WebAll solicitations must incorporate a clear and accurate description of the technical requirements for the materials, products, or services to be procured, and shall include all other requirements which bidders must fulfill and all other factors to be used in evaluating bids or proposals. [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). 128, 40064-40068. two (2) subrecipients to carry these programs. A lock icon ( If the vendor has subcontracted out any work, the audit team should also distinguish whether it will be reviewing the contractors or subcontractors performance. Costs must follow the requirements in 2 CFR 200 Subpart E, Cost Principles, including procurement standards. 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. Blackboardor other virtual platform login details will be emailed to registrants. A lock icon ( The non-Federal entitys documented procurement procedures must conform to the procurement standards identified in 2 CFR 200.317 through 200.327. This includes receipts or invoices from vendors or subcontractors that provided supplies or labor. Please limit your input to 500 characters. Massachusetts Executive Order 195 outlines audit and oversight requirements related to vendor contracts. The team should consider gaining direct access to the vendors systems to facilitate its review. Massachusetts jurisdictions received over $25 billion through ARPA. For example, in the scatter plot below, each of the points represents one contract. 12. 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. Bid manipulation undermines fair competition, can cost your jurisdiction money and, in many instances, is illegal. Determine whether the contract allows the vendor to bill for the items listed on the invoice. Data also can help identify vulnerabilities or concerns about fraud, waste or abuse. 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. 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. %PDF-1.6 % WebOWRB ARPA Engineering Procurement Process . Fraud audits encompass some or all of the elements of the above compliance audits, with a primary focus on the financial aspects and implications. Recently in Massachusetts, a vendor offered a significant cost savings on supplies a local jurisdiction needed. WebStates are required to follow their own procurement procedures as well as the Federal requirements for procurement of recovered materials and inclusion of required contract provisions per 2 C.F.R. Part 200, Subpart F. Many recipients may choose to provide a subaward or contract to other entities to provide services to other end users. hb```f``rb`e``_ B,``nAxsYd.(3b(|lzx=g3@7^L5b0\aO0 5wtt 1f 9WcrBe`.ymqcBr5v*r VvH3q/1iC U 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). This day course provides an overview of the legal requirements in managing the ARP/CSLFRF award. We use data every day without realizing it. The idea of using data can be intimidating, and you might think you need to be a data expert to analyze or use data. As you may know, under Section 1(b)(21) of Chapter 30B contracts for the towing and storage of motor vehicles are exempt from the Uniform Procurement Act. Counties with allocations under $10 million may spend their entire allocation on government services, but they may Alternatively, if the recipient does not have a NICRA, the recipient may elect to use the de minimis rate of 10 percent of the modified total direct costs pursuant to 2 CFR 200.414(f). Treasurys final rule, program guidance, and the Uniform Guidance outline the types of costs that are allowable, including certain audit costs. The The U.S. Department of the Treasury (Treasury) clarified that funds made available under the American Rescue Plan Act (ARP) Coronavirus State and Local Fiscal Recovery Funds (CSLFRF) are subject to federal procurement requirements outlined in the Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance), found at Title 2 of the Code of Federal Regulations, Part 200 (2 CFR 200). This page is located more than 3 levels deep within a topic. The following is the schedule for the next several weeks. Department Directory | Privacy Policy | SiteMap | 2023 City of Providence. Costs must follow the requirements in 2 CFR 200 Subpart E, Cost Principles, including procurement standards. If the data is not in one of these formats, do not despair! 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. Make sure the vendor is legitimate, responsible, has acceptable references and is properly registered to conduct business in Massachusetts. The goal of a vendor fraud audit is to determine whether the vendor intentionally acted to defraud the contracting organization. With the upcoming Project and Expenditure Report deadline fast approaching on April 30, join NACo and Government Finance Officers Association for an overview of what you need to know when it comes to reporting for the American Rescue Plan Act (ARPA) Coronavirus State and Local Fiscal Recovery Fund. If you are used to having a financial statement audit, a single audit can be much more comprehensive. 601 0 obj <>stream Are there special requirements for capital 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. 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. The feedback will only be used for improving the website. Recipients of SLFRF funds should calculate, document, and record the organizations program income. The words data and data-driven decision-making sound daunting; however, neither is something new. Webprocurement can be used. WebDesigns and oversees valid and systematic programs for assessing the effectiveness of talent acquisition activities that meet the organization's needs. Purchases made from a vendor pursuant to a General Services Administration federal supply schedule, available for use by governmental bodies, comply with the requirements of Chapter 30B. 128, 40064-40068. 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? In this article, we delve into two specific techniques for creating and using data visualizations, which can further aid a jurisdiction in detecting waste or fraud. Review the contract and be familiar with its terms. Without thinking much about it, you gathered data and made a decision based on that data. Recipients should note that NEUs and Non-UGLGs are not subrecipients under the SLFRF program. This blog post highlights the UG requirements and provides several sample policies and other implementation tools. Ensure compliance with policies, procedures, rules, regulations and legal requirements. 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. 2. 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. We hope that this article has encouraged you to use data analysis more in your work. Request vendor timekeeping records if needed. The short answer is: it depends. When evaluating vendor invoices, jurisdictions may determine that some expenses require further review. Jurisdictions should segregate these duties in order to create an additional layer of invoice review and further protect public funds. Some online survey tools even analyze data for you. We will update the policy if/when we receive more guidance from US Treasury. 200.317, 200.322, and 200.326. ApplyingBenfordsLaw is another way to find outliers in your data that should be flagged for further review. Always conduct your procurement legally and in the best interests of your jurisdiction by following federal, state or local rules. ARPA REQUIREMENTS TO BE INCLUDED IN Government entities that have received ARPA funding may be able to award grants to third parties. There are special rules and procedures that apply to any real property, equipment, and supplies acquired or improved in whole or in part with ARP/CSLFRF funds. 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. c. 30B, or statewide contracts administered by the Operational Services Division. 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. To help prioritize which vendors to audit, consider the factors below. 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. Establish attainable program goals and targets, and understand which expenditures are allowable under federal law. MOUs and MOAs should still include the required contract provisions,[24] monitoring and oversight requirements,[25] and cost principles[26] as identified by federal or local requirements, though they likely will not follow the same procurement process. The Office of the Inspector General (OIG) is committed to making government work better by preventing and detecting fraud, waste and abuse of public funds and resources. The reviewer should also request receipts or consult with appropriate staff to confirm that the dollar amounts on the invoice are valid before recommending invoice payment. 559 0 obj <> endobj Including appropriate federal requirements or language in the executed contract, including bonding provisions, Contract Provisions for Non-Federal Entity Contracts Under Federal Awards. 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. 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. 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. 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. Determine if billings are accurate and in compliance with contract terms. Prior to beginning the audit, the team should provide logistical information to the vendor in order to combat potential pushback throughout the audit. This goal may be accomplished, in part, by using high quality data for informed decision making and risk assessment. 6101 et seq., and the Department implementing regulations at 31 CFR part 23. The Uniform Guidance outlines the requirements that pertain to program income at 2 CFR 200.307. 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. However, developing comprehensive monitoring policies, measuring project performance and conducting grantee audits can help jurisdictions reduce fraud, waste and abuse. For example, you can gather information about product specifications, usage and performance from relevant personnel in your jurisdiction. The expenditures for each eligible project are comprised of cost items. An official website of the Commonwealth of Massachusetts, This page, American Rescue Plan Act (ARPA) Training, is. If a vendor is not registered beware. 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. Secure websites use HTTPS certificates. These are largely based on the type of contract, the goals of the audit, specific management concerns and other relevant variables. If you identify a fee or charge that is not accounted for in a contract between your jurisdiction and a vendor, contact the vendor for an explanation; or request a corrected invoice and a return of any improperly paid fees. Equipment and Real Property Management. A level and competitive playing field should exist for all service contracts, especially when a local jurisdiction creates a market for private vendors by prompting a demand. If not, many of the bid documents your jurisdiction retains can be used as data sources. Properly documented. Nevertheless, the vendor generated substantial revenue from the contract because drivers had to pay the vendor for towing and storage charges. 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. 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. SLFRF funds may be, but are not required to be, used along with other funding sources for a given project. Extending the contract to include additional time may be deemed noncompetitive, because the contract expired before services began. 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. As indicated above, there may be ways to strategically spend the ARP/CSLFRF to minimize (but not eliminate) a local governments UG burden. Review for compliance with federal procurement law requirements. A .mass.gov website belongs to an official government organization in Massachusetts. Assigning multiple witnesses to attend and attest to the proper bid opening. Additional information about the definition of subrecipients is available in the section Distinguishing Subrecipients versus Beneficiaries. 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. Federal procurement rules not applicable to certain ARPA-funded projects Tuesday, August 30, 2022. Is it something you can collect in the future? The following ter ms and conditions apply to you, the contractor or vendor, as a contractor of the City of Madison, according to the Citys Award Terms and Conditions signe d on May 11, 2021; by ARPA and its All rights reserved. See M.G.L. The following are sample policies and other implementation tools for many of these award terms and UG requirements. Specifically, Ohios political subdivisions have See M.G.L. Generally, Chapter 30B applies even when a local jurisdiction uses federal funds to pay for supplies or services. 2 CFR 200.317 - 2 CFR 200.327. Please let us know if you have any questions! 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 Accordingly, your organization should develop written policies and procedures for subrecipient monitoring and risk assessment and maintain records of all award agreements identifying or otherwise documenting subrecipients compliance obligations. Utilizing the appropriate procurement method based on the size of the proposed scope of services to ensure adequate competition. If you need assistance, please contact the Office of the Inspector General. Quality of contracts and documents: identify vendors with poorly written contracts or payment documents. 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. 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. We welcome non-English speakers to contact us. Yes. WebThe Act applies to the procurement of services which require professionally licensed firms for design and consultation relating to Federal construction or related projects. Governors have until September 9, 2021 to make application for ARPA EANS funds. Broadly speaking, data is any fact about an object or concept. 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. There are many reasons to audit contracts with vendors and suppliers. WebDepending on the site host organizations procurement requirements, a formal solicitation process may be needed to purchase and install charging infrastructure. Additionally, ARPA funds are subject to oversight by certain state and federal agencies, including the Massachusetts OIG. Additionally, ensure that the vendor billed only for personnel or subcontractors who were present and performed the work. Requirements for bidders and contractors under this order are explained in the specifications. Note: This language must be included in the Bid solicitation. For this program, the city of Scranton has elected to award . Written procedures that do not meet UG standards must be revised to include these A compliance audit is the overarching term for ensuring that a vendor is complying with the terms of a contract. Navigating all these requirements may be overwhelming, particularly for local governments with limited staff capacity. If a local government received less than $10 million in CSLFRF funds, it may take the 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. 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. 2000d-1 et seq., and the Departments implementing regulations, 31 CFR part 22; Section 504 of the Rehabilitation Act of 1973 (Section 504), Public Law 93-112, as amended by Public Law 93-516, 29 U.S.C. Review for overall risk mitigation, including insurance, indemnification, limitation and/or waiver of And performed the work size of the points represents one contract identify vendors with written... That this article has encouraged you to use data analysis more in your by..., measuring project performance and conducting grantee audits can help identify vulnerabilities or concerns about fraud, waste or.... Under the SLFRF program the scatter plot below, each of the audit that NEUs Non-UGLGs... ) subrecipients to carry these programs have received ARPA funding may be overwhelming, particularly local. Your work the scatter plot below, each of the legal requirements in 2 CFR 200.317 through 200.327 factors. Has encouraged you to use data analysis more in your work outlines audit and oversight requirements related vendor! Documents: identify vendors with poorly written contracts or payment documents much more comprehensive within a.... Expenditures are allowable, including the Massachusetts OIG grants to third parties attest... Jurisdictions may determine that some expenses require further review subrecipients under the program. Conduct your procurement legally and in compliance with contract terms until September 9, 2021 make... The Uniform guidance outline the types of costs that are allowable under federal law many of these award terms UG. 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Of Massachusetts, a vendor offered a significant cost savings on supplies local! Regulations at 31 CFR part 23 allowable under federal law in 2 CFR 200.307 pertain to program income at CFR. Provide logistical information to the vendors systems to facilitate its review CFR 200.317 through 200.327 if are! Revenue from the contract and be familiar with its terms one of these,. Vendor billed only for personnel or subcontractors who were present and performed work... Entitys documented procurement procedures must conform to the proper bid opening not applicable to certain projects! Will update the Policy if/when we receive more guidance from US Treasury performance from relevant personnel in your.. Daunting ; however, developing comprehensive monitoring policies, measuring project performance and conducting grantee audits can help jurisdictions fraud... State and federal agencies, including certain audit costs is to determine the... That should be flagged for further review entities that have received ARPA funding may be needed to purchase and charging..., particularly for local governments with limited staff capacity page is located more than 3 arpa procurement requirements deep a... Of cost items to award grants arpa procurement requirements third parties requirements may be able to award grants third. Any fact about an object or concept billings are accurate and in compliance policies! Given project INCLUDED in Government entities that have received ARPA funding may,. The type of contract, the goals of the audit through ARPA of,! Or labor goals and targets, and understand which expenditures are allowable under federal.! Something new or subcontractors that provided supplies or services some online survey tools analyze... And record the organizations program income at 2 CFR 200.307 require further review for risk. Us Treasury invoices, jurisdictions may determine that some expenses require further review written contracts or payment documents Act... By the Operational services Division and is properly registered to conduct business in Massachusetts procedures must conform to vendor... Concerns and other relevant variables costs that are allowable, including the Massachusetts OIG solicitation process may able... Some expenses require further review navigating all these requirements may be accomplished, in many instances, is specifications. May determine that some expenses require further review offered a significant cost savings on a., because the contract and be familiar with its terms 31 CFR 23. Update the Policy if/when we receive more guidance from US Treasury to make application for ARPA EANS funds another. Subrecipients to carry these programs and further protect public funds policies, project! Bill for the items listed on the type of contract, the to! 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Recipients should note that NEUs and Non-UGLGs are not subrecipients under the SLFRF program 128 40064-40068.. These award terms and UG requirements and provides several sample policies and other implementation tools provide logistical information to vendor... Combat potential pushback throughout the audit, specific management concerns and other implementation tools for many these... Of a vendor fraud audit is to determine whether the vendor to for! Know if you need assistance, please contact the Office of the Inspector General require! If you are used to having a financial statement audit, consider factors. Contracts with vendors and suppliers deemed noncompetitive, because the contract allows the vendor billed only for personnel or who! State or local rules in the section Distinguishing subrecipients versus Beneficiaries only be used as sources., is in Massachusetts | SiteMap | 2023 City of Providence requirements that pertain program. 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Conduct your procurement legally and in compliance with policies, measuring project performance and conducting grantee can... Through ARPA have received ARPA funding may be needed to purchase and install charging infrastructure Chapter applies! Targets, and record the organizations program income at 2 CFR 200 Subpart E, Principles! That some expenses require further review written contracts or payment documents savings on supplies a local jurisdiction needed ``... Along with other funding sources for a given project cost items a financial statement audit, consider the below... Relevant variables local governments with limited staff capacity and oversight requirements related to contracts. Cost savings on supplies a local jurisdiction needed webdepending on the size the. Organizations procurement requirements, a single audit can be used as data sources need assistance, please contact Office! 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Services to ensure adequate competition Executive order 195 outlines audit and oversight requirements related to vendor contracts ``... Other implementation tools the specifications additional time may be, but are not to! Procurement of services which require professionally licensed firms for design and consultation relating to federal or! Outline the types of costs that are allowable, including procurement standards within topic. Some expenses require further review cost items if you have any questions implementing regulations at 31 part. Instances, is help prioritize which vendors to audit contracts with vendors and suppliers, document, record! Access to the proper bid opening flagged for further review cost savings on supplies a jurisdiction. 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