U.S. GOVERNMENT PUBLISHING OFFICE

WASHINGTON : 

1 

59–010 

" ! SENATE 

114TH CONGRESS

1st Session 

REPORT

2015

114–169 

Calendar No. 303 

GRANTS OVERSIGHT AND NEW EFFICIENCY 

ACT 

R E P O R T 

OF THE

COMMITTEE ON HOMELAND SECURITY AND 

GOVERNMENTAL AFFAIRS 

UNITED STATES SENATE 

TO ACCOMPANY

S. 1115 

TO CLOSE OUT EXPIRED, EMPTY GRANT ACCOUNTS 

NOVEMBER 30, 2015.—Ordered to be printed 


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(II) 

COMMITTEE ON HOMELAND SECURITY AND GOVERNMENTAL AFFAIRS 

RON JOHNSON, Wisconsin, Chairman 

JOHN MCCAIN, Arizona 

ROB PORTMAN, Ohio 

RAND PAUL, Kentucky 

JAMES LANKFORD, Oklahoma 

MICHAEL B. ENZI, Wyoming 

KELLY AYOTTE, New Hampshire 

JONI ERNST, Iowa 

BEN SASSE, Nebraska 

THOMAS R. CARPER, Delaware 

CLAIRE MCCASKILL, Missouri 

JON TESTER, Montana 

TAMMY BALDWIN, Wisconsin 

HEIDI HEITKAMP, North Dakota 

CORY A. BOOKER, New Jersey 

GARY C. PETERS, Michigan 

KEITH B. ASHDOWN, Staff Director 

CHRISTOPHER R. HIXON, Chief Counsel 

PATRICK J. BAILEY, Chief Counsel for Governmental Affairs 

GABRIELLE D’ADAMO SINGER, Deputy Chief Counsel for Governmental Affairs 

DREW C. BANEY, Professional Staff Member 

GABRIELLE A. BATKIN, Minority Staff Director 

JOHN P. KILVINGTON, Minority Deputy Staff Director 

MARY BETH SCHULTZ, Minority Chief Counsel 

PETER P. TYLER, Minority Senior Professional Staff Member 

LAURA W. KILBRIDE, Chief Clerk 


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Calendar No. 303 

114TH CONGRESS REPORT " ! 1st Session SENATE 114–169 

GRANTS OVERSIGHT AND NEW EFFICIENCY ACT 

NOVEMBER 30, 2015.—Ordered to be printed 

Mr. JOHNSON, from the Committee on Homeland Security and 

Governmental Affairs, submitted the following 

R E P O R T 

[To accompany S. 1115] 

The Committee on Homeland Security and Governmental Affairs, 

to which was referred the bill (S. 1115) to close out expired, empty 

grant accounts, having considered the same, reports favorably 

thereon with an amendment and recommends that the bill, as 

amended, do pass. 

CONTENTS 

Page 

I. Purpose and Summary .................................................................................. 1 

II. Background and Need for the Legislation ................................................... 2 

III. Legislative History ......................................................................................... 3 

IV. Section-by-Section Analysis .......................................................................... 4 

V. Evaluation of Regulatory Impact .................................................................. 4 

VI. Congressional Budget Office Cost Estimate ................................................ 4 

VII. Changes in Existing Law Made by the Bill, as Reported ........................... 5 

I. PURPOSE AND SUMMARY

The purpose of S. 1115, the Grants Oversight and New Efficiency 

Act (or ‘‘GONE Act’’), is to identify certain expired grants. The bill 

as amended by a substitute amendment requires the Office of Management and Budget (OMB) to direct agencies, in coordination with 

the Secretary of Health and Human Services (HHS), to provide to 

Congress a list of certain expired grants held by federal agencies, 

and include a description of the reasons why the listed grants have 

not yet been closed. The expectation is that this identification will 

help lead to a reduction in the number of expired grants that have 

not been properly closed out from the financial payment systems. 

This will improve financial accountability over grant programs, and 


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1 U.S. GOVERNMENT ACCOUNTABILITY OFFICE, GAO–12–360, GRANTS MANAGEMENT: ACTION

NEEDED TO IMPROVE THE TIMELINESS OF GRANT CLOSEOUTS BY FEDERAL AGENCIES 19 (2012), 

available at http://gao.gov/assets/600/590926.pdf. 2 Id. at 11. 3 Id at 19. 4 Id. 

5 Id. at 11. 6Office of Executive Councils, Chief Financial Officers Council, Controller Alert, (June 10, 

2015), available at https://cfo.gov/wp-content/uploads/2015/06/GRANTS-MANAGEMENT-ActionNeeded-to-Improve-the-Timeliness-of-Grant-Closeouts-by-Federal-Agencies.pdf. 7 Assessing Grants Management Practices at Federal Agencies: Hearing Before the Subcomm. 

on Federal Financial Management, Government Information, Federal. Services, and International Security of the Senate Committee on Homeland Security and Governmental Affairs, 

114th Cong. (July 25, 2012). 8 Id. (statement of Danny Werfel, OMB Controller). 

save taxpayer money on costs associated with maintaining the 

grants in an open status. 

II. BACKGROUND AND THE NEED FOR LEGISLATION

Delays by federal agencies in closing expired grants were highlighted in an April 2012 report by the Government Accountability 

Office (GAO).1 The GAO identified more than eleven thousand 

grants that had remained active within two major multiagency 

payments systems, even though the grants were clearly inactive or 

past the end date of the grant period. In fact, the report noted that 

115 of these grants were ten years past the end of the grant period. 

Further, the 2012 report identified nearly $800 million in funding 

remaining in expired grant accounts upon review of just two payment systems.2

There is a financial cost associated with maintaining a grant in 

an open status, as opposed to closing the grant in a timely manner. 

GAO reported that for one multiagency grant payment system, the 

government was ‘‘. . . charged a total of roughly $173,000 per 

month to maintain the more than 28,000 expired grant accounts 

with zero dollar balances listed on the year end closeout report.’’ 3

GAO estimated that ‘‘ . . . [o]verall, the total charges for all expired grants with a zero dollar balance would represent roughly $2 

million in fees if agencies were billed for these accounts for the entire year.’’ 4 Furthermore, in another large payment system, GAO 

‘‘found that more than $126 million in undisbursed balances remained in dormant grant accounts—accounts for which there had 

been no activity for 2 years or more.’’ The GAO report also describes that delay in closing out grants means a higher risk in conducting important financial control steps, decreasing the ability to 

ensure accountability.5

On July 24, 2012, OMB issued a Controller Alert to federal chief 

financial officers, which cited GAO’s findings and indicated ‘‘. . . 

[a]gencies should take appropriate action to closeout grants in a 

timely manner.’’ 6 The alert was issued a day before a Committee 

on Homeland Security and Governmental Affairs Subcommittee on 

Federal Financial Management, Government Information, Federal 

Services, and International Security hearing that took place the 

next day on grants management and the GAO’s report.7 During 

that hearing, then-OMB Controller Danny Werfel testified that he 

agreed with GAO’s position on the importance of improving the 

timeliness of grant award closeouts and ensuring that there are 

proper internal controls to oversee the grants.8


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9 2 C.F.R. § 200.454 (2015), available at http://www.gpo.gov/fdsys/pkg/FR-2013-12-26/pdf/2013- 

30465.pdf. 10 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal 

Awards, 78 Fed. Reg. 78,590, 78,590 (Dec. 26, 2013). 11 CONG. RESEARCH SERV., R43726, DELAYED FEDERAL GRANT CLOSEOUT: ISSUES AND IMPACT

(Sept. 12, 2014) (on file with Committee Staff). 12GOV’T ACCOUNTABILITY OFFICE, GAO–12–360, GRANTS MANAGEMENT: ACTION NEEDED TO

IMPROVE THE TIMELINESS OF GRANT CLOSEOUTS BY FEDERAL AGENCIES 18 (2012), available at 

http://gao.gov/assets/600/590926.pdf. 

On December 26, 2013, OMB significantly revised its guidance on 

the grants management process, which included a new section on 

closeout.9 OMB indicated the need for updated guidance to ‘‘increase the efficiency and effectiveness of Federal awards to ensure 

best use of the more than $500 billion expended annually.’’ 10 The 

OMB guidance reminded Federal agencies that they should be closing out grants within 90 calendar days following the end date of 

the period of performance.11

There is little information available about the implementation of 

this OMB guidance. Moreover, delays in grants closeouts may, for 

many agencies, cost taxpayers unnecessary fees for maintaining expired accounts, and, for all agencies, can prevent the undisbursed 

funding from being returned to the Treasury.12

This bill, as amended by a substitute amendment, would address 

the need for improved information from federal agencies by requiring all federal agencies within 180 days of enactment to submit a 

report identifying certain grants that have not been closed. 

III. LEGISLATIVE HISTORY

The GONE Act was introduced in the 113th Congress by Senator 

Deb Fischer. In the 114th Congress, Senator Deb Fischer and original cosponsor Senator Joe Manchin III introduced S. 1115 on April 

28, 2015. Senator Ron Johnson joined as a cosponsor on June 11, 

2015. The bill was referred to the Committee on Homeland Security and Governmental Affairs. The Committee considered S. 1115 

at a business meeting on June 24, 2015. 

During the business meeting, Senator Ron Johnson offered a substitute amendment, as modified, that required HHS, rather than 

the Council of the Inspectors General on Integrity and Efficiency, 

to submit a report on grant closeouts. The substitute amendment 

modified the reporting requirement so that it required the identification of grants expired more than two years, as well as making 

other technical changes. The modified substitute amendment was 

adopted by voice vote with Senators Johnson, McCain, Lankford, 

Ayotte, Ernst, Sasse, Carper, Tester, Baldwin, and Heitkamp 

present. 

Senator Johnson’s second amendment modified the long title of 

the bill, and was adopted by voice vote with Senators Johnson, 

McCain, Lankford, Ayotte, Ernst, Sasse, Carper, Tester, Baldwin, 

and Heitkamp present. 

The Committee ordered the bill, as amended, reported favorably 

by voice vote on June 24, 2015. Senators present for the vote on 

the bill were Senators Johnson, McCain, Lankford, Ayotte, Ernst, 

Sasse, Carper, Tester, Baldwin, and Heitkamp. 


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IV. SECTION-BY-SECTION ANALYSIS OF THE BILL, AS REPORTED

Section 1. Short title 

This section provides the bill’s short title, the ‘‘Grants Oversight 

and New Efficiency Act’’ or the ‘‘GONE Act.’’ 

Section 2. Identifying and Closing Out Expired Grants 

Subsection (a) requires the Director of OMB to direct agencies to 

coordinate with the Secretary of HHS to submit to Congress, within 180 days, a report on each agency’s remaining expired grant accounts. The agency’s report must contain a list of each covered 

grant held by the United States Government, which is defined as 

a grant that is part of a government agency payment system and 

has not yet been closed out, recommend which covered grants 

should be closed, and explain why each covered grant has not been 

closed out. Agencies can use any existing multiagency data systems 

to complete the report. If an agency is unable to provide the required information in the report, there must be an explanation as 

to why, including any shortcomings with existing grant data systems. 

Subsection (b) requires the head of each agency to notify the Secretary of HHS specifying if the agency has closed out grant awards 

associated with all of the covered grants. The head of the agency 

must notify the Secretary of HHS within a year of submitting the 

report outlined in subsection (a), and notify Congress within 90 

days of notifying the Secretary of HHS. 

Subsection (c) defines the terms, ‘‘agency,’’ ‘‘close out,’’ ‘‘covered 

grants,’’ and ‘‘Secretary.’’ 

V. EVALUATION OF REGULATORY IMPACT

Pursuant to the requirements of paragraph 11(b) of rule XXVI of 

the Standing Rules of the Senate, the Committee has considered 

the regulatory impact of this bill and determined that the bill will 

have no regulatory impact within the meaning of the rules. The 

Committee agrees with the Congressional Budget Office’s statement that the bill contains no intergovernmental or private-sector 

mandates as defined in the Unfunded Mandates Reform Act 

(UMRA) and would impose no costs on state, local, or tribal governments. 

VI. CONGRESSIONAL BUDGET OFFICE COST ESTIMATE

U.S. CONGRESS, 

CONGRESSIONAL BUDGET OFFICE, 

Washington, DC, July 31, 2015. 

Hon. RON JOHNSON, 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. 1115, the GONE Act. 


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If you wish further details on this estimate, we will be pleased 

to provide them. The CBO staff contact is Matthew Pickford, who 

can be reached at 226–2860. 

Sincerely, 

KEITH HALL. 

Enclosure. 

S. 1115—GONE Act 

S. 1115 would direct federal agencies to prepare reports on their 

efforts to close out financial accounts for expired federal grants. Information on the USASpending website maintained by the Treasury Department indicates that the government has awarded almost 

$600 billion annually in grants over the past five years. In 2012, 

the Government Accountability Office reported that about 80 percent of all grants are provided through the Department of Health 

and Human Services (HHS) and Treasury payment systems and 

that undisbursed grants totaled about $720 million in about 10,000 

expired accounts. In 2012, the Office of Management and Budget 

(OMB) advised that agencies should take appropriate action to 

close out such accounts in a timely manner. 

Under current law, agencies are required to track expired grant 

accounts. CBO anticipates that under S. 1115, some agencies’ 

workloads would increase slightly. Based on information from OMB 

and HHS, CBO estimates that implementing S. 1115 would cost $8 

million over the 2016–2020 period, primarily for increased administrative costs related to the new reports; such spending would be 

subject to the availability of appropriated funds. 

Enacting S. 1115 would not affect direct spending or revenues; 

therefore, pay-as-you-go procedures do not apply. 

S. 1115 contains no intergovernmental or private-sector mandates as defined in the Unfunded Mandates Reform Act. 

The CBO staff contact for this estimate is Matthew Pickford. The 

estimate was approved by H. Samuel Papenfuss, Deputy Assistant 

Director for Budget Analysis. 

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

Because this legislation would not repeal or amend any provision 

of current law, it would make no changes in existing law within the 

meaning of clauses (a) and (b) of paragraph 12 of rule XXVI of the 

Standing Rules of the Senate. 

Æ 


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