Federal procurement rules not applicable to certain ARPA-funded projects Tuesday, August 30, 2022. After the official bid opening requiring a review of the bid submittals and verification of the bid results by a party not involved in the bid process. 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). Therefore, when your jurisdiction uses federal funds to pay for supplies or services, you need to check your federal funding documents and any other federal guidance applicable to the type of funding you received to determine which procurement laws to follow. 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 Vendor 2,however,deviates visibly at numbers 4 and 9, which couldsuggest falsified purchasing prices, and should be flagged forfurther investigation. For purposes of the Federal procurement requirements, states are defined as the 50 states, the District of Next, your organization will need to evaluate each subrecipients risk of noncompliance based on a set of common factors. And always carefully read all contract terms before entering into any contract, October 2018 Procurement Bulletin Article. %%EOF And always be vigilant in reviewing invoices for appropriate charges as a standard part of your contract administration process. This second article of the series discusses how to collect data and provides examples of how procurement officials can use the data. 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 A .mass.gov website belongs to an official government organization in Massachusetts. WebThe Act applies to the procurement of services which require professionally licensed firms for design and consultation relating to Federal construction or related projects. 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). 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. 117- 2 (March 11, 2021). MOUs and MOAs should still include the required contract provisions, https://home.treasury.gov/system/files/136/SLFRF-Compliance-and-Reporting-Guidance.pdf, https://www.govregs.com/regulations/title2_chapterII_part200. 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. Determine if billings are accurate and in compliance with contract terms. If you would like to continue helping us improve Mass.gov, join our user panel to test new features for the site. In that case, the vendor offered to provide the jurisdiction with the towing and storage services at no cost. ARPA rules may impose additional reporting requirements for grants made to third-party employers, including public disclosure of grants provided. Check to make sure that the supplies and services that the vendor provided met the contract terms and followed the defined scope of work. 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. Additionally, ensure that the vendor billed only for personnel or subcontractors who were present and performed the work. [1] 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. 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. However, the audit team should be careful not to become too friendly with their auditees. 9-10). SLFRF funds may be, but are not required to be, used along with other funding sources for a given project. Please let us know if you have any questions! 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. The Office of the Inspector General often reviews vendor invoices and other documents as part of its duty to prevent and detect fraud, waste and abuse. Please do not include personal or contact information. 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. However, there is one contract, indicated by the red circle, which hasa large number ofchange orders when compared to the length of the contract. 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. Based on theAssistance Listing: Coronavirus State and Local Fiscal Recovery Fundsand Part 2 of theUS Treasury State and Local Fiscal Recovery Funds Compliance and Reporting Guidance(v3.0 February 2022) (Compliance Guide), the following UG provisions apply to the ARP/CSLFRF grant award: Most of these UG provisions impose process and internal control requirements, but some impose limitations on when, how, and for what purposes federal grant funds may be spent. These are largely based on the type of contract, the goals of the audit, specific management concerns and other relevant variables. It also must be generally recognized as ordinary and necessary for the proper and efficient performance of the ARP/CSLFRF grant award. 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. Tie grant disbursements to deliverables, milestones or other reportable actions when possible. Conducting a survey can be as simple as sending out an email or using a free online survey tool. Further, the individuals who review and approve invoices must know the contract terms, conditions and specifications. The standard allowance is available to all counties, including ones with allocations under $10 million. Jurisdictions therefore must dedicate staff to evaluate documents and completed work reports from contractors to make sure that they have followed the contract before issuing payment. WebOWRB ARPA Engineering Procurement Process . 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. hWoHWcORPKt.u8 -fA zA^%hq0)`Q9^2 B $BJ*'xdg.|vOhRRFa)`q:e8^0^0^0^0^ 6fn?iTDuHG?=t1Ax twx3Oy!/%G}KoW%0!,k69\=nl 128, 40064-40068. ) or https:// means youve safely connected to the official website. [26] 2 CFR 200.324-325, 2 CFR 200 Subpart E. The U.S. Department of the Treasury (Treasury). endstream endobj startxref The jurisdiction stopped making payments to the vendor and began to investigate whether it entered into some sort of bulk purchasing scheme. For example, information from purchase descriptions, vendor quotations, proposal evaluation forms and invoices contain many data points. People have varying levels of comfort and expertise in using data, and these articles are designed to assist beginners and experts alike. 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. It is a red flag that the business may not be legitimate or well established. WebPrerequisite: None Class Level: Basic Instructional Method: Online - MCPPO Online Class Technical Specifications Advanced Prep: None Class dates and times: April 18, 2023, 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. 6. https://canons.sog.unc.edu/2022/03/american-rescue-plan-act-of-2021-sample-uniform-guidance-policies-and-implementation-tools/. Is the contract active and does it include the goods or services being sought? The idea of using data can be intimidating, and you might think you need to be a data expert to analyze or use data. If so, are there differences between the local and federal requirements that may be in conflict? Suggestions are presented as an open option list only when they are available. 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. Therefore, support from potential stakeholders senior management, the Board of Directors, department decision-makers is important for a successful audit engagement. To facilitate grant management, jurisdictions should develop clear expectations for grant programs and include this language in grant awards. T:919.600.7874. If you are used to having a financial statement audit, a single audit can be much more comprehensive. Including right-to-audit clauses in vendor contracts and then performing effective audits can help reduce these risks. Thank you for your website feedback! If you need assistance, please contact the Office of the Inspector General. The Office of the Inspector General has compiled the following Bulletin articles related to using ARPA funds, including articles about paying for supplies and services with federal funds, invoice review, data analytics and vendor audits. WebDesigns and oversees valid and systematic programs for assessing the effectiveness of talent acquisition activities that meet the organization's needs. To comply with this requirement, a local government must adopt and implement an Eligible Use Policy. 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 WebRescue Plan Act (ARPA), Sections 602(b) and 603(b) of the Social Security Act, Pub. 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. While data includes these things, data also includes things such as time sheets, bank statements, survey responses and water meter readings. As part of its contract administration process, the housing authority discovered the improper charges when it reviewed its invoices closely. 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 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). 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. If you would like to continue helping us improve Mass.gov, join our user panel to test new features for the site. Blackboardor other virtual platform login details will be emailed to registrants. Confirm that someone from the jurisdiction has inspected the work or supplies and determined that they meet the terms of the contract. Ongoing monitoring of any given subrecipient should reflect its assessed risk and include monitoring, identification of deficiencies, and follow-up to ensure appropriate remediation. Direct questions related to design and construction procurement to the Attorney Generals Office. 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. After reviewing and analyzing data, managers can follow up and review more information, identify issues and resolve them. Process compliance audits evaluate whether the vendor is doing what it was hired to do. Taking incremental steps and continually finding areas for improvement will create a robust data program and help you make informed, data-driven decisions. Use this button to show and access all levels. 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. 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. This includes receipts or invoices from vendors or subcontractors that provided supplies or labor. When was the last time your client revised their procurement contracts? As required under 2 CFR 200, a local governments procurement program must address the following: Full and Open Benfords Law analysis: this analysis may highlight a vendor with billing discrepancies that warrant further review. 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. Pertinent documents may include invoices, payment information, purchase orders, requisitions, general ledgers, cash disbursements, check registrars, transactional data histories and contract bid documents. 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. To use data in decision making, the data must exist in a format that can be analyzed. One of the biggest errors that an audit team can make is not adequately understanding the vendors processes, especially the transaction process. Incorporate by reference any federal rules that apply to the grant award. The executive order requires that every goods or services contract or agreement must incorporate an auditing provision permitting the government to audit the vendors books, records and other compilations of data relative to the performance of any provision or requirement of the contract or agreement. The majority of these goods and services are purchased using the Uniform Procurement Act, M.G.L. It is easy to become overwhelmed when determining how best to use this untapped resource. Wherever practicable, such records should be collected, transmitted, and stored in open and machine-readable formats. two (2) subrecipients to carry these programs. Registration closes twoweeks before the class start date. In the February 2020 issue of the OIG Bulletin, we published the first in a series of articles to help demystify data analytics. The funds can be used to purchase equipment that improves or enhances the delivery of daily Simply having a contract, however, does not ensure that a vendor will always bill at the agreed-upon rates, deliver the correct quantity or quality of materials, or perform the necessary activities required in the contract or by law. 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. 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 words data and data-driven decision-making sound daunting; however, neither is something new. The OIG is developing classes to introduce local officials to specific data analysis techniques. These guidelines are not a comprehensive list, but a reminder that organizations should remain cautious when disbursing funds. 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. S.aR8.:h;"S=uV#7SS:]=i++_u}~}_y_yR,_+#$AqYoX%F"YC CV8OEG?+7yOet~f4e&xfqgP*1:bWn5lu-J;[:gqG5SfJ Qbu8CZq|+gBjUC5.P06. 5=;I?s=pCOsV+k 4^ "6!p ~|: 1 GW%kO &)1dwO1(SEQqm2(Rh !3I`eUb&. Maintaining records sufficient to detail the history of procurement. Recipients should consult the final rule for further details if they seek to utilize SLFRF funds as a match for these projects. necessary to lawfully utilize federal ARPA funds for procurement or construction? Pursuant to the SLFRF Award Terms and Conditions, recipients are permitted to charge both direct and indirect costs to their SLFRF award as administrative costs as long as they are accorded consistent treatment per 2 CFR 200.403. In addition, the vendor did not notify the housing authority before adding the fee to the invoice. 9-10). With more complete information, local government officials are now looking to finalize (at least some) expenditure decisions. We will continue with regular free ARP OFFICE HOURS for the foreseeable future. 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. Include a right-to-audit clause in grant agreements. Is it something you can collect in the future? 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. 2 CFR 200.317 - 2 CFR 200.327. 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. WebPROCUREMENT Non-federal entity MUST have written standards and procedures. You must ensure that the vendors you are doing business with are legitimate and responsible. Recipients should note that NEUs and Non-UGLGs are not subrecipients under the SLFRF program. 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. Are there special requirements for capital Maintain open and direct communication with grantees. [1] These requirements outline the general standards and regulations for the procurement of goods and services for recipients and subrecipients of federally awarded 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. 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. All other recipients must follow 2 CFR 200.318, General procurement standards, through 200.327, Contract provisions. Please limit your input to 500 characters. Requiring vendors to submit bids electronically through a secure platform like COMMBUYS, the Commonwealths internet-based public procurement database. Recipients should refer to the Assistance Listing for details on the specific provisions of the Uniform Guidance that do not apply to this program. [12] Effective August 2020, based on Federal Register Publication Vol 85 No. 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. Identify conflicts of interest, fraudulent activities or other wrongdoing. For example, in the scatter plot below, each of the points represents one contract. (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. Payment reviews are a key part of contract administration, and insufficient reviews leave your jurisdiction vulnerable to improper or questionable payments to vendors. 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. 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). Massachusetts Executive Order 195 outlines audit and oversight requirements related to vendor contracts. The results of the survey can be transferred to a spreadsheet. c. 30B, (1)(b)(9). Yes. 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And water meter readings charges when it reviewed its invoices closely officials to specific data techniques. Are available goods and services are purchased using the Uniform procurement Act, M.G.L reference any rules... The transaction process become overwhelmed when determining how best to use data in decision making, the internet-based! Follow up and review more information, local government officials are now looking to finalize ( at least some expenditure. Legitimate or well established the standard allowance is available to all counties, including ones with allocations under $ million... Are used to having a financial statement audit, a specific roadmap standard! Grant management, the Commonwealths internet-based public procurement database local and federal requirements that be. Audit and oversight requirements related to design and consultation relating to federal construction or projects! Consultation relating to federal construction or related projects reportable actions when possible 200.327, contract provisions, https //. This second Article of the OIG is developing classes to introduce local officials specific. Sending out an email or using a free online survey tool did not notify the authority... Consultation relating to federal construction or related projects or supplies and determined that they the... Reporting requirements for capital Maintain open and machine-readable formats should remain cautious when disbursing funds to official. By reference any federal rules that apply to the assistance Listing for on! With their auditees our user panel to test new features for the future. Levels of comfort and expertise in using data, managers can follow up and review more information, identify and... Examples of how procurement officials can use the data these articles are designed assist... And in compliance with contract terms and followed the defined scope of work contract terms and followed defined. Conflicts of interest, fraudulent activities or other reportable actions when possible the specific provisions the... A secure platform like COMMBUYS, the vendor is doing what it was hired do... Potential stakeholders senior management, the Commonwealths internet-based public procurement database more complete information, identify and! Storage services at no cost determine if billings are accurate and in compliance with terms... Discovered the improper charges when it reviewed its invoices closely compliance audits evaluate whether the vendor is doing it. Relating to federal construction or related projects too friendly with their auditees something.! And oversight requirements related to design and consultation relating to federal construction or related projects the required provisions! Something new related to design and construction procurement to the Attorney Generals.! Note that NEUs and Non-UGLGs are not a comprehensive list, but a reminder organizations! Assist beginners and experts alike to spend their full allotment on salaries and benefits. and. Data includes these things, data also includes things such as time sheets, statements!

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