Outlier analysis, in its simplest form, compares different data points in order to identify data that stands out from the rest. In that case, the vendor offered to provide the jurisdiction with the towing and storage services at no cost. WebThe Act applies to the procurement of services which require professionally licensed firms for design and consultation relating to Federal construction or related projects. Government entities that have received ARPA funding may be able to award grants to third parties. 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. We welcome non-English speakers to contact us. Ensuring that submitted bids are sealed and secured physically or digitally until the bid opening. Allowable Activities. The audit team must explore and understand the vendors policies and procedures to adequately perform their assessment. This blog post highlights the UG requirements and provides several sample policies and other implementation tools. The American Rescue Plan Act (ARPA) has brought millions in public dollars to cities, towns and other public entities to respond to the COVID-19 pandemic and its economic consequences. It is easy to become overwhelmed when determining how best to use this untapped resource. The record retention requirements for ARP/CSLFRF-related records are more stringent than those imposed under State law. (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. For this program, the city of Scranton has elected to award . 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. Within the Office, we have learned through experience that a wide range of staff with varied backgrounds can use data effectively. 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. 195 0 obj <>stream To avoid such pitfalls, your jurisdiction should approve and implement a policy outlining how to procure towing and storage services, even though it is exempt from Chapter 30B. As part of its contract administration process, the housing authority discovered the improper charges when it reviewed its invoices closely. Below are some general tips to keep in mind when reviewing invoices and payment requests: What if you have questions about an invoice? Purchases made directly from the federal government are exempt from Chapter 30B. Use this button to show and access all levels. 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. If you are not checking invoices carefully against your contract terms and conditions, your jurisdiction may be paying more that it should; or, in the case of a revenue-generating contract, your jurisdiction may be receiving less than it should. Process compliance audits evaluate whether the vendor is doing what it was hired to do. Massachusetts Executive Order 195 outlines audit and oversight requirements related to vendor contracts. Costs must follow the requirements in 2 CFR 200 Subpart E, Cost Principles, including procurement standards. Surveys are a helpful way to do this. 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. Then make sure that you have access to that data. 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. Once the audit team selects the type of audit to perform, the team must clearly prepare an audit plan and outline the expected audit procedures. Additionally, ARPA funds are subject to oversight by certain state and federal agencies, including the Massachusetts OIG. These practices will also ensure that ARPA funding is used for its intended purpose: helping communities recover from the devastating health and economic impacts of the COVID-19 pandemic. Additional information about the definition of subrecipients is available in the section Distinguishing Subrecipients versus Beneficiaries. ARPA REQUIREMENTS TO BE INCLUDED IN Recipients should also note that subrecipients do not include individuals and organizations that received SLFRF funds as end users. Equipment and Real Property Management. Payment reviews are a key part of contract administration, and insufficient reviews leave your jurisdiction vulnerable to improper or questionable payments to vendors. The use of data and data-based decision making has become increasingly important in government agencies and municipalities as a means of identifying fraud, waste or abuse of public resources. The Uniform Guidance outlines the requirements that pertain to program income at 2 CFR 200.307. Bid manipulation undermines fair competition, can cost your jurisdiction money and, in many instances, is illegal. 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. of the Award Terms and Conditions. One of the biggest errors that an audit team can make is not adequately understanding the vendors processes, especially the transaction process. 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. Incorporate by reference any federal rules that apply to the grant award. endstream endobj 166 0 obj <> endobj 167 0 obj <> endobj 168 0 obj <>stream Blackboardor other virtual platform login details will be emailed to registrants. 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. You can access that post here. Still, working with data at all levels of government can be challenging. Past performance: for example, businesses previously on state or federal suspension or debarment lists may pose a greater risk of noncompliance or poor performance. Vendors may charge fees and raise prices over the course of a contract, only if the contract allows for the same. After reviewing and analyzing data, managers can follow up and review more information, identify issues and resolve them. 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 Below are a few examples of the range of schemes that vendors may engage in. Mass.gov is a registered service mark of the Commonwealth of Massachusetts. ApplyingBenfordsLaw is another way to find outliers in your data that should be flagged for further review. Please see 2 CFR Part 200, Subpart E regarding the Cost Principles for more information. WebA nonfederal entity with federal expenditures in excess of $750,000 is required by law to have a single audit completed. Jurisdictions should only make payments after reviewing all invoices and supporting documentation for accuracy and completeness. 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. The audit scope and appropriate approach depend on the type of audit performed. Most audits involve overcoming at least some animosity by parties who are resistant to having their work reviewed. For example, information from purchase descriptions, vendor quotations, proposal evaluation forms and invoices contain many data points. 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. Please remove any contact information or personal data from your feedback. 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. 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. For purposes of the Federal procurement requirements, states are defined as the 50 states, the District of Without thinking much about it, you gathered data and made a decision based on that data. This includes receipts or invoices from vendors or subcontractors that provided supplies or labor. In your role as a procurement official, you may already track bids and price quotations in Excel. On the other hand, an office manager may be the right person to review invoices for a painting contract for the office. WebThe Department of Education posted final requirements on ARPA ESSER in July 2021. The vendor provided supporting documentation for the items or services on the invoice. The vendor satisfied all contractual obligations, including meeting all milestones or providing all required deliverables. 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 ARPA-funded projects must also adhere to North Carolina 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. Thank you for your website feedback! February 2019 Procurement Bulletin Article. For this program, the city of Scranton has elected to award . Publishing and documenting clear standards in procurement solicitations and evaluation criteria on how a municipality will determine a responsive and responsible. Municipalities should ensure that factors that may be overly restrictive to free and open competition are not included, such as placing unreasonable requirements on vendors to qualify or establishing any steps in the procurement process that are arbitrary or irrelevant to the award of contracts necessary and reasonable for the implementation of the use of funds under this award. 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. 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. Treasury will presume that each jurisdiction experienced up to $10 million in lost revenue. Recipients should note that NEUs and Non-UGLGs are not subrecipients under the SLFRF program. Confirm that the vendor billed at the rates stated in the contract or purchase order. Ensure compliance with policies, procedures, rules, regulations and legal requirements. A local government should craft its policies and procedures so that they can be reasonably implemented by its staff. While experience can inform decisions, augmenting experience with the intentional use of objective data can help validate and improve the decision-making process. The contract calls for reimbursement on a time-and-materials basis or scheduled fixed payments. Likewise, auditors and investigators should be prepared for individuals who become angry or aggressive in response to routine questions, or key vendor personnel who disappear during a critical part of the audit. Jurisdictions should always require the vendor to provide sufficient supporting documentation before making payment. 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. hb```nB eaXT00.I T~hHZIs).oIuhJOJ-= 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. Include a right-to-audit clause in grant agreements. Recipients should consult the final rule for further details if they seek to utilize SLFRF funds as a match for these projects. 179 0 obj <>/Filter/FlateDecode/ID[<598620AB2247954EBE922AD03988F6D9>]/Index[165 31]/Info 164 0 R/Length 86/Prev 341858/Root 166 0 R/Size 196/Type/XRef/W[1 3 1]>>stream Also on this page are the dates and times of future Office Hours events, along with the Zoom link. To ensure that the cost items within an eligible project are proper, a local government must adopt and implement an Allowable Costs and Cost Principles Policy. For instance, data analysis can reveal patterns in payroll expenditures or purchasing, track whether employees are following policies and procedures, or measure staff or vendor performance. The following is a sample policy to address any program income: Note that there are some grey areas related to how to identify program income, particularly fees for services assessed for water, sewer, or broadband assets constructed or improved with ARP/CSLFRF monies. 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 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. The following is the schedule for the next several weeks. Webthe provision of police, fire, and other public safety services (e.g., purchasing a fire truck or police vehicles, purchasing other equipment, covering salaries of public safety personnel). Some of the data within your organization may already be in an analyzable format. For example, a recipient may provide a subaward to a nonprofit to provide homeless services to individuals experiencing homelessness. In the February 2020 issue of the OIG Bulletin, we published the first in a series of articles to help demystify data analytics. WebThe Buy American requirements apply to all Recovery Act funds used for a project for the construction, alteration, maintenance, or repair of a public building or public work. Therefore, support from potential stakeholders senior management, the Board of Directors, department decision-makers is important for a successful audit engagement. If the data is not in one of these formats, do not despair! Some of these are associated with a particular project; others are associated with the entire grant award. Data also can help identify vulnerabilities or concerns about fraud, waste or abuse. All other non-Federal entities, including subrecipients of a State, must follow the procurement standards in 200.318 through 200.327. January 14, 2022 ARPA Final Rule and Procurement Requirements for Audit Services *REVISED January 28, 2022* As many of you already know, the US