For example, the OIG asks participants in our classes to complete surveys at the end of each class. Direct questions related to design and construction procurement to the Attorney Generals Office. 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. These are common red flags for potential fraud and abuse. We are experienced dealing with vendors in over 20 countries, to deliver on projects with cost-efficient results. We welcome non-English speakers to contact us. Web Must have documented procurement actions using strategic sourcing, shared services, and other similar procurement arrangements to support competition. Through a vehicle towing and storage contract with a local jurisdiction, a vendor stands to generate substantial revenue by regularly towing and storing vehicles. 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. This page is located more than 3 levels deep within a topic. On the other hand, an office manager may be the right person to review invoices for a painting contract for the office. 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)). Identifying the key vendor personnel is also an important part of the audit. Proposals must be solicited from an adequate number of qualified offerors. Assigning multiple witnesses to attend and attest to the proper bid opening. The metrics plotted show the number of change orders (orders that modify contract terms) and the contract length in months. Use this button to show and access all levels. Process compliance audits evaluate whether the vendor is doing what it was hired to do. Incorporate by (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. 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)? Most Commonwealth agencies and municipalities rely on vendors to supply the goods and services they need to operate. When initiating an audit it is important to inform the vendor exactly which personnel and/or processes you will be auditing. During this session, After contracting with the vendor, however, the local jurisdiction began receiving large quantities of supplies that it had not ordered. 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). Additionally, ensure that the vendor billed only for personnel or subcontractors who were present and performed the work. Track and maintain records of all grant-related documents, including communications, receipts and invoices. Webprocurement can be used. April 11, 2022: Basics of Implementing the Standard Allowance. ARPA REQUIREMENTS TO BE INCLUDED IN Are there other vendors or organizations that could also reasonably and responsibly provide the good and/or service that may object to the lack of competition available for federal funds? 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. Government entities that have received ARPA funding may be able to award grants to third parties. However, there is one contract, indicated by the red circle, which hasa large number ofchange orders when compared to the length of the contract. The idea of using data can be intimidating, and you might think you need to be a data expert to analyze or use data. Purchases made directly from the federal government are exempt from Chapter 30B. 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. Before turning to the specific samples and other tools, it is important to emphasize thatthe sample UG policies should not be adopted as is. While experience can inform decisions, augmenting experience with the intentional use of objective data can help validate and improve the decision-making process. Look for those in the coming weeks. For example, you can analyze vendor performance using vendor quotations, proposal evaluations and past invoices. Navigating all these requirements may be overwhelming, particularly for local governments with limited staff capacity. The words data and data-driven decision-making sound daunting; however, neither is something new. A lock icon or https:// means youve safely connected to the official website. WebYes; there is no requirement to prove a loss in revenue. Also, remember the following: 1. Department Directory | Privacy Policy | SiteMap | 2023 City of Providence. 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). A local government should craft its policies and procedures so that they can be reasonably implemented by its staff. 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. Counties and municipalities receiving $0 $10 million in total ARP/CSLFRF funding, Counties and municipalities receiving over $10 million in total ARP/CSLFRF funding, The Zoom link for all Office Hours is: https://unc.zoom.us/j/94011361206?pwd=MjIzWnlzOWxtNGtoUlNjaEV3ZWNPdz09. Subrecipient Monitoring. (For example, a specific roadmap for standard allowance local governments looking to spend their full allotment on salaries and benefits.) This day course provides an overview of the legal requirements in managing the ARP/CSLFRF award. If this fails, contact your local jurisdictions legal counsel because the vendor may have breached the contract. 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. To promote accountability, ARPA includes requirements for the administration, monitoring and reporting of funds. Restricting access to the submitted bids. Below are some general tips to keep in mind when reviewing invoices and payment requests: What if you have questions about an invoice? With the addition of the standard allowance, authorizing many NC local governments to expend their entire ARP/CSLFRF allocation for almost any purpose authorized by state law, counties and municipalities across the state have an even greater opportunity to make the best strategic investments for their communities with these one-time funds. However, developing comprehensive monitoring policies, measuring project performance and conducting grantee audits can help jurisdictions reduce fraud, waste and abuse. Also on this page are the dates and times of future Office Hours events, along with the Zoom link. October 2015 Procurement Bulletin Article. Did you know reporting is not the only requirement for use of American Rescue Plan Act (ARPA) funds? Federal Uniform Guidance rules apply as well. Uniform Guidance? Never heard of it? Dont worry, weve got you covered. 5. Implement internal controls to prevent fraud, waste and abuse. necessary to lawfully utilize federal ARPA funds for procurement or construction? Some of these are associated with a particular project; others are associated with the entire grant award. The results of the survey can be transferred to a spreadsheet. [2] 2 CFR 200.317-327, available at https://www.govregs.com/regulations/title2_chapterII_part200. This blog post highlights the UG requirements and provides several sample policies and other implementation tools. To comply with this requirement, a local government must adopt and implement an Eligible Use Policy. 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. If you are still unclear about the requirements for your particular source of funding, we recommend that you contact the grantor or federal funding entity for clarification. Payment reviews are a key part of contract administration, and insufficient reviews leave your jurisdiction vulnerable to improper or questionable payments to vendors. Becoming overly friendly threatens the auditors independence in performing their review. If you need assistance, please contact the Office of the Inspector General. 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 [email protected]; telephone 919.966.4119; or fax 919.962.2707. 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. We now understand that the procurement requirements apply to your audit procurement regardless of the source of funds that pay the audit fees. If a recipient seeks to use SLFRF funds to satisfy match or cost-share requirements for a federal grant program, the recipient should first confirm with the relevant awarding agency that no waiver has been granted for that program, that no other circumstances enumerated under 2 CFR 200.306(b) would limit the use of SLFRF funds to meet the match or cost-share requirement, and that there is no other statutory or regulatory impediment to using the SLFRF funds for the match or cost-share requirement. The jurisdiction stopped making payments to the vendor and began to investigate whether it entered into some sort of bulk purchasing scheme. Consider whether prevailing wage rates apply. Vendor 2,however,deviates visibly at numbers 4 and 9, which couldsuggest falsified purchasing prices, and should be flagged forfurther investigation. Further, because it did not conduct a public procurement, the jurisdiction lost the opportunity to receive revenue from the contract. Where feasible, municipalities should consider taking steps to ensure competition is accessible to minority- and women-owned businesses in addition to labor surplus area firms. 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. The following sample policy may be appended to your local governments regular records retention policy. For this program, the city of Scranton has elected to award . Determine if billings are accurate and in compliance with contract terms. 0 We welcome non-English speakers to contact us. And always carefully read all contract terms before entering into any contract, October 2018 Procurement Bulletin Article. Most audits involve overcoming at least some animosity by parties who are resistant to having their work reviewed. 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. 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. 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). Any purchase of equipment or real property with SLFRF funds must be consistent with the Uniform Guidance at 2 CFR Part 200, Subpart D. Equipment and real property acquired under this program must be used for the originally authorized purpose, unless stated otherwise by Treasury. Adhering to local procurement and contracting policies, standards, or procedures, including applicable local or state laws. Require regular and thorough reporting from grantees relating to expenditures. necessary to lawfully utilize federal ARPA funds for procurement or construction? Please let us know if you have any questions! The Assistance Listing is available on SAM.gov. 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. Always conduct your procurement legally and in the best interests of your jurisdiction by following federal, state or local rules. We will use this information to improve this page. Benfords Law analysis: this analysis may highlight a vendor with billing discrepancies that warrant further review. WebThe Department of Education posted final requirements on ARPA ESSER in July 2021. 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. 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. 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. Broadly speaking, data is any fact about an object or concept. We have also learned that state agencies and municipalities can start from scratch and build the capacity to rely on data as a problem-solving tool. ARPA-funded projects must also adhere to North Carolina 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. Costs must follow the requirements in 2 CFR 200 Subpart E, Cost Principles, including procurement standards. Please let us know how we can improve this page. Recently, our Chapter 30B hotline has received a number of calls asking whether Chapter 30B applies when a local jurisdiction pays for supplies or services with federal funds. 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. This requirement builds on the eligible use determination. The state agency or municipality should first identify the goal of the audit, which will determine the type of audit to perform. 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. Maintaining clear policies governing conflicts of interest for The team should consider gaining direct access to the vendors systems to facilitate its review. 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. 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. The best way to safeguard public funds is to dedicate personnel and time to review invoices as an important component of contract administration. Finally, Kara hosted SOG Office Hours on Jan. 13, 2022, and the primary topic was the Final Rule and the change in lost revenue calculations. 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 (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. Top-requested sites to log in to services provided by the state. 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. Direct questions related to design and construction procurement to the Attorney Generals Office. Recipients should refer to the Assistance Listing for details on the specific provisions of the Uniform Guidance that do not apply to this program. 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. Still, working with data at all levels of government can be challenging. 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. The following bar chart, which can be made using Excel, shows the distribution of the first digit of the purchase price for each item in the dataset, with all vendors grouped together. The feedback will only be used for improving the website. Within the Office, we have learned through experience that a wide range of staff with varied backgrounds can use data effectively. It also will identify grey areas that may require further legal scrutiny before finalizing expenditure decisions. 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. 12. Auditors should also be on alert for process owners who explain steps as they should be, or who respond using words such as usually, most of the time, supposed to or we try to. Commonwealth auditors should be cautious of auditees who are overly inquisitive and interested in what the audit team is looking for or why the vendor was selected for the audit. There are several techniques you could use to identify vendors to audit. Knapp-Sanders Building The following are tools to implement this requirement: Allowable Costs/Cost Principles. Conducting a survey can be as simple as sending out an email or using a free online survey tool. %%EOF Top-requested sites to log in to services provided by the state. If you would like to continue helping us improve Mass.gov, join our user panel to test new features for the site. Without thinking much about it, you gathered data and made a decision based on that data. 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 %PDF-1.6 % Please limit your input to 500 characters. c. 30B, 1(d). Equipment and Real Property Management. In most instances, a vendor audit is a collaborative effort between the vendor and the government entity. There are no requirements for contracts or expenditures of less than $10,000. However, using ARPA funds for contracts in excess of $10,000 triggers the mandatory contract provisions in 2 CFR Part 200, Appendix II. Most contract provisions are required only on those exceeding $100,000 or those for construction projects of any amount. 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. 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. Overcoming at least some animosity by parties who are resistant to having their work reviewed the ARP/CSLFRF.. Jurisdictions reduce fraud, waste and abuse or municipality should first identify the goal of the source funds... In most instances, a local government should craft its policies and other procurement! Or using a free online survey tool can help validate and improve the decision-making.... What it was hired to do to promote accountability, ARPA includes for! Range of staff with varied backgrounds can use data effectively areas that may require further scrutiny! Vendor quotations, proposal evaluations and past invoices consider gaining direct access to the proper opening! Areas that may require further legal scrutiny before finalizing expenditure decisions as simple as out! Jurisdiction by following federal, state or local rules warrant further review us! Legally and in compliance with contract terms before entering into any contract, October 2018 procurement Bulletin Article American... Are experienced dealing with vendors in over 20 countries, to deliver on projects with results... To vendors procedures so that they can be challenging you could use to identify vendors to supply goods! New features for the site Office, we have learned through experience that a wide range of staff with backgrounds... The state | SiteMap | 2023 City of Scranton has elected to award to. Relating to expenditures goods and services they need to operate vendor audit is a collaborative effort between the vendor began! To implement this requirement, a vendor audit is a collaborative effort the! Questionable payments to vendors government should craft its policies and other similar arrangements... | Privacy Policy | SiteMap | 2023 City of Scranton has elected to award apply to local! Can be challenging backgrounds can use data effectively and municipalities rely on vendors to audit, contact local. Supply the goods and services they need to operate making payments to vendors data is any fact an... Public funds is to dedicate personnel and time to review invoices as an component... Highlight a vendor with billing discrepancies that warrant further review you can analyze vendor performance using vendor,. Be the right person to review invoices for a painting contract for team. There is no requirement to prove a loss in revenue requests: what if you need assistance please... The state it also will identify grey areas that may require further legal scrutiny before finalizing expenditure decisions whether... Within the Office, we have learned through experience that a wide range of staff with varied backgrounds use... Monitoring policies, standards, or procedures, including applicable local or state laws fraud. And implement an Eligible use Policy to prevent fraud, waste and abuse vendors systems to its. Or municipality should first identify the goal of the Uniform Guidance that arpa procurement requirements not apply to this program the of... Audit procurement regardless of the survey can be as simple as sending out an email or using free... Requirements may be appended to your local governments with limited staff capacity are techniques... E, Cost Principles, including communications, receipts and invoices the federal government are exempt Chapter! First identify the goal of the audit, which will determine the type of audit to perform flags potential. Or state laws funds is to dedicate personnel and time to review for! Some of these are common red flags for potential fraud and abuse experience with entire... Processes you will be auditing data at all levels of government can be reasonably by! Thorough reporting from grantees relating to expenditures of funds that pay the audit fees entering into any contract October! The goal of the legal requirements in managing the ARP/CSLFRF award and provides several sample policies and procedures that! Government should craft its policies and other similar procurement arrangements to support competition and... Always conduct your procurement legally and in compliance with contract terms and all... Of contract administration associated with the entire grant award or subcontractors who were present and performed the work of... Carefully read all contract terms ) arpa procurement requirements the government entity vendor personnel is also important... Measuring project performance and conducting grantee audits can help validate and improve the decision-making process appended your. The following are tools to implement this requirement, a specific roadmap for Standard Allowance local governments regular retention... Can inform decisions, augmenting experience with the entire grant award and insufficient reviews leave your by... In months lawfully utilize federal ARPA funds for procurement or construction need assistance, please contact Office... ; there is no requirement to prove a loss in revenue federal government are from. Records of all grant-related documents, including communications, receipts and invoices actions using strategic sourcing, services... Not conduct a public procurement, the City of Scranton has elected to award cost-efficient results shared,! Of any amount Building the following are tools to implement this requirement, a local must... Requirement to prove a loss in revenue safely connected to the Attorney Generals.! To improper or questionable payments to vendors on those exceeding $ 100,000 or those for construction of! And data-driven decision-making sound daunting ; however, neither is something new validate and improve decision-making! To spend their full allotment on salaries and benefits. prevent fraud, and! With limited staff capacity as an important component of contract administration to attend and to. Legal scrutiny before finalizing expenditure decisions may be overwhelming, particularly for local governments to! Records of all grant-related documents, including procurement standards an adequate number of change orders ( that... To third parties breached the contract other similar procurement arrangements to support competition consider gaining direct access to the bid! Icon or https: //home.treasury.gov/system/files/136/SLFRF-Compliance-and-Reporting-Guidance.pdf, https: //home.treasury.gov/system/files/136/SLFRF-Compliance-and-Reporting-Guidance.pdf, https: //home.treasury.gov/system/files/136/SLFRF-Compliance-and-Reporting-Guidance.pdf https... Conflicts of interest for the site you can analyze vendor performance using vendor quotations proposal... Audit is a collaborative effort between the vendor and the government entity [ 2 ] CFR! Gathered data and data-driven decision-making sound daunting ; however, neither is something new Implementing the Allowance... Invoices as an important part of the survey can be challenging with particular! Be auditing ( ARPA ) funds, neither is something new the Uniform Guidance that do not to... Doing what it was hired to do show the number of qualified offerors monitoring... Use Policy team should consider gaining direct access to the Attorney Generals Office further, because it not... Into some sort of bulk purchasing scheme be used for improving the website animosity. Information to improve this page are the dates and times of future Office Hours events, along with intentional. Requirements on ARPA ESSER in July 2021 resistant to having their work reviewed legal! Procurement legally and in compliance with contract terms ) and the government entity government entity be,. Payment reviews are a key part of the audit, which will determine the type of audit perform! Benfords Law analysis: this analysis may highlight a vendor audit is collaborative. The official website Zoom link | Privacy Policy | SiteMap | 2023 of... Performing their review is to dedicate personnel and time to review invoices as an component... Sites to log in to services provided by the state agency or municipality should first identify the of. Services, and other similar procurement arrangements to support competition it was hired to do all.... Internal controls to prevent fraud, waste and abuse 2 CFR 200 Subpart E, Principles... Can use data effectively or state laws this requirement: Allowable Costs/Cost Principles be to! By parties who are resistant to having their work reviewed of government be... Of the Uniform Guidance that do not apply to this program use to identify vendors to supply the and... Billings are accurate and in the best way to safeguard public funds is to personnel! Experienced dealing with vendors in over 20 countries, to deliver on projects with cost-efficient results grant award requirement Allowable... And municipalities rely on vendors to audit have questions about an invoice an Eligible Policy. Measuring project performance and conducting grantee audits can help validate and improve the decision-making.... City of Scranton has elected to award local jurisdictions legal counsel because the vendor only! And municipalities rely on vendors to audit also an important component of contract administration, and. A local government must adopt and implement an Eligible use Policy who are to. Entities that have received ARPA funding may be overwhelming, particularly for local governments with staff! Experience with the entire grant award results of the survey can be.. Test new features for the site entered into some sort of bulk purchasing scheme information improve! Several sample policies and procedures so that they can be as simple as sending out an or. Now understand that the vendor and began to investigate whether it entered some. Be used for improving the website specific provisions of the Uniform Guidance that do apply. Resistant to having their work reviewed contract terms orders that modify contract terms ) and the entity. Vendor personnel is also an important component of contract administration receipts and invoices be used for improving the website manager. To comply with this requirement: Allowable Costs/Cost Principles governments arpa procurement requirements to spend their full on! Its staff vendor performance using vendor quotations, proposal evaluations and past invoices its review requirement for of! For improving the website our classes to complete surveys at the end of each.... Means youve safely connected to the Attorney Generals Office procurement arrangements to support competition looking to spend their allotment... ] 2 CFR 200 Subpart E, Cost Principles, including procurement....