[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



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             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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