American Recovery and Reinvestment Act (ARRA) Update

American Recovery and Reinvestment Act (ARRA) Update Colorado Contracts Improvement Team (CCIT) May 20, 2009

Topics • General Accounting Office • ARRA Reporting Form DRAFT • Internal Control Guide DRAFT • Procurement Guidance DRAFT • Terms and Conditions for ARRA DRAFT

General Accounting Office • Tracking ARRA Funds • Internal Control Program • Risk Assessment • Monitoring • Single Audit

Tracking of ARRA Funds • GAO • Completeness • Accuracy • Procedures and systems • State of Colorado • Alert #184 – LBLI, separate funds, CFDA and Grant ID# • Financial - COFRS grant module, other systems • Non-financial – probably in-house • ARRA Reporting Form DRAFT

Internal Control Program • GAO • Overall internal program for the State • Responsibilities • Effectiveness of internal controls • Last updated • State of Colorado • Financial Responsibility and Accountability Act • Largely delegated • FAST evaluate FRAAct responses; open position • Early 1990’s; currently being updated

Risk Assessment • GAO • Internal risks • External risks • Internal control weaknesses • State of Colorado/GAO prior discussions • Governor’s Office, weatherization grants • Agencies, DOLA • Medicaid

Monitoring • GAO • Processes to monitor percentage of use of funds • Onsite visits • Coordination of oversight groups • State of Colorado • No plan at this time; probably done by agencies • Decentralized; open position • No plan at this time; Internal Auditors’ Forum

Single Audit • GAO • Use of single audits in risk assessment • Resolution of findings • State of Colorado • Performed by agencies • Performed by agencies, copy to OSC

ARRA Reporting Form DRAFT

Internal Control Guide DRAFT • Based on guides from Oregon, Montana, and Massachusetts • State of Colorado initiated guide in early 1990’s • OSC plans to distribute guide to agencies and institutions

Internal Controls Five Horseman of Internal Controls • Control Environment – tone at the top • Risk Assessment – identify and manage risks • Control Activities – basic management practices • Information and Communication • Monitoring

Guidance from OMB and Other States • Office of Management and Budgeting (OMB) • February 18, 2009 to Federal agencies • April 3, 2009 to Federal agencies • No guidance yet to States • Some states have issued guidance based on OMB guidance to federal agencies • Michigan • Ohio

Procurement Guidance DRAFT • Summary of existing federal guidance • Planning principles • Evaluating and awarding contracts and grants • Supplemental contract elements specific to ARRA

ARRA Requirements • Use of Competition • Maximize competition and award expeditiously • Prohibitions • Casino or other gambling establishments • Aquariums • Zoos • Golf courses • Swimming pools

Terms and Conditions DRAFT • Required Terms • Buy American for construction material • Timely and accurate reporting • Job posting • Equal opportunity laws and principles • Prevailing wage (Davis-Bacon) • Whistleblower Protection • Inspector General access

Questions?

American Recovery and Reinvestment Act (ARRA) Update