NC Race to the Top (RttT)
Procurement & Contracting
May 31, 2012
Overview
1. Review Office of State Budget &
Management (OSBM) Audit findings and
reiterate General RttT Requirements &
Processes for LEAs/Charters
2. Review DSW and Budget Process
3. Review Miscellaneous Reminders
4. Address Questions
Key Take Away = Know the requirements and comply!
2
OSBM RttT Audit Findings
3
OSBM RttT Audits
Governor’s
Office
OSBM
State Board/
DPI
LEAs
4
Charters
OSBM RttT Audits
•
Audits determine compliance with:
RttT Grant
Requirements
NC Office of
Economic Recovery
& Investment (OERI)
Directives
State and
Federal Laws/
Regulations
• Regions 2, 3, 5, and 8 have been audited and
final reports have been issued as of May 31,
2012
5
OSBM RttT Audits
Common Findings:
1. Not following requirements for competition for
procurement and sole-source justifications
2. Not checking Federal and State Debarment Lists for
debarred vendors
3. Not including ARRA Contract Provisions in RttT
Contracts
4. Spending on items not included in DSWs
5. Not following Cash Management Requirement
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OSBM RttT Audits
Finding 1
Requirements for:
• 1a. competition for
procurement
• 1b. sole-source justifications
were not followed.
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Finding 1a: Competition
Competition is the
fundamental component
of procurement using
ARRA/RttT funds
Follow ARRA &
OERI bidding
requirements!
• Regular local board “competitive bidding” policies can
vary by LEA
• For RttT, NCDPI and all LEAs/Charter Schools must
follow ARRA competitive bidding guidelines (as modified
in the OERI directives)
8
Finding 1a: Competition
• OERI Directives 3, 3a, and 3b outline the
provisions and requirements for purchases
using RttT & other ARRA funds
Use“Recovery
Funds” in the
description
column of IPS
List formal and
informal
solicitation
documents in IPS
9
Finding 1a: Competition
> $5,000
< $5,000
• Must bid on IPS
• Advertise in local newsprint
outlet
• Must utilize less formal
“Request for Quote”
• Maintain documentation
proving competition and
that vendor was notified of
ARRA contract provisions
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Finding 1a: Competition
Splitting Purchases to
avoid seeking proper
competition for a
contract purchase is
prohibited
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Finding 1a: Competition
Key References
NC OERI Directives
www.ncrecovery.gov/compliance/OERI
Directives.html
Contracting Check-List to www.ncpublicschools.org/docs/fbs/arra
ensure compliance
/allotments/contractingchecklist.pdf
(under notes)
Sample Bid Templates
www.pandc.nc.gov/divforms.htm
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Finding 1b: Sole-Source
Can We Sole-Source?
• Most defensible option is always to use
competition
• Some instances exists where sole-source
procurements are permitted
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Finding 1b: Sole-Source
General Rule:
If…
the same service
provided previously by
the same vendor
Sole Source
anything about
service differs
Competitive
Bid Process
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Finding 1b: Sole-Source
Before sole-sourcing the LEA/Charter must:
1. Determine if a sole source procurement is allowable
2. Document adequate justification for the sole source
3. Post an alert to the LEA’s website of the pending “Notice of Intent
to Award” a sole-source contract
4. Post for a minimum of 10 days a Notice of Intent to Award a solesource on the IPS, including:
a. Source (provider of service/product)
b. Basic description of services or
products to be purchased
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Finding 1b: Sole-Source
“When in doubt, bid it out.”
Key References
Sole Sourcing
Guidance
http://it.ncwiseowl.org/UserFiles/Servers/S
erver_4500932/File/RttT/Solesourcing_RttT_Guidance.pdf
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OSBM RttT Audits
Finding 2
Requirements for checking Federal and
State Debarment Lists for debarred
vendors were not followed.
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Finding 2: Debarment Lists
Federal Law
Documentation
• Must check vendors
against State and
Federal debarment
lists
• Must maintain
documentation of
vendor’s eligibility
• Must check prior to
transactions taking
place
• Recommendation:
time-stamped print
screen from the
debarment websites
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Finding 2: Debarment Lists
Key References
Federal Debarment List www.epls.gov/
State Debarment List
www.pandc.nc.gov/actions.asp
If you have questions or concerns, please
contact Stephanie English at
stephanie.english@dpi.nc.gov or (919) 807-3686
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OSBM RttT Audits
Finding 3
Requirements for including ARRA
Contract Provisions in RttT Contracts
were not followed.
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Finding 3: ARRA Contract Provisions
Here ye, Here ye!
This Official Notice of Solicitation for Good or Services…
Section 1
Blah, blah, blah deliverables
Section 2
Blah, blah, blah timelines
Section 3
Blah, blah, blah, price or other requirements
Section 4
**ARRA Contract Provisions**
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Must be included
Finding 3: ARRA Contract Provisions
Key References
Contracting Checklist
to ensure compliance
(under notes)
www.ncpublicschools.org/docs/fbs/arra/all
otments/contractingchecklist.pdf
OERI Directive #3
www.ncrecovery.gov/library/pdf/OERI_Dire
ctive3.pdf
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OSBM RttT Audits
Finding 4
Funds were spent on items not
included in DSWs.
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Finding 4: RttT Expenditures
Team
1. Plan & Amend
DSW
RttT
Coordinator
2. Prepare budgets
in BUD
3. Prepare Requests
for bids
Finance
Officer
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Allowable RttT Expenditures
• Allowable expenditures under RttT (ARRA) are
those approved in the LEAs DSW
 If the item is not pre-approved in DSW, don’t spend
 If it’s not obvious that an item is contained in the
DSW, you may need to amend the DSW (ask DPI)
• For further guidance on allowable uses review
OMB circular a-87, attachment B
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Finding 4: RttT Expenditures
BUD
Budget in BUD must tie to the DSW for that FY
Cannot expend funds unless a budget has been
submitted & approved in BUD
Review BUD for budget approval and make
necessary adjustments (if needed)
Resubmit if lines are rejected
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Finding 4: RttT Expenditures
• Budgeted funds in the DSW should include total cost
of the activity – including indirect costs and position
benefits where applicable
• Example:
Budget entered into DSW is $10,000
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Finding 4: RttT Expenditures
• Budgeted funds in BUD should tie to the DSW
• Example:
Budget entered into BUD totals $10,000
Obj.
$
191
Curriculum stipend
$8,365.15
211
Employer Soc Sec
$639.93
221
Retirement Costs
$895.91
392
Indirect Costs
Total
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Description
$99.01
$10,000.00
Finding 4: RttT Expenditures
If planned
activities
deviate from
approved DSW
You must
amend your
DSW
• Amended DSWs must be approved and
may require revisions to the budget
entered into BUD (restarts DPI budget
review and approval process)
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Finding 4: RttT Expenditures
Steps for Amending Your DSW (and accompanying budget)
Step 1:
Step 2:
Step 3:
Step 4:
Step 5:
Step 6:
Download
approved
DSW from
RttT
website
Make the
text red
for any
changes
that are
made
Email
amended
DSW to
the
following
addresses
DPI posts
approved
DSW to
the
website
Submit
new
Budget in
BUD that
aligns to
the
approved
amended
DSW
DPI reviews
your new
budget in
BUD
(comparing
to new
approved
DSW)
Email:
• eric.thanos@dpi.nc.gov
• racetothetop@dpi.nc.gov
• chris.pond@dpi.nc.gov
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Finding 4: RttT Expenditures
Key Contacts
DSW
Eric.thanos@dpi.nc.gov
Budget
Samiel.fuller@dpi.nc.gov
Chris.pond@dpi.nc.gov
Key References
Approved DSWs www.ncpublicschools.org/rttt/lea-charter/
Budget FAQs
www.ncpublicschools.org/docs/rttt/district/fun
ding/district-faq.pdf
OMB circular a- www.whitehouse.gov/omb/circulars_a087_20
87 attachment B 04#attb
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OSBM RttT Audits
Finding 5
Cash Management requirements were not
followed.
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Finding 5: Cash Management
• LEAs and Charter Schools must pay vendor
within 3 days of draw down
Key References
Draw Down
Regulation
http://ecfr.gpoaccess.gov/cgi/t/text/textidx?c=ecfr&sid=313d1851ad9e0385a995a0c
e57174f69&rgn=div8&view=text&node=31:2.
1.1.1.5.1.1.10&idno=31
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Miscellaneous Reminders
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Whistle Blower
OERI directives 5 and 6 provide guidance for
reporting Allegations of Fraud, Waste and
Abuse of ARRA funds
– requires Posting of Whistle Blower rights
and Remedies
Recommendation:
Post a link on the
LEA/Charters Website
that leads to the state or
the Federal Whistle
Blower websites
Physical posters are to
be posted in a visible
place in LEA/Charter
school buildings
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Whistle Blower Links
Key References & Contacts
DPI Link
www.dpi.state.nc.us/internalaudit/fraud/
State Link
www.ncrecovery.gov/compliance/reportFraud.ht
ml
Federal
Contact
US Education Department Office of Inspector
General Hotline 1-800-MIS-USED
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CFDA Numbers
• Race to the Top CFDA number is 84.395
• Federal Award Number is S395A100069
Key References
Chart on DPI website www.ncpublicschools.org/fbs/arra/allotments/
(includes CFDA #,
PRC #, and Federal
Award #)
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Budget Submission Process
FY 2012-13 RttT budgets must be entered into the
BUD system by June 30, 2012
• When submitting a Budget to BUD:
Email:
Include whether BUD
ties to original or
amended DSW (if
amended, attach
amended DSW)
• racetothetop@dpi.nc.gov
• debby.jackson@dpi.nc.gov
• chris.pond@dpi.nc.gov
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Questions?
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Summary
1. Reviewed OSBM Audit findings and
reiterated General RttT Requirements &
Processes for LEAs/Charters
2. Reviewed DSW and Budget Process
3. Reviewed Miscellaneous Reminders
4. Addressed Questions
Key Take Away = Know the requirements and comply!
40