The Library of Congress  >  THOMAS Home  >  Committee Reports  >  Search Results

69-010

2008
110TH CONGRESS 2D SESSION
SENATE
Report

110-468

Calendar No. 1027

FEDERAL FINANCIAL ASSISTANCE MANAGEMENT IMPROVEMENT ACT OF 2008

R E P O R T

of the

COMMITTEE ON

HOMELAND SECURITY AND

GOVERNMENTAL AFFAIRS

UNITED STATES SENATE

to accompany

S. 3341

TO REAUTHORIZE AND IMPROVE THE FEDERAL FINANCIAL ASSISTANCE MANAGEMENT IMPROVEMENT ACT OF 1999

congress.#13

SEPTEMBER 17, 2008- Ordered to be printed

COMMITTEE ON HOMELAND SECURITY AND GOVERNMENTAL AFFAIRS
JOSEPH I. LIEBERMAN, Connecticut, Chairman
CARL LEVIN, Michigan
DANIEL K. AKAKA, Hawaii
THOMAS R. CARPER, Delaware
MARK L. PRYOR, Arkansas
MARY L. LANDRIEU, Louisiana
BARACK OBAMA, Illinois
CLAIRE MCCASKILL, Missouri
JON TESTER, Montana
SUSAN M. COLLINS, Maine
TED STEVENS, Alaska
GEORGE V. VOINOVICH, Ohio
NORM COLEMAN, Minnesota
TOM COBURN, Oklahoma
PETE V. DOMENICI, New Mexico
JOHN WARNER, Virginia
JOHN E. SUNUNU, New Hampshire
MICHAEL L. ALEXANDER, STAFF DIRECTOR
KEVIN J. LANDY, CHIEF COUNSEL
BETH M. GROSSMAN, SENIOR COUNSEL
BRANDON L. MILHORN, MINORITY STAFF DIRECTOR AND CHIEF COUNSEL
LISA M. NIEMAN, MINORITY COUNSEL
TARA L. SHAW, MINORITY COUNSEL, SUBCOMMITTEE ON OVERSIGHT OF GOVERNMENT MANAGEMENT, THE FEDERAL WORKFORCE, AND THE DISTRICT OF COLUMBIA
TRINA DRIESSNACK TYRER, CHIEF CLERK

Calendar No. 1027

110TH CONGRESS

SENATE

Report

2d Session

110-468

--FEDERAL FINANCIAL ASSISTANCE MANAGEMENT IMPROVEMENT ACT OF 2008

September 17, 2008- Ordered to be printed

Mr. LIEBERMAN, from the Committee on Homeland Security and Governmental Affairs, submitted the following

R E P O R T

[To accompany S. 3341]

The Committee on Homeland Security and Governmental Affairs, to which was referred the bill (S. 3341) to reauthorize and improve the Federal Financial Assistance Management Improvement Act of 1999, having considered the same, reports favorably thereon without amendment and recommends that the bill do pass.

CONTENTS Page
I. Purpose and Summary 1
II. Background and Need for the Legislation 2
III. Legislative History 4
IV. Section-by-Section Analysis 4
V. Evaluation of Regulatory Impact 6
VI. Congressional Budget Office Cost Estimate 6
VII. Changes in Existing Law Made by the Bill, as Reported 7

I. PURPOSE AND SUMMARY

The purpose of S. 3341 is to reauthorize and improve the Federal Financial Assistance Management Improvement Act of 1999 (`FFAMIA' or `Act'), 1

[Footnote] which sought to improve the effectiveness and performance of federal financial assistance programs and reduce the burden on applicants by, among other things, simplifying application and reporting requirements. S. 3341 updates and expands the provisions of the FFAMIA. It requires that the Director of the Office of Management and Budget (OMB) and federal agencies continue to work together, and with the nonfederal entities that receive federal financial assistance, to streamline federal grants administration; provides that the OMB Director develop a strategic plan for achieving such streamlining and for other improvements; and requires biennial reports from the Director of OMB and from federal agencies to ensure progress towards implementing the strategic plan and meeting the goals of the FFAMIA.

[Footnote 1: Pub. L. No. 106-107 (31 U.S.C. 6101 note).]

II. BACKGROUND AND NEED FOR THE LEGISLATION

There are in excess of 1000 different federal grant programs, administered by more than two dozen federal agencies. 2

[Footnote] Traditionally, each agency has had its own distinct processes and requirements for grant applications and reporting, and individual grant programs may have unique requirements as well. As a result, state, local, and tribal governments, nonprofit organizations and others seeking assistance from multiple federal sources may face duplicative, burdensome and even conflicting requirements. Moreover, costs that grantees incur in meeting unnecessarily burdensome requirements represent resources that could otherwise go towards carrying out the public purposes for which the grants are intended.

[Footnote 2: U.S. Government Accountability Office, Grants Management Additional Actions Needed to Streamline and Simplify Processes, GAO-05-335 p. 1. (Hereinafter, `2005 GAO Report').]

To address these concerns, Congress enacted the FFAMIA in 1999. The Act was intended to improve the effectiveness and performance of federal grant and other assistance programs, simplify federal financial assistance application and reporting requirements, improve the delivery of services to the public and facilitate greater coordination among the federal agencies and their non-federal partners responsible for delivering such services. 3

[Footnote]

[Footnote 3: Pub. L. No. 106-107, Sec. 3.]

Specifically, the FFAMIA required federal agencies, in consultation with non-federal entities, to develop and implement plans to streamline and simplify the application, administrative and reporting procedures for federal financial assistance programs and use common applications and reporting systems for those programs. 4

[Footnote] The Act also called for the development of electronic applications for and reports on the use of federal financial assistance and required the Director of OMB to direct, coordinate, and assist federal agencies in establishing common applications and reporting systems. 5

[Footnote] The Act provided that it would sunset eight years after enactment, or November 2007. 6

[Footnote]

[Footnote 4: Pub. L. No. 106-107, Sec. 5.]

[Footnote 5: Pub. L. No. 106-107, Sec. 6.]

[Footnote 6: Pub. L. No. 106-107, Sec. 11.]

The FFAMIA has led to a number of improvements in the management and transparency of the federal grants process. The most notable and most visible of these is the creation of a web portal for federal grants at www.grants.gov (`Grants.gov'). Currently, there are over 1000 grants, from 26 federal agencies, listed on Grants.gov; these grants represent more than $450 billion in federal government awards to state, local, and tribal governments, nonprofits, and others. 7

[Footnote] According to OMB, the Grants.gov website benefits the federal government by allowing agencies to reduce operating costs associated with posting grants and improve operational effectiveness through increased data accuracy and reduced processing times. 8

[Footnote] Equally importantly, Grants.gov has the potential to reduce the burden on the State, local, and tribal governments, nonprofits and others who apply for federal grants, by serving as a `one-stop shop' for grant information and applications for grantees.

[Footnote 7: Office of Management and Budget, Report to Congress on the Benefits of the President's E-Government Initiatives (Fiscal Year 2008), p. 12 (hereinafter, `E-Government Report'). OMB reports that within these grant programs, over 2900 application packages (or all but an exempted 291 of the total application packages) were posted online (E-Government Report, p. 13), and that over 180,000 applications were submitted through Grants.gov in FY 2007 (E-Government Report, p. ii).]

[Footnote 8: E-Government Report, p. 13.]

In 2005, the Governmental Accountability Office (`GAO'), as required by section 7 of the FFAMIA, assessed and reported on the effectiveness of the Act, 9

[Footnote] and in 2006, it issued a follow-on report. 10

[Footnote] In these reports, GAO noted that federal agencies had made some progress in streamlining aspects of the grants life cycle. 11

[Footnote] Grants.gov, for example, was developed to help potential grantees identify grant opportunities more easily and apply for grants electronically, 12

[Footnote] efforts were undertaken to consolidate grant management systems across agencies, 13

[Footnote] and a standard format for the announcement of grant opportunities was developed. 14

[Footnote] By May 2006, GAO reported, all but two agencies had provided the capability for grantees to apply for grants using the Grants.gov website. 15

[Footnote]

[Footnote 9: 2005 GAO Report.]

[Footnote 10: U.S. Government Accountability Office, Grants Management Grantees' Concerns with Efforts to Streamline and Simplify Processes, GAO 06-566 (hereinafter, `2006 GAO Report').]

[Footnote 11: 2005 GAO Report, p. 3.]

[Footnote 12: 2005 GAO Report, p. 8.]

[Footnote 13: 2005 GAO Report, p. 3.]

[Footnote 14: 2005 GAO Report, p. 3.]

[Footnote 15: 2006 GAO Report, p. 10.]

GAO, however, also noted that efforts to develop common electronic reporting systems had not progressed. 16

[Footnote] In fact, although FFAMIA required the development of a common system, including electronic processes, through which a grantee could apply for, manage, and report on the use of funding, 17

[Footnote] systems for any grant phase beyond the application phase had not been developed. 18

[Footnote] In addition to a lack of common reporting systems, GAO found that federal agencies operated nine different systems to distribute grant funding, some of which were unreliable and antiquated systems. 19

[Footnote] And GAO reported comments from grantees about the number of certifications and assurance forms they had to submit, even though those forms did not vary widely among programs. 20

[Footnote]

[Footnote 16: 2005 GAO Report, p. 16.]

[Footnote 17: Pub. L. No. 106-107, Sec. 6.]

[Footnote 18: 2006 GAO Report, p. 13. GAO noted that efforts were begun by OMB in 2004 to create end-to-end grants management systems, with a goal of 2011 for moving all agencies to common systems. 2006 GAO Report, p. 11.]

[Footnote 19: 2006 GAO Report, p. 14.]

[Footnote 20: 2006 GAO Report, p. 15.]

Finally, in an additional area of concern, GAO noted that agency coordination with the grantee community was limited. 21

[Footnote] GAO reported that federal agencies solicited input from the grantee community during the early planning stages to implement the FFAMIA but did not coordinate with the grantee community on an ongoing basis. 22

[Footnote]

[Footnote 21: 2005 GAO Report, p. 3.]

[Footnote 22: 2005 GAO Report, p. 18.]

Ultimately, GAO concluded that additional work was needed to streamline the grants life cycle and that the momentum established pursuant to the FFAMIA needed to continue past the law's November 2007 sunset. 23

[Footnote] GAO recommended that `Congress should consider reauthorizing the law to make certain that federal agencies have clear requirements to continue . . . efforts and the momentum for progress in streamlining grant administration continues.' 24

[Footnote]

[Footnote 23: 2006 GAO Report, p. 26.]

[Footnote 24: 2006 GAO Report, p. 27.]

S. 3341 would reauthorize the FFAMIA by eliminating the 2007 sunset date. In addition, it would address many of the issues raised by the GAO in 2005 and 2006. Specifically, the bill seeks to codify and enhance the use of Grants.gov, requiring the Director of OMB to maintain a public website that allows grant applicants to use the website to search and apply for grants; manage, track, and report on the use of grants; and provide required certifications and assurances for grants. It further requires the Director of OMB to develop a strategic plan that provides plans, timelines, and cost estimates for developing an electronic capability for managing Federal financial assistance; creating common applications and reporting forms and requirements; developing common certifications and assurances; and minimizing the number of different systems used to disburse Federal financial assistance. The Director of OMB is to report biennially to Congress for a period of 15 years on progress made in implementing the Act and the strategic plan, and each federal agency would be required to report biennially to OMB for a period of fifteen years on its progress towards achieving its objectives in furtherance of the strategic plan.

III. LEGISLATIVE HISTORY

On July 26, 2008, S. 3341 was introduced by Senators Voinovich and Lieberman and was referred to the Committee on Homeland Security and Governmental Affairs.

On July 30, 2008, the Committee on Homeland Security and Governmental Affairs considered S. 3341 and ordered the bill reported favorably without amendment by voice vote. The members present were Lieberman, Akaka, Carper, Pryor, Landrieu, Tester, Collins, Stevens, and Voinovich.

IV. SECTION-BY-SECTION ANALYSIS

Section 1. Short title

This section establishes the title of the act as the `Federal Financial Assistance Management Improvement Act of 2008'.

Section 2. Reauthorization

This section eliminates the sunset provision originally included in section 11 of the 1999 Act, effectively reauthorizing that Act indefinitely.

Section 3. Website related to federal grants

This section adds a new section 6(e) to the FFAMIA that requires the Director of OMB to establish and maintain a public website to serve as a central point of information and access for applicants for federal grants. At a minimum, for each federal grant, that website is to include, to the maximum extent possible, grant announcements; statements of eligibility; application requirements; purposes of the funding; the name of the funding agency; and application and award deadlines. This section further requires that, to the greatest extent practical, the website must allow grant applicants to search for all federal grants by various criteria; apply for grants; manage, track, and report on the use of grants; and provide required certifications and assurances for grants.

The section further makes a technical amendment to section 6(g) to clarify that the requirement that provisions be carried out within 18 months of the enactment of the original 1999 Act does not apply to the new website provisions of section 6(e).

Section 4. Report on implementation

This section strikes section 7 of the 1999 Act, which required GAO to evaluate the effectiveness of the Act, and inserts a new section 7 that would require the Director of OMB to report to Congress within 9 months of enactment, and biennially thereafter for a period of 15 years, on progress made in implementing the FFAMIA. Each report must list all grants that can be applied for using the website required under section 6(e); list all agencies that provide federal financial assistance; list all agencies that have complied with the requirements of the Act and the extent of their compliance; list all agencies exempted from the requirements of the Act with an explanation of the exemption and certification that the basis for the exemption still exists; list all common application forms that allow non-federal entities to apply for multiple federal financial assistance programs; list all common forms and requirements that allow non-federal entities to report on the use of funding from multiple federal financial assistance programs; describe federal efforts to communicate and collaborate with non-federal entities during the implementation of the FFAMIA; describe efforts of the OMB Director to work with federal agencies to meet the goals of the Act; and describe all systems used to disburse federal financial assistance to non-federal entities. Subsequent reports must also detail progress made by the federal government in meeting the goals of the FFAMIA and compile agency reports on their actions in furtherance of the Act.

Section 5. Strategic plan

This section amends the FFAMIA by inserting a new section 8 that requires the Director of OMB to submit a strategic plan to Congress within 18 months. The strategic plan is required to identify federal financial assistance programs, or aspects of such programs, that are suitable for common applications or common reporting forms or requirements; and identify changes in law needed to achieve the FFAMIA's goals. The strategic plan is also required to include plans, timelines, and cost estimates for developing an entirely electronic, web-based process that allows grantees to manage various aspects of federal financial assistance; for ensuring full agency compliance with the requirements of the Act; for creating common applications, common financial and performance reporting forms and requirements, and common certifications and assurances for federal financial assistance programs; for ensuring compatibility between federal and state administration systems; and for minimizing the number of payment systems used to disburse Federal financial assistance.

In addition, this section provides that the Director of OMB must consult with non-federal entities and federal agencies in developing and implementing the strategic plan.

This section further requires each federal agency to prepare a plan within 6 months of the date OMB submits its strategic plan to Congress that describes how the agency will carry out its responsibilities under OMB's strategic plan. Each agency's plan must include performance objectives, timelines for agency action, and plans to improve communication and collaboration with representatives of non-federal entities as the requirements of the FFAMIA are carried out.

This section further provides that each federal agency must consult with non-federal entities during the development and implementation of the agency's plan and must report to OMB biennially for a period of 15 years on the agency's progress in carrying out its plan's objectives.

This section also makes a technical amendment to section 5(d) of the FFAMIA to clarify that once a federal agency begins providing the biennial reports required by new section 8 of the Act, the agency no longer needs to provide the annual reports required by the original 1999 Act.

V. EVALUATION OF REGULATORY IMPACT

Pursuant to the requirement of paragraph 11(b)(1) of rule XXVI of the Standing Rules of the Senate, the Committee has considered the regulatory impact of this bill. The Congressional Budget Office (CBO) states that there are no intergovernmental or private-sector mandates as defined in the Unfunded Mandates Reform Act and no costs on State, local, or tribal governments. The legislation contains no other regulatory impact.

VI. CONGRESSIONAL BUDGET OFFICE COST ESTIMATE


August 20, 2008.

Hon. JOSEPH I. LIEBERMAN,
Chairman, Committee on Homeland Security and Governmental Affairs, U.S. Senate, Washington, DC.

DEAR MR. CHAIRMAN: The Congressional Budget Office has prepared the enclosed cost estimate for S. 3341, the Federal Financial Assistance Management Improvement Act of 2008.

If you wish further details on this estimate, we will be pleased to provide them. The CBO staff contact is Matthew Pickford.

Sincerely,

PETER R. ORZSAG.

Enclosure.

S. 3341--Federal Financial Assistance Management Improvement Act of 2008

S. 3341 would permanently reauthorize and amend the Federal Financial Assistance Management Improvement Act of 1999 (Public Law 106-107). The legislation would require the government to establish a public Web site and require additional reporting by the Office of Management and Budget (OMB) and various Federal agencies regarding federal grants.

The Federal Government has an Internet site for federal grants (www.grants.gov). This Web-based system includes information and applications for over $400 billion in awards through 1,000 grant programs from 26 agencies. OMB reports that the Web site costs about $12 million a year to operate. Based on that information, CBO estimates that continuing this level of effort would cost $63 million over the 2009-2013 period, assuming the availability of appropriated funds. (That estimate reflects the 2008 spending level, adjusted for anticipated inflation).

S. 3341 contains no intergovernmental or private-sector mandates as defined in the Unfunded Mandates Reform Act (UMRA). The bill would benefit state, local, and tribal governments by reducing the costs they incur to apply and report on federal grants.

The CBO staff contact for this estimate is Matthew Pickford. This estimate was approved by Peter H. Fontaine, Assistant Director for Budget Analysis.

VII. CHANGES IN EXISTING LAW MADE BY THE BILL, AS REPORTED

In compliance with paragraph 12 of rule XXVI of the Standing Rules of the Senate, the following changes in existing law made by the bill, as reported, are shown as follows: (existing law proposed to be omitted is enclosed in black brackets, new matter is printed in italic, existing law in which no change is proposed is shown in roman):

UNITED STATES CODE

TITLE 31. MONEY AND FINANCE

Subtitle v. General Assistance Administration

CHAPTER 61. PROGRAM INFORMATION

SEC. 6101. DEFINITIONS.

* * * * * * *

Notes

* * * * * * *

FEDERAL FINANCIAL ASSISTANCE MANAGEMENT IMPROVEMENT ACT OF 1999

Pub. L. 106-107, Sec. 1 to 11, Nov. 20, 1999, 113 Stat. 1486, as amended Pub. L. 108-271, 8(b), July 7, 2004, 118 Stat. 814, provided that:

* * * * * * *

SECTION 5. DUTIES OF FEDERAL AGENCIES.

* * * * * * *

(d) SUBMISSION OF PLAN- Each Federal agency shall submit the plan developed under subsection (a) to the Director and Congress and report annually thereafter on the implementation of the plan and performance of the agency in meeting the goals and objectives specified under subsection (a)(7), until the date on which the Federal agency submits the first report by the Federal agency required under section 8(c)(3). Such report may be included as part of any of the general management reports required under law.

SECTION 6. DUTIES OF THE DIRECTOR.

* * * * * * *

(e) WEBSITE RELATING TO FEDERAL GRANTS-

[Struck out->][ (e) ][<-Struck out] (f) Report on Recommended Changes in Law- Not later than 18 months after the date of the enactment of this Act, the Director shall submit to Congress a report containing recommendations for changes in law to improve the effectiveness, performance, and coordination of Federal financial assistance programs.

[Struck out->][ (f) ][<-Struck out] (g) Deadline- [Struck out->][ All actions ][<-Struck out] Except for actions relating to establishing the website required under subsection (e), all actions required under this section shall be carried out not later than 18 months after the date of the enactment of this Act.

[Struck out->][ SECTION 7. EVALUATION. ][<-Struck out]

[Struck out->][ (a) In General- The Government Accountability Office shall evaluate the effectiveness of this Act. Not later than 6 years after the date of the enactment of this Act, the evaluation shall be submitted to the lead agency, the Director, and Congress. The evaluation shall be performed with input from State, local, and tribal governments, and nonprofit organizations. ][<-Struck out]

[Struck out->][ (b) Contents- The evaluation under subsection (a) shall-- ][<-Struck out]

SECTION 7. EVALUATION OF IMPLEMENTATION.

(a) IN GENERAL- Not later than 9 months after the date of enactment of the Federal Financial Assistance Management Improvement Act of 2008, and every 2 years thereafter until the date that is 15 years after the date of enactment of the Federal Financial Assistance Management Improvement Act of 2008, the Director shall submit to Congress a report regarding the implementation of this Act.

(b) CONTENTS-

(c) DEFINITION OF APPLICABLE PERIOD- In this section, the term `applicable period' means--

SECTION 8. STRATEGIC PLAN.

(a) IN GENERAL- Not later than 18 months after the date of enactment of the Federal Financial Assistance Management Improvement Act of 2008, the Director shall submit to Congress a strategic plan that--

(b) CONSULTATION- In developing and implementing the strategic plan under subsection (a), the Director shall consult with representatives of non-Federal entities and Federal agencies that have not received an exemption under section 6(d).

(c) FEDERAL AGENCIES-

SECTION [Struck out->][ 8 ][<-Struck out] 9. COLLECTION OF INFORMATION.

* * * * * * *

SECTION [Struck out->][ 9 ][<-Struck out] 10. JUDICIAL REVIEW.

* * * * * * *

SECTION [Struck out->][ 10 ][<-Struck out] 11. STATUTORY REQUIREMENTS.

* * * * * * *

SECTION [Struck out->][ 11 ][<-Struck out] 12. EFFECTIVE DATE [Struck out->][ AND SUNSET ][<-Struck out] .

This Act shall take effect on the date of the enactment of this Act [Struck out->][ and shall cease to be effective 8 years after such date of enactment ][<-Struck out] .