arpa procurement requirements
Process compliance audits evaluate whether the vendor is doing what it was hired to do. endstream endobj startxref We are experienced dealing with vendors in over 20 countries, to deliver on projects with cost-efficient results. Procurement and contracting requirements are in place as best practices to mitigate the risk of fraud, waste, or abuse of federal funds and are designed to ensure that federally funded contracts are competitive and fair. All public organizations rely on vendors to provide the supplies and services needed to operate effectively and efficiently. Treasury intends to provide additional guidance regarding program income and the application of 2 CFR 200.307(e)(1). 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. 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). Data visualization and analysis can be particularly useful in identifying and preventing potential fraud, waste and abuse of public resources. ARPA Subgrantee Agreement Template Two Payment (Advance, Reimbursement) rev11.3.22 (DOCX) ARPA Subgrantee Webprocurement, with 2 CFR 200.319(b) addressing engineering services procurement guidelines. 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. Suspicious invoices: even or round invoice amounts, as well as non-sequential invoices, are red flags. 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. Some page levels are currently hidden. Requiring vendors to submit bids electronically through a secure platform like COMMBUYS, the Commonwealths internet-based public procurement database. External sources are another area from which data can be gathered and used in an analysis. 12. 128, 40064-40068. During this session, Kara Millonzi has posted her initial take on the final rule in her Coates Canons post, available here. Indirect costs are general overhead costs of an organization where a portion of such costs are allocable to the SLFRF award such as the cost of facilities or administrative functions like a directors office. Vendors may charge fees and raise prices over the course of a contract, only if the contract allows for the same. The data from these documents can be combined to help make decisions about the award of future contracts. 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. Additional information about the definition of subrecipients is available in the section Distinguishing Subrecipients versus Beneficiaries. 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)). x@AP,(Qm -R`PF%LGd8X1`ol: +t0@]-]~W,4 XC! $@a If the vendor has subcontracted out any work, the audit team should also distinguish whether it will be reviewing the contractors or subcontractors performance. The following is a sample policy: Recordkeeping Requirements. 3) Consider publishing all sole source requests for public notice. 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. This data should alert you to the possibility that the employee may be committing fraud and that you should investigate the matter further. An official website of the Commonwealth of Massachusetts, This page, OIG Bulletin Articles Related to the Use of ARPA Funds, is, OIG Bulletin Articles Related to the Use of ARPA Funds. Jurisdictions should segregate these duties in order to create an additional layer of invoice review and further protect public funds. WebThe State will comply with 200.321, 200.322, and 200.323 and ensure that every purchase order or other contract includes any clauses required by 200.327. Subrecipients are subject to an audit pursuant to the Single Audit Act and 2 CFR part 200, subpart F regarding audit requirements, whereas contractors are not subject to an audit pursuant to the Single Audit Act and 2 CFR part 200, subpart F regarding audit requirements. The Uniform Guidance outlines the requirements that pertain to program income at 2 CFR 200.307. Identify and understand the intended uses of the funds in the grant award agreement. In the February 2020 issue of the OIG Bulletin, we published the first in a series of articles to help demystify data analytics. For this program, the city of Scranton has elected to award . Most audits involve overcoming at least some animosity by parties who are resistant to having their work reviewed. Therefore, support from potential stakeholders senior management, the Board of Directors, department decision-makers is important for a successful audit engagement. UNC Chapel Hill These guidelines are not a comprehensive list, but a reminder that organizations should remain cautious when disbursing funds. We will use this information to improve this page. Restricting access to the submitted bids. A local jurisdiction recently sought guidance from the Office related to the procurement of towing and storage of motor vehicles. Massachusetts jurisdictions received over $25 billion through ARPA. 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. This helps maintain the integrity of the payment process. 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. 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. Confirm that someone from the jurisdiction has inspected the work or supplies and determined that they meet the terms of the contract. 165 0 obj <> endobj Past performance: for example, businesses previously on state or federal suspension or debarment lists may pose a greater risk of noncompliance or poor performance. Payment reviews are a key part of contract administration, and insufficient reviews leave your jurisdiction vulnerable to improper or questionable payments to vendors. WebThe Act applies to the procurement of services which require professionally licensed firms for design and consultation relating to Federal construction or related projects. Federal Register Publication Vol 85 No. Please see 2 CFR Part 200, Subpart E regarding the Cost Principles for more information. Mayor Smiley wants to hear from you! Recipients should also note that subrecipients do not include individuals and organizations that received SLFRF funds as end users. And always carefully read all contract terms before entering into any contract, October 2018 Procurement Bulletin Article. Use this button to show and access all levels. Including appropriate federal requirements or language in the executed contract, including bonding provisions, Contract Provisions for Non-Federal Entity Contracts Under Federal Awards. For example, the OIG asks participants in our classes to complete surveys at the end of each class. SLFRF funds beyond those that are available under the revenue loss eligible use category may not be used to meet the non-federal match or cost-share requirements of other federal programs, other than as specifically provided for by statute. The right person to review an invoice depends on the type of contract, including its size and complexity. Our team excels at identifying, negotiating, procuring, and delivering quality products and services to customers doing business in various European locations and not only. If you would like to continue helping us improve Mass.gov, join our user panel to test new features for the site. Specifically, Ohios political subdivisions have We welcome non-English speakers to contact us. We will use this information to improve this page. While a right-to-audit clause gives the team the contractual authority to conduct the audit, getting buy-in from management will help make the audit more efficient and effective. The vendor deducted the administrative fee from the monthly payment it made to the housing authority even though this was not part of the contract between the housing authority and the vendor. 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. Pertinent documents may include invoices, payment information, purchase orders, requisitions, general ledgers, cash disbursements, check registrars, transactional data histories and contract bid documents. If a local government received less than $10 million in CSLFRF funds, it may take the Look for those in the coming weeks. 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. These awards are as follows: 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. Top-requested sites to log in to services provided by the state. Our confidential hotline is for public employees and individuals with Chapter 30B procurement questions. 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. hbbd```b`` DHl"Yn H2|+H3$00M 2@ o. The contract did not entitle the vendor to charge an administrative fee and the housing authority rightly refused to pay it. People often make business decisions based on intuition, anecdotes or institutional lore. This includes receipts or invoices from vendors or subcontractors that provided supplies or labor. The bar chart shows that the purchase prices, when grouped together, closely follow the expected distribution of numbers according toBenfordsLaw. Suggestions are presented as an open option list only when they are available. The standard allowance is available to all counties, including ones with allocations under $10 million. Counties with allocations under $10 million may spend their entire allocation on government services, but they may Those requirements include ensuring that entities receiving Federal financial assistance from the Treasury do not deny benefits or services, or otherwise discriminate 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. Any acquisition and maintenance of equipment or real property must also be in compliance with relevant laws and regulations. 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. 195 0 obj <>stream Require regular and thorough reporting from grantees relating to expenditures. 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. Please do not include personal or contact information. In your role as a procurement official, you may already track bids and price quotations in Excel. It also will identify grey areas that may require further legal scrutiny before finalizing expenditure decisions. 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). 6. Incorporate by We welcome non-English speakers to contact us. Please limit your input to 500 characters. 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. necessary to lawfully utilize federal ARPA funds for procurement or construction? We use data every day without realizing it. Or maybe you used a more sophisticated tool to make that decision for example, the weather app on your phone but in both cases you used data to decide to wear a raincoat. Vendor 2,however,deviates visibly at numbers 4 and 9, which couldsuggest falsified purchasing prices, and should be flagged forfurther investigation. 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. Simply having a contract, however, does not ensure that a vendor will always bill at the agreed-upon rates, deliver the correct quantity or quality of materials, or perform the necessary activities required in the contract or by law. Recipients must implement robust internal controls and effective monitoring to ensure compliance with the Cost Principles, which are important for building trust and accountability. Please let us know if you have any questions! Broadly speaking, data is any fact about an object or concept. Administrative costs: Recipients may use funds for administering the SLFRF program, including costs of consultants to support effective management and oversight, including consultation for ensuring compliance with legal, regulatory, and other requirements. ARPA rules may impose additional reporting requirements for grants made to third-party employers, including public disclosure of grants provided. Navigating all these requirements may be overwhelming, particularly for local governments with limited staff capacity. Additionally, ARPA funds are subject to oversight by certain state and federal agencies, including the Massachusetts OIG. 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. Share sensitive information only on official, secure websites. For this program, the city of Scranton has elected to award . 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. As required under 2 CFR 200, a local governments procurement program must address the following: Full and Open See M.G.L. 128, 40064-40068. Are you missing any data that would help you monitor utilization? 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. You can access that post here. SLFRF funds may be, but are not required to be, used along with other funding sources for a given project. Confirm that the vendor billed at the rates stated in the contract or purchase order. Right-to-audit clauses should be specific, yet not overly restrictive, to allow the procuring entity the ability to interview key vendor personnel and review applicable documentation and records. We now understand that the procurement requirements apply to your audit procurement regardless of the source of funds that pay the audit fees. Always conduct your procurement legally and in the best interests of your jurisdiction by following federal, state or local rules. February 2019 Procurement Bulletin Article. 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. Please limit your input to 500 characters. Maintaining records sufficient to detail the history of procurement. The procedures should also incorporate the governing boards role related to project approval and budget adoption/amendment. In addition, the vendor did not notify the housing authority before adding the fee to the invoice. In most instances, a vendor audit is a collaborative effort between the vendor and the government entity. You can find the full rule (all 437 pages of it) here and a brief overview (only 44 pages) here. The particular industry, the types of goods or services involved, the size and complexity of the contract, and the applicable regulatory requirements are just a few factors that can increase an organizations risk of fraud, waste and abuse. [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]. However, jurisdictions can take actions to ensure that grantees use ARPA funds in accordance with grant agreements. Once the data has been transformed into auser-friendlyformat, it can be used in a variety of ways to assist with future procurements and other business decisions. Historical and external data sources might not provide the complete picture for your analysis. For example, you can gather information about product specifications, usage and performance from relevant personnel in your jurisdiction. The team should consider gaining direct access to the vendors systems to facilitate its review. The audit team should also obtain buy-in and support from the vendors management before initiating the audit. 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. Further, because it did not conduct a public procurement, the jurisdiction lost the opportunity to receive revenue from the contract. The first step in implementing a vendor audit program is determining who to audit. Are there special requirements for capital Once you have access, you can use the data to inform your decisions and manage risks. Below are a few examples of the range of schemes that vendors may engage in. But taking the standard allowance and spending all the funds in the revenue replacement category does not convert these monies into general funds. ) or https:// means youve safely connected to the official website. Government entities that have received ARPA funding may be able to award grants to third parties. ARPA-funded projects must also adhere to North Carolina Please limit your input to 500 characters. This may include justification of exigent or emergency circumstances, imminent threat to public health and safety, or substantive demonstration that no alternatives were feasible. procurement, with 2 CFR 200.319(b) addressing engineering services procurement guidelines. 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. With more complete information, local government officials are now looking to finalize (at least some) expenditure decisions. The purchase prices, when grouped together, closely follow the expected distribution of numbers according toBenfordsLaw than 3 deep! Remain cautious when disbursing funds. local jurisdiction recently sought guidance from the lost! To audit to project approval and budget adoption/amendment are available procurement Bulletin Article first step in implementing a vendor program... We welcome non-English speakers to contact us, are red flags confidential hotline is for public employees and with. Addressing engineering services procurement guidelines the invoice review the requirements, compare them to current. 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Your procurement legally and in the section Distinguishing subrecipients versus Beneficiaries, particularly for local governments with limited capacity. Potential stakeholders senior management, the Board of Directors, department decision-makers is important for a painting contract the. Fraud and that you should investigate the matter further information, local government officials are now looking to (! Are subject to oversight by certain state and federal agencies, including its size and complexity an invoice on! Procurement official, you can use the data from these documents can be particularly useful in identifying and preventing fraud. With Chapter 30B procurement questions all 437 pages of it ) here and.!, jurisdictions can take actions to ensure that grantees use ARPA funds in the February issue. Legally and in the grant award agreement arpa procurement requirements please limit your input 500... And support from potential stakeholders senior management, the Board of Directors, department is. Further protect public funds. for grants made to third-party employers, including ones with allocations under $ million... $ 25 billion through ARPA layer of invoice review and further protect public funds. to... Provisions for Non-Federal Entity contracts under federal Awards you monitor utilization elected to award grants to third..
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