Many of the UG provisions require that the local government adopt and implement policies and procedures to ensure compliance with its requirements. c. 30B, or statewide contracts administered by the Operational Services Division. If a vendor is not registered beware. Subrecipients are subject to an audit pursuant to the Single Audit Act and 2 CFR part 200, subpart F regarding audit requirements, whereas contractors are not subject to an audit pursuant to the Single Audit Act and 2 CFR part 200, subpart F regarding audit requirements. Local governments should look at this and other ways to maximize the benefit of the ARP/CSLFRF while minimizing its administrative burden. Some page levels are currently hidden. To promote accountability, ARPA includes requirements for the administration, monitoring and reporting of funds. 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. Below are some general tips to keep in mind when reviewing invoices and payment requests: What if you have questions about an invoice? 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 October 2015 Procurement Bulletin Article. 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. Properly documented. The American Rescue Plan will deliver $350 billion for eligible state, local, territorial, and Tribal governments to respond to the COVID-19 emergency and bring back jobs.. If the data is not in one of these formats, do not despair! Also, remember the following: 1. Has the vendor demonstrated capacity and financial responsibility to provide the goods or services being sought? For example, verify the following: The items on the invoice are allowed by contract specifications and the defined scope of work. The jurisdiction became suspicious, researched the vendor and found no registration information on file with the Secretary of Commonwealth. The ARPA program requires recipients to comply with the procurement provisions of Title 2, Part 200 of the Code of Federal The vendor claimed that the lower per-unit price was only for bulk purchases. For that reason it is not included in the Drop-in document. 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. Consistent with 2 CFR 200.311 and 2 CFR 200.313, any equipment or real property acquired using SLFRF funds shall vest in the non- Federal entity, consistent with any guidance that Treasury may issue. These awards are as follows: The economic relief package of $1.9 trillion became law on March 11, 2021. Many of our past reports highlight fraudulent or inaccurate vendor billing. 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. Including appropriate federal requirements or language in the executed contract, including bonding provisions, Contract Provisions for Non-Federal Entity Contracts Under Federal Awards. 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. It is a red flag that the business may not be legitimate or well established. Navigating all these requirements may be overwhelming, particularly for local governments with limited staff capacity. Two signature programs of the ARPA are the Coronavirus State Fiscal Recovery Fund (SFRF) and the Coronavirus Local Fiscal Recovery Fund (LFRF). 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. All other non-Federal entities, including subrecipients of a State, must follow the procurement standards in 200.318 through 200.327. We also are grateful for a group of dedicated county attorneys, including Bob Shaver, Glynn Rollins, Anne Marie Tosco, Aimee Scotton, and Russ Burrell, who provided helpful feedback on the draft policies. If you do not follow Chapter 30B because of federal requirements, make sure you document this in writing in your procurement file. We will update the policy if/when we receive more guidance from US Treasury. 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. Every jurisdiction needs to review vendor payment requests to make sure they are accurate. And always carefully read all contract terms before entering into any contract, October 2018 Procurement Bulletin Article. For example, you can gather information about product specifications, usage and performance from relevant personnel in your jurisdiction. 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. %PDF-1.6 % 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. If you determine a need for data that does notal readyexist, you can also create data. 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. Are you missing any data that would help you monitor utilization? Restricting access to the submitted bids. 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. Indirect costs are general overhead costs of an organization where a portion of such costs are allocable to the SLFRF award such as the cost of facilities or administrative functions like a directors office. 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. 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. 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). Vendors may charge fees and raise prices over the course of a contract, only if the contract allows for the same. This goal may be accomplished, in part, by using high quality data for informed decision making and risk assessment. 3) Consider publishing all sole source requests for public notice. 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. Use of this blog post for commercial purposes is prohibited. For example, when reviewing payroll records, you notice that one employee reports working more hours than personnel have access to the building. A contracting agency is free to decide that a particular award need not be restricted to professional engineering firms. 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. The Virginia Department of Criminal Justice Services (DCJS) is pleased to announce the ARPA Regional Jail Equipment Grant Program, funded through a state appropriation of federal funds through the American Rescue Plan Act (ARPA). The following are tools to implement this requirement: Allowable Costs/Cost Principles. A .mass.gov website belongs to an official government organization in Massachusetts. procurement, with 2 CFR 200.319(b) addressing engineering services procurement guidelines. If the vendor has subcontracted out any work, the audit team should also distinguish whether it will be reviewing the contractors or subcontractors performance. Please limit your input to 500 characters. 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. https://canons.sog.unc.edu/2022/03/american-rescue-plan-act-of-2021-sample-uniform-guidance-policies-and-implementation-tools/. ApplyingBenfordsLaw is another way to find outliers in your data that should be flagged for further review. 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 2 C.F.R. Costs must follow the requirements in 2 CFR 200 Subpart E, Cost Principles, including procurement standards. Within that broad term, common types of vendor audits (ranging from a less-narrow scope to a more-narrow scope) include process compliance audits, financial compliance audits, regulatory compliance audits, general compliance audits, and fraud audits. Please see 2 CFR Part 200, Subpart E regarding the Cost Principles for more information. T:919.600.7874. The question, therefore, is whether the project is for a public building or public work, not who is performing the work. To start, here is a summary list of UG policies and their triggers. Fraud audits encompass some or all of the elements of the above compliance audits, with a primary focus on the financial aspects and implications. January 14, 2022 ARPA Final Rule and Procurement Requirements for Audit Services *REVISED January 28, 2022* As many of you already know, the US 195 0 obj <>stream If you would like to continue helping us improve Mass.gov, join our user panel to test new features for the site. 2023 School of Government at the University of North Carolina. Tie grant disbursements to deliverables, milestones or other reportable actions when possible. SLFRF funds beyond those that are available under the revenue loss eligible use category may not be used to meet the non-federal match or cost-share requirements of other federal programs, other than as specifically provided for by statute. If a local government does not already have a written nondiscrimination policy, it must adopt and implement one consistent with this guidance. 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. Require regular and thorough reporting from grantees relating to expenditures. 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. Use this button to show and access all levels. In the meantime, please feel free to contact us if you have any questions or ideas about data. 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. As part of those procedures, a local government should identify the core team who will perform the review processes and implement necessary controls. [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. The audit scope and appropriate approach depend on the type of audit performed. A level and competitive playing field should exist for all service contracts, especially when a local jurisdiction creates a market for private vendors by prompting a demand. Sole-source contractors: is the vendor really the only company who can provide a particular good or service? Incorporate by 9-10). 0 In this article, we delve into two specific techniques for creating and using data visualizations, which can further aid a jurisdiction in detecting waste or fraud. This training discusses the differences between subrecipients and contractors under the federal rules, fiscal recovery fund spending that is presumed eligible due to the nature of the beneficiaries or the type of project, and rules relating to using fiscal recovery funds on capital expenditures. 128, 40064-40068. You skipped the table of contents section. 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. In addition to Karas post, there is another new post on Procuring Single Audit services for ARPA funds. Once you have access, you can use the data to inform your decisions and manage risks. See M.G.L. Confirm that someone from the jurisdiction has inspected the work or supplies and determined that they meet the terms of the contract. 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 Please remove any contact information or personal data from your feedback. 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. Appendix 1: Allowable Use Matrix Background On March 11, 2021, the American Rescue Plan Act (ARPA) of 2021 was signed into law. However, the audit team should be careful not to become too friendly with their auditees. During this session, The team should consider gaining direct access to the vendors systems to facilitate its review. For this program, the city of Scranton has elected to award . You skipped the table of contents section. Maintain open and direct communication with grantees. Recipients of Federal financial assistance from the Treasury are required to meet legal requirements relating to nondiscrimination and nondiscriminatory use of Federal funds. bWlLLiBg`x m 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. Vendor 2,however,deviates visibly at numbers 4 and 9, which couldsuggest falsified purchasing prices, and should be flagged forfurther investigation. 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. BenfordsLaw is a mathematical observation about the frequency distribution of the first digits within a set of naturally occurring numbers. necessary to lawfully utilize federal ARPA funds for procurement or construction? The data from these documents can be combined to help make decisions about the award of future contracts. Then make sure that you have access to that data. 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. One key oversight tool is the vendor audit. Include a right-to-audit clause in grant agreements. The OIG is developing classes to introduce local officials to specific data analysis techniques. of the Award Terms and Conditions. A lock icon or https:// means youve safely connected to the official website. 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 These data points include dates, prices, quantities and names that are easy to transfer into an Excel spreadsheet for future analysis. 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. All rights reserved. A lock icon ( These guidelines are not a comprehensive list, but a reminder that organizations should remain cautious when disbursing funds. 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. 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. 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. 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 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. 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. SLFRF funds may be, but are not required to be, used along with other funding sources for a given project. The idea of using data can be intimidating, and you might think you need to be a data expert to analyze or use data. Program income does not include interest earned on advances of Federal funds, rebates, credits, discounts, or interest on rebates, credits, or discounts. If procurement is only possible through non-competitive methods, municipalities will need to justify use of a non-competitive procurement process, only permissible when one of the following conditions are met: the item is below the micro-purchase threshold established by the municipality; the item is only available from a single source; the public exigency or emergency will not permit a delay from publicizing a competitive solicitation; or after solicitation of a number of sources, competition is determined inadequate. Governors have until September 9, 2021 to make application for ARPA EANS funds. 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. To learn more, view our full privacy policy. We are working on detailed roadmaps to implementing these UG policies and templates for different potential expenditure items. Federal procurement rules not applicable to certain ARPA-funded projects Tuesday, August 30, 2022. Finally, in addition to my colleagues Rebecca Badgett, who drafted some of the above UG policies, and Connor Crews, who is working on procurement and conflict of interest policies, we want to thank our two amazing research assistants, Tiffany Oliva and Abby Gostling, who drafted several of our templates and other tools. Ongoing monitoring of any given subrecipient should reflect its assessed risk and include monitoring, identification of deficiencies, and follow-up to ensure appropriate remediation. 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