GFOA of the US & Canada

OMB Issues Additional Guidance on Reporting Requirements under the American Recovery and Reinvestment Act

The Office of Management and Budget (OMB) released a set of Frequently Asked Questions (FAQ) to help clarify the recipient reporting requirements issued by the agency on June 22, 2009.  Of particular significance is question #5 under the heading Recovering State Administrative Costs.  In responding to question #5 related to recouping administrative costs, OMB explains that counties and local governments receiving Recovery Act funds directly can use the same methodologies for reimbursement as states, which are set forth in the OMB memorandum entitled Payments to State Grantees for Administrative Costs of Recovery Act Activities.  Accordingly, the FAQ’s note that counties and local governments can include “budgeted or estimated costs related to the administration of the Recovery Act in its Cost Allocation Plan (prepared in accordance with OMB Circular A-87, Cost Principles for State, Local, and Indian Tribal Governments) to recoup these costs on a more timely basis. The budgeted or estimated cost amount should not be in excess of 0.5 percent of total Recovery Act funds received directly by the county or local government (excluding pass-through Recovery Act funds received from the State). The local governments should prepare their proposals and keep them on file, unless their cognizant agency specifically requests submission of the proposal.”

OMB also issued an updated Recipient Reporting Data Model 3.0, which sets forth specific data elements to be reported on.  Finally, the agency  published a final version of the Supplement 1, which is a list of ARRA funded programs that are subject to the recipient reporting requirements in Section 1512 of the Act.  Any governmental entity that has received any funding pursuant to the ARRA – whether directly or indirectly - is encouraged to read the guidance in its entirety and begin taking immediate steps toward compliance.

Each Section of the guidance highlights an area of importance:

• Section 1 provides information on the purpose of the guidance and which entities are covered.

• Section 2 lies out the basic principles and requirements of recipient reporting, including the reporting requirements of both prime recipients and sub-recipients, as well as highlights some of the data elements to be reported on by both recipients and sub-recipients (specific data elements are set forth in more detail in the recipient reporting data model discussed and linked above). Prime recipients are non-federal entities that receive ARRA funding as federal awards in the form of grants, loans, or cooperative agreements directly from the federal government. A sub-recipient is a non-federal entity that expends federal awards received from another entity to carry out a federal program. Section 2 also discusses how recipient reporting will be submitted and sets forth time frames for such submissions. The information reported on by all reporting recipients will be submitted through the online Web portal that will collect all ARRA recipient reports. The reported information will then be made available to the public on www.recovery.gov. It is important to note that Section 1512 of the ARRA requires that reports by recipients and sub-recipients on the use of their funds be submitted not later than the 10th day following the end of each quarter, beginning October 10, 2009, which is the first reporting deadline. Reports due on October 10 will include funding from February 17, 2009, (the date of enactment of the ARRA) through September 30, 2009. No waivers will be granted to any recipients required to report under Section 1512. Section 2 also discusses the ramifications for non-compliance, as non-compliance is considered a violation of the award agreement and can result in very serious consequences, such as loss of funding.

• Section 3 sets forth the recipient reporting process and includes how to undertake key reporting activities – registration, submission, review, corrections – as well as their time frames. It is important to note that reporting recipients must be registered as authorized parties prior to submitting recipient reports on www.FederalReporting.com. Registration requires that prime recipients be registered in the Central Contractor Registration (CCR) database and that all reporting entities have a DUNS number. Reporting recipients who do not already meet these requirements should take immediate steps to do so. Sub-recipients who have reporting responsibilities will also be required to register.  

• Section 4 covers the responsibility for reviewing the quality of the data provided and the processes by which the information submitted will be reviewed. Data quality review rests with the prime recipient, the sub-recipient, the federal agency, and ARRA oversight authorities, such as OMB, the Recovery, Accountability and Transparency Board, and the Inspectors General. The guidance suggests that prime recipients and sub-recipients as well as the federal agency establish internal controls to ensure data quality, completeness, accuracy and timely reporting.

• Section 5 discusses the requirements for reporting on the number of jobs created by a project, activity, or contract.

Additional updates on these reporting and other requirements addressing accountability and transparency under the ARRA will continue to be made available on the GFOA Web site.