arra_reprt_req.doc

COMMONWEALTH OF MASSACHUSETTS

CONTRACT ATTACHMENT

NOTICE OF AMERICAN RECOVERY AND REINVESTMENT ACT (ARRA)

PERFORMANCE AND REPORTING REQUIREMENTS

TERMS FOR ALL ARRA CONTRACTORS:

This Contract Attachment is being provided to all Contract recipients of ARRA funds as either a vendor or sub-recipient as notice of certain requirements upon which the receipt of ARRA funding is conditioned. These terms are already incorporated by reference as applicable terms through the federal grant or contract award from your grantor agency. This Attachment is being provided to ensure that you have notice of the specific requirements under ARRA that you will be required to meet as a recipient of ARRA funds. These terms are in addition to any performance, reporting or other terms already provided under your award and contract. DOCUMENTATION OF ACTUAL RECEIPT OF THIS ATTACHMENT BY THE CONTRACTOR CONTRACT MANAGER OR AN AUTHORIZED SIGNATORY SHALL BE SUFFICIENT TO BIND THE CONTRACTOR TO THE TERMS OF THIS ATTACHMENT.

As a Contractor, you shall maintain records, books, files and other data as specified in a Contract and in such detail as shall properly substantiate claims for payment under the Contract, for a minimum retention period of seven (7) years beginning on the first day after the final payment under a Contract (after the federal grant close out), or such longer period as is necessary for the resolution of any litigation, claim, negotiation, audit or other inquiry involving the Contract. The Department shall have access, as well as any parties identified under Executive Order 195, during the Contractor’s regular business hours and upon reasonable prior notice, to such records, including on-site reviews and reproduction of such records at a reasonable expense.

Please note that due to transparency requirements under state and federal law, records “sufficient to substantiate payment” shall be interpreted to mean that the Contractor is required to maintain records and proactively document compliance with contract terms, attainment of performance success criteria or performance measurements and successful completion of all contract performance requirements. All Contractors, whether deemed sub-recipients or vendors, must be prepared to provide any documents, records, data or other proof of performance or related to their business activities that are paid for with ARRA funds.

SUB-RECIPIENT TERMS:

A sub-recipient is a non-Federal entity that expends Federal awards received from another entity to carry out a Federal program but does not include an individual who is a beneficiary of such a program. Specifically, sub-recipients are non-Federal entities that are awarded Recovery funding through a legal instrument from the prime recipient to support the performance of any portion of the substantive project or program for which the prime recipient received the Recovery funding. Additionally, the terms and conditions of the Federal award are carried forward to the sub-recipient.

Sub-recipient activities will be monitored as necessary to ensure that Federal awards are used for authorized purposes in compliance with laws, regulations, and the provisions of contracts or grant agreements and that performance goals are achieved.

Sub-recipients receiving in the aggregate, $500,000 or more in Federal awards during the sub-recipient's fiscal year must meet the audit requirements for that fiscal year, and are subject to the Single Audit.

In addition to all of the OMB A-133 requirements, sub-awards made from the federal stimulus funds (ARRA) are subject to Buy-American and compliance with the Davis-Bacon Act of 1931. Under ARRA, these requirements pass through to sub-recipients who may have previously been exempt from compliance.

ADDITIONAL SUB-RECIPIENT REPORTING REQUIREMENTS.

In addition to general performance reporting under the Contract, OMB requirements for ARRA transparency and reporting are also passed down to sub-recipients. The Commonwealth as prime must assure that the following is provided and subsequently recorded in the state’s account system, MMARS:

· The DUNS# of the sub-recipient, their legal name, address and type (Prime will obtain from VCUST)

· The sub-award number (Prime will obtain from encumbrance document ID)

· The total value of the sub-award/contract (Prime will obtain from contract document recorded on the encumbrance)

· The sub-award date (Prime will obtain from date on the encumbrance)

· The sub-award grant period (Prime will obtain from service begin and end dates on the encumbrance)

· The primary performance location/area of benefit (Prime will obtain from the Location Code recorded on the encumbrance and/or payment request transactions)

· Sub-recipients will be required to report all vendor payments they make with ARRA funds. Detail for these payments must include either the payee vendor DUNS number OR the vendor name and the zip code of the vendor headquarters (Sub-recipient will be notified by Prime on how to report)

· Sub-recipients may be also required to report the names and total compensation for the five most highly compensated officers in their organization if:

(1) the recipient in its preceding fiscal year received— (a) 80 percent or more of its annual gross revenues in Federal awards; and (b) $25,000,000 or more in annual gross revenues from Federal awards; and

(2) the public does not have access to information about the compensation of the senior executives of the entity through periodic reports filed under section 13(a) or 15(d) of the Securities Exchange Act of 1934 (15 U.S.C. 78m(a), 78o(d)) or section 6104 of the Internal Revenue Code of 1986 [26 USC § 6104].

‘‘Total compensation’’ means the cash and noncash dollar value earned by the executives during the sub-recipient’s past fiscal year of the following (for more information see 17 CFR 229.402(c)(2)):

(i). Salary and bonus.

(ii). Awards of stock, stock options, and stock appreciation rights. Use the dollar amount recognized for financial statement reporting purposes with respect to the fiscal year in accordance with FAS 123R.

(iii). Earnings for services under non-equity incentive plans. Does not include group life, health, hospitalization or medical reimbursement plans that do not discriminate in favor of executives, and are available generally to all salaried employees.

(iv). Change in pension value. This is the change in present value of defined benefit and actuarial pension plans.

(v). Above-market earnings on deferred compensation which are not tax qualified.

(vi). Other compensation. For example, severance, termination payments, value of life insurance paid on behalf of the employee, perquisites or property if the value for the executive exceeds $10,000.

(Sub-recipient will be notified by Prime on how to report on top five highly compensated officers.)

VENDOR TERMS:

A Vendor is defined as a dealer, distributor, merchant or other seller providing goods or services that are required for the conduct of a Federal program. Prime recipients or sub-recipients may purchase goods or services needed to carry out the project or program from vendors. Vendors are not awarded funds by the same means as sub-recipients and are not subject to the terms and conditions of the Federal financial assistance award. As outlined under the Instructions above, Vendor payments will be reported with the vendor DUNS number OR the vendor name and the zip code of the vendor headquarters. Vendors must permit the Department and auditors to have access to all records related to contract performance paid for with ARRA funding for contract compliance purposes. In addition to any other requirements, sub-awards made to vendors from the federal stimulus funds (ARRA) are subject to Buy-American and compliance with the Davis-Bacon Act of 1931. Under ARRA, these requirements pass through to vendors and their sub-contractors, if any, who may have previously been exempt from compliance.

Please contact your Commonwealth Department agency with any questions related to performance or compliance.

Page 1 of 2.