They are still federal grant funds, subject to all the award terms (be sure to read this document thoroughly) and most of the provisions of the federal Uniform Guidance (UG), which is the set of regulations that apply to the administration of federal awards. Weve never been audited, so there are no benchmarks to assess our performance., Our regular business hours are third shift., We cannot remove documents from our office., Cross-charging multiple clients or departments for their staffs work, Improper employee classification e.g., junior staff hours billed at a supervisors hourly rate, Overlapping time vendor creates two or more timesheets for the employee for the same day, Schedule manipulation vendor routinely postpones or schedules jobs with higher overtime rates toward the end of the week, Over-purchasing materials for personal use, Product substitution - substituting lower-quality products for those agreed upon in the contract, Failure to apply discounts, refunds and rebates, Billing materials to one project but using for another project, Intentionally applying rates from one contract to another, Billing time and equipment rates in lump-sum, unit or fixed-price contracts. 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. bWlLLiBg`x m 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. Treasurys final rule, program guidance, and the Uniform Guidance outline the types of costs that are allowable, including certain audit costs. The American Rescue Plan Act (ARPA) has brought millions in public dollars to cities, towns and other public entities to respond to the COVID-19 pandemic and its economic consequences. It will include a detailed look at the various UG provisions and sample policies. Massachusetts Executive Order 195 outlines audit and oversight requirements related to vendor contracts. During this session, 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 . 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). Federal Register Publication Vol 85 No. That policy will accomplish three different goals: (1) General review that a cost item is reasonable, allowable, allocable, consistently treated, and properly documented; (2) Identification of cost item as direct or indirect; and (3) Specific review of certain identified cost items, for special treatment, justification, and/or documentation. Identify and understand the intended uses of the funds in the grant award agreement. Direct questions related to design and construction procurement to the Attorney Generals Office. 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. Or maybe you used a more sophisticated tool to make that decision for example, the weather app on your phone but in both cases you used data to decide to wear a raincoat. The words data and data-driven decision-making sound daunting; however, neither is something new. Broadly speaking, data is any fact about an object or concept. ApplyingBenfordsLaw is another way to find outliers in your data that should be flagged for further review. We will use this information to improve this page. 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. Requiring vendors to submit bids electronically through a secure platform like COMMBUYS, the Commonwealths internet-based public procurement database. Some online survey tools even analyze data for you. Please limit your input to 500 characters. Each category of cost should be treated consistently in like circumstances as direct or indirect, and recipients may not charge the same administrative costs to both direct and indirect cost categories, or to other programs. Webprocurement, with 2 CFR 200.319(b) addressing engineering services procurement guidelines. 11 Uniform A local government must work with its attorney(s) to review each sample for legal compliance and edit to adapt to the specifics of your local government. 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. This may include justification of exigent or emergency circumstances, imminent threat to public health and safety, or substantive demonstration that no alternatives were feasible. hbbd```b`` DHl"Yn H2|+H3$00M 2@ o. 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 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 c. 30B, 1(d). %PDF-1.6 % 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 you need assistance, please contact the Office of the Inspector General. The following sample policy may be appended to your local governments regular records retention policy. For that reason it is not included in the Drop-in document. 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. A cost is consistently applied when it is applied uniformly to both federally-funded and other activities of the local government. 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. If you do not follow Chapter 30B because of federal requirements, make sure you document this in writing in your procurement file. ) or https:// means youve safely connected to the official website. WebSourcing & Procurement. [26] 2 CFR 200.324-325, 2 CFR 200 Subpart E. The U.S. Department of the Treasury (Treasury). Campus Box 3330 (For instance, the Department of Justice (DOJ) publishes a guide to procurements using DOJ grant funds.). Review for compliance with federal procurement law requirements. All public organizations rely on vendors to provide the supplies and services needed to operate effectively and efficiently. However, Chapter 30B does not apply to federally funded procurements if following Chapter 30B would conflict with federal laws or regulations. 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. As mentioned below, we are working on detailed roadmaps to help local governments know when/how to implement each policy based on specific expenditure decisions. 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. As many of you already know, the US Treasury last week issued the Final Rule on the funds granted to state and local governments by the American Rescue Plan Act. 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. Additionally, establishing and maintaining open communication with grantees regarding grant requirements and expectations will help lead to successful project completion. 2. We are working on detailed roadmaps to implementing these UG policies and templates for different potential expenditure items. 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. Top-requested sites to log in to services provided by the state. This goal may be accomplished, in part, by using high quality data for informed decision making and risk assessment. 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. Exceptions to requirements for small purchase or formal method competitive rules. c. 30B, 1(f). 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. c. 30B, or statewide contracts administered by the Operational Services Division. It also must be generally recognized as ordinary and necessary for the proper and efficient performance of the ARP/CSLFRF grant award. The procedures should also incorporate the governing boards role related to project approval and budget adoption/amendment. We use data every day without realizing it. Failure to implement sound grant monitoring policies that ensure proper use of ARPA funds can result in recoupment of funds by the federal government. 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. 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. We will update the policy if/when we receive more guidance from US Treasury. Government entities that have received ARPA funding may be able to award grants to third parties. Treasury may request that recipients submit data for post-award compliance reviews, including information such as a narrative describing their Title VI compliance status. 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). endstream endobj 560 0 obj <. Properly documented. contact the Office of the Inspector General. Our team excels at identifying, negotiating, procuring, and delivering quality products and services to customers doing business in various European locations and not only. Was the contract competitively procured and consistent with local procurement and contracting requirements and applicable laws? 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 limit your input to 500 characters. People often make business decisions based on intuition, anecdotes or institutional lore. Remember to check debarment lists, as well as the Secretary of the Commonwealths business registration database or a local municipal clerks office to determine if a business is properly registered to conduct business within Massachusetts. 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. 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. 3. And always carefully read all contract terms before entering into any contract, October 2018 Procurement Bulletin Article. ARPA-funded projects must also adhere to North Carolina state law, 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). 195 0 obj <>stream For this program, the city of Scranton has elected to award . A .mass.gov website belongs to an official government organization in Massachusetts. 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. Jurisdictions should only make payments after reviewing all invoices and supporting documentation for accuracy and completeness. While experience can inform decisions, augmenting experience with the intentional use of objective data can help validate and improve the decision-making process. Is the contract active and does it include the goods or services being sought? Please do not include personal or contact information. It is a red flag that the business may not be legitimate or well established. Suggestions are presented as an open option list only when they are available. Require regular and thorough reporting from grantees relating to expenditures. Pertinent documents may include invoices, payment information, purchase orders, requisitions, general ledgers, cash disbursements, check registrars, transactional data histories and contract bid documents. Other important aspects to consider are the audit period, access to records and personnel, format of records, time needed, failure-to-produce penalties and notification requirements (planned versus surprise reviews). Know the agreed-upon scope of work, including dates and locations where the vendor is required to deliver the supplies or services. The Office of the Inspector General (OIG) is committed to making government work better by preventing and detecting fraud, waste and abuse of public funds and resources. The jurisdiction placed an order with the vendor for these supplies because of the competitive low per-unit price. Copyright 2009 to Present School of Government at the University of North Carolina. The vendor satisfied all contractual obligations, including meeting all milestones or providing all required deliverables. A .mass.gov website belongs to an official government organization in Massachusetts. 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. Thank you for your website feedback! 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. Bid manipulation can also include allowing a vendor to submit bid documents after the public deadline or disclosing offers made by one vendor to another before the bids are opened publicly. 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. 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. Impaired independence can hinder an auditors professional judgment or create the appearance that his professional judgment has been compromised. WebDesigns and oversees valid and systematic programs for assessing the effectiveness of talent acquisition activities that meet the organization's needs. Mass.gov is a registered service mark of the Commonwealth of Massachusetts. The Assistance Listing is available on SAM.gov. Sole-source contractors: is the vendor really the only company who can provide a particular good or service? [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]. 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. Some information may be in spreadsheets or in existing databases or electronic systems. 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. The team should consider gaining direct access to the vendors systems to facilitate its review. Department Directory | Privacy Policy | SiteMap | 2023 City of Providence. [1] These requirements outline the general standards and regulations for the procurement of goods and services for recipients and subrecipients of federally awarded funds. Fraud, waste and abuse can occur even when comprehensive contracts are in place. 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. ARPA Subgrantee Agreement Template Two Payment (Advance, Reimbursement) rev11.3.22, ARPA Subgrantee Agreement Template Reimbursement Based rev11.3.22, ARPA Subgrantee Agreement Template 100% Advance Payment (Very Rare-Special Circumstances) rev11.3.22, ARPA Subgrantee Agreement Template 25% Advance Payment rev11.3.22, ARPA Beneficiary Agreement Template rev11.3.22, SLFRF_Subgrantee_Budget_Exhibit 3_ 11.3.2022, SLFRF_Subgrantee_Invoice_Exhibit 4_11.3.2022. of the Award Terms and Conditions. January 14, 2022 ARPA Final Rule and Procurement Requirements for Audit Services *REVISED January 28, 2022* As many of you already know, the US See 2 C.F.R. 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. When people think of data, often electronic spreadsheets, number-crunching and data warehouses come to mind. 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. However, the audit team should be careful not to become too friendly with their auditees. External sources are another area from which data can be gathered and used in an analysis. The feedback will only be used for improving the website. Proposals must be solicited from an adequate number of qualified offerors. 11246. Below are a few examples of the range of schemes that vendors may engage in. Process compliance audits evaluate whether the vendor is doing what it was hired to do. Allowable Activities. In the February 2020 issue of the OIG Bulletin, we published the first in a series of articles to help demystify data analytics. All other recipients must follow 2 CFR 200.318, General procurement standards, through 200.327, Contract provisions. Consistently applied. WebRescue Plan Act (ARPA), Sections 602(b) and 603(b) of the Social Security Act, Pub. Without thinking much about it, you gathered data and made a decision based on that data. 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. Treasurys implementing regulations, 31 CFR part 22, and the Department of Justice (DOJ) regulations, Coordination of Non-discrimination in Federally Assisted Programs, 28 CFR part 42, provide for the collection of data and information from recipients (see 28 CFR 42.406). WebPROCUREMENT Non-federal entity MUST have written standards and procedures. Local governments should review the requirements, compare them to their current policies and procedures, and consult with legal counsel to evaluate. In addition, we recommend that all ARPA awardees review 2 CFR Part 200 Subpart D, as this section describes the requirements most applicable to local governments. hb```nB eaXT00.I T~hHZIs).oIuhJOJ-= 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. 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. 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. 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 BenfordsLaw is a mathematical observation about the frequency distribution of the first digits within a set of naturally occurring numbers. For example, you can gather information about product specifications, usage and performance from relevant personnel in your jurisdiction. 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. WebARPA Policy and Procedures Manual. Massachusetts jurisdictions received over $25 billion through ARPA. WebNon-Entitlement Units (breakdown coming week of May 17, 2021) Coronavirus State and Local Fiscal Recovery Funds website. We welcome non-English speakers to contact us. of the Award Terms and Conditions, Accessibility: Report a Digital Access Issue, Allowable Costs and Cost Principles Policy, Financial Management and Internal Controls, Program Income Policy (if local government uses ARP/CSLFRF funds to establish a loan program or otherwise earns income related to an ARP/CSLFRF expenditure), Procurement Policy (if a local government contracts for goods or services paid for with ARP/CSLFRF funds, or must engage in a Single Audit (even if the audit is paid for with other funds)), Property Management Policy (if a local government uses ARP/CLSFRF to acquire or improve any real property, equipment, or supplies), Subaward Policy (if a local government partners with another government, nonprofit, or other private entity to carry out an ARP/CSLFRF-eligible project), Thursday, March 24, at 8:30am (focus on affordable housing). Part 200, Subpart F. Many recipients may choose to provide a subaward or contract to other entities to provide services to other end users. All other non-Federal entities, including subrecipients of a State, must follow the procurement standards in 200.318 through 200.327. WebOWRB ARPA Engineering Procurement Process . The policy should be drafted with Chapter 30B principles in mind and should ensure that you allow for an open, fair and competitive process. Come with your questions and share your experiences and insights with colleagues across the State. As part of its contract administration process, the housing authority discovered the improper charges when it reviewed its invoices closely. This can lead to drawing incorrect conclusions about the data and documentation available. 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. 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. 12. Recipients of Federal financial assistance from the Treasury are required to meet legal requirements relating to nondiscrimination and nondiscriminatory use of Federal funds. 3) Consider publishing all sole source requests for public notice. Then you can compile this information into a data-friendly format, like a spreadsheet. To promote accountability, ARPA includes requirements for the administration, monitoring and reporting of funds. 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