Further, because it did not conduct a public procurement, the jurisdiction lost the opportunity to receive revenue from the contract. WebOWRB ARPA Engineering Procurement Process . WebTo promote appropriate and effective use of ARPA funds, jurisdictions should: Identify and understand the intended uses of the funds in the grant award agreement. 200.319-320 (describing the competitive processes required for procurements made with federal funds). While the Final Rule did not address everything that we had hoped it would, there are significant changes that will make life easier for you with regards to ARPA funding, particularly in the lost revenue category of eligible expenditures. Look for those in the coming weeks. The following sample policy may be appended to your local governments regular records retention policy. We will use this information to improve this page. 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. Did you know reporting is not the only requirement for use of American Rescue Plan Act (ARPA) funds? Federal Uniform Guidance rules apply as well. Uniform Guidance? Never heard of it? Dont worry, weve got you covered. 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. It also will identify grey areas that may require further legal scrutiny before finalizing expenditure decisions. Any purchase of equipment or real property with SLFRF funds must be consistent with the Uniform Guidance at 2 CFR Part 200, Subpart D. Equipment and real property acquired under this program must be used for the originally authorized purpose, unless stated otherwise by Treasury. 3) Consider publishing all sole source requests for public notice. Remember to consider whether your data gives you enough information to help you make decisions. Copyright 2009 to Present School of Government at the University of North Carolina. WebYes; there is no requirement to prove a loss in revenue. ) or https:// means youve safely connected to the official website. hbbd```b``+d9dUH&)0yD`5~.X&Xd-X6^fH-@@~ Some of these are associated with a particular project; others are associated with the entire grant award. Determine if billings are accurate and in compliance with contract terms. 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. Fraud audits encompass some or all of the elements of the above compliance audits, with a primary focus on the financial aspects and implications. This course is targeted to finance and management staff of smaller and mid-sized units that will be taking the standard allowance and spending most, if not all, of their ARP/CSLFRF as revenue replacement. ARPA-funded projects must also adhere to North Carolina state law, For example, the OIG asks participants in our classes to complete surveys at the end of each class. SLFRF funds transferred to subrecipients are also subject to reporting and Uniform Guidance requirements. Require regular and thorough reporting from grantees relating to expenditures. To comply with this requirement, a local government must adopt and implement an Eligible Use Policy. 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. Direct questions related to design and construction procurement to the Attorney Generals Office. When was the last time your client revised their procurement contracts? This page is located more than 3 levels deep within a topic. For purposes of the Federal procurement requirements, states are defined as the 50 states, the District of In most instances, a vendor audit is a collaborative effort between the vendor and the government entity. With more complete information, local government officials are now looking to finalize (at least some) expenditure decisions. 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. %PDF-1.6 % Jurisdictions should only make payments after reviewing all invoices and supporting documentation for accuracy and completeness. SLFRF recipients that are pass-through entities as described under 2 CFR 200.1 are required to manage and monitor their subrecipients to ensure compliance with requirements of the SLFRF award pursuant to 2 CFR 200.332 regarding requirements for pass- through entities. 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. 117- 2 (March 11, 2021). %%EOF Maintaining clear policies governing conflicts of interest for 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 Jurisdictions should always require the vendor to provide sufficient supporting documentation before making payment. (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. All rights reserved. This blog post is published and posted online by the School of Government to address issues of interest to government officials. 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. x@AP,(Qm -R`PF%LGd8X1`ol: +t0@]-]~W,4 XC! $@a Historical and external data sources might not provide the complete picture for your analysis. This goal may be accomplished, in part, by using high quality data for informed decision making and risk assessment. 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 feedback will only be used for improving the website. For more information about adopting a procurement policy for your jurisdiction, please see page 3 of the Bulletin. 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. The following are tools to implement this requirement: Allowable Costs/Cost Principles. The jurisdiction placed an order with the vendor for these supplies because of the competitive low per-unit price. To assist you with overcoming this challenge, the Office of the Inspector General will publish a series of articles to help demystify data analytics and its uses. We now understand that the procurement requirements apply to your audit procurement regardless of the source of funds that pay the audit fees. Massachusetts Executive Order 195 outlines audit and oversight requirements related to vendor contracts. The audit team must explore and understand the vendors policies and procedures to adequately perform their assessment. October 2015 Procurement Bulletin Article. These data points include dates, prices, quantities and names that are easy to transfer into an Excel spreadsheet for future analysis. Wherever practicable, such records should be collected, transmitted, and stored in open and machine-readable formats. 179 0 obj <>/Filter/FlateDecode/ID[<598620AB2247954EBE922AD03988F6D9>]/Index[165 31]/Info 164 0 R/Length 86/Prev 341858/Root 166 0 R/Size 196/Type/XRef/W[1 3 1]>>stream 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. If you would like to continue helping us improve Mass.gov, join our user panel to test new features for the site. See 2 C.F.R. Please do not include personal or contact information. (For instance, the Department of Justice (DOJ) publishes a guide to procurements using DOJ grant funds.). The course will have three parts, including brief overview videos, a 1-day live (Zoom) workshop, and extended daily Zoom Help Desk Office Hours the last two weeks of April (to help with implementation issues and completion of the Project & Expenditure report due by April 30). The best way to safeguard public funds is to dedicate personnel and time to review invoices as an important component of contract administration. 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. It will include a detailed look at the various UG provisions and sample policies. State and Local Government Finance Division, An official website of the State of North Carolina, ARPA Final Rule and Procurement Requirements for Audit Services. Federal procurement laws and regulations typically require that you use a fair, open and competitive process, even though price thresholds, advertising requirements and contract award language may differ from the requirements of Chapter 30B. 2 CFR Part 25 (Universal Identifier & System for Award Management) The vendor deducted the administrative fee from the monthly payment it made to the housing authority even though this was not part of the contract between the housing authority and the vendor. Please let us know how we can improve this page. The vendor provided supporting documentation for the items or services on the invoice. 2 CFR 200.320(c). The expenditures for each eligible project are comprised of cost items. Implement internal controls to prevent fraud, waste and abuse. bWlLLiBg`x m The jurisdiction became suspicious, researched the vendor and found no registration information on file with the Secretary of Commonwealth. 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). 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. The majority of these goods and services are purchased using the Uniform Procurement Act, M.G.L. Becoming overly friendly threatens the auditors independence in performing their review. This outlier may warrant further investigation. If a vendor is not registered beware. Typical cost items include compensation and fringe benefits, materials and supplies, equipment and other capital, consultants/professional services, audits, communications, insurance, maintenance and repair, and rental costs. *January 28, 2022 Update: When we initially issued this blog post, we misunderstood the applicability of the audit procurement requirements under Uniform Guidance. hb```nB eaXT00.I T~hHZIs).oIuhJOJ-= Outlier analysis, in its simplest form, compares different data points in order to identify data that stands out from the rest. 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. An official website of the Commonwealth of Massachusetts, This page, American Rescue Plan Act (ARPA) Training, is. Contracted work, as well as the delivery of goods and services, accounts for a large portion of the Commonwealths spending. The August 2020 installment of our data series discussed how to collect data and provided examples of how municipal employees can use that data to identify waste and possible fraud. These guidelines are not a comprehensive list, but a reminder that organizations should remain cautious when disbursing funds. Generally, your organization must maintain records and financial documents for five years after all funds have been expended or returned to Treasury, as outlined in paragraph 4.c. We hope that this article, along with the other articles in our series on data analytics, helps you feel more confident in your ability to collect and analyze data. 200.317-318. The bar chart shows that the purchase prices, when grouped together, closely follow the expected distribution of numbers according toBenfordsLaw. Part 200, Subpart F. Many recipients may choose to provide a subaward or contract to other entities to provide services to other end users. For example, a recipient may provide a subaward to a nonprofit to provide homeless services to individuals experiencing homelessness. During this session, 128, 40064-40068. WebDesigns and oversees valid and systematic programs for assessing the effectiveness of talent acquisition activities that meet the organization's needs. Is it something you can collect in the future? The vendor satisfied all contractual obligations, including meeting all milestones or providing all required deliverables. As a result, that staff member should be able to determine if the invoice accurately reflects the contractors work. Is the contract active and does it include the goods or services being sought? A lock icon ( ARPA rules may impose additional reporting requirements for grants made to third-party employers, including public disclosure of grants provided. Adhering to local procurement and contracting policies, standards, or procedures, including applicable local or state laws. We will continue with regular free ARP OFFICE HOURS for the foreseeable future. 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. When people think of data, often electronic spreadsheets, number-crunching and data warehouses come to mind. Please let us know if you have any questions! We will update the policy if/when we receive more guidance from US Treasury. ARPA Subgrantee Agreement Template Two Payment (Advance, Reimbursement) rev11.3.22 (DOCX) ARPA Subgrantee Governors have until September 9, 2021 to make application for ARPA EANS funds. 6. Can the municipality provide full documentation and records to demonstrate that the history of procurement, including vendor selection, complied with competitive bidding and selection processes? 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 [4] 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 and 2 CFR 200.318(a). In 2019 alone, for example, MassDOT issued nearly 200 construction and maintenance contracts with a combined cost of over $1.2 billion. Recipients should note that NEUs and Non-UGLGs are not subrecipients under the SLFRF program. 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. Regulatory compliance audits determine whether the vendor is following all of the laws and regulations relevant to the goods and services they provide (e.g., environmental regulations). These awards are as follows: The team needs the vendors support in order to get access to records and personnel, as well as to take action on findings. WebSourcing & Procurement. WebAll solicitations must incorporate a clear and accurate description of the technical requirements for the materials, products, or services to be procured, and shall include all other requirements which bidders must fulfill and all other factors to be used in evaluating bids or proposals. Use of this blog post for commercial purposes is prohibited. WebNon-Entitlement Units (breakdown coming week of May 17, 2021) Coronavirus State and Local Fiscal Recovery Funds website. You skipped the table of contents section. After reviewing and analyzing data, managers can follow up and review more information, identify issues and resolve them. 2023 School of Government at the University of North Carolina. Additionally, ensure that the vendor billed only for personnel or subcontractors who were present and performed the work. Are there other vendors or organizations that could also reasonably and responsibly provide the good and/or service that may object to the lack of competition available for federal funds? To use data in decision making, the data must exist in a format that can be analyzed. If a local government partners with another government, nonprofit, or other private entity to carry out an ARP/CSLFRF award project, it must follow the subaward process. 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. 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. Those requirements include ensuring that entities receiving Federal financial assistance from the Treasury do not deny benefits or services, or otherwise discriminate on the basis of race, color, national origin (including limited English proficiency), disability, age, or sex (including sexual orientation and gender identity), in accordance with the following authorities: Title VI of the Civil Rights Act of 1964 (Title VI) Public Law 88-352, 42 U.S.C. Final approval for sole source procurement requests in most states resides with the Chief Procurement Official. Please limit your input to 500 characters. 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. 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. 2. 794; Title IX of the Education Amendments of 1972 (Title IX), 20 U.S.C. Many of the UG provisions require that the local government adopt and implement policies and procedures to ensure compliance with its requirements. Suggestions are presented as an open option list only when they are available. Local governments should look at this and other ways to maximize the benefit of the ARP/CSLFRF while minimizing its administrative burden. Proposals must be solicited from an adequate number of qualified offerors. 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