LBB Contract Reporting & Oversight

Transcription

1 LBB Contract Reporting & Oversight Contracts Oversight and Technology Team PRESENTED TO THE TEXAS ASSOCIATION OF COMMUNITY COLLEGE BUSINESS OFFICERS LEGISLATIVE BUDGET BOARD STAFF JUNE 2017

2 Presentation Overview A discussion of LBB s role in the oversight of state contracts: 1. Contracting Reporting Requirements applicable to Community Colleges 2. Contracts Database 3. LBB support to agencies 4. Monitoring budgetary risk and review of selected contracts JUNE 21, 2017 LEGISLATIVE BUDGET BOARD ID:

3 Contract Reporting Requirements Three Contract Reporting Provisions Applicable to Community Colleges: Article IX, Section 7.04, General Appropriations Act (GAA) ( & biennia) Article IX, Section 7.12, GAA ( & biennia) Section , Texas Government Code JUNE 21, 2017 LEGISLATIVE BUDGET BOARD ID:

4 Contract Reporting Requirements GAA Article IX, Section 7.04 All contracts over $50,000 are to be reported regardless of funding source. Contract includes grants, revenue generating contracts, interagency agreements, purchase orders, amendments, modifications, renewals, and extensions. GAA Article IX, Section 7.12 All contracts over $10 million, as well as emergency and sole-source contracts over $1 million, are to be reported regardless of funding source. Attestation Letter: A certification signed by the executive director of the agency is to be provided that attests to the procurement s compliance with the State of Texas Procurement Manual, Contract Management Guide, and all applicable statutes, policies, and rules related to procurement. JUNE 21, 2017 LEGISLATIVE BUDGET BOARD ID:

5 Contract Reporting Requirements Section , Texas Government Code Professional services contracts over $14,000 are to be reported regardless of funding source. Professional services include: accounting; architecture; landscape architecture; land surveying; medicine; optometry; professional engineering; real estate appraising; and professional nursing. JUNE 21, 2017 LEGISLATIVE BUDGET BOARD ID:

6 A Note on Non-Appropriated Funds Effective 09/01/2015, the contracting reporting requirements of both statute and the GAA apply to both appropriated and non-appropriated funds. The GAA adds new provisions regarding contract document submissions for certain contracts. JUNE 21, 2017 LEGISLATIVE BUDGET BOARD ID:

7 Contract Reporting & Document Submission Requirements Statute generally requires state entities to provide copies of contracts and related solicitation documents to the LBB. Exemptions to this statutory requirement include: Institutions of Higher Education (IHEs) and System Offices Contracts paid for with non-appropriated funds However, effective September 1, 2017, GAA Article IX, Section 7.12 requires IHEs, including community colleges, to provide: A copy of contract documents, including all appendices and attachments; and Each request for proposal, invitation to bid, or comparable solicitation related to the contract. Exemptions to standard reporting requirements do not also exempt state agencies from providing contract documents upon request. JUNE 21, 2017 LEGISLATIVE BUDGET BOARD ID:

8 Contracting Requirements Applicable to Community Colleges (Current) TYPE OF CONTRACT VALUE THRESHOLD REPORTING TIMEFRAME LOCATION Professional Services > $14, days after award Sec , Government Code All > $50,000 End of fiscal year GAA Article IX, Sec 7.04 Non-Competitive/Sole Source > $1,000, days before payment GAA Article IX, Sec 7.12 Emergency > $1,000, hours after payment GAA Article IX, Sec 7.12 All > $10,000, days before payment GAA Article IX, Sec 7.12 Note: The Government Code requirements are subject to numerous exceptions and exemptions, However, the GAA provisions apply to all entities receiving appropriations, regardless of method of finance or source of funds used for the contract. JUNE 21, 2017 LEGISLATIVE BUDGET BOARD ID:

9 Contracting Requirements Applicable to Community Colleges (after 8/31/2017) TYPE OF CONTRACT VALUE THRESHOLD REPORTING TIMEFRAME LOCATION Professional Services > $14, days after award Sec , Government Code All > $50, days after award GAA Article IX, Sec 7.04 Non-Competitive/Sole Source > $1,000,000 Prior to first payment, but no later than 30 days after award GAA Article IX, Sec 7.12 Emergency > $1,000, hours after payment GAA Article IX, Sec 7.12 All > $10,000,000 Prior to first payment, but no later than 30 days after award GAA Article IX, Sec 7.12 Note: The Government Code requirements are subject to numerous exceptions and exemptions, However, the GAA provisions apply to all entities receiving appropriations, regardless of method of finance or source of funds used for the contract. JUNE 21, 2017 LEGISLATIVE BUDGET BOARD ID:

10 Other Provisions Added by the 85 th Legislature GAA Article IX, Section 7.04 Contracts for services, over $50,000, for which the total value of the contract after amendment exceeds the total initial value of the contract by 10% or more are required to be reported to the governor, lieutenant governor, and speaker of the house of representatives. Procedures for reporting such contracts are currently being developed by the LBB and will be provided to state entities prior to September 1, 2017, when this requirement takes effect. LBB is specifically authorized to conduct reviews of contracts submitted under GAA Article IX, Section 7.04 valued at $1 million or more. JUNE 21, 2017 LEGISLATIVE BUDGET BOARD ID:

11 LBB Contracts Oversight The LBB maintains a Contracts Database: A single system for reporting contracts and contract documents. Stores data that is publicly available and searchable. Will receive contract data directly from CAPPS. LBB staff review contract data to ensure compliance with reporting requirements and assist agencies in reporting accurate and complete information. JUNE 21, 2017 LEGISLATIVE BUDGET BOARD ID:

12 LBB Contracts Oversight The latest version of the LBB Contracts Database replaces and improves on the old database in a number of important areas: An increase in reportable data fields now allows for a more comprehensive view of contracts. Information is searchable and downloadable for agency or public use. Enhanced data entry controls are in place to reduce duplicate or inaccurate entries. Data management practices allow for rapid response to information queries. In-house design and implementation provides enhanced flexibility and responsiveness. A new commodity code search feature has recently been incorporated. JUNE 21, 2017 LEGISLATIVE BUDGET BOARD ID:

13 LBB Contracts Oversight The LBB Contracts Oversight and Technology Team maintains the Contracts Database and monitors reported contract information: The Contracts Oversight and Technology Team has prioritized contracts subject to Article IX, Section 7.12 for reporting, followed by remaining current fiscal year contracts and then fiscal year 2015/2016 contracts. To support agency reporting, the Contracts Oversight and Technology Team has provided training on an ongoing basis, as necessary, with state entities. The Contracts Oversight and Technology Team maintains updated training materials and detailed reporting instructions on the LBB s website. JUNE 21, 2017 LEGISLATIVE BUDGET BOARD ID:

14 LBB Contracts Oversight In addition to maintaining the Contracts Database, the Contracts Oversight and Technology Team monitors state contracting to identify and mitigate budgetary risk: Establish protocols for assessing risk across all procurements submitted to the LBB Contracts Database. Offer a web form for individuals, vendors, or employees to report potential contracting issues. Conduct in-depth reviews of certain contracts with a goal of helping state entities to mitigate and remediate budgetary risk. Make budget and/or policy recommendations to improve the framework and requirements related to procurement as well as the processes for administration and oversight implemented by individual agencies. JUNE 21, 2017 LEGISLATIVE BUDGET BOARD ID:

15 Contact the LBB Contracts Oversight and Technology Team JUNE 21, 2017 LEGISLATIVE BUDGET BOARD ID: