arpa procurement requirements

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. The Commonwealth entity should ensure it requests the correct information and documents needed to answer the audit objectives. Chapel Hill, NC27599-3330 If this fails, contact your local jurisdictions legal counsel because the vendor may have breached the contract. Generally, Chapter 30B applies even when a local jurisdiction uses federal funds to pay for supplies or services. 0 As part of this information-gathering process, team members should strive to interview as many vendor employees as possible to corroborate their evidence and ensure the team has a complete understanding of the vendors current state. Additionally, ARPA funds are subject to oversight by certain state and federal agencies, including the Massachusetts OIG. If data analysis leads you to believe that fraud has occurred, please contact the OIGs Fraud Hotline at (800) 322-1323 orIGOFightFraud@state.ma.us, orfill out our online form. Additional controls that your organization should implement include written policies that explicitly identify appropriate allocation methods, accounting standards and principles, compliance monitoring checks for program income calculations, and records. For example, the city of Boston used ARPA fiscal recovery funds to award more than $3.4 million in grants to 192 local arts and cultural organizations. Two significant areas that did not change are the applicability of Uniform Grant Guidance to ARPA funds and the federal audit requirements over these funds. 179 0 obj <>/Filter/FlateDecode/ID[<598620AB2247954EBE922AD03988F6D9>]/Index[165 31]/Info 164 0 R/Length 86/Prev 341858/Root 166 0 R/Size 196/Type/XRef/W[1 3 1]>>stream Knapp-Sanders Building 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. hb```f``rb`e``_ B,``nAxsYd.(3b(|lzx=g3@7^L5b0\aO0 5wtt 1f 9WcrBe`.ymqcBr5v*r VvH3q/1iC U If so, are there differences between the local and federal requirements that may be in conflict? Direct questions related to design and construction procurement to the Attorney Generals Office. Becoming overly friendly threatens the auditors independence in performing their review. 3) Consider publishing all sole source requests for public notice. Governmental entities must vigilantly oversee their vendors to prevent fraud and waste in the expenditure of their limited financial resources. Sole-source contractors: is the vendor really the only company who can provide a particular good or service? Incorporate by Yes. hbbd```b`` DHl"Yn H2|+H3$00M 2@ o. 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. Treasury may request that recipients submit data for post-award compliance reviews, including information such as a narrative describing their Title VI compliance status. Below are a few examples of the range of schemes that vendors may engage in. The procedures should also incorporate the governing boards role related to project approval and budget adoption/amendment. With more complete information, local government officials are now looking to finalize (at least some) expenditure decisions. These risk assessments may include factors such as prior experience in managing Federal funds, previous audits, personnel, and policies or procedures for award execution and oversight. WebPrerequisite: None Class Level: Basic Instructional Method: Online - MCPPO Online Class Technical Specifications Advanced Prep: None Class dates and times: April 18, 2023, [2] 2 CFR 200.317-327, available at https://www.govregs.com/regulations/title2_chapterII_part200. 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. 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. 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. The audit scope and appropriate approach depend on the type of audit performed. 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. 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 Requirements for bidders and contractors under this order are explained in the specifications. Note: This language must be included in the Bid solicitation. The WebThe Act applies to the procurement of services which require professionally licensed firms for design and consultation relating to Federal construction or related projects. Mass.gov is a registered service mark of the Commonwealth of Massachusetts. 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 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. 117- 2 (March 11, 2021). 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. 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. 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). Webprocurement, with 2 CFR 200.319(b) addressing engineering services procurement guidelines. Can the municipality provide full documentation and records to demonstrate that the history of procurement, including vendor selection, complied with competitive bidding and selection processes? Mathematicians studied collections of numbers and found that the first digit will be a 1 about 30% of the time and a 2 about 17% of the time, with subsequent numbers following a similar decreasing pattern, as shown in the data visualization on the next page. All rights reserved. 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. 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. Please limit your input to 500 characters. However, there is one contract, indicated by the red circle, which hasa large number ofchange orders when compared to the length of the contract. People often make business decisions based on intuition, anecdotes or institutional lore. 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. Direct questions related to design and construction procurement to the Attorney Generals Office. 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. Massachusetts jurisdictions received over $25 billion through ARPA. These awards are as follows: 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. By now, Ohio municipalities, counties, and townships are well aware that the federal government passed significant coronavirus relief funding in the American Rescue Plan Act (ARPA). 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. 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. There may be an acceptable explanation for the high number of change orders for that particular contract, but only further review can determine whether the change orders are reasonable. Historical and external data sources might not provide the complete picture for your analysis. 11246. 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. 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. Some online survey tools even analyze data for you. Our confidential hotline is for public employees and individuals with Chapter 30B procurement questions. two (2) subrecipients to carry these programs. Including right-to-audit clauses in vendor contracts and then performing effective audits can help reduce these risks. A good way to start is by identifying data that would help you do your job. 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. This includes receipts or invoices from vendors or subcontractors that provided supplies or labor. However, developing comprehensive monitoring policies, measuring project performance and conducting grantee audits can help jurisdictions reduce fraud, waste and abuse. Contracted work, as well as the delivery of goods and services, accounts for a large portion of the Commonwealths spending. [4] Department of Treasury, Coronavirus State and Local Fiscal Recovery Funds: Guidance on Recipient Compliance and Reporting Responsibilities, at 8, available at https://home.treasury.gov/system/files/136/SLFRF-Compliance-and-Reporting-Guidance.pdf and 2 CFR 200.318(a). For example, you can gather information about product specifications, usage and performance from relevant personnel in your jurisdiction. Every jurisdiction needs to review vendor payment requests to make sure they are accurate. 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. The Final Rule Supplemental Information (pages 373-374) states that: Recipients of SLFRF funds are subject to the provisions of the Uniform Guidance (2 CFR Part 200) from the date of award to the end of the period of performance on December 31, 2026 unless otherwise specified in this rule or program-specific guidance. 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. Jurisdictions should only make payments after reviewing all invoices and supporting documentation for accuracy and completeness. Boilerplate audit clauses may inadvertently restrict the coverage of an audit or use vague terms that each party interprets differently, leading to disputes. 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). WebThe City of Detroit Office of Contracting and Procurement (OCP) requests proposals from qualified Respondents to provide procurement supportive services including reviewing &creating scopes of work, creating bid solicitations, contract development, contract negotiations and preparation of critical See more Buyers Requirements 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. https://canons.sog.unc.edu/2022/03/american-rescue-plan-act-of-2021-sample-uniform-guidance-policies-and-implementation-tools/. Please do not include personal or contact information. 128, 40064-40068. Restricting access to the submitted bids. BenfordsLaw should not be applied to data sets that have stated minimum and maximum values or are assigned numbers, such as interest rates, telephone numbers or social security numbers. This can lead to drawing incorrect conclusions about the data and documentation available. This second article of the series discusses how to collect data and provides examples of how procurement officials can use the data. Benfords Law analysis: this analysis may highlight a vendor with billing discrepancies that warrant further review. Further, the individuals who review and approve invoices must know the contract terms, conditions and specifications. There are several techniques you could use to identify vendors to audit. Recipients should refer to the Assistance Listing for details on the specific provisions of the Uniform Guidance that do not apply to this program. We hope that this article has encouraged you to use data analysis more in your work. Thank you for your website feedback! WebSubpart F, Audit Requirements (UG single audit required when a non-Federal entity expends more than $750,000 in federal financial assistance in a fiscal year (the $750,000 threshold includes the total expenditures from all federal awards)). Governors have until September 9, 2021 to make application for ARPA EANS funds. Fraud audits encompass some or all of the elements of the above compliance audits, with a primary focus on the financial aspects and implications. Process, financial, and regulatory compliance audits might evolve into a fraud audit based upon the audit findings. 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. Jurisdictions must remain vigilant in reviewing vendor documents to ensure that they get what they need and that public funds are properly expended. Track and maintain records of all grant-related documents, including communications, receipts and invoices. Treasury may request transfer of records of long-term value at the end of such period. 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. This page is located more than 3 levels deep within a topic. Maintain open and direct communication with grantees. Written procedures that do not meet UG standards must be revised to include these See, e.g., 2 C.F.R. Many of the UG provisions require that the local government adopt and implement policies and procedures to ensure compliance with its requirements. This blog post is for educational and informational use and may be used for those purposes without permission by providing acknowledgment of its source. What is the difference between Suspension and Debarment? 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. Extending the contract to include additional time may be deemed noncompetitive, because the contract expired before services began. During this session, 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. 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. Further, a prequalification or screening process for vendors interested in providing certain services, such as towing and storage, helps ensure that the public is receiving services from a qualified vendor at a reasonable price. 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. Volume of transactions or business: the volume of transactions or contracts alters the risk the government assumes in doing business with the vendor. 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. Waste in the Bid solicitation help jurisdictions reduce fraud, waste and abuse UG standards be... Project approval and budget adoption/amendment and external data sources might not provide the complete picture your! 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Post-Award compliance reviews, including the Massachusetts OIG and implement policies and procedures to ensure that they what. And waste in the Bid solicitation that they get what they need and that public funds are subject oversight... Business decisions based on intuition, anecdotes or institutional lore that warrant further.! For example, you can gather information about product specifications, usage and performance from relevant personnel in your.... Process, financial, and regulatory compliance audits might evolve into a fraud audit based the! They are accurate uses federal funds to pay for supplies or services post-award reviews. And services, accounts for a large portion of the Uniform Guidance that do not meet UG must... Legal counsel because the vendor really the only company who can provide particular. Documentation available historical and external data sources might not provide the complete picture for your analysis these.., waste and abuse because the contract terms, conditions and specifications based on intuition, or... Receipts and invoices boards role related to project approval and budget adoption/amendment right-to-audit. Their limited financial resources: //www.govregs.com/regulations/title2_chapterII_part200 and regulatory compliance audits might evolve into a fraud audit based the! Through ARPA further review the volume of transactions or business: the volume of transactions business... Carry these programs portion of the Commonwealth of Massachusetts and performance from relevant personnel in your.. With more complete information, local government officials are now looking to finalize ( at some... Blog post is for public employees and individuals with Chapter 30B procurement questions by providing acknowledgment of source... And MOAs should arpa procurement requirements include the required contract provisions, https: //www.govregs.com/regulations/title2_chapterII_part200 role related to design and procurement. With 2 CFR 200.319 ( b ) addressing engineering services procurement guidelines many of range!

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