Interdepartmental Service Agreements (ISAs)

(1) Interdepartmental Service Agreement (ISA) Management. The Chief Fiscal Officer (CFO) for the Buyer and Seller Departments will be responsible for management of ISAs within their Department in accordance with 815 CMR 6.00 and policies and procedures published by the Office of the Comptroller. Management of ISAs shall include, but is not limited to, the evaluation of the ISA option based upon best value, ensuring timely ISA execution, processing of Mosaic transactions prior to the start of ISA performance, meeting reporting requirements, timely payment of invoices in accordance with the Commonwealth’s bill paying policy, monitoring ISA performance, and acting as the liaison for the Quality Assurance Program. Buyer and Seller Department ISA Managers designated for each ISA will be responsible for the administration of the ISA and will be the points of contact for ISA correspondence. (2) Interdepartmental Service Agreement (ISA) Effective Date. The effective date of an ISA shall be the latest of the following three dates: (a) The date the Interdepartmental Service Agreement Form has been executed by an authorized signatory of the Buyer Department. (b) The date the Interdepartmental Service Agreement Form has been executed by an authorized signatory of the Seller Department. (c) A later effective date specified in the Interdepartmental Service Agreement Form. (3) Interdepartmental Service Agreement (ISA) Documentation. (a) Buyer and Seller Departments entering into an ISA must execute the Interdepartmental Service Agreement (ISA) Form prior to the start of performance, and file the ISA and required attachments as prescribed by the Office of the Comptroller. (b) Signature by the Buyer Department certifies that the Buyer Department is statutorily authorized or required to procure the type of performance under the ISA, that sufficient funds are available for ISA performance, and that the ISA and attachments are in compliance with 815 CMR 6.00 and all other requirements of law. (c) Signature of the Seller Department certifies that the Seller Department is statutorily authorized to provide the type of performance sought by the Buyer under the ISA and that the ISA and attachments are in compliance with 815 CMR 6.00 and all other requirements of law. (d) An ISA is a contract and all contract execution and processing rules apply. (e) An ISA Amendment is required for changes in ISA duration, ISA renewals, increases or decreases in maximum obligation, any material change in performance requirements and any changes in account structure and must be executed by the Buyer and Seller Department prior to the termination date of the ISA, or as amended. (4) Duration of Interdepartmental Service Agreements (ISAs). Most ISAs are approved annually on a state fiscal year basis. However, ISAs should have the duration that makes sense from a business perspective. Multi-year ISAs are encouraged if it best supports the business process for the Departments. Similar to other types of contracts, all ISAs are subject to appropriation or the availability of adequate non-appropriated funding. (5) Interdepartmental Service Agreement Funding. (a) The Buyer Department must allocate the amount needed for the Seller Department’s performance for the entire fiscal year into the authorized ISA account(s), or otherwise encumber sufficient funds as prescribed by the Office of the Comptroller, to ensure timely encumbrance of funds and payment by the Seller Department for employees, contractors, grantees, etc. in accordance with Commonwealth payment policies; (b) Seller Departments may expend funds for ISA performance only from the authorized ISA allocation account(s); (c) When expending ISA funds, Seller Departments must treat these funds the same as any other contract funds, and conduct procurements and make ISA expenditures in accordance with the same state finance law and applicable general and special state and federal laws and regulations that apply to other types of contracts procure by the Seller Department. (6) Access to Records. Buyer Departments are entitled to “scan only” online access to state accounting system (Mosaic) data of the Seller Department for ISA business purposes. In addition, Seller Departments are required to provide whatever progress, programmatic or expenditure reports to the Buyer Department, as specified in an ISA. Even if reports are not specified, the Seller Department is required to provide a detailed accounting of all expenditures, encumbrances, planned encumbrances, any information in the state accounting or payroll system related to the child account, access to any ISA records, or on-site access to monitor ISA performance, upon request at any time during the period of the ISA. The Seller Department shall cooperate with the Buyer Department to provide whatever information, data or access is necessaryto verifyISA performanceandexpenditures. Seller Department shall provide the same access to ISA reports and data to the Office of the Comptroller, the State Auditor’s Office and the House and Senate Committees on Ways and Means.