Tenn. Comp. R. & Regs. 0690-03-01-.27

Current through December 18, 2024

Section 0690-03-01-.27 - AGENCY TERM CONTRACT MANAGEMENT AND SUBRECIPIENT MONITORING

(1) The procuring State Agency shall be responsible for contract management of all Grant and Term Contracts.

(2) Contract management is a State Agency's ongoing continuum of processes for administering and reviewing the performance of each contract for efficiency, cost-effectiveness, and provider accountability and results. Contract management may include, but is not limited to:

(a) Allocating adequate staff and resources to contract management;

(b) Reviewing Contracting Party performance in terms of progress and compliance with contract provisions;

(c) Communicating with Contracting Parties to ensure maximum performance and intended results;

(d) Approving and remitting payments for acceptable work in accordance with contract provisions and applicable law;

(e) Maintaining records of each contract that documents activities such as procurement, management, and subrecipient monitoring, if applicable; and

(f) Evaluating contract results in terms of the achievement of organizational objectives.

(3) Each State Agency shall establish an annual contract management plan addressing the general management of contracts for which it is responsible.

(a) A contract management plan should include:

1. Information about the specific staff positions and resources that will be assigned to contract management;

2. A description of the organization of identified staff and resources for the contract management responsibility; and

3. An explanation of how the contract management staff will review and supervise Contracting Party performance, progress, contract compliance, and pricing.

(b) Before each calendar year for which the plan is applicable, the Chief Procurement Officer or chief executive of the Delegated State Agency must approve the annual contract management plan and, before submitting any contract for approval in that year, submit a copy to the Central Procurement Office.

(4) Each State Agency should identify the specific staff responsible for the management of each contract under its purview and ensure that such staff has adequate training. Such training may include:

(a) Definition of needs;

(b) Procurement law, Rules, and Central Procurement Office Policy;

(c) Basic record keeping;

(d) Program specific goals, objectives, purpose, and responsibilities;

(e) Interpersonal communication;

(f) Project management skills and tools; and

(g) Evaluation techniques, skills, and tools.

(5) Each State Agency shall implement such management practices as necessary to ensure:

(a) Accountability, results, and positive programmatic impact from contracts (as opposed to mere contract compliance).

(b) The use of diverse talents of the agency's "centralized" units (e.g., contract administration, audit, fiscal, etc.), where possible, as "support" staff to assist or oversee program staff in contract management responsibilities.

(6) The efficacy of each State Agency's contract management shall be subject to on-going evaluation and improvement, and the responsibility for which shall belong to:

(a) The procuring State Agency's program area having responsibility for each contract;

(b) The procuring State Agency's functional area having responsibility for internal controls, financial integrity, and internal audit;

(c) The procuring State Agency's executives; and

(d) The Comptroller of the Treasury (pursuant to his or her power to review and audit State government under Title 8, Chapter 4 and Title 9, Chapter 18 of the Tennessee Code).

(7) Subrecipient monitoring is required, in addition to contract management, for the specific subset of contracts and grant contracts that are characterized by a subrecipient relationship. Subrecipient contract monitoring is an additional, independent review that is used to determine a subrecipient's compliance with the requirements of applicable State or federal programs, laws and regulations, and stated results. Subrecipient monitoring includes the review of internal controls to determine if the financial management and the accounting system are adequate to account for program funds in accordance with State or federal requirements.

(a) Staff with subrecipient monitoring responsibilities must have duties separate from program staff to ensure independence and objectivity.

(b) Each State Agency subject to these Rules shall develop and obtain Central Procurement Office approval of an annual subrecipient monitoring plan that identifies all of its subrecipients and all subrecipients to be monitored. The deadline for this plan will be established by Central Procurement Office Policy.

Tenn. Comp. R. & Regs. 0690-03-01-.27

Original rule filed October 22, 2013; effective January 20, 2014.

Authority: T.C.A. §§ 4-56-102, 4-56-105, and 12-3-305.