1. Office of Operations 2009 Fall Conference Navigating Uncertain Times October 21-22, 2009 OSC’s Role in the Economic Recovery Act Patrick Hall – Audit Supervisor, Bureau of State Expenditures Tom Mahoney - Director, Bureau of State Accounting Operations Diane Taylor - Assistant Director, Bureau of State Contracts

2. Office of Operations 2009 Fall Conference Accountability and Reporting of ARRA Funds Presenter: Tom Mahoney, Director Bureau of State Accounting Operations

3. Office of Operations 2009 Fall Conference American Recovery and Reinvestment Act (ARRA) February 17, 2009 – President Obama signed the ARRA totaling approximately $787 billion. February 17, 2009 – President Obama signed the ARRA totaling approximately $787 billion. New York is expected to receive $26.7 billion over 27 months. New York is expected to receive $26.7 billion over 27 months. The largest portion of New York’s funding reflects Medicaid reimbursements. The largest portion of New York’s funding reflects Medicaid reimbursements.

4. Office of Operations 2009 Fall ConferenceARRA By law, the direct Federal fiscal relief must be used effectively and expeditiously to promote economic recovery, and may not be allocated for other purposes, such as funding reserves or paying down debt. By law, the direct Federal fiscal relief must be used effectively and expeditiously to promote economic recovery, and may not be allocated for other purposes, such as funding reserves or paying down debt.

5. Office of Operations 2009 Fall Conference Accountability Approach Risk for Non-Compliance with Risk for Non-Compliance with Special Reporting Deemed High if Status Quo OSC and Governor’s Office Partnership Quickly Established OSC and Governor’s Office Partnership Quickly Established Accounting Bulletin Issued to Accounting Bulletin Issued to Reduce Risk of Non-Compliance and Enhance Reporting Capabilities

6. Office of Operations 2009 Fall Conference OSC Prescriptions for Accountability and Transparency Accounting Bulletin Accounting Bulletin Grant Awards Grant Awards Separate Appropriations Separate Appropriations Centralized Drawdowns Centralized Drawdowns Limits on Voucher Payees Limits on Voucher Payees Journal Vouchers – DISCOURAGED Journal Vouchers – DISCOURAGED

7. Office of Operations 2009 Fall Conference ARRA – Special Reporting Test Drive – Federal Funding Accountability & Transparency Act of 2006 (P.L. 109-282) Test Drive – Federal Funding Accountability & Transparency Act of 2006 (P.L. 109-282) Award and Subaward Reporting Award and Subaward Reporting Subrecipient Reporting Subrecipient Reporting

8. Office of Operations 2009 Fall Conference ARRA - Risks Audit Disallowances Audit Disallowances Single Audit Single Audit Cash Management Improvement Act (CMIA) Cash Management Improvement Act (CMIA) GAO Audits GAO Audits Uncertainty – Reports to Recovery.gov Uncertainty – Reports to Recovery.gov Absolute Accountability Required Absolute Accountability Required

9. Office of Operations 2009 Fall Conference Accountability and Reporting of ARRA Funds Presenter: Christopher Bielawski, Audit Manager Bureau of State Expenditures

10. Office of Operations 2009 Fall Conference Audit Process Proactive Proactive Monitoring appropriations and expenditures Monitoring appropriations and expenditures Meeting with Agencies receiving funds Meeting with Agencies receiving funds Discuss readiness and impact Discuss readiness and impact

11. Office of Operations 2009 Fall Conference Payments Are we getting what we are paying for? Are we getting what we are paying for? Consider: Consider: Selection Selection Prices Prices Quality Quality Quantity Quantity Delivery Delivery

12. Office of Operations 2009 Fall Conference Participating on Internal Controls Work Group Training – Fraud, Internal Controls, Contract Monitoring Training – Fraud, Internal Controls, Contract Monitoring Accounting Data – will provide needed data Accounting Data – will provide needed data Risk Assessment Tools Risk Assessment Tools

13. Office of Operations 2009 Fall Conference Accountability and Reporting of ARRA Funds Presenter: Diane Taylor, Assistant Director Bureau of State Contracts

14. Office of Operations 2009 Fall Conference Technical Support to Contracting Agencies Joint Contracts and Expenditures Bulletin G238 Joint Contracts and Expenditures Bulletin G238 Assist with New ARRA Contract Requirements Assist with New ARRA Contract Requirements Understand new requirements Understand new requirements Review language, boilerplates Review language, boilerplates

15. Office of Operations 2009 Fall Conference Process Changes Expedited contract review Expedited contract review Enhanced contract review Enhanced contract review Every contract receives a full Every contract receives a full VendRep review Close review of bids Close review of bids ARRA terms and conditions ARRA terms and conditions

16. Office of Operations 2009 Fall Conference Process Changes GAO Auditors on site GAO Auditors on site New York State is one of 16 states receiving two-thirds of stimulus funding New York State is one of 16 states receiving two-thirds of stimulus funding Reviewed audit process with GAO Reviewed audit process with GAO On site review of contracts On site review of contracts

17. Office of Operations 2009 Fall Conference System Changes Modified Contract Management System to add “Stimulus” indicator Modified Contract Management System to add “Stimulus” indicator New database to capture additional data on stimulus construction contracts New database to capture additional data on stimulus construction contracts Second low bid Second low bid Pre-bid estimate Pre-bid estimate BSE recommendation BSE recommendation

18. Office of Operations 2009 Fall Conference System Changes Continued Additional Reporting Additional Reporting Stimulus Inventory and Processing Stimulus Inventory and Processing Report to Bureau of State Expenditures Report to Bureau of State Expenditures Adding state stimulus spending and contracts Adding state stimulus spending and contracts Comprehensive, near real time Comprehensive, near real time Individual payments and contracts Individual payments and contracts Multiple Search features Multiple Search features Program, payee/vendor, state agency Program, payee/vendor, state agency

19. Office of Operations 2009 Fall Conference Thank you!