American Rescue Plan Act
(ARPA)
Policies and Procedures
Uniform Guidance Checklist
City of Pomona
Fiscal
Policies & Procedures
Number:
Effective Date:
Approval
Overview
Federal Uniform Guidance, codified at 2 CFR Part 200, provides a single location for the Federal government’s policies pertaining to grants and other federal assistance. Uniform Guidance is mandatory for awards of federal funds to states, local, and tribal governments.
The Coronavirus State and Local Fiscal Recovery Fund (“SLFRF”), established under the American Rescue Plan Act, provided $350 billion in COVID -19 relief support to states, municipalities, counties, tribes, and territories (each a “Recipient”). The Department of the Treasury has promulgated a list of eligible uses and restrictions for Recipients to follow when utilizing these funds. As of the date of this document, Recipients must follow Uniform Guidance when using funds for each eligible use, except for the few exceptions Treasury notes in the Final Rule. Recipients should be aware that, in addition to Uniform Guidance applying to the Recipient, Uniform Guidance also applies to entities (“Subrecipient”) using SLFRF funds awarded by the Recipient to carry out the Recipient’s SLFRF program.
The below provides a general checklist for Recipients to review when using SLFRF funds to pursue a program, issue a contract to a contractor, provide an award to a subrecipient, or provide an award to a beneficiary. It is intended as general information and not as legal advice concerning any member’s specific circumstances. As specific questions arise, Recipients are encouraged to consult legal counsel as this general checklist is only a guide and for reference only. Uniform Guidance includes six parts along with twelve appendices and is structured as follows:
Uniform Guidance (2 CFR Part 200)
Subpart A – Acronyms and Definitions (§200.0-§200.1)
Subpart B – General Provisions (§200.100-§200.113)
Subpart C – Pre-Federal Award Requirements and Awards Contents of Federal Awards (§200.200-§200.216)
Subpart D – Post-Federal Award Requirements (§200.300-§200.346) Subpart E – Cost Principles (§200.400-§200.476)
Subpart F – Audit Requirements (§200.500-§200.521)
Appendices I-XI
Attachment No. 2
City of Pomona ARPA Policies & Procedures Uniform Guidance Checklist Page 2 of 7 Financial Management and Cost Sharing (§200.302-§200.309) Fund Accounting Track the SLFRF funds separate from other funds Reporting Financial management system must be able to accurately provide up-to-date reports of the use of SLFRF funds Written Policy on Cash Management Recipient must have a written policy that addresses cash management and payment Written Policy on Cost Allowability Recipient must have a written policy that determines the reasonableness, allocability, and allowability of costs in accordance with Uniform Guidance and Terms and Conditions of the SLFRF award. (see next table) Cost Principles (§200.400-§200.416) Allowability Costs must be necessary and reasonable for the performance of the SLFRF program and SLFRF funds must be spent consistent with SLFRF guidance and rules. Reasonable A cost is reasonable if, in its nature and amount, it does not exceed that which would be incurred by a prudent person under the circumstance prevailing at the time of the decision Allocable A cost is allocable to the SLFRF award or other cost objective if the goods or services involved are chargeable or assigned to the SLFRF award or cost objective in accordance with relative benefits received Written Policy A written policy that determines these cost principles for the Recipient in accordance with Uniform Guidance, Terms and Conditions of the SLFRF award, and any addition Federal, State, and Local laws City of Pomona ARPA Policies & Procedures Uniform Guidance Checklist Page 3 of 7 Subrecipients (§200.331-§200.333) Determination Determine whether the award is to a Beneficiary or Subrecipient, or if it is a Contract to a Contractor (see below flow chart) Required information for subaward Each award to a Subrecipient is required to have a series of specifics identified (laid out in §200.332(a)) Evaluation of risk Recipients must evaluate each Subrecipient’s risk of noncompliance Consideration of conditions Recipient may consider imposing specific conditions on the subaward if appropriate (as set forth in §200.208) Monitoring Recipients are to monitor Subrecipient to ensure the subaward is used for authorized purposes Audit Recipient is to verify Subrecipient is audited as required by Subpart F of Uniform Guidance and consider enforcement on against noncompliance of subaward and audit City of Pomona ARPA Policies & Procedures Uniform Guidance Checklist Page 4 of 7
City of Pomona ARPA Policies & Procedures Uniform Guidance Checklist Page 5 of 7 Property Standards (§200.310-§200.316, §200.330) Property Types The four distinct types of property include real property, equipment, supplies and intangible property Property Held in Trust Recipient or Subrecipient must hold real property, equipment, and intangible property in trust as trustee for the program under which the property was acquired or improved Use and Disposition Recipient or Subrecipient must use property generally in conformity with the authorized program and the disposition requirements for the property. Reporting on Real Property Recipient or Subrecipient must submit reports on the status of real property in which the Federal Government retains an interest within the timeframes established in §200.330 Record Retention and Access (§200.334-§200.338) Retention of Records Financial records, supporting documents, statistical records, and all other recipient records must be retained for a period of three years from the date of submission of the final expenditure report, with certain exceptions Access to Records Recipient or Subrecipient must allow certain Federal agencies the right of access to any documents, papers, or other records of Recipient, in order to make audits, examinations, excerpts, and transcripts. The right also includes timely and reasonable access to Recipient’s or Subrecipient’s personnel for the purpose of interview and discussion related to such documents.
City of Pomona ARPA Policies & Procedures Uniform Guidance Checklist Page 6 of 7 Procurement Standards (§200.317-§200.327) Documented Procurement Procedures Recipient1 must have and use documented procurement procedures, consistent with state and local laws and regulations and the standards of §200.3.17 to §200.327, for the acquisition of property or services General Procurement Standards Recipient must: • Ensure contractors perform in accordance with the terms, conditions, and specifications of their contract • Maintain written standards of conduct covering conflicts of interest • Avoid acquisition of unnecessary, duplicative items • Consider consolidating, breaking out procurements for a more economical purchase • Only award contracts to responsible contractors • Maintain records to detail the history of the procurement • Be responsible for the settlement of contractual and administrative issues in accordance with sound business judgement and good administrative practices
Competition Recipient must: • Conduct procurements in a manner providing full and open competition, situations considered to be restrictive of competition are listed in §200.319 • Conduct procurements in a manner that prohibits use of statutorily or administratively imposed state, local, or tribal geographical preferences in the evaluation of bids or proposals, except in those cases where applicable Federal statutes expressly mandate or encourage geographic preference, is prohibited • Have written procedures for procurement transactions that, among other things, incorporate a clear and accurate description of the technical requirements for the material, product, or service to be procured, Identify all requirements which the offerors must fulfill and all other factors to be used in evaluating bids or proposals, and must not contain features which unduly restrict competition
Solicitations • Recipient, in compliance with its own local and state laws, must follow the informal procurement methods (micro-purchases and small purchases) and formal procurement methods (sealed bids, proposals, noncompetitive procurement) in §200.320, as applicable 1 For the purposes of the Procurement Standards checklist, the term Recipient also includes a Subrecipient.
City of Pomona ARPA Policies & Procedures Uniform Guidance Checklist Page 7 of 7 • Recipient must take affirmative steps (and require the same of the contractor) to assure that minority businesses, women’s business enterprises and labor surplus firms are used when possible • As appropriate and to the extent consistent with law, Recipient should, to the greatest extent practicable, provide a preference for the purchase, acquisition, or use of goods, products, or materials produced in the United States (including but not limited to iron, aluminum, steel, cement, and other manufactured products)
Types of Contracts Recipient must: • Not use a cost plus percentage of cost contract and, only in limited circumstances use a time and materials contract • Perform a price or cost analysis in connection with every procurement action in excess of Simplified Acquisition Threshold ($250K), including contract modifications, including making an independent cost estimate prior to receiving bids or proposals • Negotiate profit as a separate element of the price for each contract in which there is no price competition and in all cases where cost analysis is performed • Require, on certain construction projects, bid, performance, and payment bonds in accordance with §200.326 Contract Provisions Recipient must include in its contract with the selected contractor the eleven (11) contract provisions in Appendix II of 2 CFR Part 200, as applicable. Certain contract provisions will not apply based on the scope of and/or the value of the contract. For example, the Davis-Bacon Act generally does not apply when using SLFRF funds (except for projects in Washington D.C.).
Important to note: The following Uniform Guidance requirements are excluded from coverage under the assistance listing for the SLFRF program: For 2 CFR Part 200, Subpart C, the following provisions do not apply to the SLFRF program: 2 C.F.R. § 200.204 (Notices of Funding Opportunities); 2 C.F.R. § 200.205 (Federal awarding agency review of merit of proposal); 2 C.F.R. § 200.210 (Pre-award costs); and 2 C.F.R. § 200.213(Reporting a determination that a non-Federal entity is not qualified for a Federal award). For 2 CFR Part 200, Subpart D, the following provisions do not apply to the SLFRF program: C.F.R. § 200.305 (b)(8) and (9) (Federal Payment); 2 C.F.R. § 200.308 (revision of budget or program plan); 2 C.F.R. § 200.309 (modifications to period of performance); and 2 C.F.R. § 200.320(c)(4) (noncompetitive procurement). (See Assistance Listing 21.027). 7