ESSER Monitoring Observations in Pennsylvania Education
Commonwealth
of
Pennsylvania
Department
of
Education
Top 10 ESSER Monitoring
Observations
2023 PAFPC Conference
M
e
e
t
Y
o
u
r
F
a
c
i
l
i
t
a
t
o
r
s
PDE ESSER Monitoring Team
Session
Facilitator
Joseph Simon
ESSER Monitoring Manager
Deloitte & Touche LLP
Chrystina Cappello
ESSER Monitoring Lead
Deloitte & Touche LLP
Here With
Us Today
Susan McCrone
Federal Programs
Division Chief
PDE
Julie Patton
Director of
Compliance
PDE
A
g
e
n
d
a
What
are
Observations?
What is their Structure and Content?
What are the Top 10 Most Common ESSER Observations?
What are
“Observations”?
“
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,
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a
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.
D
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,
n
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a
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i
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f
i
n
d
i
n
g
.
Observations are part of PDE’s approach to
standardized subrecipient monitoring.
What is their
structure and
content?
S
t
r
u
c
t
u
r
e
&
C
o
n
t
e
n
t
Observations are the main
components of the Final
Results Letter (FRL). FRLs are
issued following an in-person or
virtual monitoring review.
Observ
ations are structured in
a table format with the
following elements:
I
d
e
n
t
i
f
i
c
a
t
i
o
n
A
p
p
l
i
c
a
b
l
e
P
r
o
g
r
a
m
(
s
)
ESSER I, II, and/or ARP ESSER
A
r
e
a
o
f
R
e
v
i
e
w
10 administrative domains, including General /
Entity Level Standards, Equipment and Property
Management, Procurement, Salaries and Benefits,
Supplies, Dues, and Fees, Equitable Shares,
Financial Management, and Internal Controls /
Purchasing.
O
b
s
e
r
v
a
t
i
o
n
The “
when” and “what”
B
a
c
k
g
r
o
u
n
d
D
i
s
c
u
s
s
i
o
n
The “why”, tailored to specific details (vendor,
invoice, timesheet)
S
t
r
u
c
t
u
r
e
&
C
o
n
t
e
n
t
Observations are the main
components of the Final
Results Letter (FRL). FRLs are
issued following an in-person or
virtual monitoring review.
Observ
ations are structured in
a table format with the
following elements:
I
m
p
l
i
c
a
t
i
o
n
R
e
g
u
l
a
t
o
r
y
G
u
i
d
a
n
c
e
Most commonly 2 CFR 200, but also some state
guidance, or occasionally LEA policy
A
s
s
o
c
i
a
t
e
d
R
i
s
k
What could happen if the issue persists
L
e
a
d
i
n
g
P
r
a
c
t
i
c
e
How to avoid this observation (and its associated
risk) in the future
S
u
b
r
e
c
i
p
i
e
n
t
’
s
R
e
s
p
o
n
s
e
Addresses the LEAs stance on the observation
What are the Top
10 Most
Common ESSER
Observations?
1
0
.
C
o
m
p
e
t
i
t
i
v
e
P
r
o
c
u
r
e
m
e
n
t
(
S
e
r
v
i
c
e
s
)
We see that you contracted
with White Sweater
Services. Can you provide
support for your
competitive process?
Oh, we didn’t
compete that
contract, but they
had the best Sweater
Services around!
1
0
.
C
o
m
p
e
t
i
t
i
v
e
P
r
o
c
u
r
e
m
e
n
t
(
S
e
r
v
i
c
e
s
)
18%
of LEAs monitored
could not demonstrate
competitive procurement of
service contracts
As of 4/12/2023
2 CFR § 200.320 Methods of procurement to be followed.
R
e
q
u
i
r
e
m
e
n
t
s
f
o
r
P
r
o
c
u
r
e
m
e
n
t
o
f
S
e
r
v
i
c
e
s
Small
Small
Purchases
Purchases
Sole Source
Sole Source
Micro
Micro
Purchases
Purchases
Competitive
Competitive
Proposals
Proposals
Sealed Bids
Sealed Bids
•
Up to $10,000
•
No quotations
•
Equitable distribution
•
Up to $250,000
•
Rate quotes
•
Competitive
analysis
•
Greater than
$250,000
•
Construction
projects
•
Price is a major
factor
•
3 to 5 rate quotes
•
Formal
Advertising
•
Greater than
$250,000
•
Fixed price or
cost
reimbursement
•
Request for
proposal with
evaluation
methods
•
Publicize
•
Less than the micro
purchase threshold
•
Only available from one
source
•
Public exigency
•
Authorized by Federal
awarding agency or pass-
through
•
Competition
is determined
to be inadequate.
A.
Documented Policies
Documented Policies
B.
Necessary
Necessary
C.
Full & Open Competition
Full & Open Competition
D.
Conflict of Interest
Conflict of Interest
E.
Documentation
Documentation
A.
Cost & Price
Cost & Price
Analysis
Analysis
B.
Vendor Selection
Vendor Selection
9
.
N
o
/
B
a
d
P
r
o
o
f
o
f
P
a
y
m
e
n
t
Can you provide proof of
payment that has been
verified by a third party, like
a canceled check or bank
statement?
9
.
N
o
/
B
a
d
P
r
o
o
f
o
f
P
a
y
m
e
n
t
18%
of LEAs monitored
could not produce satisfactory
proof of payment.
As of 4/12/2023
8
.
N
o
p
o
l
i
c
y
a
g
a
i
n
s
t
f
r
a
u
d
,
w
a
s
t
e
,
a
n
d
a
b
u
s
e
Do you have a procedure
for reporting cases of fraud,
waste, and abuse?
People would most likely
just tell their supervisor if
they saw something…
8
.
N
o
p
o
l
i
c
y
a
g
a
i
n
s
t
f
r
a
u
d
,
w
a
s
t
e
,
a
n
d
a
b
u
s
e
21
%
of LEAs monitored did
not have a documented
procedure for reporting
improprieties in contracting.
As of 4/12/2023
7
.
N
o
S
A
M
.
g
o
v
D
e
b
a
r
m
e
n
t
C
h
e
c
k
Did you check SAM.gov to
make sure you are not
doing business with
debarred or suspended
vendors?
You mean Sam from
accounting? How
would he know?
7
.
N
o
S
A
M
.
g
o
v
D
e
b
a
r
m
e
n
t
C
h
e
c
k
29%
of LEAs monitored did
not conduct debarment checks
in SAM.gov as required.
As of 4/12/2023
6
.
N
o
C
o
n
t
r
a
c
t
T
e
r
m
s
a
n
d
C
o
n
d
i
t
i
o
n
s
Do your contracts have the
required terms and
conditions?
I’d have to talk with our
solicitor and get back to
you. It's expensive to keep
going to our solicitor with
all of this…
6
.
N
o
C
o
n
t
r
a
c
t
T
e
r
m
s
a
n
d
C
o
n
d
i
t
i
o
n
s
30%
of LEAs monitored had
contracts which did not have
the required terms and
conditions.
As of 4/12/2023
5
.
N
o
S
o
l
e
S
o
u
r
c
e
J
u
s
t
i
f
i
c
a
t
i
o
n
I see you used
noncompetitive
procurement for this
contract. What was your
rationale for doing so?
The vendor said their
product was “one of
a kind”. They even
gave us a letter!
5
.
N
o
S
o
l
e
S
o
u
r
c
e
J
u
s
t
i
f
i
c
a
t
i
o
n
33%
of LEAs monitored used
noncompetitive procurement
but did not document their
decision to do so.
As of 4/12/2023
What are the acceptable reasons to “Sole Source” ?
2 CFR 200.320(c):
Noncompetitive procurement.
There are specific circumstances in which
noncompetitive procurement can be used. Noncompetitive procurement can only be awarded if one
or more of the following circumstances apply:
Below the Micro-
Purchase Threshold
The acquisition of property
or services, the aggregate
dollar amount of which
does not exceed the
micro-purchase
threshold
Only Available from a
Single Source
The item is
available only
from a single source
Public Exigency
The
public exigency
or
emergency for the
requirement will not permit
a delay resulting from
publicizing a competitive
solicitation
Pre-Authorized
The Federal awarding agency or
pass-through entity
expressly authorizes a
noncompetitive
procurement
in response to a
written request from the non-
Federal entity
Competition Inadequate
After solicitation of a number
of sources,
competition is
determined inadequate
Document rationale according to these specific circumstances
4
.
N
o
C
o
m
p
e
t
i
t
i
v
e
P
r
o
c
u
r
e
m
e
n
t
(
G
o
o
d
s
)
Looks like you bought
goods and supplies which
totaled over $22,500. Did
you compete this
procurement?
No, our
Superintendent
knows a guy...
4
.
C
o
m
p
e
t
i
t
i
v
e
P
r
o
c
u
r
e
m
e
n
t
(
G
o
o
d
s
)
36%
of LEAs monitored
could not demonstrate
competitive procurement of
contracts for goods.
As of 4/12/2023
C
o
m
p
e
t
i
t
i
v
e
P
r
o
c
u
r
e
m
e
n
t
(
S
t
a
t
e
G
u
i
d
a
n
c
e
)
Procurement
Method
Goods/Supplies
Services
Requirements
Micro-purchase
(no quotes required)
Less than $10,000
Note: Must use more restrictive $0
Federal threshold instead of no state
requirements under $11,800
Less than $10,000
Note: Must use more restrictive
$10,000 Federal threshold instead of
state exemption for services
•
consider price to be reasonable
•
distribute equitably among suppliers to the extent
practical
Small Purchase
Procedures
(Relatively simple and
informal)
$10,000 - $22,500
Note: Must use more restrictive
$10,000 Federal threshold instead of
$21,900 state threshold
$10,000 - $249,999
Note: Must use more restrictive
$10,000 Federal threshold instead of
state exemption for services
•
obtain/document price or rate quotations from a
reasonable number of qualified sources (at least three
per 24 PS 8.807.1)
•
written or documented quotes
Sealed Bids
(Formal advertising)
$22,500 or more
Note: Must use more restrictive
$22,500 state threshold instead of
$250,000 Federal threshold
N/A
•
bids are publicly solicited
•
firm fixed price contract awarded to the responsible
bidder lowest in price
•
cost or price analysis for purchases in excess of the
Simplified Acquisition Threshold ($250,000)
Competitive Proposals
(Formal RFPs)
N/A
$250,000 or more
Note: Must use more restrictive
$250,000 Federal threshold instead of
state exemption for services
•
conducted with more than one source submitting an
offer
•
price in not used a sole selection factor
•
fixed price or cost-reimbursement type contract is
awarded
•
cost or price analysis for purchases in excess of the
Simplified Acquisition Threshold ($250,000)
Non-competitive
proposals
Appropriate only when these circumstances apply:
•
Available only from a single source (sole source)
•
Public emergency
•
Expressly authorized by awarding or pass-through agency in response to
written request from district
•
After soliciting a number of sources, competition is deemed inadequate
•
solicitation from only one source
•
used only when qualifying circumstances apply
•
fixed price or cost-reimbursement type contract is
awarded
3
.
N
o
Q
u
o
t
e
s
(
S
e
r
v
i
c
e
s
)
This procurement was
over the Micro-Purchase
Threshold (currently
$10,000). Can you
provide quotes?
We got verbal quotes
for that one...
3
.
N
o
Q
u
o
t
e
s
(
S
e
r
v
i
c
e
s
)
44
%
of LEAs monitored did
not have three or more price
quotations.
As of 4/12/2023
2
.
N
o
M
i
n
o
r
i
t
y
/
W
o
m
e
n
O
w
n
e
d
B
u
s
i
n
e
s
s
E
n
g
a
g
e
m
e
n
t
Did you take affirmative
steps to include minority-
owned and women-owned
business enterprises in your
procurement process?
That sounds like a
good idea, and we
are all for equity, but
I didn’t know that
was a requirement.
2
.
N
o
M
i
n
o
r
i
t
y
/
W
o
m
e
n
-
O
w
n
e
d
B
u
s
i
n
e
s
s
E
n
t
e
r
p
r
i
s
e
S
t
e
p
s
58%
of LEAs monitored did
not take the required
affirmative steps to engage
MWE.
As of 4/12/2023
How to take required affirmative steps to include minority
and women-owned business enterprises
2
C
F
R
2
0
0
.
3
2
1
(
b
)
:
Include them
on solicitation
lists
Reach out to
them when they
are potential
sources
Divide
requirements
when possible
Create
schedules to
encourage
participation
Reach out to
organizations
that can help
Make sure your
contractors are
taking the same
steps
1
.
Placing qualified
small and
minority
businesses and
women's
business
enterprises on
solicitation lists;
4
.
Establishing delivery
schedules, where the
requirement permits,
which encourage
participation by small
and minority
businesses, and
women's business
enterprises;
2
.
Assuring that small
and minority
businesses, and
women's business
enterprises are
solicited whenever
they are potential
sources;
3
.
Dividing total
requirements, when
economically feasible,
into smaller tasks or
quantities to permit
maximum participation
by small and minority
businesses, and
women's business
enterprises;
5
.
Using the services and
assistance, as
appropriate, of such
organizations as the
Small Business
Administration and the
Minority Business
Development Agency
of the Department of
Commerce; and
6
.
Requiring the
prime contractor,
if subcontracts are
to be let, to take
the affirmative
steps listed in
paragraphs (b)(1)
through (5) of this
section.
1
.
N
o
P
u
r
c
h
a
s
e
O
r
d
e
r
a
n
d
/
o
r
I
n
v
o
i
c
e
s
We cannot seem to locate
your purchase orders in
your files for the items in
our sample.
Purchase orders are
more like a “nice to
have”. Things get
busy around here…
1
.
N
o
P
O
a
n
d
/
o
r
I
n
v
o
i
c
e
s
65%
of LEAs monitored did
count not produce purchase
orders or invoices when
requested.
As of 4/12/2023
L
e
t
’
s
h
a
v
e
a
k
n
o
w
l
e
d
g
e
c
h
e
c
k
!
It feels like we covered a
lot. Hard to believe that
Federal grants come with
so many requirements!
So many
requirements…let’s
see how much we
know so we can stay
in compliance!
Top 10 ESSER Observations
Question 1
A
Because my purchasing policy says I do
B
It is a good internal control
C
It helps to mitigate risk
D
It helps document my approval process
E
All of the above
Question 2
Question 3
Question 4
Question 5
Thank You for Joining us Today!
Explore the top 10 ESSER monitoring observations from the Commonwealth of Pennsylvania Department of Education. Learn about the structure, content, facilitators, and key areas of review involved in assessing educational programs. Gain insight into how observations play a crucial role in ensuring compliance and best practices in education administration.
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Presentation Transcript
CommonwealthofPennsylvania Department of Education Top 10 ESSER Monitoring Observations 2023 PAFPC Conference PDE ESSER Monitoring 2023 PAFPC Conference 1
Meet Your Facilitators Meet Your Facilitators PDE ESSER Monitoring Team Joseph Simon Joseph Simon ESSER Monitoring Manager Deloitte & Touche LLP Chrystina Cappello Chrystina Cappello ESSER Monitoring Lead Deloitte & Touche LLP Session Session Facilitator Facilitator Julie Patton Julie Patton Director of Compliance PDE Susan McCrone Susan McCrone Federal Programs Division Chief PDE Here With Here With Us Today Us Today
Agenda Agenda What are Observations? What is their Structure and Content? What are the Top 10 Most Common ESSER Observations?
What are Observations ?
Observe what is with Observe what is with undivided awareness. undivided awareness. Martial Artist, Actor - - Bruce Lee Bruce Lee
Statements of significant details Statements of significant details based on what monitors have seen, heard, or noticed. What Are What Are Observations? Observations? Based on how what we have seen compares to leading practices, relevant guidance, and regulations practices, relevant guidance, and regulations. leading Definitely, absolutely, not an not an audit finding audit finding. Observations are part of PDE s approach to standardized subrecipient monitoring.
What is their structure and content?
Applicable Program(s) Applicable Program(s) ESSER I, II, and/or ARP ESSER Area of Review Area of Review 10 administrative domains, including General / Entity Level Standards, Equipment and Property Management, Procurement, Salaries and Benefits, Supplies, Dues, and Fees, Equitable Shares, Financial Management, and Internal Controls / Purchasing. Structure Structure & Content & Content Observations are the main components of the Final Results Letter (FRL). FRLs are issued following an in-person or virtual monitoring review. Observations are structured in a table format with the following elements: Observation Observation The when and what Background Discussion Background Discussion The why , tailored to specific details (vendor, invoice, timesheet)
Regulatory Guidance Regulatory Guidance Most commonly 2 CFR 200, but also some state guidance, or occasionally LEA policy Structure Structure & Content & Content Associated Risk Associated Risk What could happen if the issue persists Observations are the main components of the Final Results Letter (FRL). FRLs are issued following an in-person or virtual monitoring review. Observations are structured in a table format with the following elements: Leading Practice Leading Practice How to avoid this observation (and its associated risk) in the future Subrecipient s Response Subrecipient s Response Addresses the LEAs stance on the observation
What are the Top 10 Most Common ESSER Observations?
We see that you contracted with White Sweater Services. Can you provide support for your competitive process? Oh, we didn t compete that contract, but they had the best Sweater Services around! 10. 10. Competitive Competitive Procurement Procurement (Services) (Services)
10. 10. Competitive Competitive Procurement Procurement (Services) (Services) Regulatory Guidance Regulatory Guidance 2 CFR 200.318 Associated Risk Associated Risk Failure to follow required procurement procedures could result in deobligation or loss of subrecipient funding. Leading Practice Leading Practice The Subrecipient must ensure that bids are publicly solicited, contracts are awarded to the responsible bidder lowest in price, and that a cost price analysis is conducted for all contracts over $250,000. 18% of LEAs monitored could not demonstrate competitive procurement of service contracts As of 4/12/2023
2 CFR 200.320 Methods of procurement to be followed. Requirements for Requirements for Procurement of Procurement of Services Services 3. 4. Competitive Proposals 2. Sealed Bids 5. Small Purchases Greater than $250,000 Fixed price or cost reimbursement Request for proposal with evaluation methods Publicize Greater than $250,000 Construction projects Price is a major factor 3 to 5 rate quotes Formal Advertising Sole Source 1. Up to $250,000 Rate quotes Competitive analysis Less than the micro purchase threshold Only available from one source Public exigency Authorized by Federal awarding agency or pass- through Competition is determined to be inadequate. Micro Purchases A. B. C. D. Conflict of Interest E. Documentation A. Documented Policies Necessary Full & Open Competition Cost & Price Analysis Vendor Selection Up to $10,000 No quotations Equitable distribution B. 13
Can you provide proof of payment that has been verified by a third party, like a canceled check or bank statement? 9. 9. No / Bad Proof No / Bad Proof of Payment of Payment
Regulatory Guidance Regulatory Guidance 2 CFR 200.403(g) 9. 9. No/Bad Proof of No/Bad Proof of Payment Payment Associated Risk Associated Risk Failure to follow required procurement procedures could result in deobligation or loss of subrecipient funding. Leading Practice Leading Practice The Subrecipient should keep payments adequately documented and reconciled to avoid improper purchase of goods or services. 18% of LEAs monitored could not produce satisfactory proof of payment. As of 4/12/2023
Do you have a procedure for reporting cases of fraud, waste, and abuse? People would most likely just tell their supervisor if they saw something 8. 8. No policy No policy against fraud, against fraud, waste, and waste, and abuse abuse
8. 8. No policy No policy against fraud, against fraud, waste, and waste, and abuse abuse Regulatory Guidance Regulatory Guidance 2 CFR 200.303(a) Associated Risk Associated Risk Failure to maintain a reporting system for fraud and other improprieties could lead to financial and reputational loss as a result of misuse of grant funding. Leading Practice Leading Practice The Subrecipient should have a policy in place for whistleblower mechanisms to report such instances. 21% of LEAs monitored did not have a documented procedure for reporting improprieties in contracting. As of 4/12/2023
Did you check SAM.gov to make sure you are not doing business with debarred or suspended vendors? 7. 7. No SAM.gov No SAM.gov Debarment Debarment Check Check You mean Sam from accounting? How would he know?
7. 7. No SAM.gov No SAM.gov Debarment Debarment Check Check Regulatory Guidance Regulatory Guidance 2 CFR 200.214 Associated Risk Associated Risk Failure to perform debarment and suspension and active registration checks before awarding contracts could result in deobligation or loss of funding if the contractor is determined to be barred or suspended. 29% of LEAs monitored did not conduct debarment checks in SAM.gov as required. Leading Practice Leading Practice The Subrecipient should proactively perform SAM.gov testing on its contractors before award. As of 4/12/2023
Id have to talk with our solicitor and get back to you. It's expensive to keep going to our solicitor with all of this 6. 6. No Contract No Contract Terms and Terms and Conditions Conditions Do your contracts have the required terms and conditions?
6. 6. No Contract No Contract Terms and Terms and Conditions Conditions Regulatory Guidance Regulatory Guidance 2 CFR 200.327 Associated Risk Associated Risk Procurement of contracts that do not have the required 2 CFR terms and conditions procured using Federal funds could result in deobligation or loss of the subrecipient s funding. Leading Practice Leading Practice The Subrecipient must ensure that all contracts financed by Federal funds include all the required terms and conditions as per 2 CFR 200 Appendix II. 30% of LEAs monitored had contracts which did not have the required terms and conditions. As of 4/12/2023
I see you used noncompetitive procurement for this contract. What was your rationale for doing so? The vendor said their product was one of a kind . They even gave us a letter! 5. 5. No Sole Source No Sole Source Justification Justification
Regulatory Guidance Regulatory Guidance 2 CFR 200.318(i) & 2 CFR 200.320(c) 5. 5. No Sole Source No Sole Source Justification Justification Associated Risk Associated Risk Failure to follow required procurement procedures could result in deobligation or loss of subrecipient funding. Leading Practice Leading Practice The Subrecipient should maintain procurement records including why the sole sourced contract was necessary. 33% of LEAs monitored used noncompetitive procurement but did not document their decision to do so. As of 4/12/2023
What are the acceptable reasons to Sole Source ? 2 CFR 200.320(c): Noncompetitive procurement. There are specific circumstances in which noncompetitive procurement can be used. Noncompetitive procurement can only be awarded if one or more of the following circumstances apply: Only Available from a Single Source Public Exigency The item is available only from a single source Competition Inadequate The public exigency or emergency for the requirement will not permit a delay resulting from publicizing a competitive solicitation Below the Micro- Purchase Threshold After solicitation of a number of sources, competition is determined inadequate Pre-Authorized The acquisition of property or services, the aggregate dollar amount of which does not exceed the micro-purchase threshold The Federal awarding agency or pass-through entity expressly authorizes a noncompetitive procurement in response to a written request from the non- Federal entity Document rationale according to these specific circumstances
Looks like you bought goods and supplies which totaled over $22,500. Did you compete this procurement? 4. 4. No Competitive No Competitive Procurement Procurement (Goods) (Goods) No, our Superintendent knows a guy...
4. 4. Competitive Competitive Procurement Procurement (Goods) (Goods) Regulatory Guidance Regulatory Guidance 2 CFR 200.318(i) & PDE Uniform Grants Guidance Procurement Thresholds Associated Risk Associated Risk Failure to follow required procurement procedures could result in deobligation or loss of subrecipient funding. Leading Practice Leading Practice The Subrecipient should maintain copies of the necessary procurement documentation readily available to verify compliance with formal procurement methods. 36% of LEAs monitored could not demonstrate competitive procurement of contracts for goods. As of 4/12/2023
Competitive Procurement ( Competitive Procurement (State Guidance State Guidance) ) Procurement Method Goods/Supplies Services Requirements Less than $10,000 Note: Must use more restrictive $0 Federal threshold instead of no state requirements under $11,800 Less than $10,000 Note: Must use more restrictive $10,000 Federal threshold instead of state exemption for services consider price to be reasonable distribute equitably among suppliers to the extent practical Micro-purchase (no quotes required) $10,000 - $22,500 Note: Must use more restrictive $10,000 Federal threshold instead of $21,900 state threshold $10,000 - $249,999 Note: Must use more restrictive $10,000 Federal threshold instead of state exemption for services obtain/document price or rate quotations from a reasonable number of qualified sources (at least three per 24 PS 8.807.1) written or documented quotes Small Purchase Procedures (Relatively simple and informal) $22,500 or more Note: Must use more restrictive $22,500 state threshold instead of $250,000 Federal threshold N/A bids are publicly solicited firm fixed price contract awarded to the responsible bidder lowest in price cost or price analysis for purchases in excess of the Simplified Acquisition Threshold ($250,000) Sealed Bids (Formal advertising) N/A $250,000 or more Note: Must use more restrictive $250,000 Federal threshold instead of state exemption for services conducted with more than one source submitting an offer price in not used a sole selection factor fixed price or cost-reimbursement type contract is awarded cost or price analysis for purchases in excess of the Simplified Acquisition Threshold ($250,000) Competitive Proposals (Formal RFPs) Appropriate only when these circumstances apply: Available only from a single source (sole source) Public emergency Expressly authorized by awarding or pass-through agency in response to written request from district After soliciting a number of sources, competition is deemed inadequate solicitation from only one source used only when qualifying circumstances apply fixed price or cost-reimbursement type contract is awarded Non-competitive proposals
This procurement was over the Micro-Purchase Threshold (currently $10,000). Can you provide quotes? We got verbal quotes for that one... 3. 3. No Quotes No Quotes (Services) (Services)
Regulatory Guidance Regulatory Guidance 2 CFR 200.320(a)(2)(i) & PDE and Pennsylvania Bulletin 3. 3. No Quotes No Quotes (Services) (Services) Associated Risk Associated Risk Failure to follow required procurement procedures could result in deobligation or loss of subrecipient funding. Leading Practice Leading Practice The Subrecipient must document at least three price quotations for procurements over $10,000. 44% of LEAs monitored did not have three or more price quotations. As of 4/12/2023
Did you take affirmative steps to include minority- owned and women-owned business enterprises in your procurement process? 2. 2. No No Minority/Women Minority/Women Owned Business Owned Business Engagement Engagement That sounds like a good idea, and we are all for equity, but I didn t know that was a requirement.
2. 2. No No Minority/Women Minority/Women - -Owned Business Owned Business Enterprise Steps Enterprise Steps Regulatory Guidance Regulatory Guidance 2 CFR 200.321(a) Associated Risk Associated Risk Failure to take affirmative steps to solicit and use MWE businesses when possible could result in deobligation or loss of the subrecipient s funding. Leading Practice Leading Practice The Subrecipient should ensure that affirmative steps to solicit and use MWE businesses when possible. 58% of LEAs monitored did not take the required affirmative steps to engage MWE. As of 4/12/2023
How to take required affirmative steps to include minority and women-owned business enterprises 2 CFR 200.321(b): 2 CFR 200.321(b): Include them on solicitation lists Reach out to them when they are potential sources Divide Create schedules to encourage participation Reach out to organizations that can help Make sure your contractors are taking the same steps requirements when possible 1. 1. 3. 3. 4. 4. 2. 2. 5. 5. 6. 6. Establishing delivery schedules, where the requirement permits, which encourage participation by small and minority businesses, and women's business enterprises; Placing qualified small and minority businesses and women's business enterprises on solicitation lists; Using the services and assistance, as appropriate, of such organizations as the Small Business Administration and the Minority Business Development Agency of the Department of Commerce; and Dividing total requirements, when economically feasible, into smaller tasks or quantities to permit maximum participation by small and minority businesses, and women's business enterprises; Assuring that small and minority businesses, and women's business enterprises are solicited whenever they are potential sources; Requiring the prime contractor, if subcontracts are to be let, to take the affirmative steps listed in paragraphs (b)(1) through (5) of this section.
1. 1. No Purchase No Purchase Order and / or Order and / or Invoices Invoices We cannot seem to locate your purchase orders in your files for the items in our sample. Purchase orders are more like a nice to have . Things get busy around here
Regulatory Guidance Regulatory Guidance 2 CFR 200.403(g) 1. 1. No PO and/or No PO and/or Invoices Invoices Associated Risk Associated Risk Failure to follow required internal purchasing procedures could result in deobligation or loss of the Subrecipient s funding. Leading Practice Leading Practice The Subrecipient must adequately document all costs claimed against the Federal award. 65% of LEAs monitored did count not produce purchase orders or invoices when requested. As of 4/12/2023
So many It feels like we covered a lot. Hard to believe that Federal grants come with so many requirements! requirements let s see how much we know so we can stay in compliance! Let s have a Let s have a knowledge knowledge check! check!
Top 10 ESSER Observations No competitive procurement docs (Services) No competitive procurement docs (Services) No/bad proof of payment No/bad proof of payment No policy against fraud, waste, and abuse No policy against fraud, waste, and abuse No Debarment check No Debarment check No contract terms and conditions No contract terms and conditions No sole source justification provided No sole source justification provided No competitive procurement (Goods) No competitive procurement (Goods) No quotes (Services) No quotes (Services) No MWE steps No MWE steps No PO and / or invoices No PO and / or invoices 0% 10% 20% 30% 40% 50% 60% 70%
Question 1 Because my purchasing policy says I do A It is a good internal control B Why should I use a PO? It helps to mitigate risk C It helps document my approval process D All of the above E
Question 2 When the Superintendent reminds me to obtain them A When the cost of the procurement is over the Micro Purchase Threshold (Currently $10,000) but under the PA Threshold (Currently $22,500) B When do you need quotes for goods? Whenthe purchase is over the Simplified Acquisition Threshold C Whenthe purchase is for Chromebooks or Ipads D
Question 3 Dollar amount under the micro purchase threshold A The item is available only from a single source B When are you able to Sole Source? Competition is deemed inadequate C Public Emergency D Expressly authorized by PDE E Any one of the above F
Question 4 https://www.education.pa.gov A https://oese.ed.gov B Where do I check to see If my contractor is suspended or debarred? https://sam.gov C www.crookedcontractor.com D
Question 5 2 CFR 200.327 A 2 CFR 200.320 (a) B Where can you find required contract terms and conditions? 2 CFR 200 Appendix II C 34 CFR 76.665 D A and C E C and D F
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