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. 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. [2] 2 CFR 200.317-327, available at https://www.govregs.com/regulations/title2_chapterII_part200. 9-10). This helps maintain the integrity of the payment process. Direct costs are those that are identified specifically as costs of implementing the SLFRF program objectives, such as contract support, materials, and supplies for a project. This day course provides an overview of the legal requirements in managing the ARP/CSLFRF award. Many of our past reports highlight fraudulent or inaccurate vendor billing. Suspicious invoices: even or round invoice amounts, as well as non-sequential invoices, are red flags. When evaluating vendor invoices, jurisdictions may determine that some expenses require further review. Review for overall risk mitigation, including insurance, indemnification, limitation and/or waiver of Treasury will presume that each jurisdiction experienced up to $10 million in lost revenue. Recipients that receive an aggregate amount of federal financial assistance in a given fiscal year that exceeds the Single Audit threshold are subject to the requirements in 2 CFR 200 Subpart F, Audit Requirements, unless otherwise specified in program-specific guidance. In your role as a procurement official, you may already track bids and price quotations in Excel. Justifying and documenting the selection of vendors, including: (1) that a vendor is responsive to the requirements outlined in the procurement, (2) responsible, (3) not debarred from doing business with the federal government, and (4) offering a reasonable, competitive cost, based on cost or price analysis completed by the municipality. These risk assessments may include factors such as prior experience in managing Federal funds, previous audits, personnel, and policies or procedures for award execution and oversight. Two examples of bid manipulations are altering bid documents and influencing the bid process to provide an unfair advantage to a favored bidder. Are there special requirements for capital 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. 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. This makes bid manipulation more difficult. For example, you can gather information about product specifications, usage and performance from relevant personnel in your jurisdiction. Program Income. In the February 2020 issue of the OIG Bulletin, we published the first in a series of articles to help demystify data analytics. During this session, The UG requirements are in addition to those imposed by the Final Rule related to project eligibility. Requirements for bidders and contractors under this order are explained in the specifications. Note: This language must be included in the Bid solicitation. [1] These requirements outline the general standards and regulations for the procurement of goods and services for recipients and subrecipients of federally awarded funds. Require regular and thorough reporting from grantees relating to expenditures. The non-Federal entitys documented procurement procedures must conform to the procurement standards identified in 2 CFR 200.317 through 200.327. Noncompetitive procurement is only allowed if certain criteria are met. Generally, Chapter 30B applies even when a local jurisdiction uses federal funds to pay for supplies or services. This can lead to drawing incorrect conclusions about the data and documentation available. 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. 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. (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. When grouping the pricingdataby individualvendor,asshownin the chartsbelow,andrunning the same analysis, youcansee that Vendor 1 and Vendor3follow the expecteddistribution pattern. This policy sets up procedures for making project requests, approving those requests, and documenting that approval and any required justifications and other records. 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). If procurement is only possible through non-competitive methods, municipalities will need to justify use of a non-competitive procurement process, only permissible when one of the following conditions are met: the item is below the micro-purchase threshold established by the municipality; the item is only available from a single source; the public exigency or emergency will not permit a delay from publicizing a competitive solicitation; or after solicitation of a number of sources, competition is determined inadequate. We also will be holding at least two courses this spring: April 4, 2022: Basics of ARP/CSLFRF and UG for Local Government Attorneys and Grant Managers. First, your organization must clearly identify to the subrecipient: (1) that the award is a subaward of SLFRF funds; (2) any and all compliance requirements for use of SLFRF funds; and (3) any and all reporting requirements for expenditures of SLFRF funds. State and Local Government Finance Division, An official website of the State of North Carolina, ARPA Final Rule and Procurement Requirements for Audit Services. The regulations related to allowable costs and cost principles are complex. A compliance audit is the overarching term for ensuring that a vendor is complying with the terms of a contract. The vendor provided supporting documentation for the items or services on the invoice. Boilerplate audit clauses may inadvertently restrict the coverage of an audit or use vague terms that each party interprets differently, leading to disputes. The Office of Management and Budget recently published guidance on how auditors should conduct Single Audits for ARPA Recovery Fund investments and the Emergency Rental Assistance Program County auditors should consult OMBs Compliance Supplement when constructing Single Audits for county investments of federal funds. Jurisdictions should build on these federal requirements to ensure that grant recipients spend grant money appropriately by implementing their own comprehensive monitoring and reporting policies. Each of the considerations above, as well as operation and maintenance Sole-source contractors: is the vendor really the only company who can provide a particular good or service? Fraud audits encompass some or all of the elements of the above compliance audits, with a primary focus on the financial aspects and implications. Data is everywhere, and every function a government performs can generate valuable data. Some of these are associated with a particular project; others are associated with the entire grant award. In this case, the subaward to a nonprofit is based on the services that the recipient intends to provide (assistance to households experiencing homelessness), and the nonprofit is serving as the subrecipient, providing services on behalf of the recipient. Through a vehicle towing and storage contract with a local jurisdiction, a vendor stands to generate substantial revenue by regularly towing and storing vehicles. See M.G.L. You must ensure that the vendors you are doing business with are legitimate and responsible. 601 0 obj <>stream Those requirements include ensuring that entities receiving Federal financial assistance from the Treasury do not deny benefits or services, or otherwise discriminate on the basis of race, color, national origin (including limited English proficiency), disability, age, or sex (including sexual orientation and gender identity), in accordance with the following authorities: Title VI of the Civil Rights Act of 1964 (Title VI) Public Law 88-352, 42 U.S.C. All public organizations rely on vendors to provide the supplies and services needed to operate effectively and efficiently. 5. For example, a recipient may provide a subaward to a nonprofit to provide homeless services to individuals experiencing homelessness. Data also can help identify vulnerabilities or concerns about fraud, waste or abuse. 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? 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. 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 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. After contracting with the vendor, however, the local jurisdiction began receiving large quantities of supplies that it had not ordered. infrastructure, potential enhancements of state funding resources, Surveys are a helpful way to do this. Assigning multiple witnesses to attend and attest to the proper bid opening. You skipped the table of contents section. Use this button to show and access all levels. 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. A local jurisdiction recently sought guidance from the Office related to the procurement of towing and storage of motor vehicles. In addition, the vendor did not notify the housing authority before adding the fee to the invoice. Additional information about the definition of subrecipients is available in the section Distinguishing Subrecipients versus Beneficiaries. [1] 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. Implement internal controls to prevent fraud, waste and abuse. Secure websites use HTTPS certificates. Capital Funds Project website. Appendix 1: Allowable Use Matrix Background On March 11, 2021, the American Rescue Plan Act (ARPA) of 2021 was signed into law. Some information may be in spreadsheets or in existing databases or electronic systems. Fraud, waste and abuse can occur even when comprehensive contracts are in place. Exceptions to requirements for small purchase or formal method competitive rules. endstream endobj 560 0 obj <. Some page levels are currently hidden. We will use this information to improve this page. February 2019 Procurement Bulletin Article. 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 2. As a result, your jurisdiction should consider using a competitive procurement process to ensure that there is open and fair competition with responsible vendors for these kinds of service contracts. For example, someone from the public works department who supervises roadway paving should know whether the contractor completed the work and used the correct materials. Maintaining clear policies governing conflicts of interest for Please do not include personal or contact information. Finally, in addition to my colleagues Rebecca Badgett, who drafted some of the above UG policies, and Connor Crews, who is working on procurement and conflict of interest policies, we want to thank our two amazing research assistants, Tiffany Oliva and Abby Gostling, who drafted several of our templates and other tools. We will update the policy if/when we receive more guidance from US Treasury. The words data and data-driven decision-making sound daunting; however, neither is something new. Your local jurisdiction creates a demand for towing services because local officials have the authority to have vehicles towed when there are parking violations on public property or drivers need emergency roadside assistance. Recipients must implement robust internal controls and effective monitoring to ensure compliance with the Cost Principles, which are important for building trust and accountability. ) or https:// means youve safely connected to the official website. Use of this blog post for commercial purposes is prohibited. These are largely based on the type of contract, the goals of the audit, specific management concerns and other relevant variables. If the vendor has subcontracted out any work, the audit team should also distinguish whether it will be reviewing the contractors or subcontractors performance. two (2) subrecipients to carry these programs. Public contracts account for a significant portion of every jurisdictions annual budget. Further, the individuals who review and approve invoices must know the contract terms, conditions and specifications. 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. Once you have access, you can use the data to inform your decisions and manage risks. 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. This Job Opportunity Announcement may be used to fill other Management & Program Analyst (Talent Management Specialist) GS-0343-11/12 FPL: 12 positions within the Economic This scope is different than what is included in the current contract and may be considered noncompetitive. If this fails, contact your local jurisdictions legal counsel because the vendor may have breached the contract. ApplyingBenfordsLaw is another way to find outliers in your data that should be flagged for further review. 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. We use small samples of data, as well as big data, to help with everything from researching whistleblower claims to investigating individual cases of potential fraud to analyzing statewide systemic issues. Wherever practicable, such records should be collected, transmitted, and stored in open and machine-readable formats. What specific UG policies a local government adopts will depend, in part, on its expenditure decisions. 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. 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. 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. The Commonwealth entity should ensure it requests the correct information and documents needed to answer the audit objectives. The record retention requirements for ARP/CSLFRF-related records are more stringent than those imposed under State law. Before engaging with any vendor, do your research and review your contract closely. For this program, the city of Scranton has elected to award . However, developing comprehensive monitoring policies, measuring project performance and conducting grantee audits can help jurisdictions reduce fraud, waste and abuse. 195 0 obj <>stream For that reason it is not included in the Drop-in document. c. 30B, 1(d). Establish attainable program goals and targets, and understand which expenditures are allowable under federal law. hbbd```b``+d9dUH&)0yD`5~.X&Xd-X6^fH-@@~ Below are some general tips to keep in mind when reviewing invoices and payment requests: What if you have questions about an invoice? Historical data regarding the use of a supply or service can help procurement teams project future procurement needs and build a more effective and accurate budget. This may include justification of exigent or emergency circumstances, imminent threat to public health and safety, or substantive demonstration that no alternatives were feasible. These awards are as follows: Can the municipality clearly document and justify the reasoning to utilize an existing vendor relationship in lieu of following normal procurement and contracting processes? April 11, 2022: Basics of Implementing the Standard Allowance. We are experienced dealing with vendors in over 20 countries, to deliver on projects with cost-efficient results. Benfords Law analysis: this analysis may highlight a vendor with billing discrepancies that warrant further review. WebDepending on the site host organizations procurement requirements, a formal solicitation process may be needed to purchase and install charging infrastructure. If a vendor is not registered beware. Federal Register Publication Vol 85 No. [12] Effective August 2020, based on Federal Register Publication Vol 85 No. Weve never been audited, so there are no benchmarks to assess our performance., Our regular business hours are third shift., We cannot remove documents from our office., Cross-charging multiple clients or departments for their staffs work, Improper employee classification e.g., junior staff hours billed at a supervisors hourly rate, Overlapping time vendor creates two or more timesheets for the employee for the same day, Schedule manipulation vendor routinely postpones or schedules jobs with higher overtime rates toward the end of the week, Over-purchasing materials for personal use, Product substitution - substituting lower-quality products for those agreed upon in the contract, Failure to apply discounts, refunds and rebates, Billing materials to one project but using for another project, Intentionally applying rates from one contract to another, Billing time and equipment rates in lump-sum, unit or fixed-price contracts. 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