Combating Noncompliance With Recovery Act Reporting Requirements

This memorandum directs federal agencies to intensify enforcement of Recovery Act reporting requirements by prime recipients, including terminating awards, suspending and debarring noncompliant recipients, reclaiming funds, and taking punitive actions. It requires agencies to report noncompliance details to OMB and directs the OMB Director to review and update guidance within 30 days.

Federal Register Open PDF 75 FR 18045

Impact dates

May 6, 2010
OMB Director review and update guidance on agency responsibilities for addressing noncompliance

Key directives

Agencies shall use every means to identify prime recipients obligated to file reports on FederalReporting.gov
Agencies shall ensure all such recipients have filed reports
Agencies shall terminate awards where authorized and appropriate
Agencies shall pursue suspension and debarment
Agencies shall reclaim funds
Agencies shall consider, initiate, and implement punitive actions
Agencies shall report noncompliant prime recipients to OMB with detailed actions taken
OMB Director shall review and update guidance within 30 days

Who is ordered

Timeline

Immediate

Agencies directed to intensify enforcement actions against noncompliant prime recipients
Agencies directed to report noncompliance to OMB

Near term (90d)

OMB Director must review and update guidance within 30 days (by May 6, 2010)

Long term

Potential recapture of funds from noncompliant recipients
Updated OMB guidance on agency responsibilities for addressing noncompliance

Risks & tensions

Potential tension between enforcement and maintaining effective program delivery if recipients are terminated
Vague standard of 'where authorized and appropriate' creates implementation uncertainty across agencies
Scope limited to prime recipients; subrecipient compliance not addressed
National security/law enforcement carve-out may limit transparency in some cases