Tightening Enforcement on Stimulus Funds Reporting
On Tuesday, April 6 2010, Vice President Joe Biden announced the release of a Presidential Memorandum directing agencies to intensify their efforts to improve the reporting of stimulus funds spending. Recipients of Recovery Act funds are supposed to report a variety of information concerning their awards to a central database (FederalReporting.gov) as a condition of their receipt of Recovery Act dollars. However, after the January 2010 recipient reporting cycle, the Office of Management and Budget (OMB) identified hundreds of recipients who should have submitted reports, but did not.
Attempting to decrease numbers of non-reporters, President Obama's Memorandum states that any non-reporting recipients are not living up to the Administration's transparency standards and must be held accountable to the "fullest extent permitted by law." Specifically, the Administration is asking federal agencies to "further intensify their efforts to improve reporting" by "terminating awards; pursuing measures such as suspension and debarment; reclaiming funds; and considering, initiating, and implementing punitive actions" when appropriate. Additionally, the Memorandum directs federal agencies to work with OMB to more quickly identify non-reporters and specify the actions the agency has taken to respond to the non-compliance. The Director of OMB will review current OMB guidance on the Recovery Act within the next 30 days, updating it to include agency actions and strategies to improve reporting compliance.
What does this mean for you?
Recovery Act grant recipients should continue being diligent in your reporting efforts. Make sure your organization is reporting correctly and on time.
This Client Alert is provided solely for educational and informational purposes. It is not intended to constitute legal advice or to create an attorney-client relationship. Readers should obtain legal advice specific to their enterprise and circumstances in connection with each of the topics addressed.
