Please do not include personal or contact information. Most Commonwealth agencies and municipalities rely on vendors to supply the goods and services they need to operate. 200.317, 200.322, and 200.326. Treasury may request transfer of records of long-term value at the end of such period. The words data and data-driven decision-making sound daunting; however, neither is something new. To promote accountability, ARPA includes requirements for the administration, monitoring and reporting of funds. Consistently applied. Webprocurement, with 2 CFR 200.319(b) addressing engineering services procurement guidelines. Please limit your input to 500 characters. Including appropriate federal requirements or language in the executed contract, including bonding provisions, Contract Provisions for Non-Federal Entity Contracts Under Federal Awards. 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] c. 30B, 1(d). 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). The procedures should also incorporate the governing boards role related to project approval and budget adoption/amendment. Data also can help identify vulnerabilities or concerns about fraud, waste or abuse. Consider whether prevailing wage rates apply. [2] 2 CFR 200.317-327, available at https://www.govregs.com/regulations/title2_chapterII_part200. Suspension Immediate Need A temporary measure; there is a twelve month limit Usually used pending the completion of investigation or legal proceedings Based upon adequate evidence, usually an indictment Debarment Usually three years in length [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. After reviewing and analyzing data, managers can follow up and review more information, identify issues and resolve them. 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. 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. This policy sets up procedures for making project requests, approving those requests, and documenting that approval and any required justifications and other records. Such individuals and organizations are beneficiaries and not subject to audit pursuant to the Single Audit Act and 2 C.F.R. During this session, 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. Chapel Hill, NC27599-3330 Ensure the agency received all of the purchased goods and services. 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. For example, information from purchase descriptions, vendor quotations, proposal evaluation forms and invoices contain many data points. As indicated above, there may be ways to strategically spend the ARP/CSLFRF to minimize (but not eliminate) a local governments UG burden. Exceptions to requirements for small purchase or formal method competitive rules. As an example, during a roadway paving project, the invoice reviewer should confirm that the quantity and type of asphalt listed on the invoice meets the contract requirements. The policy should be drafted with Chapter 30B principles in mind and should ensure that you allow for an open, fair and competitive process. Taking incremental steps and continually finding areas for improvement will create a robust data program and help you make informed, data-driven decisions. Can the municipality clearly document and justify the reasoning to utilize an existing vendor relationship in lieu of following normal procurement and contracting processes? Some page levels are currently hidden. Additionally, establishing and maintaining open communication with grantees regarding grant requirements and expectations will help lead to successful project completion. 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. Broadly speaking, data is any fact about an object or concept. The first step in implementing a vendor audit program is determining who to audit. WebPrerequisite: None Class Level: Basic Instructional Method: Online - MCPPO Online Class Technical Specifications Advanced Prep: None Class dates and times: April 18, 2023, Copyright 2009 to Present School of Government at the University of North Carolina. WebSourcing & Procurement. 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. Below are a few examples of the range of schemes that vendors may engage in. Data is everywhere, and every function a government performs can generate valuable data. Most audits involve overcoming at least some animosity by parties who are resistant to having their work reviewed. Jurisdictions should only make payments after reviewing all invoices and supporting documentation for accuracy and completeness. This second article of the series discusses how to collect data and provides examples of how procurement officials can use the data. All public organizations rely on vendors to provide the supplies and services needed to operate effectively and efficiently. Make sure the vendor is legitimate, responsible, has acceptable references and is properly registered to conduct business in Massachusetts. However, there is one contract, indicated by the red circle, which hasa large number ofchange orders when compared to the length of the contract. 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). Identify conflicts of interest, fraudulent activities or other wrongdoing. External sources are another area from which data can be gathered and used in an analysis. 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. While data includes these things, data also includes things such as time sheets, bank statements, survey responses and water meter readings. Your local jurisdiction creates a demand for towing services because local officials have the authority to have vehicles towed when there are parking violations on public property or drivers need emergency roadside assistance. %%EOF For that reason it is not included in the Drop-in document. WebThe State will comply with 200.321, 200.322, and 200.323 and ensure that every purchase order or other contract includes any clauses required by 200.327. Treasury may request that recipients submit data for post-award compliance reviews, including information such as a narrative describing their Title VI compliance status. Recently in Massachusetts, a vendor offered a significant cost savings on supplies a local jurisdiction needed. See M.G.L. Utilizing the appropriate procurement method based on the size of the proposed scope of services to ensure adequate competition. Adhering to local procurement and contracting policies, standards, or procedures, including applicable local or state laws. See M.G.L. The state agency or municipality should first identify the goal of the audit, which will determine the type of audit to perform. WebGeneral Requirements for Procurement Programs . Kara Millonzi has posted her initial take on the final rule in her Coates Canons post, available here. Capital Funds Project website. By applying Chapter 30B to the procurement of services that are otherwise exempt, you help ensure that your jurisdiction obtains services from responsible and responsive vendors at the best price or best value for your residents, even when your jurisdiction is not paying the vendor directly. Confirm that the vendor billed at the rates stated in the contract or purchase order. Failure to implement sound grant monitoring policies that ensure proper use of ARPA funds can result in recoupment of funds by the federal government. WebDepending on the site host organizations procurement requirements, a formal solicitation process may be needed to purchase and install charging infrastructure. WebYes; there is no requirement to prove a loss in revenue. To use data in decision making, the data must exist in a format that can be analyzed. 200.317-318. For example, you can analyze vendor performance using vendor quotations, proposal evaluations and past invoices. BenfordsLaw is best applied to large data sets (at least several hundred records) of naturallyoccuringnumbers with some connection, such as population data, income tax data or scientific data. To ensure that jurisdictions get the supplies and services they need and to combat fraud, waste and abuse, it is essential that jurisdictions carefully review all vendor payment requests. ARPA-funded projects must also adhere to North Carolina state law, 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. Then make sure that you have access to that data. The best way to safeguard public funds is to dedicate personnel and time to review invoices as an important component of contract administration. The vendor provided supporting documentation for the items or services on the invoice. Jurisdictions should always require the vendor to provide sufficient supporting documentation before making payment. Through a vehicle towing and storage contract with a local jurisdiction, a vendor stands to generate substantial revenue by regularly towing and storing vehicles. Boilerplate audit clauses may inadvertently restrict the coverage of an audit or use vague terms that each party interprets differently, leading to disputes. However, the Office of the Inspector General (Office) recommends that local jurisdictions use an open, fair and competitive process to acquire automobile towing and storage services. 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. Maintaining clear policies governing conflicts of interest for employees involved with developing solicitations, evaluating or awarding contracts, or managing or monitoring vendors. To facilitate grant management, jurisdictions should develop clear expectations for grant programs and include this language in grant awards. If you determine a need for data that does notal readyexist, you can also create data. Incorporate by reference any federal rules that apply to the grant award. 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. We will update the policy if/when we receive more guidance from US Treasury. Conducting a survey can be as simple as sending out an email or using a free online survey tool. The question, therefore, is whether the project is for a public building or public work, not who is performing the work. For supply contracts, for example, jurisdictions should verify that the vendor delivered the correct items in good condition and in the correct quantities. Municipalities should also be prepared to justify and document the selection of the MOU or MOA as the most appropriate, reasonable, and cost-effective method to provide services utilizing ARP funds. There is no sure-fire method to uncover vendor fraud; therefore, it is the audit teams responsibility to remain alert and practice professional skepticism throughout the engagement. 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. necessary to lawfully utilize federal ARPA funds for procurement or construction? 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. This scope is different than what is included in the current contract and may be considered noncompetitive. 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. If this fails, contact your local jurisdictions legal counsel because the vendor may have breached the contract. 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. The non-Federal entitys documented procurement procedures must conform to the procurement standards identified in 2 CFR 200.317 through 200.327. 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. 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. Is it something you can collect in the future? UNC Chapel Hill Maintaining clear policies governing conflicts of interest for ARPA rules may impose additional reporting requirements for grants made to third-party employers, including public disclosure of grants provided. 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. For this program, the city of Scranton has elected to award . We welcome non-English speakers to contact us. 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. 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. Written procedures that do not meet UG standards must be revised to include these For example, a roadway repair and maintenance contract should not include unrelated supplies or services, such as classroom IT equipment or roadway paving in a location not specified in the contract. The particular industry, the types of goods or services involved, the size and complexity of the contract, and the applicable regulatory requirements are just a few factors that can increase an organizations risk of fraud, waste and abuse. For example, a recipient may provide a subaward to a nonprofit to provide homeless services to individuals experiencing homelessness. Maintain open and direct communication with grantees. This blog post highlights the UG requirements and provides several sample policies and other implementation tools. 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. 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. Mass.gov is a registered service mark of the Commonwealth of Massachusetts. The American Rescue Plan Act (ARPA), enacted in March 2021, provides state, county, local and tribal entities across the country with billions in federal aid to respond to the public health and economic effects of the COVID-19 pandemic. As a result, that staff member should be able to determine if the invoice accurately reflects the contractors work. Proposals must be solicited from an adequate number of qualified offerors. Additionally, ARPA funds are subject to oversight by certain state and federal agencies, including the Massachusetts OIG. Costs must follow the requirements in 2 CFR 200 Subpart E, Cost Principles, including procurement standards. (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. c. 30B, 1(f). %PDF-1.6 % US Treasury issued theFinal Ruleof the Coronavirus State and Local Fiscal Recovery Fund program of the American Rescue Plan Act of 2021 (ARP/CSLFRF) in January 2022. 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 Recipients should refer to the Assistance Listing for details on the specific provisions of the Uniform Guidance that do not apply to this program. Require regular and thorough reporting from grantees relating to expenditures. 1681 et seq., and the Departments implementing regulations, 31 CFR part 28; Age Discrimination Act of 1975, Public Law 94-135, 42 U.S.C. Please let us know how we can improve this page. 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 Some of the data within your organization may already be in an analyzable format. Direct questions related to design and construction procurement to the Attorney Generals Office. Without thinking much about it, you gathered data and made a decision based on that data. 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. Many of our past reports highlight fraudulent or inaccurate vendor billing. 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. 0 two (2) subrecipients to carry these programs. Federal regulations require a local jurisdiction to apply state and local procurement laws for federally funded procurements, provided that the procurements also conform to federal law and regulations. When was the last time your client revised their procurement contracts? People have varying levels of comfort and expertise in using data, and these articles are designed to assist beginners and experts alike. 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