[{"_1":2,"_100":-5,"_101":-5},"loaderData",{"_3":4,"_26":27},"root",{"_5":6,"_17":10,"_18":19,"_20":21,"_22":10,"_23":-5,"_24":-5,"_25":10},"user",{"_7":8,"_9":10,"_11":10,"_12":-5,"_13":-5,"_14":15,"_16":-5},"roles",[],"isAuthenticated",false,"isPremium","planName","subscriptionStatus","featureFlags",{},"insightsBudget","isDevelopmentHost","userPreferences",{},"recaptchaSiteKey","6LcvOJcUAAAAAHsB-gPGfGktcRlKpH7OTIU_dMTD","isImpersonating","impersonation","affiliateStatus","isFreedomPortal","routes/v2/article/layout",{"_28":29,"_30":31},"notFound",true,"relatedArticles",[32,76,88],{"_33":34,"_35":36,"_37":38,"_39":40,"_41":42,"_43":44,"_45":46,"_47":48,"_49":50,"_51":52,"_53":54,"_55":56,"_57":58,"_59":60,"_61":62,"_63":64,"_65":66,"_67":68,"_69":70,"_71":72,"_73":74,"_75":74},"mediaId",6687130,"mediaKeyId","2134955-d02df30b8c73bdcc93231474f8577311","parentId",2134955,"title","NC Pro announces changes to SFRF monitoring: low‑risk self‑assessments, longer visits for others, and free technical assistance","audioSeconds",432,"startMs",2000,"endMs",434000,"viewUrl","/Search/View?dp=1&key=2134955-d02df30b8c73bdcc93231474f8577311&start=2&end=434","thumbnailUrl","https://assets.pipeline.soar.com/2134955-d02df30b8c73bdcc93231474f8577311/thumbnail_2000.jpg","articleUrl","/articles/6687130/North-Carolina/NC-Pro-announces-changes-to-SFRF-monitoring-lowrisk-selfassessments-longer-visits-for-others-and-free-technical-assistance","mediaUrl","https://secure.pipeline.soar.com/6687130-94a2955124b7c885dd3f230ed2ecd53d/orig.mp4?Expires=1771196886&Signature=FkOIvgaGxCw2CPIyUUS9Bm0oWMsg1c3mFE2FAU4vRVwPdqhoQrLzIf-L-UmaOHAQDtXANhPo-Hht22-KgmU59wk0F9WJXkWngBFieRGFIlbl64yY4kTopn0MgVumlBQdlG2BDC~l6kVvurLjeheQRSfOrJjsYyj6s2h0ukCF7YKaBEmzMrHgI-ZYk-jv-T992snJing5SHSiRzdPotc0~2NtHbcGPUqbk0FsVYurODHwRsHI6Vrg~5cYEoPMvrLOPL~0CrEzn4z6wvWoKZjISeRAQlOxydlImb~sfKCrwzYJ17~ARFriMfgEkHJYpZ8c~EOysuGG-x2XkhBQJ9Zexg__&Key-Pair-Id=KUT5TJCACFTXG","author","Budget and Management, Office of State","date","2025-01-21T18:02:12.623Z","article","NC Pro reported that North Carolina met the U.S. Treasury obligation deadline for all State Fiscal Recovery Fund (SFRF) awards and described planned changes to monitoring and support for recipients as it readies “Cycle 2.” The presentation said the state has fully obligated $5,400,000,000 across 215 SFRF projects and now has two years to expend funds.

Why it matters: recipients of SFRF dollars must meet federal requirements for monitoring and closeout. NC Pro’s announced changes are intended to reduce burden on low‑risk entities, provide more time for monitored entities to gather records, and offer training resources for grant managers and subrecipients.

Key changes announced

- Low‑risk recipients: NC Pro said low‑risk entities will not receive the same in‑depth monitoring visits used in Cycle 1. Instead they will receive a self‑assessment survey (the team described it as a self‑assessment of internal controls) to be completed and returned; the office indicated a proposed turnaround of about 60 days but said that is not final.

- Medium and high‑risk recipients: the monitoring “visit” window will expand from one week to two weeks to give recipients additional time to assemble requested documents. NC Pro said high‑risk entities will again be visited in person by monitoring teams that include NC Pro contractors and Deloitte; medium‑risk entities will receive virtual monitoring similar to Cycle 1.

- Monitoring schedule: Cycle 2 monitoring will begin in the spring (NC Pro said monitoring could start in late March or early April) and is expected to extend into the 2026 calendar year. The office said there will be two blackout months for state agency monitoring: July (to allow fiscal closeout) and December (for year‑end/vacation schedules). NC Pro also said there are more entities to monitor in Cycle 2 than in Cycle 1.

- Technical assistance: NC Pro announced a structured, voluntary technical assistance program consisting of eight town‑hall style, virtual sessions per year for two years (eight sessions per year, repeated annually for two years). The sessions will cover common monitoring topics such as closeout and subrecipient monitoring and are intended for recipient staff and new hires; NC Pro emphasized the sessions will be free and open to all recipients.

Timeline and next steps

NC Pro said it expects to finalize the Cycle 2 monitoring plan and the technical assistance schedule by February 4 (date provided by the presenter; year not specified) and encouraged recipients to update contact information with their grant manager so monitoring invitations and schedules reach the correct staff. The office urged recipients to notify grant managers promptly of any staff turnover so monitoring logistics and technical assistance invitations are accurate.

What NC Pro asked recipients to do

NC Pro asked recipients to: (1) verify and update contact information with their grant manager; (2) be prepared for a self‑assessment if classified as low risk or for a two‑week monitoring window if classified medium or high risk; and (3) share the technical assistance opportunity with other staff who may not normally work on SFRF. The office said Deloitte, NC Pro contractors and the Grama team will continue to coordinate weekly as Cycle 2 plans are finalized.

Attribution and scope

The monitoring and technical assistance material was presented by NC Pro staff during the meeting; the presentation referred repeatedly to coordination with Deloitte, the Grama team and NC Pro contractors. Specific comments about risk categories and monitoring formats were described by NC Pro presenters and not adopted as formal agency regulations during the meeting. Dates and some timing details (for example, the proposed 60‑day survey return window) were described as tentative and subject to finalization by the February 4 planning milestone.

Ending

NC Pro said it will present additional details at its February meeting after the office finishes planned Cycle 2 changes and finalizes the technical assistance schedule.","mediaType","Video","parentTitle","ARPA SFRF Interagency Meeting January 16, 2025","oneSentenceSummary","NC Pro reported that North Carolina met the U.S. Treasury obligation deadline for all State Fiscal Recovery Fund awards and described planned changes to monitoring and support for recipients as it readies “Cycle 2.”","taxTitle","Budget and Management, Office of State, State Departments and Agencies, Organizations, Executive, North Carolina","taxId",37823,"location","North Carolina","headline","","shortSummary",{"_33":77,"_35":36,"_37":38,"_39":78,"_41":79,"_43":80,"_45":81,"_47":82,"_49":83,"_51":84,"_53":85,"_55":56,"_57":58,"_59":86,"_61":62,"_63":64,"_65":87,"_67":68,"_69":70,"_71":72,"_73":74,"_75":74},6687121,"NC Pro internal audit warns recipients about rising vendor‑payment fraud and deep‑fake scams",353,1314000,1667000,"/Search/View?dp=1&key=2134955-d02df30b8c73bdcc93231474f8577311&start=1314&end=1667","https://assets.pipeline.soar.com/2134955-d02df30b8c73bdcc93231474f8577311/thumbnail_1314000.jpg","/articles/6687121/North-Carolina/NC-Pro-internal-audit-warns-recipients-about-rising-vendorpayment-fraud-and-deepfake-scams","https://secure.pipeline.soar.com/6687121-90e64580ecd3f5b2b86096dcbeb92e6f/orig.mp4?Expires=1771196886&Signature=H8GEaHBLJhv7oLsSD343BTiEiXIot44sw9dZnBZ96-09-I270fIGHhs2IwryfoNZZxuv9QgTXAvTvPgzGZbp0qEJJdSqi6~eNfj7Hgd3f7-oRYwuXf4tOPDCiRIvgMdgictINCCvhmY9MK6goIFyTy-GJn8JfowR7iqeNzNa-MfQV2WbxgJOP7X3IFRAPwOarbo~5c3yauRhg6-DLFuV2ATLcHvvQqcDPKnDu2NvBslyFIEeDyjILhNpn4khBHJbQvFGyQQMwbw1VyWbkyrm4O7XTnr8Dw~l3dsE9jqw~qjU8nA4jPBChVvB02y9hFOOnz0VAwSMUpUNNKs6QDcPHg__&Key-Pair-Id=KUT5TJCACFTXG","Barbara Baldwin, internal audit director at the Office of State Budget and Management, warned participants that vendor‑payment fraud and sophisticated scams have increased and urged recipients and grant managers to adopt verification policies and training.

Why it matters: vendor‑payment fraud can cause large financial losses to state agencies, grantees and vendors. Baldwin described recent examples, explained common tactics, and gave step‑by‑step guidance attendees can use to reduce risk.

Examples Baldwin described

- Vendor email compromise and social engineering: attackers penetrate vendor email accounts (often via phishing), monitor correspondence and then send convincing change‑of‑payment requests that appear to come from the vendor. Baldwin gave a documented example in which a recipient’s accounts payable staff received an email appearing to be from a vendor pleading for help and asking for the next payment to be sent to a new bank account; the fraudulent message referenced a specific payment amount ($2,448,391) and details the attackers likely learned by reading intercepted email traffic.

- Deep‑fake meetings and personas: Baldwin described a case reported in the news where an accounts‑payable technician attended a virtual meeting that appeared to include the organization’s CFO and other employees and then authorized a $25,000,000 wire transfer. Baldwin said the meeting attendees were deep‑fake personas created with artificial intelligence; all participants were fraudulent.

Practical prevention steps Baldwin recommended

- Verify bank changes via a trusted fourth source: use the vendor master list, a contract phone number, the vendor’s W‑9, or another recorded contact rather than relying on the contact information provided in the suspect email or website. Do not call or click links embedded in the suspect message.

- Use a strict verification policy: require multi‑factor verification (for example, a phone call to a known, trusted number or in‑person approval) before changing vendor banking or mailing information, and do not allow staff to approve changes by email alone.

- Train staff and subrecipients: Baldwin said all staff with access to vendor information and accounts payable should be trained on these scams and that grantees and subrecipients should receive the same training.

- Act immediately if victimized: contact the financial institution immediately to attempt recovery; notify the grantor (which may trigger a state investigative response such as SBI) and report the incident to the FBI (Baldwin described wire fraud as a federal offense that the FBI investigates).

Resources and reporting

Baldwin said she would share links to FBI resources and other guidance in the meeting chat and urged attendees to copy and distribute those resources to accounts payable teams and grantees. She emphasized that the speed of action is critical to recovery and that victims should not delay reporting.

Attribution

Direct explanations and examples above are attributable to Barbara Baldwin, internal audit director, Office of State Budget and Management, who delivered the vendor‑payment fraud warning during the meeting.","Barbara Baldwin, internal audit director in the Office of Budget and Management, warned meeting attendees about a rise in vendor‑payment fraud—including vendor email compromise and AI deep‑fake schemes—and advised verification steps and immediate reporting to financial institutions and federal authorities.",{"_33":89,"_35":36,"_37":38,"_39":90,"_41":91,"_43":92,"_45":93,"_47":94,"_49":95,"_51":96,"_53":97,"_55":56,"_57":58,"_59":98,"_61":62,"_63":64,"_65":99,"_67":68,"_69":70,"_71":72,"_73":74,"_75":74},6687125,"NC Pro summarizes recent U.S. Treasury guidance: reclassification, multiyear contracts and single‑audit threshold changes",335,738000,1073000,"/Search/View?dp=1&key=2134955-d02df30b8c73bdcc93231474f8577311&start=738&end=1073","https://assets.pipeline.soar.com/2134955-d02df30b8c73bdcc93231474f8577311/thumbnail_738000.jpg","/articles/6687125/North-Carolina/NC-Pro-summarizes-recent-US-Treasury-guidance-reclassification-multiyear-contracts-and-singleaudit-threshold-changes","https://secure.pipeline.soar.com/6687125-f905e6c408fc03549cf036123b91e2c3/orig.mp4?Expires=1771196886&Signature=belSv6YaEh-oM9NBOPCo6SvSvFevkdojY8W9IOf9GY1VJdzzmpmmhlVA~QywK~mOpoyMaQaMMAVWJ3GKOWU-Lu4njhISLBFQ4vabaf2ru8MtQkgGi5zRNfg~P6qMi14PKrUqx9dCVUB8jtQDMVPqEhOfFnd2JfjW6U9rqkK9HMtMTwVriy6mgvGnys~2yU8aRwaBDgyFYT1k-S-DocWh6753JYoJMyaBWnP~eYYwUpKsOI9-CLf19YRWl35FULa98xmGu~9fBka2xerFJU32G7c11nYyDsKClqKKlzobJDBqKQ3gQzlya7ZunhjdxIo~f860y8ykRCd8E4IJ8K4wSg__&Key-Pair-Id=KUT5TJCACFTXG","Natalie Garrett, who leads policy strategy and reporting at NC Pro, reviewed recent U.S. Treasury compliance and reporting guidance changes that the office said are likely to affect certain SFRF recipients and projects. Garrett cautioned that Treasury has issued initial guidance language in some areas and that additional clarification is likely.

Why it matters: the guidance can change recipients’ compliance obligations and closeout treatment, especially for large infrastructure or nonrevenue replacement projects.

What NC Pro highlighted

- Reclassification: NC Pro said Treasury provided additional flexibility for moving funds among already obligated SFRF projects when recipients encounter difficulty spending funds as planned. The office said Treasury will provide more detail in follow‑up guidance and that NC Pro will assist recipients that need to reclassify funds. NC Pro noted that reclassification also may require approval steps involving the state legislature because the legislature determines SFRF fund allocations.

- Multiyear contracts: NC Pro reported Treasury’s language that SFRF funds may not be used to pay costs that occur after the SFRF period of performance ends (the presenter described the period as ending December 2026). Garrett said the change could affect multiyear contracts that extend beyond the period of performance and that NC Pro is discussing consequences with state budget officers and federal partners; she identified larger infrastructure projects managed by DEQ and DIT as likely affected.

- Cost principles and 2 CFR part 200: NC Pro flagged Treasury’s discussion of which parts of 2 CFR part 200 apply to revenue‑replacement projects versus nonrevenue projects and encouraged recipients to consult NC Pro for questions specific to their project classification.

- Single audit thresholds: NC Pro said Treasury added a clause affecting Single Audit Act coverage: recipients that expend more than $750,000 in federal awards during a fiscal year (or $1,000,000 for fiscal years starting on or after Oct. 1, 2024, as described by Treasury) may be subject to a single audit. Garrett said Treasury provided the language without much contextual explanation and that NC Pro will help recipients interpret the change as additional guidance becomes available.

NC Pro’s guidance to recipients

Garrett said recipients should review the guidance text (NC Pro provided page references during the presentation), raise specific questions with their grant manager if the guidance appears to apply, and expect NC Pro to seek additional clarification from Treasury where necessary. She emphasized the guidance is evolving, with some initial language and further details likely to follow.

Attribution

Direct explanations of the guidance were given by Natalie Garrett, lead of policy strategy and reporting at NC Pro. Garrett repeatedly described the current Treasury language as initial guidance and said NC Pro expects future clarifications.","NC Pro staff highlighted recent U.S. Treasury updates that may affect how SFRF recipients classify projects, use funds for multiyear contracts, and whether they are subject to single‑audit requirements.","actionData","errors"]

Article not found

NC Pro announces changes to SFRF monitoring: low‑risk self‑assessments, longer visits for others, and free technical assistance

NC Pro internal audit warns recipients about rising vendor‑payment fraud and deep‑fake scams

NC Pro summarizes recent U.S. Treasury guidance: reclassification, multiyear contracts and single‑audit threshold changes