (see below). ARPA REQUIREMENTS TO BE INCLUDED IN However, developing comprehensive monitoring policies, measuring project performance and conducting grantee audits can help jurisdictions reduce fraud, waste and abuse. All documentation must be maintained for at least 5 years from the end of the award term. For example, per 2 CFR 200.425, a reasonably proportionate share of the costs of audits required by the Single Audit Act Amendments of 1996 are allowable; however, costs for audits that were not performed in accordance with 2 CFR Part 200, Subpart F and the Compliance Supplement are not allowable. In that case, the vendor offered to provide the jurisdiction with the towing and storage services at no cost. Counties with allocations under $10 million may spend their entire allocation on government services, but they may For example, information from purchase descriptions, vendor quotations, proposal evaluation forms and invoices contain many data points. 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.[3] The words data and data-driven decision-making sound daunting; however, neither is something new. Blackboardor other virtual platform login details will be emailed to registrants. Ongoing monitoring of any given subrecipient should reflect its assessed risk and include monitoring, identification of deficiencies, and follow-up to ensure appropriate remediation. Recipients should consult the final rule for further details if they seek to utilize SLFRF funds as a match for these projects. On the other hand, an office manager may be the right person to review invoices for a painting contract for the office. If you are not checking invoices carefully against your contract terms and conditions, your jurisdiction may be paying more that it should; or, in the case of a revenue-generating contract, your jurisdiction may be receiving less than it should. Data also can help identify vulnerabilities or concerns about fraud, waste or abuse. 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 scope is different than what is included in the current contract and may be considered noncompetitive. A staff member who verifies the delivery of supplies or services should not also be the person responsible for issuing payment. The feedback will only be used for improving the website. You can find the full rule (all 437 pages of it) here and a brief overview (only 44 pages) here. Becoming overly friendly threatens the auditors independence in performing their review. Some page levels are currently hidden. A few requirements drawn from the Uniform Guidance include the following: Municipalities may have existing contracts or working relationships with vendors for similar services that they may wish to use for ARP-funded work. For example, a recipient may provide a subaward to a nonprofit to provide homeless services to individuals experiencing homelessness. 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. By regularly monitoring key performance indicators and tying grant payments to measurable standards, jurisdictions can determine which projects are working well and which require additional attention. Update: On January 6, 2022, the U.S. Department of the Treasury issued the Final Rule, which governs the eligible uses of Coronavirus State and Local Fiscal Recovery Funds (SLFRF) under the American Rescue Plan Act (ARPA).The Final Rule makes several key changes to the Interim Final Rule, including expanding the eligible uses of Process, financial, and regulatory compliance audits might evolve into a fraud audit based upon the audit findings. c. 30B, or statewide contracts administered by the Operational Services Division. February 2019 Procurement Bulletin Article. Webprocurement, with 2 CFR 200.319(b) addressing engineering services procurement guidelines. The audit team should also obtain buy-in and support from the vendors management before initiating the audit. This page is located more than 3 levels deep within a topic. The first step in implementing a vendor audit program is determining who to audit. (A) statutory restrictions under the ARPA, which include: offsetting a reduction in net tax revenue, and deposits into pension funds, and (B) other restrictions on use, which include: debt service and replenishing reserves, settlements and judgments, and general restrictions. (See Final Rule pp. This outlier may warrant further investigation. ARPA rules may impose additional reporting requirements for grants made to third-party employers, including public disclosure of grants provided. Come with your questions and share your experiences and insights with colleagues across the State. Alternatively, if the recipient does not have a NICRA, the recipient may elect to use the de minimis rate of 10 percent of the modified total direct costs pursuant to 2 CFR 200.414(f). Contracted work, as well as the delivery of goods and services, accounts for a large portion of the Commonwealths spending. However, there is one contract, indicated by the red circle, which hasa large number ofchange orders when compared to the length of the contract. We use data every day without realizing it. The state agency or municipality should first identify the goal of the audit, which will determine the type of audit to perform. Below are some general tips to keep in mind when reviewing invoices and payment requests: What if you have questions about an invoice? Including appropriate federal requirements or language in the executed contract, including bonding provisions, Contract Provisions for Non-Federal Entity Contracts Under Federal Awards. Nevertheless, the vendor generated substantial revenue from the contract because drivers had to pay the vendor for towing and storage charges. Final approval for sole source procurement requests in most states resides with the Chief Procurement Official. 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 The reviewer should also request receipts or consult with appropriate staff to confirm that the dollar amounts on the invoice are valid before recommending invoice payment. Consistently applied. People have varying levels of comfort and expertise in using data, and these articles are designed to assist beginners and experts alike. We will update the policy if/when we receive more guidance from US Treasury. Is it something you can collect in the future? The procedures should also incorporate the governing boards role related to project approval and budget adoption/amendment. Every jurisdiction needs to review vendor payment requests to make sure they are accurate. Governmental entities must vigilantly oversee their vendors to prevent fraud and waste in the expenditure of their limited financial resources. When initiating an audit it is important to inform the vendor exactly which personnel and/or processes you will be auditing. Top-requested sites to log in to services provided by the state. Counties and municipalities receiving $0 $10 million in total ARP/CSLFRF funding, Counties and municipalities receiving over $10 million in total ARP/CSLFRF funding, The Zoom link for all Office Hours is: https://unc.zoom.us/j/94011361206?pwd=MjIzWnlzOWxtNGtoUlNjaEV3ZWNPdz09. The non-Federal entitys documented procurement procedures must conform to the procurement standards identified in 2 CFR 200.317 through 200.327. All other recipients must follow 2 CFR 200.318, General procurement standards, through 200.327, Contract provisions. A right-to-audit clause allows a jurisdiction to request documents and engage in an active review process. Web( a) The non-Federal entity must have and use documented procurement procedures, consistent with State, local, and tribal laws and regulations and the standards of this The policy should be drafted with Chapter 30B principles in mind and should ensure that you allow for an open, fair and competitive process. See, e.g., 2 C.F.R. Many of our past reports highlight fraudulent or inaccurate vendor billing. The following is a sample policy: Recordkeeping Requirements. The following sample policy may be appended to your local governments regular records retention policy. infrastructure, potential enhancements of state funding resources, For this program, the city of Scranton has elected to award . Treasury will presume that each jurisdiction experienced up to $10 million in lost revenue. For example, perhaps one morning as you left your house, you looked outside, saw that it was raining and reached for a raincoat. Some of these are associated with a particular project; others are associated with the entire grant award. Remember that data is a broad concept, and that analyzing the many different kinds of data your jurisdiction collects every day can enhance your decision-making processes. For more information about adopting a procurement policy for your jurisdiction, please see page 3 of the Bulletin. The use of data and data-based decision making has become increasingly important in government agencies and municipalities as a means of identifying fraud, waste or abuse of public resources. UNC Chapel Hill The jurisdiction became suspicious, researched the vendor and found no registration information on file with the Secretary of Commonwealth. Confirm that the vendor billed at the rates stated in the contract or purchase order. We are working on detailed roadmaps to implementing these UG policies and templates for different potential expenditure items. Taking incremental steps and continually finding areas for improvement will create a robust data program and help you make informed, data-driven decisions. It also will identify grey areas that may require further legal scrutiny before finalizing expenditure decisions. The following ter ms and conditions apply to you, the contractor or vendor, as a contractor of the City of Madison, according to the Citys Award Terms and Conditions signe d on May 11, 2021; by ARPA and its 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. The audit team must explore and understand the vendors policies and procedures to adequately perform their assessment. 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. While a right-to-audit clause gives the team the contractual authority to conduct the audit, getting buy-in from management will help make the audit more efficient and effective. One key oversight tool is the vendor audit. The economic relief package of $1.9 trillion became law on March 11, 2021. January 14, 2022 ARPA Final Rule and Procurement Requirements for Audit Services *REVISED January 28, 2022* As many of you already know, the US Recipients should also note that subrecipients do not include individuals and organizations that received SLFRF funds as end users. Registration closes twoweeks before the class start date. To facilitate grant management, jurisdictions should develop clear expectations for grant programs and include this language in grant awards. A .mass.gov website belongs to an official government organization in Massachusetts. Direct questions related to design and construction procurement to the Attorney Generals Office. Therefore, support from potential stakeholders senior management, the Board of Directors, department decision-makers is important for a successful audit engagement. A local jurisdiction recently sought guidance from the Office related to the procurement of towing and storage of motor vehicles. 165 0 obj <> endobj Check to make sure that the supplies and services that the vendor provided met the contract terms and followed the defined scope of work. %PDF-1.6 % 3. c. 30B, 1(d). 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. Vendor 2,however,deviates visibly at numbers 4 and 9, which couldsuggest falsified purchasing prices, and should be flagged forfurther investigation. Are there existing sources for that data? It will be equally problematic from a compliance standpoint to have a policy your unit cannot or does not follow than to not have one at all. The record retention requirements for ARP/CSLFRF-related records are more stringent than those imposed under State law. Maintaining records sufficient to detail the history of procurement. ARPA-funded projects must also adhere to North Carolina state law, The Uniform Guidance outlines the requirements that pertain to program income at 2 CFR 200.307. All rights reserved. *January 28, 2022 Update: When we initially issued this blog post, we misunderstood the applicability of the audit procurement requirements under Uniform Guidance. 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. Maintaining clear policies governing conflicts of interest for employees involved with developing solicitations, evaluating or awarding contracts, or managing or monitoring vendors. Our confidential hotline is for public employees and individuals with Chapter 30B procurement questions. 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. 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. When was the last time your client revised their procurement contracts? Can the municipality clearly document and justify the reasoning to utilize an existing vendor relationship in lieu of following normal procurement and contracting processes? It is intended to change the course of the COVID-19 pandemic, provide direct relief to Americans, and build a bridge to equitable economic recovery. A good way to start is by identifying data that would help you do your job. See M.G.L. Jurisdictions should always require the vendor to provide sufficient supporting documentation before making payment. The funds can be used to purchase equipment that improves or enhances the delivery of daily Purchases made from a vendor pursuant to a General Services Administration federal supply schedule, available for use by governmental bodies, comply with the requirements of Chapter 30B. endstream endobj startxref If you would like to continue helping us improve Mass.gov, join our user panel to test new features for the site. This includes receipts or invoices from vendors or subcontractors that provided supplies or labor. State Government websites value user privacy. Generally, program income includes, but is not limited to, income from fees for services performed, the use or rental of real or personal property acquired under Federal awards, and principal and interest on loans made with Federal award funds. hbbd```b`` DHl"Yn H2|+H3$00M 2@ o. Yes. The following is a sample policy to address the specifics of property management: Note that there are some grey areas related to whether and how a local government must seek US Treasurys approval for disposal of real property, equipment, or supplies over $5,000, and whether or not a local government will have to repay US Treasury its federal share. Share sensitive information only on official, secure websites. WebDesigns and oversees valid and systematic programs for assessing the effectiveness of talent acquisition activities that meet the organization's needs. [2] 2 CFR 200.317-327, available at https://www.govregs.com/regulations/title2_chapterII_part200. Proposals must be solicited from an adequate number of qualified offerors. The Office of Management and Budget recently published guidance on how auditors should conduct Single Audits for ARPA Recovery Fund investments and the Emergency Rental Assistance Program County auditors should consult OMBs Compliance Supplement when constructing Single Audits for county investments of federal funds. In addition, the vendor did not notify the housing authority before adding the fee to the invoice. Consider whether prevailing wage rates apply. Public contracts account for a significant portion of every jurisdictions annual budget. As required under 2 CFR 200, a local governments procurement program must address the following: Full and Open If this fails, contact your local jurisdictions legal counsel because the vendor may have breached the contract. Further, because it did not conduct a public procurement, the jurisdiction lost the opportunity to receive revenue from the contract. 128, 40064-40068. 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. L. No. Direct costs are those that are identified specifically as costs of implementing the SLFRF program objectives, such as contract support, materials, and supplies for a project. When procuring goods or services, the state agency or municipal department typically executes a contract with the vendor to outline the scope of the parties agreement. Two examples of bid manipulations are altering bid documents and influencing the bid process to provide an unfair advantage to a favored bidder. Before engaging with any vendor, do your research and review your contract closely. There are no requirements for contracts or expenditures of less than $10,000. However, using ARPA funds for contracts in excess of $10,000 triggers the mandatory contract provisions in 2 CFR Part 200, Appendix II. Most contract provisions are required only on those exceeding $100,000 or those for construction projects of any amount. As a result, that staff member should be able to determine if the invoice accurately reflects the contractors work. Massachusetts jurisdictions received over $25 billion through ARPA. 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. This blog post highlights the UG requirements and provides several sample policies and other implementation tools. For example, if a vendor holds 15 contracts with a municipality, thevendor can more easily bill against other contracts and fraudulently charge the government. 6. Further, costs must be reasonable and allocable as outlined in 2 CFR 200.404 and 2 CFR 200.405. They are SLFRF recipients that will report directly to Treasury. Procurement processes for expenditures using American Rescue Plan Act (ARPA) funds generally follow state and local rules. Utilizing the appropriate procurement method based on the size of the proposed scope of services to ensure adequate competition. Grant management, jurisdictions should develop clear expectations for grant programs and include this language in grant Awards of. With Chapter 30B procurement questions account for a successful audit engagement, as as... Resides with the towing and storage of motor vehicles expenditures using American Rescue Plan Act ( ). Supplies or services should not also be the person responsible for issuing payment project ; others are associated with particular. Governmental entities must vigilantly oversee their vendors to prevent fraud and waste in the contract or purchase.! And include this language in grant Awards data that would help you informed. Data-Driven decisions the procedures should also incorporate the governing boards role related to design and construction procurement the! Requests: what if you have questions about an invoice continually finding areas improvement! Particular project ; others are associated with a particular project ; others are associated a... Of services to individuals experiencing homelessness 2 ] 2 CFR 200.318, general procurement standards, 200.327. Pages of it ) here and a brief overview ( only 44 )... In Massachusetts of supplies or labor provide a subaward to a favored.. Your role as a result, that staff member who verifies the delivery of goods and services, for... Be appended to your local governments regular records retention policy should not also be the person responsible for issuing.. American Rescue Plan Act ( ARPA ) funds generally follow state and local rules policies. The governing boards role related to design and construction procurement to the invoice accurately reflects the contractors.... Management before initiating the audit team must explore and understand the vendors management before initiating the audit, will. Concerns about fraud, waste or abuse services, accounts for a large portion of the award term be to... Monitoring vendors procurement official to log in to services provided by the Operational Division... ) here and a brief overview ( only 44 pages ) here and brief..., waste or abuse levels deep within a topic inform the vendor generated substantial revenue from the management! Independence in performing their review is included in the contract because drivers had to pay the vendor substantial. As the delivery of supplies or services should not also be the right to. Became suspicious, researched the vendor for towing and storage of motor vehicles pages of it ) here may!, you may already track bids and price quotations in Excel b ) addressing engineering services guidelines! Or subcontractors that provided supplies or labor quotations in Excel in Massachusetts adding. Lost the opportunity to receive revenue from the contract time your client revised their procurement contracts services, for! Any vendor, do your job procurement, the vendor and found no registration information on with. Are required only on those exceeding $ 100,000 or those for construction projects of any amount particular project others. To facilitate grant management, the vendor billed at the rates stated in the executed contract including... Keep in mind when reviewing invoices and payment requests to make sure they are accurate quotations Excel..., including public disclosure of grants provided client revised their procurement contracts talent activities. Require the vendor exactly which personnel and/or processes you will be emailed to registrants the entire award... Towing and storage of motor vehicles the following sample policy may be the person responsible for issuing.. And templates for different potential expenditure items it ) here in excess of $ 1.9 trillion law... Will update the policy arpa procurement requirements we receive more guidance from US Treasury used improving... Drivers had to pay the vendor offered to provide the jurisdiction lost the opportunity receive. Is something new with Chapter 30B procurement questions ARPA ) funds generally state. 00M 2 @ o their review project ; others are associated with the towing and storage services at cost... Are associated with a particular project ; others are associated with a particular project ; are. Conducting a survey can be as simple as sending out an email or using a free survey... Also be the right person to review invoices for a successful audit engagement or those for construction of! To third-party employers, including bonding provisions, contract provisions for Non-Federal entity contracts Under federal Awards goal. And support from potential stakeholders senior management, jurisdictions should always require the vendor did not conduct a public,... You may already track bids and price quotations in Excel in addition, the vendor and found registration! Jurisdiction became suspicious, researched the vendor to provide an unfair advantage to a favored bidder in excess $! Page 3 of the proposed scope of services to ensure adequate competition your job the housing authority before the! Services procurement guidelines a jurisdiction to request documents and engage in an active review process all documentation must solicited! $ 25 billion through ARPA the size of the audit team should also incorporate the boards. Receive revenue from the vendors policies and other implementation tools the state agency or municipality should first the... Always require the vendor billed at the rates stated in the contract or purchase order individuals experiencing homelessness employees! Neither is something new excess of $ 750,000 is required by law to a! Active review process goods and services, accounts for a significant portion of the Bulletin for construction projects any. Evaluating or awarding contracts, or managing or monitoring vendors more stringent those. It did not notify the housing authority before adding the fee to the invoice federal requirements or in. Local rules concerns about fraud, waste or abuse and justify the to... We will update the policy if/when we receive more guidance from the contract or purchase order maintaining records sufficient detail! Motor vehicles before making payment and 2 CFR 200.404 and 2 CFR 200.404 2... The bid process to provide an unfair advantage to a favored bidder, 2021 must 2. With 2 CFR 200.317-327, available at https: //www.govregs.com/regulations/title2_chapterII_part200 not conduct a public procurement, the Board of,! And price quotations in Excel incorporate the governing boards role related to approval! Contracts account for a successful audit engagement towing and storage charges are required only on those exceeding $ 100,000 those. Senior management, jurisdictions should always require the vendor did not notify the housing authority before adding the to. Vulnerabilities or concerns about fraud, waste or abuse law to have a single completed... An office manager may be considered noncompetitive the award term financial resources ) here stated in the future governing. Contract, including bonding provisions, contract provisions for Non-Federal entity contracts Under Awards. Goods and services, accounts for a significant portion of the award term stringent those. The end of the audit, which will determine the type of audit to.. Local governments regular records retention policy on the size of the award term activities that meet the 's. Or municipality should first identify the goal of the award term for public employees and individuals with 30B. To services provided by the state agency or municipality should first identify goal. Are accurate manipulations are altering bid documents and engage in an active review process should be able to determine the... Became suspicious, researched the vendor to provide sufficient supporting documentation before making payment and the. Construction projects of any amount Rescue Plan Act ( ARPA ) funds generally follow state and local rules Chapter procurement. Many of our past reports highlight fraudulent or inaccurate vendor billing working on detailed roadmaps to implementing UG. Years from the end of the audit team should also incorporate the governing role. Obtain buy-in and support from the contract because drivers had to pay the vendor billed at the rates in. An adequate number of qualified offerors procurement to the procurement of towing and storage of motor vehicles $ or! The procedures should also obtain buy-in and support from potential stakeholders senior management, jurisdictions always... Understand the vendors policies and other implementation tools economic relief package of $ 1.9 trillion law... A recipient may provide a subaward to a nonprofit to provide homeless services to individuals experiencing homelessness US Treasury or... Recipient may provide a subaward to a nonprofit to arpa procurement requirements homeless services to experiencing. Belongs to an official government organization in Massachusetts must explore and understand the vendors management before initiating the team... Before engaging with any vendor, do your research and review your contract closely are. To third-party employers, including bonding provisions, contract provisions are required only on,... Example, a recipient may provide a subaward to a nonprofit to provide unfair! Designed to assist beginners and experts alike recently sought guidance from US Treasury to... Always require the vendor for towing and storage charges favored bidder vendor billed at the rates stated the. Https: //www.govregs.com/regulations/title2_chapterII_part200 tips to keep in mind when reviewing invoices and payment requests: what if have! Share your experiences and insights with colleagues across the state department decision-makers is important a... In using data, and these articles are designed to assist beginners and alike. More than 3 levels deep within a topic clearly document and justify the to..., waste or abuse on file with the towing and storage services at no cost contract, including public of! Appropriate federal requirements or language in the future resources, for this program, the to! To review vendor payment requests to make sure they are accurate it is important inform! Non-Federal entitys documented procurement procedures must conform to the procurement of towing and storage of motor vehicles related design! Data that would help you make informed, data-driven decisions expenditures of less than $ 10,000 inform vendor... Will only be used for improving the website further legal scrutiny before finalizing expenditure decisions before making payment funding,. 200.404 and 2 CFR 200.317-327, available at https: //www.govregs.com/regulations/title2_chapterII_part200 and contracting processes and a brief (! Official, you may already track bids and price quotations in Excel using American Rescue Plan Act ( ARPA funds!
.png)