1. DHHS COE Meeting Agenda November, 2013 □Contract Compliance Reporting □Contract Update □Questions and Answers

2. Office of Procurement & Contract Services Quarter 1 – SFY 2014 Contract Report for Center of Excellence November 2013

3. Q1 - Average Number of Days Contract or Amendment Approvals (RFPs not included)

4. Q1 - Average Number of Days Contract or Amendment Approvals

5. Q1 - Department Timely Approvals

6. Department Timely Approvals Q1 - Monthly Comparison

7. Q1 - Contract and Amendment Approval Times (RFPs not included)

8. Q1 - Divisions submitting all contracts prior to the effective date □Division of Health Service Regulation □Division of Mental Health □Division of State Operated Healthcare Facilities □Division of Vocational Rehabilitation

9. Q1 - Compliance Rating Monthly Comparison 42%35% 43% 41% In Compliance %

10. Q1 - Compliance Rating

11. Divisions with a Compliance Rating above 90% □Division of Vocational Rehabilitation - 100%

13. Q1 – Areas of Compliance ( RFPs not included)

14. Compliance Summary □Contracts after the effective date for Q1- 2014 improved significantly over Q1-2013. There was a 68% gain or improvement in Q1- 2014 (15%) vs. Q1-2013 (83%). □Scope of work is still a work in progress, but showed a 14% improvement from Q1-2013 □All other compliance areas are within the target range 90% and above and showed significant improvement over Q1-2013.

15. Compliance Summary □Contractor Forms showed a 30% improvement from Q1-2013 □Worksheets improved by as much as 55% from Q1-2013 □Performance Measures showed a 30% gain over Q1-2013 as well. □Cover improved by 18% from Q1-2013.

16. Compliance Summary □Q1-2013.Where possible divisions need to work on their internal cycle times. Some divisions show cycle time as much as 30 days. □Overall we are excited about the improvements as most of the compliance issues were controllable. They were made through lack of system knowledge and carelessness /inattentiveness.

17. Contract News □Contract managers are concerned about “rumors” of upcoming contract changes and how it will impact their process and when to correlate it into their training timelines. □David O responded that change is coming but to keep doing work from the business as usual perspective. However, we must all be prepared to be flexible when change occurs.

18. Contract News □David O’s goal is to have NO Sole source Contracts. □Upcoming changes to the CAF, when approved it will potentially require signature approval from: □Division IT □Division Privacy and Security □DHHs Privacy and Security □Other changes in discussion: □Modification to the IT checklist □Creation of an Privacy/Security “decision form” to streamline contract review

19. SL 2013-234 HB 56 □Per SESSION LAW 2013-234 HOUSE BILL 56, the Attorney General is only required to review contractual services exceeding five million.

20. Contract Document Updates □State Certifications changed to include E- Verify. Reference Article 2 of Chapter 24 □The principle requirement is that employers must use the federal E-verify system to determine the employment eligibility of its personnel, if that employer has at least 25 employees in North Carolina. □The law was effective 10/01/13

21. Contract Document Updates □Executive Order 24 ( EO 24) also referred to as “Gift Ban” was updated in all terms and conditions to distinguish between Governor Perdue’s EO 24 and Governor McCory’s EO 24.

22. Contract Document Updates □The Special Language Not Previously Addressed Heading was removed from all Contract Covers. However, the text field will remain. This change was most notably needed for amendment so that the clause “ All other terms and Conditions as set forth in the original contract document shall remain in effect for the duration of this Agreement” upheld finality.

23. Contract Document Updates □ The Execution or Signature Page: Please make sure that the correct person is signing the signature page and the required documents.

24. Contract Document Updates □ G.S. 10B-40 - Notarial Certificates and Forms: A notarial act shall be attested by all of the following:... (4) A statement of the date the notary's commission expires.” Attestation requires that the notary specify the full date on which their Commission expires. This means they should specify month, day, and year.

25. Contract Document Updates □The notary who notarizes the forms must proper enter the date on which the verification was signed, stating merely that the verification was “Sworn to and subscribed before me on this 12 [sic] day of 2013,” omitting any reference to the month does not satisfy the requirements of G.S. 10B- 40.

26. Contract Document Updates □Currently, notarized contract documents consist of the State Grant Certification - No Overdue Tax and IRS Tax Exemption Verification (501 ©) and Conflict of Interest Acknowledgement and Policy

27. Contract Document Updates □Modified Proof of Insurance and Conflict of Interest forms as follows: o Add a line for the printed name of the person signing the form; o Delete the words “Chairman, Executive Director, or Other Official” and replace them with the words “Printed Title”. o Add lines for a witness’s signature, signature date, printed name, and printed title. □All updated documents can be found in Contractor Reference Document section in OW.

28. Conference Authorization Form □Per Marjorie Donaldson, the Conference Authorization Policy has not changed but will be taken down. □The authorization form did not and still does not replace the need to contract with an individual through a personal services contract or a group for speakers which would not be a personal services contract when appropriate.

29. Conference Authorization Form □Regardless, the fundamental aspect is that division staff should obtain division management and budget approval and if warranted, Departmental management approval through their respective Deputy Secretaries.

30. Conference Authorization Form □The State Budget Manual sets guidelines and rates for internal and external conferences, trainings and retreats which we are all responsible for following. See: http://www.osbm.state.nc.us/files/pdf_files/B udgetManual.pdf. http://www.osbm.state.nc.us/files/pdf_files/B udgetManual.pdf