WASHINGTON — The Office of Management and Budget is proposing a sweeping overhaul of federal grant and financial assistance rules that would expand federal oversight authority, tighten transparency requirements and strengthen compliance standards for recipients of federal funds, including programs administered by the National Credit Union Administration.
The proposal, published in the Federal Register, would revise the government-wide framework governing grants, cooperative agreements and other forms of federal financial assistance. According to OMB, the changes are intended to improve transparency, accountability and oversight across federal award programs while ensuring taxpayer dollars are not “wasted or misused.”
The proposal would affect dozens of federal agencies that provide financial assistance. In the case of NCUA, it administers grant programs through initiatives such as its Community Development Revolving Loan Fund.
‘Consistent With Federal Law’
OMB said the proposed revisions would help ensure activities funded through federal awards are consistent with federal law and policy and that recipients are held accountable when they fail to meet applicable standards.
The proposal would update numerous provisions contained in Title 2 of the Code of Federal Regulations, which establishes government-wide rules for federal financial assistance. OMB said the changes are designed to clarify requirements, improve consistency across agencies and strengthen federal management of grants and cooperative agreements.
Areas Targeted for Revision
Among the areas targeted for revision are:
- Transparency and accountability requirements for federal award recipients
- Federal agency oversight responsibilities and enforcement authorities
- Standards related to improper payments, personally identifiable information and management of unobligated funds
- Government-wide grant administration, monitoring and compliance requirements.
- Agency implementation responsibilities and reporting obligations.
‘Stronger Tools’
OMB said the proposed revisions are intended to ensure federal agencies have stronger tools to monitor recipients and enforce compliance when grant recipients fail to meet program requirements or federal standards.
OMB said the rule would establish more uniform government-wide policies and procedures for managing federal financial assistance and would clarify the responsibilities of federal agencies in administering and overseeing awards.
The full proposal can be found here.
