Federal Grants Management Reform

"Why GAO Did This StudyGAO has previously identified severalmanagement challenges that havehindered grants management reformefforts. GAO was asked to reviewrecent federal grants managementreform efforts. GAO reviewed (1) whatOMB and other federal grantsgovernance bodies have done sincethe passage of P.L. 106-107 to reformgrants management processes, and(2) what actions, if any, have beentaken to address what GAO has foundto be persistent managementchallenges. GAO reviewed relevantlegislation, OMB circulars andguidance, action plans of interagencycouncils responsible for overseeinggrants management reforms, andprevious GAO work and other literatureon grants management reforms. GAOalso reviewed its previous work oncollaborative mechanisms andmanagement consolidation efforts.GAO also interviewed officials fromOMB, grant-making agencies, andassociations representing a variety ofgrantee types.What GAO RecommendsGAO recommends that the Director ofOMB: (1) develop and make publiclyavailable an implementation schedulethat includes performance targets, goalleaders who can be held accountablefor each goal, and mechanisms tomonitor, evaluate, and report onresults; (2) clarify the roles andresponsibilities for various streamlininginitiatives; and (3) develop an effectivetwo-way communication strategy withrelevant stakeholders. OMB generally"

Grants play a significant role in implementing and funding federal programs. The federal government's use of grants to achieve national objectives and to respond to emerging trends, such as changing demographics and changing threats to homeland security, has grown significantly in the last two decades. While federal grant funding has been increasing, long-standing concerns remain about the federal government's grants management and the lack of effective oversight tools to reasonably assure that grants are used for their intended purposes and that risks of fraud, waste and abuse are minimized. This book presents the grant management process as well as ways to improve oversight and accountability of federal grants.