Many of the UG provisions require that the local government adopt and implement policies and procedures to ensure compliance with its requirements. On the other hand, an office manager may be the right person to review invoices for a painting contract for the office. Some page levels are currently hidden. To use data in decision making, the data must exist in a format that can be analyzed. [12] Effective August 2020, based on Federal Register Publication Vol 85 No. The jurisdiction placed an order with the vendor for these supplies because of the competitive low per-unit price. 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). Government entities that have received ARPA funding may be able to award grants to third parties. If you are used to having a financial statement audit, a single audit can be much more comprehensive. Failure to implement sound grant monitoring policies that ensure proper use of ARPA funds can result in recoupment of funds by the federal government. ARPA rules may impose additional reporting requirements for grants made to third-party employers, including public disclosure of grants provided. 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. If you need assistance, please contact the Office of the Inspector General. The metrics plotted show the number of change orders (orders that modify contract terms) and the contract length in months. procurement, with 2 CFR 200.319(b) addressing engineering services procurement guidelines. To assist you with overcoming this challenge, the Office of the Inspector General will publish a series of articles to help demystify data analytics and its uses. This collection does not apply to Tribal governments. 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. Further, costs must be reasonable and allocable as outlined in 2 CFR 200.404 and 2 CFR 200.405. The American Rescue Plan Act (ARPA) is the third round of Coronavirus economic impact payments. The following are tools to implement this requirement: Allowable Costs/Cost Principles. External sources are another area from which data can be gathered and used in an analysis. The vendor claimed that the lower per-unit price was only for bulk purchases. All documentation must be maintained for at least 5 years from the end of the award term. For example, the city of Boston used ARPA fiscal recovery funds to award more than $3.4 million in grants to 192 local arts and cultural organizations. 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. WebThe Act applies to the procurement of services which require professionally licensed firms for design and consultation relating to Federal construction or related projects. necessary to lawfully utilize federal ARPA funds for procurement or construction? Including appropriate federal requirements or language in the executed contract, including bonding provisions, Contract Provisions for Non-Federal Entity Contracts Under Federal Awards. The audit team should also obtain buy-in and support from the vendors management before initiating the audit. 165 0 obj
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Procurement data can also help detect fraud, such as bid splitting and potential bid rigging. Fraud audits encompass some or all of the elements of the above compliance audits, with a primary focus on the financial aspects and implications. Are there special requirements for capital 117- 2 (March 11, 2021). Because ARP/CSLFRF in the revenue replacement category may be spent on any government service authorized under state law (assuming allowable cost items), a local government may use ARP/CSLFRF to supplant employees salaries and benefits during the award term, thus freeing up general fund or enterprise fund monies to be spent on more complex capital projects or programs. In addition, the vendor did not notify the housing authority before adding the fee to the invoice. c. 30B, 1(f). For example, in the scatter plot below, each of the points represents one contract. 601 0 obj
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The policy should be drafted with Chapter 30B principles in mind and should ensure that you allow for an open, fair and competitive process. Recipients should refer to the Assistance Listing for details on the specific provisions of the Uniform Guidance that do not apply to this program. 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. Mass.gov is a registered service mark of the Commonwealth of Massachusetts. During this session, Our confidential hotline is for public employees and individuals with Chapter 30B procurement questions. However, the audit team should be careful not to become too friendly with their auditees. Review for overall risk mitigation, including insurance, indemnification, limitation and/or waiver of Capital Funds Project website. [2] Per 2 CFR 200.318(a), non-Federal entities, such as municipalities, must have and use documented procurement procedures, consistent with State, local, and tribal laws and regulations and the standards of this section, for the acquisition of property or services required under a Federal award or subaward. 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. The funds can be used to purchase equipment that improves or enhances the delivery of daily Your organization must agree to provide or make available such records to Treasury upon request, and to the Government Accountability Office (GAO), Treasurys Office of Inspector General (OIG), and their authorized representative in order to conduct audits or other investigations. Regulatory compliance audits determine whether the vendor is following all of the laws and regulations relevant to the goods and services they provide (e.g., environmental regulations). 128, 40064-40068. 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. As an example, we appliedBenfordsLaw to a dataset that contains the price of all items purchased by a city between 2009-2020. Exceptions to requirements for small purchase or formal method competitive rules. The UG requirements are in addition to those imposed by the Final Rule related to project eligibility. Make sure the vendor is legitimate, responsible, has acceptable references and is properly registered to conduct business in Massachusetts. hb```f``rb`e``_ B,``nAxsYd.(3b(|lzx=g3@7^L5b0\aO0 5wtt 1f 9WcrBe`.ymqcBr5v*r VvH3q/1iC U
The Final Rule Supplemental Information (pages 373-374) states that: Recipients of SLFRF funds are subject to the provisions of the Uniform Guidance (2 CFR Part 200) from the date of award to the end of the period of performance on December 31, 2026 unless otherwise specified in this rule or program-specific guidance. Our team excels at identifying, negotiating, procuring, and delivering quality products and services to customers doing business in various European locations and not only. 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. In most cases, city procurement Maintaining clear policies governing conflicts of interest for employees involved with developing solicitations, evaluating or awarding contracts, or managing or monitoring vendors. Webprocurement, with 2 CFR 200.319(b) addressing engineering services procurement guidelines. Impaired independence can hinder an auditors professional judgment or create the appearance that his professional judgment has been compromised. 0
We will use this information to improve this page. Each of the considerations above, as well as operation and maintenance WebGeneral Requirements for Procurement Programs . [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). These guidelines are not a comprehensive list, but a reminder that organizations should remain cautious when disbursing funds. Recipients should note that SLFRF funds available under the revenue loss eligible use category generally may be used to meet the non-federal cost-share or matching requirements of other federal programs. Municipalities may explore utilizing existing MOUs or MOAs, or establishing new MOUs or MOAs, with non-profits and public entities to provide additional services utilizing existing MOUs or MOAs, or establishing new MOUs or MOAs, with non-profits or public entities to provide additional services utilizing ARP funding. Also, remember the following: 1. The procurement code mandates city responses be mailed to the protestor and all other applicants so as to inform them of the ability to appeal the decision related to the protest. This includes receipts or invoices from vendors or subcontractors that provided supplies or labor. ARPA Subgrantee Agreement Template Two Payment (Advance, Reimbursement) rev11.3.22 (DOCX) ARPA Subgrantee 4. Appendix 1: Allowable Use Matrix Background On March 11, 2021, the American Rescue Plan Act (ARPA) of 2021 was signed into law. Past performance: for example, businesses previously on state or federal suspension or debarment lists may pose a greater risk of noncompliance or poor performance. Chapel Hill, NC27599-3330
Process, financial, and regulatory compliance audits might evolve into a fraud audit based upon the audit findings. Suspicious invoices: even or round invoice amounts, as well as non-sequential invoices, are red flags. 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 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. 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. Are there existing sources for that data? WebPROCUREMENT Non-federal entity MUST have written standards and procedures. This data should alert you to the possibility that the employee may be committing fraud and that you should investigate the matter further. 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. Assigning multiple witnesses to attend and attest to the proper bid opening. Many of our past reports highlight fraudulent or inaccurate vendor billing. Check to make sure that the supplies and services that the vendor provided met the contract terms and followed the defined scope of work. Data also can help identify vulnerabilities or concerns about fraud, waste or abuse. Volume of transactions or business: the volume of transactions or contracts alters the risk the government assumes in doing business with the vendor. The following are a sample subaward policy, risk assessment, subaward agreement template, and subrecipient monitoring tool (they are all in a single Word file): Although there is a lot of federal red tape to navigate regardless of how a local government expends its ARP/CSLFRF funds, there are some opportunities to reduce a local units compliance burden. procurement policies pursuant to 2 CFR 200.317 as well as comply with the procurement standards set forth at 2 CFR 200.321 through 2 CFR 200.323, and 2 CFR 200.327. They are SLFRF recipients that will report directly to Treasury. Below are some general tips to keep in mind when reviewing invoices and payment requests: What if you have questions about an invoice? However, Chapter 30B does not apply to federally funded procurements if following Chapter 30B would conflict with federal laws or regulations. 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. To learn more, view our full privacy policy. Purchases made directly from the federal government are exempt from Chapter 30B. For example, you can gather information about product specifications, usage and performance from relevant personnel in your jurisdiction. Once you have access, you can use the data to inform your decisions and manage risks. Confirm that the vendor billed at the rates stated in the contract or purchase order. The American Rescue Plan will deliver $350 billion for eligible state, local, territorial, and Tribal governments to respond to the COVID-19 emergency and bring back jobs.. endstream
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