[House Report 115-947]
[From the U.S. Government Publishing Office]
115th Congress } { Report
HOUSE OF REPRESENTATIVES
2d Session } { 115-947
======================================================================
GRANT REPORTING EFFICIENCY AND AGREEMENTS TRANSPARENCY ACT OF 2018
_______
September 12, 2018.--Committed to the Committee of the Whole House on
the State of the Union and ordered to be printed
_______
Mr. Gowdy, from the Committee on Oversight and Government Reform,
submitted the following
R E P O R T
[To accompany H.R. 4887]
[Including cost estimate of the Congressional Budget Office]
The Committee on Oversight and Government Reform, to whom
was referred the bill (H.R. 4887) to modernize Federal grant
reporting, and for other purposes, having considered the same,
report favorably thereon with an amendment and recommend that
the bill as amended do pass.
CONTENTS
Page
Summary and Purpose of Legislation............................... 4
Background and Need for Legislation.............................. 5
Statement of Oversight Findings and Recommendations of the
Committee...................................................... 6
Statement of General Performance Goals and Objectives............ 6
Legislative History.............................................. 6
Committee Consideration.......................................... 6
Roll Call Votes.................................................. 6
Explanation of Amendments........................................ 6
Application of Law to the Legislative Branch..................... 7
Duplication of Federal Programs.................................. 7
Disclosure of Directed Rule Makings.............................. 7
Federal Advisory Committee Act................................... 7
Unfunded Mandates Statement...................................... 7
Earmark Identification........................................... 7
Committee Estimate............................................... 7
New Budget Authority and Congressional Budget Office Cost
Estimate....................................................... 8
Section-by-Section Analysis...................................... 9
Changes in Existing Law Made by the Bill, as Reported............ 12
The amendment is as follows:
Strike all after the enacting clause and insert the
following:
SEC. 1. SHORT TITLE.
This Act may be cited as the ``Grant Reporting Efficiency and
Agreements Transparency Act of 2018'' or the ``GREAT Act''.
SEC. 2. PURPOSES.
The purposes of this Act are to--
(1) modernize reporting by recipients of Federal grants and
cooperative agreements by creating and imposing data standards
for the information that grants and cooperative agreement
recipients must report to the Federal Government;
(2) implement the recommendation by the Director of the
Office of Management and Budget, under section 5(b)(6) of the
Federal Funding Accountability and Transparency Act of 2006 (31
U.S.C. 6101 note), which includes the development of a
``comprehensive taxonomy of standard definitions for core data
elements required for managing Federal financial assistance
awards'';
(3) reduce burden and compliance costs of recipients of
Federal grants and cooperative agreements by enabling
technology solutions, existing or yet to be developed, by both
the public and private sectors, to better manage data
recipients already provide to the Federal Government; and
(4) to strengthen oversight and management of Federal grants
and cooperative agreements by agencies through consolidated
collection and display of and access to open data that has been
standardized, and where appropriate, transparency to the
public.
SEC. 3. DATA STANDARDS FOR GRANT REPORTING.
(a) Amendment.--Subtitle V of title 31, United States Code, is
amended by inserting after chapter 63 the following new chapter:
``CHAPTER 64--DATA STANDARDS FOR GRANT REPORTING
``Sec.
``6401. Definitions.
``6402. Data standards for grant reporting.
``6403. Guidance applying data standards for grant reporting.
``6404. Agency requirements.
``Sec. 6401. Definitions
``In this chapter:
``(1) Agency.--The term `agency' has the meaning given that
term in section 552(f) of title 5.
``(2) Core data elements.--The term `core data elements'
means data elements that are not program-specific in nature and
are required by agencies for all or the vast majority of
Federal grant and cooperative assistance recipients for
purposes of reporting.
``(3) Director.--The term `Director' means the Director of
the Office of Management and Budget.
``(4) Federal award.--The term `Federal award'--
``(A) means the transfer of anything of value for a
public purpose of support or stimulation authorized by
a law of the United States, including financial
assistance and Government facilities, services, and
property;
``(B) includes grants, subgrants, awards, and
cooperative agreements; and
``(C) does not include--
``(i) conventional public information
services or procurement of property or services
for the direct benefit or use of the
Government; or
``(ii) an agreement that provides only--
``(I) direct Government cash
assistance to an individual;
``(II) a subsidy;
``(III) a loan;
``(IV) a loan guarantee; or
``(V) insurance.
``(5) Secretary.--The term `Secretary' means the head of the
standard-setting agency.
``(6) Standard-setting agency.--The term `standard-setting
agency' means the Executive department designated under section
6402(a)(1).
``(7) State.--The term `State' means each State of the United
States, the District of Columbia, each commonwealth, territory
or possession of the United States, and each federally
recognized Indian Tribe.
``Sec. 6402. Data standards for grant reporting
``(a) In General.--
``(1) Designation of standard-setting agency.--The Director
shall designate the Executive department (as defined in section
101 of title 5) that issues the most Federal awards in a
calendar year as the standard-setting agency.
``(2) Establishment of standards.--Not later than 1 year
after the date of the enactment of this chapter, the Secretary
and the Director shall establish Governmentwide data standards
for information reported by recipients of Federal awards.
``(3) Data elements.--The data standards established under
paragraph (2) shall include, at a minimum--
``(A) standard definitions for data elements required
for managing Federal awards; and
``(B) unique identifiers for Federal awards and
entities receiving Federal awards that can be
consistently applied Governmentwide.
``(b) Scope.--The data standards established under subsection (a)
shall include core data elements and may cover any information required
to be reported to any agency by recipients of Federal awards, including
audit-related information reported under chapter 75 of this title.
``(c) Requirements.--The data standards required to be established
under subsection (a) shall, to the extent reasonable and practicable--
``(1) render information reported by recipients of Federal
grant and cooperative agreement awards fully searchable and
machine-readable;
``(2) incorporate standards developed and maintained by
voluntary consensus standards bodies;
``(3) be consistent with and implement applicable accounting
and reporting principles; and
``(4) incorporate the data standards established under the
Federal Funding Accountability and Transparency Act of 2006 (31
U.S.C. 6101 note).
``(d) Consultation.--In establishing the data standards under
subsection (a), the Secretary and the Director shall consult with, as
appropriate--
``(1) the Secretary of the Treasury, to ensure that the data
standards incorporate the data standards created under the
Federal Funding Accountability and Transparency Act of 2006 (31
U.S.C. 6101 note);
``(2) the head of each agency that issues Federal awards;
``(3) recipients of Federal awards and organizations
representing recipients of Federal awards;
``(4) private sector experts;
``(5) members of the public, including privacy experts,
privacy advocates, and industry stakeholders; and
``(6) State and local governments.
``Sec. 6403. Guidance applying data standards for grant reporting
``(a) In General.--Not later than 2 years after the date of the
enactment of this chapter--
``(1) the Secretary and the Director shall issue guidance to
all agencies directing the agencies to apply the data standards
established under section 6402 to all applicable reporting by
recipients of Federal grant and cooperative agreement awards;
and
``(2) the Director shall prescribe guidance applying the data
standards to audit-related information reported under chapter
75.
``(b) Guidance.--The guidance issued under this section shall--
``(1) to the extent reasonable and practicable--
``(A) minimize the disruption to existing reporting
practices for agencies and for recipients of Federal
grant and cooperative agreement awards; and
``(B) explore opportunities to implement modern
technologies within Federal award reporting;
``(2) allow the Director to permit exceptions for categories
of grants if the Director publishes a list of such exceptions,
including exceptions for Indian Tribes and Tribal organizations
consistent with the Indian Self-Determination and Education
Assistance Act; and
``(3) take into consideration the consultation required under
section 6402(d).
``Sec. 6404. Agency requirements
``Not later than 3 years after the date of the enactment of this
chapter, the head of each agency shall ensure that all of the agency's
grants and cooperative agreements use data standards for all future
information collection requests and amend existing information
collection requests covered by chapter 35 of title 44 (commonly
referred to as the Paperwork Reduction Act) to comply with the data
standards established under section 6402, consistent with the guidance
issued by the Secretary and the Director under section 6403.''.
(b) Technical and Conforming Amendment.--The table of chapters for
subtitle V of title 31, United States Code, is amended by inserting
after the item relating to chapter 63 the following new item:
``64. Data Standards for Grant Reporting.................... 6401''.
SEC. 4. SINGLE AUDIT ACT.
(a) Amendments.--
(1) Section 7502(h) of title 31, United States Code, is
amended by inserting before ``to a Federal clearinghouse'' the
following ``in an electronic form consistent with the data
standards established under chapter 64,''.
(2) Section 7505 of title 31, United States Code, is amended
by adding at the end the following new subsection:
``(d) Such guidance shall require audit-related information reported
under this chapter to be reported in an electronic form consistent with
the data standards established under chapter 64.''.
(b) Guidance.--Not later than 2 years after the date of the enactment
of this Act, the Director shall issue guidance requiring audit-related
information reported under chapter 75 of title 31, United States Code,
to be reported in an electronic form consistent with the data standards
established under chapter 64 of title 31, United States Code, as added
by section 3.
SEC. 5. CONSOLIDATION OF ASSISTANCE-RELATED INFORMATION; PUBLICATION OF
PUBLIC INFORMATION AS OPEN DATA.
(a) Collection of Information.--Not later than 4 years after the date
of the enactment of this Act, the Secretary and the Director shall
enable the collection, public display, and maintenance of Federal award
information as a Governmentwide data set, using the data standards
established under chapter 64 of title 31, United States Code, as added
by section 3, subject to reasonable restrictions established by the
Director to ensure protection of personally identifiable and otherwise
sensitive information.
(b) Publication of Information.--The Secretary and the Director shall
require the publication of recipient-reported data collected from all
agencies on a single public portal. Information may be published on an
existing Governmentwide website as determined appropriate by the
Director.
(c) Foia.--Nothing in this section shall require the disclosure to
the public of information that would be exempt from disclosure under
section 552 of title 5, United States Code (commonly known as the
``Freedom of Information Act'').
SEC. 6. EVALUATION OF NONPROPRIETARY IDENTIFIERS.
(a) Determination Required.--The Director and the Secretary shall
determine whether to use nonproprietary identifiers under section
6402(a)(3)(B) of title 31, United States Code, as added by section
3(a).
(b) Factors to Be Considered.--In making the determination required
pursuant to subsection (a), the Director and the Secretary shall
consider factors such as accessibility and cost to recipients of
Federal awards, agencies that issue Federal awards, private-sector
experts, and members of the public, including privacy experts and
privacy advocates.
(c) Publication and Report on Determination.--Not later than the
earlier of 1 year after the date of the enactment of this Act or the
date on which the Secretary and Director establish data standards
pursuant to section 6402(a)(2) of title 31, United States Code, as
added by section 3(a), the Secretary and the Director shall publish and
submit to the Committees on Oversight and Government Reform of the
House of Representatives and Homeland Security and Governmental Affairs
of the Senate a report explaining the reasoning for the determination
made pursuant to subsection (a).
SEC. 7. DEFINITIONS.
In this Act, the terms ``agency'', ``Director'', ``Federal award'',
and ``Secretary'' have the meaning given those terms in section 6401 of
title 31, United States Code, as added by section 3(a).
SEC. 8. RULE OF CONSTRUCTION.
Nothing in this Act, or the amendments made by this Act, shall be
construed to require the collection of data that is not otherwise
required pursuant to any Federal law, rule, or regulation.
Summary and Purpose of Legislation
H.R. 4887, the Grant Reporting Efficiency and Agreements
Transparency Act of 2018, or the GREAT Act, requires the
creation of a comprehensive taxonomy of standardized data
elements for Federal awards to be implemented government-wide.
The standardization will ease the reporting burden for grant
recipients and improve public and private oversight.
Background and Need for Legislation
The GREAT Act continues a decade-long trend toward
increasing transparency of Federal grant spending. Since 2006,
Congress has sought to report Federal spending data in a
standardized, centralized, and easily accessible fashion.\1\
---------------------------------------------------------------------------
\1\Jennifer Teefy, Cong. Research Serv., R44027, Tracking Federal
Awards: USAspending.gov and Other Data Sources (2018).
---------------------------------------------------------------------------
In 2014, Congress passed the DATA Act, which included a
provision authorizing a pilot program to explore whether new
reporting standards would materially reduce duplicative,
burdensome financial reporting requirements for recipients of
Federal awards.\2\ Conducted by the Office of Management and
Budget (OMB), the pilot examined procurement contracts and
financial assistance grants.
---------------------------------------------------------------------------
\2\Pub. L. No. 113-101 (2014).
---------------------------------------------------------------------------
OMB tasked the General Services Administration (GSA) with
the portion of the pilot addressing contracts, because GSA
establishes and administers government-wide contracts. OMB
tasked the Department of Health and Human Services (HHS) with
strategic leadership of the grants portion of the pilot because
the agency issues the greatest number of grants. HHS studied
$122 billion in grants.\3\
---------------------------------------------------------------------------
\3\Office of Mgmt. & Budget, Report to Congress: DATA Act Pilot
Program 4 (2017).
---------------------------------------------------------------------------
As part of the pilot, HHS built the Common Data Element
Repository (CDER) Library, a Federal online repository of data
fields and definitions of the fields used by the Federal
Government in agency interactions with the public.\4\ The CDER
Library currently has more than 25,000 data elements for forms
used throughout the Federal Government.\5\
---------------------------------------------------------------------------
\4\Id., at 35.
\5\Dept. of Health & Human Services, Common Data Element Repository
(CDER) Library, https://repository.usaspending.gov/cder_library/
authorized/dataElements (last visited July 10, 2018).
---------------------------------------------------------------------------
The results of the pilot program show grant reporting could
be further streamlined. OMB offered four recommendations: (1)
define ``required reporting data elements;'' (2) collect data
in a central location; (3) utilize auto-population across the
government so that data can be reused; and (4) ensure
explanations of ``requirements and business processes''
accompany resources for grantees.\6\ However, standardizing
data elements should be done in conjunction with streamlining
the process for inputting the data. As OMB put it,
standardization is a ``prerequisite for achieving the full
potential for burden reduction.''\7\
---------------------------------------------------------------------------
\6\Office of Mgmt. & Budget, supra note 3, at 5.
\7\Id.
---------------------------------------------------------------------------
The DATA Act Pilot Program Report concluded standardizing
reporting data for Federal grant spending reduces burdens on
stakeholders and increases efficiency.\8\ The GREAT Act applies
the lessons of this successful pilot program, government-wide.
---------------------------------------------------------------------------
\8\Id.
---------------------------------------------------------------------------
Statement of Oversight Findings and Recommendations of the Committee
In compliance with clause 3(c)(1) of rule XIII and clause
(2)(b)(1) of rule X of the Rules of the House of
Representatives, the Committee's oversight findings and
recommendations are reflected in the previous section.
Statement of General Performance Goals and Objectives
In accordance with clause 3(c)(4) of rule XIII of the Rules
of the House of Representatives, the Committee's performance
goal or objective of this bill is to modernize Federal grant
reporting.
Legislative History
On January 29, 2018, Representative Virginia Foxx (R-NC)
introduced H.R. 4887, the Grant Reporting Efficiency and
Agreements Transparency (GREAT) Act of 2018, with
Representatives Jimmy Gomez (D-CA), Darrell Issa (R-CA), Mike
Quigley (D-IL), and Derek Kilmer (D-WA). H.R. 4887 was referred
to the Committee on Oversight and Government Reform. The
Committee considered the bill at a business meeting on February
6, 2018, and ordered the bill favorably reported, as amended,
by voice vote.
Committee Consideration
On February 6, 2018, the Committee met in open session and,
with a quorum being present, ordered the bill favorably
reported, as amended, by voice vote.
Roll Call Votes
There were no roll call votes requested or conducted during
Committee consideration of H.R. 4887.
Explanation of Amendments
During Committee consideration of the bill, Representative
Virginia Foxx (R-NC) offered an amendment in the nature of a
substitute to make technical corrections. The Foxx amendment
was adopted, as amended, by a voice vote.
Representative Jimmy Gomez (D-CA) offered and withdrew an
amendment to the amendment in the nature of a substitute, which
would have inserted a new section requiring data standards for
reporting on contracting following agreement by Rep. Foxx to
work on legislation to accomplish that goal.
Representative Gerald E. Connolly (D-VA) offered an
amendment to the Foxx amendment to strike the word
``nonproprietary'' and insert a new section directing the
Office of Management and Budget and the Secretary of the
standard setting agency to study and make a determination on
the use of nonproprietary identifiers, and report their
decision to the House Committee on Oversight and Government
Reform and the Senate Homeland Security and Governmental
Affairs Committee. The Connolly amendment to the Foxx amendment
was adopted by a voice vote.
Application of Law to the Legislative Branch
Section 102(b)(3) of Public Law 104-1 requires a
description of the application of this bill to the legislative
branch where the bill relates to the terms and conditions of
employment or access to public services and accommodations.
This bill is to modernize Federal grant reporting, and for
other purposes. As such, this bill does not relate to
employment or access to public services and accommodations.
Duplication of Federal Programs
In accordance with clause 2(c)(5) of rule XIII no provision
of this bill establishes or reauthorizes a program of the
Federal Government known to be duplicative of another Federal
program, a program that was included in any report from the
Government Accountability Office to Congress pursuant to
section 21 of Public Law 111-139, or a program related to a
program identified in the most recent Catalog of Federal
Domestic Assistance.
Disclosure of Directed Rule Makings
Pursuant to section 3(j) of H. Res. 5, the Committee finds
section 6402 of title 31, United States Code, as added by
section 3 of the legislation, would require the Director of the
Office of Management and Budget and a designated Cabinet
Secretary establish government wide data standards for grant
reporting. Section 6403 as added by section 3 of the
legislation, would require the Director and Secretary also
issue guidance to all agencies directing them to apply those
data standards to certain reporting. Sec. 4(b) of the
legislation requires the Director to issue guidance requiring
audit-related information reported under chapter 75 of title
31, United States Code, be reported in an electronic form.
Federal Advisory Committee Act
The Committee finds that the legislation does not establish
or authorize the establishment of an advisory committee within
the definition of Section 5(b) of the appendix to title 5,
United States Code.
Unfunded Mandates Statement
Pursuant to section 423 of the Congressional Budget Act of
1974 the Committee has included a letter received from the
Congressional Budget Office below.
Earmark Identification
This bill does not include any congressional earmarks,
limited tax benefits, or limited tariff benefits as defined in
clause 9 of rule XXI of the House of Representatives.
Committee Estimate
Pursuant to clause 3(d)(2)(B) of rule XIII of the Rules of
the House of Representatives, the Committee includes below a
cost estimate of the bill prepared by the Director of the
Congressional Budget Office under section 402 of the
Congressional Budget Act of 1974.
New Budget Authority and Congressional Budget Office Cost Estimate
Pursuant to clause 3(c)(3) of rule XIII of the House of
Representatives, the cost estimate prepared by the
Congressional Budget Office and submitted pursuant to section
402 of the Congressional Budget Act of 1974 is as follows:
U.S. Congress,
Congressional Budget Office,
Washington, DC, July 23, 2018.
Hon. Trey Gowdy,
Chairman, Committee on Oversight and Government Reform,
House of Representatives, Washington, DC.
Dear Mr. Chairman: The Congressional Budget Office has
prepared the enclosed cost estimate for H.R. 4887, the GREAT
Act.
If you wish further details on this estimate, we will be
pleased to provide them. The CBO staff contact is Matthew
Pickford.
Sincerely,
Mark P. Hadley
(For Keith Hall, Director).
Enclosure.
H.R. 4887--GREAT Act
Summary: H.R. 4887 aims to make information about federal
grant programs more easily accessible and transparent. The bill
would authorize the Office of Management and Budget (OMB) to
designate an executive agency to establish data standards for
all government reporting on such programs.
CBO estimates that implementing H.R. 4887 would cost $50
million over the 2019-2023 period, assuming appropriation of
the necessary funds. Enacting H.R. 4887 could affect direct
spending by agencies that are authorized to use receipts from
the sale of goods, fees, and other collections to cover
operating costs. Therefore, pay-as-you-go procedures apply.
Because most agencies can make adjustments to the amounts
collected as operating costs change, CBO estimates that any net
changes in direct spending by those agencies would be
negligible. Enacting the bill would not affect revenues.
CBO estimates that enacting H.R. 4887 would not increase
net direct spending or on-budget deficits in any of the four
consecutive 10-year periods beginning in 2029.
H.R. 4887 contains no intergovernmental or private-sector
mandates as defined in the Unfunded Mandates Reform Act (UMRA).
Estimated cost to the Federal Government: The estimated
budgetary effect of H.R. 4887 is shown in the following table.
The costs of the legislation fall within all budget functions
that contain salaries and expenses for grant programs.
----------------------------------------------------------------------------------------------------------------
By fiscal year, in millions of dollars--
----------------------------------------------------------
2018 2019 2020 2021 2022 2023 2019-2023
----------------------------------------------------------------------------------------------------------------
INCREASES IN SPENDING SUBJECT TO APPROPRIATION
Estimated Authorization Level........................ 0 10 10 10 10 10 50
Estimated Outlays.................................... 0 10 10 10 10 10 50
----------------------------------------------------------------------------------------------------------------
Basis of Estimate: For this estimate, CBO assumes that H.R.
4887 will be enacted near the end of 2018 and that spending
will follow historical patterns for similar activities.
The federal government uses several databases to monitor
and track agency spending. For example, ``Grants,'' a website
of the Department of Health and Human Services (HHS) provides
information about federal grants and contracts. Information on
federal spending also is available through an OMB website,
``USASpending,'' which displays award amounts for all federal
contracts, grants, and loans. Information from HHS and OMB
indicates that under current law, the federal government has
standardized some reporting requirements by grant recipients
but this information is not collected or reported consistently
across the government programs that award grants.
For this estimate, CBO assumes that HHS would be the lead
agency to implement H.R. 4887. HHS spends about $10 million to
$12 million annually on its ``Grants'' website, and CBO expects
that implementing H.R. 4887 would involve the same level of
effort spread across multiple departments and agencies. Initial
tasks would require personnel to develop the data structure and
data elements; subsequent work would involve modifying computer
systems and training personnel. In total, CBO estimates that
implementing the bill would cost $50 million over the 2019-2023
period, subject to the availability of appropriated funds.
Pay-As-You-Go considerations: The Statutory Pay-As-You-Go
Act of 2010 establishes budget-reporting and enforcement
procedures for legislation affecting direct spending or
revenues. H.R. 4887 could affect direct spending by agencies
that are not funded through annual appropriations; therefore,
pay-as-you-go procedures apply. CBO estimates, however, that
any changes in direct spending would be negligible. Enacting
the bill would not affect revenues.
Increase in long-term direct spending and deficits: CBO
estimates that enacting H.R. 4887 would not increase net direct
spending or on-budget deficits in any of the four consecutive
10-year periods beginning in 2029.
Mandates: H.R. 4887 contains no intergovernmental or
private-sector mandates as defined in UMRA.
Estimate prepared by: Federal Costs: Matthew Pickford;
Mandates: Andrew Laughlin.
Estimate reviewed by: Kim P. Cawley, Unit Chief, Natural
Resources Cost Estimate Unit; H. Samuel Papenfuss, Deputy
Assistant Director for Budget Analysis.
Section-by-Section Analysis
Section 1. Short title
Section 1 establishes the short title of the bill.
Sec. 2. Purposes
Section 2 establishes the purposes of this bill, including:
(1) modernizing Federal awards reporting to the Federal
Government; (2) implementing the development of a comprehensive
taxonomy of definitions for standard data elements required by
Federal awards; (3) decreasing compliance costs and burdens on
Federal award recipients through technology solutions; and (4)
strengthening oversight and management of Federal awards by
standardizing data collection and display.
Sec. 3. Data standards for grant reporting
Section 3 establishes a new chapter 64 of title 31, United
States Code, to create data standards to be used by Federal
award recipients for reporting.
31 U.S.C. Sec. 6401. DEFINITIONS
The new section 6401 of title 31, United States Code,
includes definitions for ``agency,'' ``Director,'' and
``Secretary'' as defined in existing law, and establishes new
definitions for the following terms, within chapter 64:
1. Core data elements. These are data elements collected in
Federal awards that are not program-specific and are required
by most Federal awards reporting.
2. Federal award. A Federal award is the transfer of
anything of value for public use or authorized activities,
excluding procurements, subsidies, loans, loan guarantees,
insurance, or direct government cash assistance to an
individual.
3. Standard-setting agency. This is the executive agency
issuing the most Federal awards.
4. State. This term means each of the 50 states, the
District of Columbia, each commonwealth, territory, or
possession of the United States, and each Federally-recognized
Indian Tribe.
31 U.S.C. Sec. 6402. DATA STANDARDS FOR GRANT REPORTING
Section 6402 of title 31, United States Code, as added by
section 3 of the bill, requires the Office of Management and
Budget and the standard-setting agency to establish data
standards for Federal award recipients throughout the
government within one year of enactment. The elements of the
data standards must include definitions for each standard and
unique identifiers for awards and award recipients, government-
wide. To the extent reasonable and practical, the data must
also: (1) be fully searchable and machine-readable; (2)
incorporate standards developed and maintained by voluntary
consensus standards bodies; (3) be consistent with and
implement applicable accounting and reporting principles; and
(4) meet the data standards established in the Federal Funding
Accountability and Transparency Act of 2006 (31 U.S.C. 6101
note).
OMB and the standard-setting agency will consult with the
Department of the Treasury, the heads of every agency that
issues Federal awards, award recipients, private sector
experts, privacy experts and advocates, and state and local
governments during the development of these standards.
31 U.S.C. Sec. 6403. GUIDANCE APPLYING DATA STANDARDS FOR GRANT
REPORTING
Section 6403 of the new chapter requires OMB and the
standard-setting agency to issue guidance to all agencies on
how to apply the data standards to applicable reporting from
Federal award recipients within two years of enactment. To the
extent reasonable and practical, the guidance must minimize
disruption to current reporting practices, use modern
technologies, allow for certain exceptions, and take the
consultation in section 6402(d) into consideration.
31 U.S.C. Sec. 6404. AGENCY REQUIREMENTS
Section 6404 of the new chapter requires each agency
issuing Federal awards to comply with the data standards for
all future information collection and amend existing
information requests covered by chapter 35 of title 44, United
States Code, to meet the newly established data standards,
within three years of enactment.
Sec. 4. Single audit act
Section 4 of the bill amends the Single Audit Act (31
U.S.C. 7502(h), 7505) to clarify reports created under this
bill shall be in an electronic format.
Sec. 5. Consolidation of assistance-related information; publication of
public information as open data
Section 5 enables OMB and the standard-setting agency to
collect, publicly display, and maintain the data collected
under this legislation, subject to reasonable restrictions set
by OMB to protect personally-identifiable and sensitive
information. Data exempt from disclosure under the Freedom of
Information Act (section 552 of title 5, United States Code) is
also exempt from disclosure in the public display required
under this legislation.
Sec. 6. Evaluation of nonproprietary identifiers
Section 6 requires the Director and Secretary to determine,
within one year of enactment, whether to use nonproprietary
identifiers under 31 U.S.C. 6402(a)(3)(B) and report the
determination to the House Committee on Oversight and
Government Reform and the Senate Committee on Homeland Security
and Governmental Affairs. The Director and Secretary must
consider accessibility and cost to the recipients of Federal
awards and agencies that issue Federal awards, as well as
consult stakeholders in the process.
Sec. 7. Definitions
Section 7 applies the definitions of ``agency,''
``Director,'' ``Federal award,'' and ``Secretary'' established
in the new 31 U.S.C. 6401 throughout the bill.
Sec. 8. Rule of construction
Section 8 provides a rule of construction that nothing in
this Act will require data collection that is not otherwise
required pursuant to any Federal law, rule, or regulation.
Changes in Existing Law Made by the Bill, as Reported
In compliance with clause 3(e) of rule XIII of the Rules of
the House of Representatives, changes in existing law made by
the bill, as reported, are shown as follows (new matter is
printed in italic and existing law in which no change is
proposed is shown in roman):
TITLE 31, UNITED STATES CODE
* * * * * * *
SUBTITLE V--GENERAL ASSISTANCE ADMINISTRATION
Chap. Sec.
Program Information...........................................6101
* * * * * * *
6401 Data Standards for Grant Reporting...............................
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CHAPTER 64--DATA STANDARDS FOR GRANT REPORTING
Sec.
6401. Definitions.
6402. Data standards for grant reporting.
6403. Guidance applying data standards for grant reporting.
6404. Agency requirements.
Sec. 6401. Definitions
In this chapter:
(1) Agency.--The term ``agency'' has the meaning
given that term in section 552(f) of title 5.
(2) Core data elements.--The term ``core data
elements'' means data elements that are not program-
specific in nature and are required by agencies for all
or the vast majority of Federal grant and cooperative
assistance recipients for purposes of reporting.
(3) Director.--The term ``Director'' means the
Director of the Office of Management and Budget.
(4) Federal award.--The term ``Federal award''--
(A) means the transfer of anything of value
for a public purpose of support or stimulation
authorized by a law of the United States,
including financial assistance and Government
facilities, services, and property;
(B) includes grants, subgrants, awards, and
cooperative agreements; and
(C) does not include--
(i) conventional public information
services or procurement of property or
services for the direct benefit or use
of the Government; or
(ii) an agreement that provides
only--
(I) direct Government cash
assistance to an individual;
(II) a subsidy;
(III) a loan;
(IV) a loan guarantee; or
(V) insurance.
(5) Secretary.--The term ``Secretary'' means the head
of the standard-setting agency.
(6) Standard-setting agency.--The term ``standard-
setting agency'' means the Executive department
designated under section 6402(a)(1).
(7) State.--The term ``State'' means each State of
the United States, the District of Columbia, each
commonwealth, territory or possession of the United
States, and each federally recognized Indian Tribe.
Sec. 6402. Data standards for grant reporting
(a) In General.--
(1) Designation of standard-setting agency.--The
Director shall designate the Executive department (as
defined in section 101 of title 5) that issues the most
Federal awards in a calendar year as the standard-
setting agency.
(2) Establishment of standards.--Not later than 1
year after the date of the enactment of this chapter,
the Secretary and the Director shall establish
Governmentwide data standards for information reported
by recipients of Federal awards.
(3) Data elements.--The data standards established
under paragraph (2) shall include, at a minimum--
(A) standard definitions for data elements
required for managing Federal awards; and
(B) unique identifiers for Federal awards and
entities receiving Federal awards that can be
consistently applied Governmentwide.
(b) Scope.--The data standards established under subsection
(a) shall include core data elements and may cover any
information required to be reported to any agency by recipients
of Federal awards, including audit-related information reported
under chapter 75 of this title.
(c) Requirements.--The data standards required to be
established under subsection (a) shall, to the extent
reasonable and practicable--
(1) render information reported by recipients of
Federal grant and cooperative agreement awards fully
searchable and machine-readable;
(2) incorporate standards developed and maintained by
voluntary consensus standards bodies;
(3) be consistent with and implement applicable
accounting and reporting principles; and
(4) incorporate the data standards established under
the Federal Funding Accountability and Transparency Act
of 2006 (31 U.S.C. 6101 note).
(d) Consultation.--In establishing the data standards under
subsection (a), the Secretary and the Director shall consult
with, as appropriate--
(1) the Secretary of the Treasury, to ensure that the
data standards incorporate the data standards created
under the Federal Funding Accountability and
Transparency Act of 2006 (31 U.S.C. 6101 note);
(2) the head of each agency that issues Federal
awards;
(3) recipients of Federal awards and organizations
representing recipients of Federal awards;
(4) private sector experts;
(5) members of the public, including privacy experts,
privacy advocates, and industry stakeholders; and
(6) State and local governments.
Sec. 6403. Guidance applying data standards for grant reporting
(a) In General.--Not later than 2 years after the date of the
enactment of this chapter--
(1) the Secretary and the Director shall issue
guidance to all agencies directing the agencies to
apply the data standards established under section 6402
to all applicable reporting by recipients of Federal
grant and cooperative agreement awards; and
(2) the Director shall prescribe guidance applying
the data standards to audit-related information
reported under chapter 75.
(b) Guidance.--The guidance issued under this section shall--
(1) to the extent reasonable and practicable--
(A) minimize the disruption to existing
reporting practices for agencies and for
recipients of Federal grant and cooperative
agreement awards; and
(B) explore opportunities to implement modern
technologies within Federal award reporting;
(2) allow the Director to permit exceptions for
categories of grants if the Director publishes a list
of such exceptions, including exceptions for Indian
Tribes and Tribal organizations consistent with the
Indian Self-Determination and Education Assistance Act;
and
(3) take into consideration the consultation required
under section 6402(d).
Sec. 6404. Agency requirements
Not later than 3 years after the date of the enactment of
this chapter, the head of each agency shall ensure that all of
the agency's grants and cooperative agreements use data
standards for all future information collection requests and
amend existing information collection requests covered by
chapter 35 of title 44 (commonly referred to as the Paperwork
Reduction Act) to comply with the data standards established
under section 6402, consistent with the guidance issued by the
Secretary and the Director under section 6403.
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CHAPTER 75--REQUIREMENTS FOR SINGLE AUDITS
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Sec. 7502. Audit requirements; exemptions
(a)(1)(A) Each non-Federal entity that expends a total amount
of Federal awards equal to or in excess of $300,000 or such
other amount specified by the Director under subsection (a)(3)
in any fiscal year of such non-Federal entity shall have either
a single audit or a program-specific audit made for such fiscal
year in accordance with the requirements of this chapter.
(B) Each such non-Federal entity that expends Federal awards
under more than one Federal program shall undergo a single
audit in accordance with the requirements of subsections (b)
through (i) of this section and guidance issued by the Director
under section 7505.
(C) Each such non-Federal entity that expends awards under
only one Federal program and is not subject to laws,
regulations, or Federal award agreements that require a
financial statement audit of the non-Federal entity, may elect
to have a program-specific audit conducted in accordance with
applicable provisions of this section and guidance issued by
the Director under section 7505.
(2)(A) Each non-Federal entity that expends a total amount of
Federal awards of less than $300,000 or such other amount
specified by the Director under subsection (a)(3) in any fiscal
year of such entity, shall be exempt for such fiscal year from
compliance with--
(i) the audit requirements of this chapter; and
(ii) any applicable requirements concerning financial
audits contained in Federal statutes and regulations
governing programs under which such Federal awards are
provided to that non-Federal entity.
(B) The provisions of subparagraph (A)(ii) of this paragraph
shall not exempt a non-Federal entity from compliance with any
provision of a Federal statute or regulation that requires such
non-Federal entity to maintain records concerning Federal
awards provided to such non-Federal entity or that permits a
Federal agency, pass-through entity, or the Comptroller General
access to such records.
(3) Every 2 years, the Director shall review the amount for
requiring audits prescribed under paragraph (1)(A) and may
adjust such dollar amount consistent with the purposes of this
chapter, provided the Director does not make such adjustments
below $300,000.
(b)(1) Except as provided in paragraphs (2) and (3), audits
conducted pursuant to this chapter shall be conducted annually.
(2) A State or local government that is required by
constitution or statute, in effect on January 1, 1987, to
undergo its audits less frequently than annually, is permitted
to undergo its audits pursuant to this chapter biennially.
Audits conducted biennially under the provisions of this
paragraph shall cover both years within the biennial period.
(3) Any nonprofit organization that had biennial audits for
all biennial periods ending between July 1, 1992, and January
1, 1995, is permitted to undergo its audits pursuant to this
chapter biennially. Audits conducted biennially under the
provisions of this paragraph shall cover both years within the
biennial period.
(c) Each audit conducted pursuant to subsection (a) shall be
conducted by an independent auditor in accordance with
generally accepted government auditing standards, except that,
for the purposes of this chapter, performance audits shall not
be required except as authorized by the Director.
(d) Each single audit conducted pursuant to subsection (a)
for any fiscal year shall--
(1) cover the operations of the entire non-Federal
entity; or
(2) at the option of such non-Federal entity such
audit shall include a series of audits that cover
departments, agencies, and other organizational units
which expended or otherwise administered Federal awards
during such fiscal year provided that each such audit
shall encompass the financial statements and schedule
of expenditures of Federal awards for each such
department, agency, and organizational unit, which
shall be considered to be a non-Federal entity.
(e) The auditor shall--
(1) determine whether the financial statements are
presented fairly in all material respects in conformity
with generally accepted accounting principles;
(2) determine whether the schedule of expenditures of
Federal awards is presented fairly in all material
respects in relation to the financial statements taken
as a whole;
(3) with respect to internal controls pertaining to
the compliance requirements for each major program--
(A) obtain an understanding of such internal
controls;
(B) assess control risk; and
(C) perform tests of controls unless the
controls are deemed to be ineffective; and
(4) determine whether the non-Federal entity has
complied with the provisions of laws, regulations, and
contracts or grants pertaining to Federal awards that
have a direct and material effect on each major
program.
(f)(1) Each Federal agency which provides Federal awards to a
recipient shall--
(A) provide such recipient the program names (and any
identifying numbers) from which such awards are
derived, and the Federal requirements which govern the
use of such awards and the requirements of this
chapter; and
(B) review the audit of a recipient as necessary to
determine whether prompt and appropriate corrective
action has been taken with respect to audit findings,
as defined by the Director, pertaining to Federal
awards provided to the recipient by the Federal agency.
(2) Each pass-through entity shall--
(A) provide such subrecipient the program names (and
any identifying numbers) from which such assistance is
derived, and the Federal requirements which govern the
use of such awards and the requirements of this
chapter;
(B) monitor the subrecipient's use of Federal awards
through site visits, limited scope audits, or other
means;
(C) review the audit of a subrecipient as necessary
to determine whether prompt and appropriate corrective
action has been taken with respect to audit findings,
as defined by the Director, pertaining to Federal
awards provided to the subrecipient by the pass-through
entity; and
(D) require each of its subrecipients of Federal
awards to permit, as a condition of receiving Federal
awards, the independent auditor of the pass-through
entity to have such access to the subrecipient's
records and financial statements as may be necessary
for the pass-through entity to comply with this
chapter.
(g)(1) The auditor shall report on the results of any audit
conducted pursuant to this section, in accordance with guidance
issued by the Director.
(2) When reporting on any single audit, the auditor shall
include a summary of the auditor's results regarding the non-
Federal entity's financial statements, internal controls, and
compliance with laws and regulations.
(h) The non-Federal entity shall transmit the reporting
package, which shall include the non-Federal entity's financial
statements, schedule of expenditures of Federal awards,
corrective action plan defined under subsection (i), and
auditor's reports developed pursuant to this section, in an
electronic form consistent with the data standards established
under chapter 64, to a Federal clearinghouse designated by the
Director, and make it available for public inspection within
the earlier of--
(1) 30 days after receipt of the auditor's report; or
(2)(A) for a transition period of at least 2 years
after the effective date of the Single Audit Act
Amendments of 1996, as established by the Director, 13
months after the end of the period audited; or
(B) for fiscal years beginning after the period
specified in subparagraph (A), 9 months after the end
of the period audited, or within a longer timeframe
authorized by the Federal agency, determined under
criteria issued under section 7504, when the 9-month
timeframe would place an undue burden on the non-
Federal entity.
(i) If an audit conducted pursuant to this section discloses
any audit findings, as defined by the Director, including
material noncompliance with individual compliance requirements
for a major program by, or reportable conditions in the
internal controls of, the non-Federal entity with respect to
the matters described in subsection (e), the non-Federal entity
shall submit to Federal officials designated by the Director, a
plan for corrective action to eliminate such audit findings or
reportable conditions or a statement describing the reasons
that corrective action is not necessary. Such plan shall be
consistent with the audit resolution standard promulgated by
the Comptroller General (as part of the standards for internal
controls in the Federal Government) pursuant to section
3512(c).
(j) The Director may authorize pilot projects to test
alternative methods of achieving the purposes of this chapter.
Such pilot projects may begin only after consultation with the
Chair and Ranking Minority Member of the Committee on
Governmental Affairs of the Senate and the Chair and Ranking
Minority Member of the Committee on Government Reform and
Oversight of the House of Representatives.
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Sec. 7505. Regulations
(a) The Director, after consultation with the Comptroller
General, and appropriate officials from Federal, State, and
local governments and nonprofit organizations shall prescribe
guidance to implement this chapter. Each Federal agency shall
promulgate such amendments to its regulations as may be
necessary to conform such regulations to the requirements of
this chapter and of such guidance.
(b)(1) The guidance prescribed pursuant to subsection (a)
shall include criteria for determining the appropriate charges
to Federal awards for the cost of audits. Such criteria shall
prohibit a non-Federal entity from charging to any Federal
awards--
(A) the cost of any audit which is--
(i) not conducted in accordance with this
chapter; or
(ii) conducted in accordance with this
chapter when expenditures of Federal awards are
less than amounts cited in section
7502(a)(1)(A) or specified by the Director
under section 7502(a)(3), except that the
Director may allow the cost of limited scope
audits to monitor subrecipients in accordance
with section 7502(f)(2)(B); and
(B) more than a reasonably proportionate share of the
cost of any such audit that is conducted in accordance
with this chapter.
(2) The criteria prescribed pursuant to paragraph (1) shall
not, in the absence of documentation demonstrating a higher
actual cost, permit the percentage of the cost of audits
performed pursuant to this chapter charged to Federal awards,
to exceed the ratio of total Federal awards expended by such
non-Federal entity during the applicable fiscal year or years,
to such non-Federal entity's total expenditures during such
fiscal year or years.
(c) Such guidance shall include such provisions as may be
necessary to ensure that small business concerns, qualified
HUBZone small business concerns, and business concerns owned
and controlled by socially and economically disadvantaged
individuals will have the opportunity to participate in the
performance of contracts awarded to fulfill the audit
requirements of this chapter.
(d) Such guidance shall require audit-related information
reported under this chapter to be reported in an electronic
form consistent with the data standards established under
chapter 64.
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