You must ensure that the vendors you are doing business with are legitimate and responsible. Please limit your input to 500 characters. If you would like to continue helping us improve Mass.gov, join our user panel to test new features for the site. For example, you can analyze vendor performance using vendor quotations, proposal evaluations and past invoices. Incorporate by To browse a complete catalog of School of Government publications, please visit the Schools website at www.sog.unc.edu or contact the Bookstore, School of Government, CB# 3330 Knapp-Sanders Building, UNC Chapel Hill, Chapel Hill, NC 27599-3330; e-mail sales@sog.unc.edu; telephone 919.966.4119; or fax 919.962.2707. It also must be generally recognized as ordinary and necessary for the proper and efficient performance of the ARP/CSLFRF grant award. 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. You skipped the table of contents section. UNC Chapel Hill
This requirement builds on the eligible use determination. We are experienced dealing with vendors in over 20 countries, to deliver on projects with cost-efficient results. hbbd```b``+d9dUH&)0yD`5~.X&Xd-X6^fH-@@~ After reviewing and analyzing data, managers can follow up and review more information, identify issues and resolve them. The economic relief package of $1.9 trillion became law on March 11, 2021. This blog post is for educational and informational use and may be used for those purposes without permission by providing acknowledgment of its source. 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. To promote appropriate and effective use of ARPA funds, jurisdictions should: Jurisdictionsshould also develop evidence-based methods of measuring performance and project goals to make sure that grantees meet those expectations. A different person should have the authority to approve payment, and that person must also know the terms of the contract to effectively review invoices. hb```nB eaXT00.I
T~hHZIs).oIuhJOJ-= 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. 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. This second article of the series discusses how to collect data and provides examples of how procurement officials can use the data. In that case, the vendor offered to provide the jurisdiction with the towing and storage services at no cost. Publishing and documenting clear standards in procurement solicitations and evaluation criteria on how a municipality will determine a responsive and responsible. Municipalities should ensure that factors that may be overly restrictive to free and open competition are not included, such as placing unreasonable requirements on vendors to qualify or establishing any steps in the procurement process that are arbitrary or irrelevant to the award of contracts necessary and reasonable for the implementation of the use of funds under this award. 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 559 0 obj
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https://canons.sog.unc.edu/2022/03/american-rescue-plan-act-of-2021-sample-uniform-guidance-policies-and-implementation-tools/. 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. Equipment and Real Property Management. Is there a strategic way to expend CSLFRF funds (i.e., how do we make the best use of funds and trigger the fewest compliance requirements)? However, Chapter 30B does not apply to federally funded procurements if following Chapter 30B would conflict with federal laws or regulations. In addition to Karas post, there is another new post on Procuring Single Audit services for ARPA funds. To help prioritize which vendors to audit, consider the factors below. Please remove any contact information or personal data from your feedback. infrastructure, potential enhancements of state funding resources, 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). Jurisdictions should always require the vendor to provide sufficient supporting documentation before making payment. Secure websites use HTTPS certificates. We welcome non-English speakers to contact us. The majority of these goods and services are purchased using the Uniform Procurement Act, M.G.L. Exceptions to requirements for small purchase or formal method competitive rules. 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. Campus Box 3330
It will be equally problematic from a compliance standpoint to have a policy your unit cannot or does not follow than to not have one at all. Generally, Chapter 30B applies even when a local jurisdiction uses federal funds to pay for supplies or services. of the Award Terms and Conditions. Program income does not include interest earned on advances of Federal funds, rebates, credits, discounts, or interest on rebates, credits, or discounts. Proposals must be solicited from an adequate number of qualified offerors. Please do not include personal or contact information. As an example, the Infrastructure Investment and Jobs Act provides that SLFRF funds may be used to meet the non-federal match requirements of authorized Bureau of Reclamation projects and certain broadband deployment projects. 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. Please see 2 CFR Part 200, Subpart E regarding the Cost Principles for more information. The expenditures for each eligible project are comprised of cost items. 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. Many of the UG provisions require that the local government adopt and implement policies and procedures to ensure compliance with its requirements. Consider whether prevailing wage rates apply. Track and maintain records of all grant-related documents, including communications, receipts and invoices. As part of its contract administration process, the housing authority discovered the improper charges when it reviewed its invoices closely. The jurisdiction stopped making payments to the vendor and began to investigate whether it entered into some sort of bulk purchasing scheme. Ongoing monitoring of any given subrecipient should reflect its assessed risk and include monitoring, identification of deficiencies, and follow-up to ensure appropriate remediation. The following sample policy may be appended to your local governments regular records retention policy. For example, a municipality may have an engineering and construction firm contracted to build a new community center and wants to use the same firm to perform citywide water and sewer infrastructure projects as permitted by the CLFRF. The best way to safeguard public funds is to dedicate personnel and time to review invoices as an important component of contract administration. When evaluating vendor invoices, jurisdictions may determine that some expenses require further review. Come with your questions and share your experiences and insights with colleagues across the State. There are many reasons to audit contracts with vendors and suppliers. The non-Federal entitys documented procurement procedures must conform to the procurement standards identified in 2 CFR 200.317 through 200.327. All public organizations rely on vendors to provide the supplies and services needed to operate effectively and efficiently. The regulations related to allowable costs and cost principles are complex. We will update the policy if/when we receive more guidance from US Treasury. The Thank you for your website feedback! Each of the considerations above, as well as operation and maintenance Once you have access, you can use the data to inform your decisions and manage risks. The state agency or municipality should first identify the goal of the audit, which will determine the type of audit to perform. Adhering to local procurement and contracting policies, standards, or procedures, including applicable local or state laws. The prevention and detection of fraud, waste and abuse of public funds always an important issue for government entities is even more critical now that jurisdictions are receiving billions of additional dollars in ARPA funding. See M.G.L. Payment reviews are a key part of contract administration, and insufficient reviews leave your jurisdiction vulnerable to improper or questionable payments to vendors. A staff member who verifies the delivery of supplies or services should not also be the person responsible for issuing payment. Confirm that the vendor billed at the rates stated in the contract or purchase order. %%EOF
A cost is consistently applied when it is applied uniformly to both federally-funded and other activities of the local government. Before engaging with any vendor, do your research and review your contract closely. Update: On January 6, 2022, the U.S. Department of the Treasury issued the Final Rule, which governs the eligible uses of Coronavirus State and Local Fiscal Recovery Funds (SLFRF) under the American Rescue Plan Act (ARPA).The Final Rule makes several key changes to the Interim Final Rule, including expanding the eligible uses of 128, 40064-40068. Can the municipality clearly document and justify the reasoning to utilize an existing vendor relationship in lieu of following normal procurement and contracting processes? 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. The smallest incongruity could lead to the discovery of a large fraud. 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). We then use this data to improve the Massachusetts Certified Public Purchasing Official Program. Also, remember the following: 1. 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. In addition, the vendor did not notify the housing authority before adding the fee to the invoice. Top-requested sites to log in to services provided by the state. c. 30B, (1)(b)(9). 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 Surveys are a helpful way to do this. In the February 2020 issue of the OIG Bulletin, we published the first in a series of articles to help demystify data analytics. WebOWRB ARPA Engineering Procurement Process . The record retention requirements for ARP/CSLFRF-related records are more stringent than those imposed under State law. If a local government received less than $10 million in CSLFRF funds, it may take the A .mass.gov website belongs to an official government organization in Massachusetts. Please limit your input to 500 characters. Then make sure that you have access to that data. With more complete information, local government officials are now looking to finalize (at least some) expenditure decisions. ARPA-funded projects must also adhere to North Carolina Use of this blog post for commercial purposes is prohibited. 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). %PDF-1.6
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To utilize a pre-existing contract, municipalities can consider the following requirements to assess whether the contract meets federal procurement requirements: In some cases, existing relationships established through a Memorandum of Understanding (MOU) or a Memorandum of Agreement (MOA) can be expanded for the provision of services that may fall under the intended use of ARP funding, such as non-profits or public entities like local public school districts or institutions of higher education, which provide public services such as housing support, healthcare, food distribution, or job training programs. Establish attainable program goals and targets, and understand which expenditures are allowable under federal law. The public expects that the local jurisdiction protected their interests, including ensuring that the vendor is qualified and that the towing charges are reasonable; and vendors expect open and fair competitive processes when a local jurisdiction contracts for a service that it needs. Below are a few examples of the range of schemes that vendors may engage in. 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 otherwise specified in program-specific guidance. Boilerplate audit clauses may inadvertently restrict the coverage of an audit or use vague terms that each party interprets differently, leading to disputes. 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. 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. All other non-Federal entities, including subrecipients of a State, must follow the procurement standards in 200.318 through 200.327. As indicated above, there may be ways to strategically spend the ARP/CSLFRF to minimize (but not eliminate) a local governments UG burden. If you do not follow Chapter 30B because of federal requirements, make sure you document this in writing in your procurement file. Government entities that have received ARPA funding may be able to award grants to third parties. The goal of a vendor fraud audit is to determine whether the vendor intentionally acted to defraud the contracting organization. The following is a sample policy: Recordkeeping Requirements. 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. Typical cost items include compensation and fringe benefits, materials and supplies, equipment and other capital, consultants/professional services, audits, communications, insurance, maintenance and repair, and rental costs. Data is everywhere, and every function a government performs can generate valuable data. American Rescue Plan Act of 2021: Sample Uniform Guidance Policies and Implementation Tools, -Boards of Mental Health, Developmental Disabilities, & Substance Abuse, -Affordable Housing & Minimum Housing Codes, -Professional Responsibility for Government Attorneys, Purchasing, Construction, Property Transactions, -Purchasing / Purchase Contracts / Purchase Orders, Assistance Listing: Coronavirus State and Local Fiscal Recovery Funds, US Treasury State and Local Fiscal Recovery Funds Compliance and Reporting Guidance, Subpart C, Pre-Federal Award Requirements and Contents of Federal Awards, Subpart D, Post Federal; Award Requirements, Project and Expenditure Report Tracking Template, Blog post explaining allowable cost and cost principles, Sample Allowable Cost and Cost Principles Policy, Sample Employee Effort Certification Form for 100% Covered Employees, Sample Employee Effort Certification Form for Less Than 100% Covered Employees, as outlined in paragraph 4.c. You can access that post here. Therefore, support from potential stakeholders senior management, the Board of Directors, department decision-makers is important for a successful audit engagement. State Government websites value user privacy. WebA nonfederal entity with federal expenditures in excess of $750,000 is required by law to have a single audit completed. For example, a municipality may have an existing contract for providing workforce development services that they wish to use starting July 1, 2021, but the contract expired in March 2021. 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). Most audits involve overcoming at least some animosity by parties who are resistant to having their work reviewed. Identify conflicts of interest, fraudulent activities or other wrongdoing. Capital Funds Project website. 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. ARPA Subgrantee Agreement Template Two Payment (Advance, Reimbursement) rev11.3.22 (DOCX) ARPA Subgrantee Counties with allocations under $10 million may spend their entire allocation on government services, but they may Web Must have documented procurement actions using strategic sourcing, shared services, and other similar procurement arrangements to support competition. Historical and external data sources might not provide the complete picture for your analysis. [26] 2 CFR 200.324-325, 2 CFR 200 Subpart E. The U.S. Department of the Treasury (Treasury). Additionally, ARPA funds are subject to oversight by certain state and federal agencies, including the Massachusetts OIG. WebWhen it comes to using ARPA funds, there are layers of rules towns have to follow (the U.S. Treasury says so right here on page 8): - Local procurement rules - New York State [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]. If you need assistance, please contact the Office of the Inspector General. Government entities should only pay invoices after confirming that the vendor has satisfactorily delivered all goods, has performed all required services according to the contract and has submitted an accurate invoice. 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. Protect your jurisdiction and thwart bid manipulation by: you suspect bid manipulation, contact the Office of the Inspector Generals fraud, waste and abuse hotline at (800) 322-1323. 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. The policy should be drafted with Chapter 30B principles in mind and should ensure that you allow for an open, fair and competitive process. For more information about adopting a procurement policy for your jurisdiction, please see page 3 of the Bulletin. If procurement is only possible through non-competitive methods, municipalities will need to justify use of a non-competitive procurement process, only permissible when one of the following conditions are met: the item is below the micro-purchase threshold established by the municipality; the item is only available from a single source; the public exigency or emergency will not permit a delay from publicizing a competitive solicitation; or after solicitation of a number of sources, competition is determined inadequate. 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