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[Senate Report 110-468]
[From the U.S. Government Publishing Office]

                                                      Calendar No. 1027

110th Congress                                                   Report
                                 SENATE
 2d Session                                                     110-468
=======================================================================

    FEDERAL FINANCIAL ASSISTANCE MANAGEMENT IMPROVEMENT ACT OF 2008

                               __________

                              R E P O R T

                                 of the

                              COMMITTEE ON

                         HOMELAND SECURITY AND

                          GOVERNMENTAL AFFAIRS

                          UNITED STATES SENATE

                              to accompany

                                S. 3341

TO REAUTHORIZE AND IMPROVE THE FEDERAL FINANCIAL ASSISTANCE MANAGEMENT 
                        IMPROVEMENT ACT OF 1999

               September 17, 2008.--Ordered to be printed

        COMMITTEE ON HOMELAND SECURITY AND GOVERNMENTAL AFFAIRS

               JOSEPH I. LIEBERMAN, Connecticut, Chairman
CARL LEVIN, Michigan                 SUSAN M. COLLINS, Maine
DANIEL K. AKAKA, Hawaii              TED STEVENS, Alaska
THOMAS R. CARPER, Delaware           GEORGE V. VOINOVICH, Ohio
MARK L. PRYOR, Arkansas              NORM COLEMAN, Minnesota
MARY L. LANDRIEU, Louisiana          TOM COBURN, Oklahoma
BARACK OBAMA, Illinois               PETE V. DOMENICI, New Mexico
CLAIRE McCASKILL, Missouri           JOHN WARNER, Virginia
JON TESTER, Montana                  JOHN E. SUNUNU, New Hampshire

                  Michael L. Alexander, Staff Director
                     Kevin J. Landy, Chief Counsel
                    Beth M. Grossman, Senior Counsel
     Brandon L. Milhorn, Minority Staff Director and Chief Counsel
                    Lisa M. Nieman, Minority Counsel
Tara L. Shaw, Minority Counsel, Subcommittee on Oversight of Government 
    Management, the Federal Workforce, and the District of Columbia
                  Trina Driessnack Tyrer, Chief Clerk

                                                      Calendar No. 1027

110th Congress                                                   Report
                                 SENATE
 2d Session                                                     110-468
=======================================================================

 
    FEDERAL FINANCIAL ASSISTANCE MANAGEMENT IMPROVEMENT ACT OF 2008

                                _______
                                

               September 17, 2008.--Ordered to be printed

                                _______
                                

Mr. Lieberman, from the Committee on Homeland Security and Governmental 
                    Affairs, submitted the following

                              R E P O R T

                         [To accompany S. 3341]

    The Committee on Homeland Security and Governmental 
Affairs, to which was referred the bill (S. 3341) to 
reauthorize and improve the Federal Financial Assistance 
Management Improvement Act of 1999, having considered the same, 
reports favorably thereon without amendment and recommends that 
the bill do pass.

                                CONTENTS

                                                                   Page
  I. Purpose and Summary..............................................1
 II. Background and Need for the Legislation..........................2
III. Legislative History..............................................4
 IV. Section-by-Section Analysis......................................4
  V. Evaluation of Regulatory Impact..................................6
 VI. Congressional Budget Office Cost Estimate........................6
VII. Changes in Existing Law Made by the Bill, as Reported............7

                         I. Purpose and Summary

    The purpose of S. 3341 is to reauthorize and improve the 
Federal Financial Assistance Management Improvement Act of 1999 
(``FFAMIA'' or ``Act''),\1\ which sought to improve the 
effectiveness and performance of federal financial assistance 
programs and reduce the burden on applicants by, among other 
things, simplifying application and reporting requirements. S. 
3341 updates and expands the provisions of the FFAMIA. It 
requires that the Director of the Office of Management and 
Budget (OMB) and federal agencies continue to work together, 
and with the nonfederal entities that receive federal financial 
assistance, to streamline federal grants administration; 
provides that the OMB Director develop a strategic plan for 
achieving such streamlining and for other improvements; and 
requires biennial reports from the Director of OMB and from 
federal agencies to ensure progress towards implementing the 
strategic plan and meeting the goals of the FFAMIA.
---------------------------------------------------------------------------
    \1\Pub. L. No. 106-107 (31 U.S.C. 6101 note).
---------------------------------------------------------------------------

              II. Background and Need for the Legislation

    There are in excess of 1000 different federal grant 
programs, administered by more than two dozen federal 
agencies.\2\ Traditionally, each agency has had its own 
distinct processes and requirements for grant applications and 
reporting, and individual grant programs may have unique 
requirements as well. As a result, state, local, and tribal 
governments, nonprofit organizations and others seeking 
assistance from multiple federal sources may face duplicative, 
burdensome and even conflicting requirements. Moreover, costs 
that grantees incur in meeting unnecessarily burdensome 
requirements represent resources that could otherwise go 
towards carrying out the public purposes for which the grants 
are intended.
---------------------------------------------------------------------------
    \2\U.S. Government Accountability Office, Grants Management 
Additional Actions Needed to Streamline and Simplify Processes, GAO-05-
335 p. 1. (Hereinafter, ``2005 GAO Report'').
---------------------------------------------------------------------------
    To address these concerns, Congress enacted the FFAMIA in 
1999. The Act was intended to improve the effectiveness and 
performance of federal grant and other assistance programs, 
simplify federal financial assistance application and reporting 
requirements, improve the delivery of services to the public 
and facilitate greater coordination among the federal agencies 
and their non-federal partners responsible for delivering such 
services.\3\
---------------------------------------------------------------------------
    \3\Pub. L. No. 106-107, Sec. 3.
---------------------------------------------------------------------------
    Specifically, the FFAMIA required federal agencies, in 
consultation with non-federal entities, to develop and 
implement plans to streamline and simplify the application, 
administrative and reporting procedures for federal financial 
assistance programs and use common applications and reporting 
systems for those programs.\4\ The Act also called for the 
development of electronic applications for and reports on the 
use of federal financial assistance and required the Director 
of OMB to direct, coordinate, and assist federal agencies in 
establishing common applications and reporting systems.\5\ The 
Act provided that it would sunset eight years after enactment, 
or November 2007.\6\
---------------------------------------------------------------------------
    \4\Pub. L. No. 106-107, Sec. 5.
    \5\Pub. L. No. 106-107, Sec. 6.
    \6\Pub. L. No. 106-107, Sec. 11.
---------------------------------------------------------------------------
    The FFAMIA has led to a number of improvements in the 
management and transparency of the federal grants process. The 
most notable and most visible of these is the creation of a web 
portal for federal grants at www.grants.gov (``Grants.gov''). 
Currently, there are over 1000 grants, from 26 federal 
agencies, listed on Grants.gov; these grants represent more 
than $450 billion in federal government awards to state, local, 
and tribal governments, nonprofits, and others.\7\ According to 
OMB, the Grants.gov website benefits the federal government by 
allowing agencies to reduce operating costs associated with 
posting grants and improve operational effectiveness through 
increased data accuracy and reduced processing times.\8\ 
Equally importantly, Grants.gov has the potential to reduce the 
burden on the State, local, and tribal governments, nonprofits 
and others who apply for federal grants, by serving as a ``one-
stop shop'' for grant information and applications for 
grantees.
---------------------------------------------------------------------------
    \7\Office of Management and Budget, Report to Congress on the 
Benefits of the President's E-Government Initiatives (Fiscal Year 
2008), p. 12 (hereinafter, ``E-Government Report''). OMB reports that 
within these grant programs, over 2900 application packages (or all but 
an exempted 291 of the total application packages) were posted online 
(E-Government Report, p. 13), and that over 180,000 applications were 
submitted through Grants.gov in FY 2007 (E-Government Report, p. ii).
    \8\E-Government Report, p. 13.
---------------------------------------------------------------------------
    In 2005, the Governmental Accountability Office (``GAO''), 
as required by section 7 of the FFAMIA, assessed and reported 
on the effectiveness of the Act,\9\ and in 2006, it issued a 
follow-on report.\10\ In these reports, GAO noted that federal 
agencies had made some progress in streamlining aspects of the 
grants life cycle.\11\ Grants.gov, for example, was developed 
to help potential grantees identify grant opportunities more 
easily and apply for grants electronically,\12\ efforts were 
undertaken to consolidate grant management systems across 
agencies,\13\ and a standard format for the announcement of 
grant opportunities was developed.\14\ By May 2006, GAO 
reported, all but two agencies had provided the capability for 
grantees to apply for grants using the Grants.gov website.\15\
---------------------------------------------------------------------------
    \9\2005 GAO Report.
    \10\U.S. Government Accountability Office, Grants Management 
Grantees' Concerns with Efforts to Streamline and Simplify Processes, 
GAO 06-566 (hereinafter, ``2006 GAO Report'').
    \11\2005 GAO Report, p. 3.
    \12\2005 GAO Report, p. 8.
    \13\2005 GAO Report, p. 3.
    \14\2005 GAO Report, p. 3.
    \15\2006 GAO Report, p. 10.
---------------------------------------------------------------------------
    GAO, however, also noted that efforts to develop common 
electronic reporting systems had not progressed.\16\ In fact, 
although FFAMIA required the development of a common system, 
including electronic processes, through which a grantee could 
apply for, manage, and report on the use of funding,\17\ 
systems for any grant phase beyond the application phase had 
not been developed.\18\ In addition to a lack of common 
reporting systems, GAO found that federal agencies operated 
nine different systems to distribute grant funding, some of 
which were unreliable and antiquated systems.\19\ And GAO 
reported comments from grantees about the number of 
certifications and assurance forms they had to submit, even 
though those forms did not vary widely among programs.\20\
---------------------------------------------------------------------------
    \16\2005 GAO Report, p. 16.
    \17\Pub. L. No. 106-107, Sec. 6.
    \18\2006 GAO Report, p. 13. GAO noted that efforts were begun by 
OMB in 2004 to create end-to-end grants management systems, with a goal 
of 2011 for moving all agencies to common systems. 2006 GAO Report, p. 
11.
    \19\2006 GAO Report, p. 14.
    \20\2006 GAO Report, p. 15.
---------------------------------------------------------------------------
    Finally, in an additional area of concern, GAO noted that 
agency coordination with the grantee community was limited.\21\ 
GAO reported that federal agencies solicited input from the 
grantee community during the early planning stages to implement 
the FFAMIA but did not coordinate with the grantee community on 
an ongoing basis.\22\
---------------------------------------------------------------------------
    \21\2005 GAO Report, p. 3.
    \22\2005 GAO Report, p. 18.
---------------------------------------------------------------------------
    Ultimately, GAO concluded that additional work was needed 
to streamline the grants life cycle and that the momentum 
established pursuant to the FFAMIA needed to continue past the 
law's November 2007 sunset.\23\ GAO recommended that ``Congress 
should consider reauthorizing the law to make certain that 
federal agencies have clear requirements to continue . . . 
efforts and the momentum for progress in streamlining grant 
administration continues.''\24\
---------------------------------------------------------------------------
    \23\2006 GAO Report, p. 26.
    \24\2006 GAO Report, p. 27.
---------------------------------------------------------------------------
    S. 3341 would reauthorize the FFAMIA by eliminating the 
2007 sunset date. In addition, it would address many of the 
issues raised by the GAO in 2005 and 2006. Specifically, the 
bill seeks to codify and enhance the use of Grants.gov, 
requiring the Director of OMB to maintain a public website that 
allows grant applicants to use the website to search and apply 
for grants; manage, track, and report on the use of grants; and 
provide required certifications and assurances for grants. It 
further requires the Director of OMB to develop a strategic 
plan that provides plans, timelines, and cost estimates for 
developing an electronic capability for managing Federal 
financial assistance; creating common applications and 
reporting forms and requirements; developing common 
certifications and assurances; and minimizing the number of 
different systems used to disburse Federal financial 
assistance. The Director of OMB is to report biennially to 
Congress for a period of 15 years on progress made in 
implementing the Act and the strategic plan, and each federal 
agency would be required to report biennially to OMB for a 
period of fifteen years on its progress towards achieving its 
objectives in furtherance of the strategic plan.

                        III. Legislative History

    On July 26, 2008, S. 3341 was introduced by Senators 
Voinovich and Lieberman and was referred to the Committee on 
Homeland Security and Governmental Affairs.
    On July 30, 2008, the Committee on Homeland Security and 
Governmental Affairs considered S. 3341 and ordered the bill 
reported favorably without amendment by voice vote. The members 
present were Lieberman, Akaka, Carper, Pryor, Landrieu, Tester, 
Collins, Stevens, and Voinovich.

                    IV. Section-by-Section Analysis

Section 1. Short title

    This section establishes the title of the act as the 
``Federal Financial Assistance Management Improvement Act of 
2008''.

Section 2. Reauthorization

    This section eliminates the sunset provision originally 
included in section 11 of the 1999 Act, effectively 
reauthorizing that Act indefinitely.

Section 3. Website related to federal grants

    This section adds a new section 6(e) to the FFAMIA that 
requires the Director of OMB to establish and maintain a public 
website to serve as a central point of information and access 
for applicants for federal grants. At a minimum, for each 
federal grant, that website is to include, to the maximum 
extent possible, grant announcements; statements of 
eligibility; application requirements; purposes of the funding; 
the name of the funding agency; and application and award 
deadlines. This section further requires that, to the greatest 
extent practical, the website must allow grant applicants to 
search for all federal grants by various criteria; apply for 
grants; manage, track, and report on the use of grants; and 
provide required certifications and assurances for grants.
    The section further makes a technical amendment to section 
6(g) to clarify that the requirement that provisions be carried 
out within 18 months of the enactment of the original 1999 Act 
does not apply to the new website provisions of section 6(e).

Section 4. Report on implementation

    This section strikes section 7 of the 1999 Act, which 
required GAO to evaluate the effectiveness of the Act, and 
inserts a new section 7 that would require the Director of OMB 
to report to Congress within 9 months of enactment, and 
biennially thereafter for a period of 15 years, on progress 
made in implementing the FFAMIA. Each report must list all 
grants that can be applied for using the website required under 
section 6(e); list all agencies that provide federal financial 
assistance; list all agencies that have complied with the 
requirements of the Act and the extent of their compliance; 
list all agencies exempted from the requirements of the Act 
with an explanation of the exemption and certification that the 
basis for the exemption still exists; list all common 
application forms that allow non-federal entities to apply for 
multiple federal financial assistance programs; list all common 
forms and requirements that allow non-federal entities to 
report on the use of funding from multiple federal financial 
assistance programs; describe federal efforts to communicate 
and collaborate with non-federal entities during the 
implementation of the FFAMIA; describe efforts of the OMB 
Director to work with federal agencies to meet the goals of the 
Act; and describe all systems used to disburse federal 
financial assistance to non-federal entities. Subsequent 
reports must also detail progress made by the federal 
government in meeting the goals of the FFAMIA and compile 
agency reports on their actions in furtherance of the Act.

Section 5. Strategic plan

    This section amends the FFAMIA by inserting a new section 8 
that requires the Director of OMB to submit a strategic plan to 
Congress within 18 months. The strategic plan is required to 
identify federal financial assistance programs, or aspects of 
such programs, that are suitable for common applications or 
common reporting forms or requirements; and identify changes in 
law needed to achieve the FFAMIA's goals. The strategic plan is 
also required to include plans, timelines, and cost estimates 
for developing an entirely electronic, web-based process that 
allows grantees to manage various aspects of federal financial 
assistance; for ensuring full agency compliance with the 
requirements of the Act; for creating common applications, 
common financial and performance reporting forms and 
requirements, and common certifications and assurances for 
federal financial assistance programs; for ensuring 
compatibility between federal and state administration systems; 
and for minimizing the number of payment systems used to 
disburse Federal financial assistance.
    In addition, this section provides that the Director of OMB 
must consult with non-federal entities and federal agencies in 
developing and implementing the strategic plan.
    This section further requires each federal agency to 
prepare a plan within 6 months of the date OMB submits its 
strategic plan to Congress that describes how the agency will 
carry out its responsibilities under OMB's strategic plan. Each 
agency's plan must include performance objectives, timelines 
for agency action, and plans to improve communication and 
collaboration with representatives of non-federal entities as 
the requirements of the FFAMIA are carried out.
    This section further provides that each federal agency must 
consult with non-federal entities during the development and 
implementation of the agency's plan and must report to OMB 
biennially for a period of 15 years on the agency's progress in 
carrying out its plan's objectives.
    This section also makes a technical amendment to section 
5(d) of the FFAMIA to clarify that once a federal agency begins 
providing the biennial reports required by new section 8 of the 
Act, the agency no longer needs to provide the annual reports 
required by the original 1999 Act.

                   V. Evaluation of Regulatory Impact

    Pursuant to the requirement of paragraph 11(b)(1) of rule 
XXVI of the Standing Rules of the Senate, the Committee has 
considered the regulatory impact of this bill. The 
Congressional Budget Office (CBO) states that there are no 
intergovernmental or private-sector mandates as defined in the 
Unfunded Mandates Reform Act and no costs on State, local, or 
tribal governments. The legislation contains no other 
regulatory impact.

             VI. Congressional Budget Office Cost Estimate

                                                   August 20, 2008.
Hon. Joseph I. Lieberman,
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. 3341, the Federal 
Financial Assistance Management Improvement Act of 2008.
    If you wish further details on this estimate, we will be 
pleased to provide them. The CBO staff contact is Matthew 
Pickford.
            Sincerely,
                                                   Peter R. Orzsag.
    Enclosure.

S. 3341--Federal Financial Assistance Management Improvement Act of 
        2008

    S. 3341 would permanently reauthorize and amend the Federal 
Financial Assistance Management Improvement Act of 1999 (Public 
Law 106-107). The legislation would require the government to 
establish a public Web site and require additional reporting by 
the Office of Management and Budget (OMB) and various Federal 
agencies regarding federal grants.
    The Federal Government has an Internet site for federal 
grants (www.grants.gov). This Web-based system includes 
information and applications for over $400 billion in awards 
through 1,000 grant programs from 26 agencies. OMB reports that 
the Web site costs about $12 million a year to operate. Based 
on that information, CBO estimates that continuing this level 
of effort would cost $63 million over the 2009-2013 period, 
assuming the availability of appropriated funds. (That estimate 
reflects the 2008 spending level, adjusted for anticipated 
inflation).
    S. 3341 contains no intergovernmental or private-sector 
mandates as defined in the Unfunded Mandates Reform Act (UMRA). 
The bill would benefit state, local, and tribal governments by 
reducing the costs they incur to apply and report on federal 
grants.
    The CBO staff contact for this estimate is Matthew 
Pickford. This estimate was approved by Peter H. Fontaine, 
Assistant Director for Budget Analysis.

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

    In compliance with paragraph 12 of rule XXVI of the 
Standing Rules of the Senate, the following changes in existing 
law made by the bill, as reported, are shown as follows: 
(existing law proposed to be omitted is enclosed in black 
brackets, new matter is printed in italic, existing law in 
which no change is proposed is shown in roman):

                           UNITED STATES CODE

                      TITLE 31. MONEY AND FINANCE

             Subtitle v. General Assistance Administration

                    CHAPTER 61. PROGRAM INFORMATION

SEC. 6101. DEFINITIONS.

           *       *       *       *       *       *       *

    Notes

           *       *       *       *       *       *       *

    Federal Financial Assistance Management Improvement Act of 1999

    Pub. L. 106-107, Sec. Sec. 1 to 11, Nov. 20, 1999, 113 
Stat. 1486, as amended Pub. L. 108-271, Sec. 8(b), July 7, 
2004, 118 Stat. 814, provided that:

           *       *       *       *       *       *       *

SECTION 5. DUTIES OF FEDERAL AGENCIES.

           *       *       *       *       *       *       *

    (d) Submission of Plan.--Each Federal agency shall submit 
the plan developed under subsection (a) to the Director and 
Congress and report annually thereafter on the implementation 
of the plan and performance of the agency in meeting the goals 
and objectives specified under subsection (a)(7), until the 
date on which the Federal agency submits the first report by 
the Federal agency required under section 8(c)(3). Such report 
may be included as part of any of the general management 
reports required under law.

SECTION 6. DUTIES OF THE DIRECTOR.

           *       *       *       *       *       *       *

    (e) Website Relating to Federal Grants.--
          (1) In general.--The Director shall establish and 
        maintain a public website that serves as a central 
        point of information and access for applicants for 
        Federal grants.
          (2) Contents.--To the maximum extent possible, the 
        website established under this subsection shall 
        include, at a minimum, for each Federal grant--
                  (A) the grant announcement;
                  (B) the statement of eligibility relating to 
                the grant;
                  (C) the application requirements for the 
                grant;
                  (D) the purposes of the grant;
                  (E) the Federal agency funding the grant; and
                  (F) the deadlines for applying for and 
                awarding of the grant.
          (3) Use by applicants.--The website established under 
        this subsection shall, to the greatest extent 
        practical, allow grant applicants to--
                  (A) search the website for all Federal grants 
                by type, purpose, funding agency, program 
                source, and other relevant criteria;
                  (B) apply for a Federal grant using the 
                website;
                  (C) manage, track, and report on the use of 
                Federal grants using the website; and
                  (D) provide all required certifications and 
                assurances for a Federal grant using the 
                website.
    [(e)] (f) Report on Recommended Changes in Law.--Not later 
than 18 months after the date of the enactment of this Act, the 
Director shall submit to Congress a report containing 
recommendations for changes in law to improve the 
effectiveness, performance, and coordination of Federal 
financial assistance programs.
    [(f)] (g) Deadline.--[All actions] Except for actions 
relating to establishing the website required under subsection 
(e), all actions required under this section shall be carried 
out not later than 18 months after the date of the enactment of 
this Act.

[SECTION 7. EVALUATION.

    [(a) In General.--The Government Accountability Office 
shall evaluate the effectiveness of this Act. Not later than 6 
years after the date of the enactment of this Act, the 
evaluation shall be submitted to the lead agency, the Director, 
and Congress. The evaluation shall be performed with input from 
State, local, and tribal governments, and nonprofit 
organizations.
    [(b) Contents.--The evaluation under subsection (a) shall--
          [(1) assess the effectiveness of this Act in meeting 
        the purposes of this Act and make specific 
        recommendations to further the implementation of this 
        Act;
          [(2) evaluate actual performance of each agency in 
        achieving the goals and objectives stated in agency 
        plans; and
          [(3) assess the level of coordination among the 
        Director, Federal agencies, State, local, and tribal 
        governments, and nonprofit organizations in 
        implementing this Act.]

SECTION 7. EVALUATION OF IMPLEMENTATION.

    (a) In General.--Not later than 9 months after the date of 
enactment of the Federal Financial Assistance Management 
Improvement Act of 2008, and every 2 years thereafter until the 
date that is 15 years after the date of enactment of the 
Federal Financial Assistance Management Improvement Act of 
2008, the Director shall submit to Congress a report regarding 
the implementation of this Act.
    (b) Contents.--
          (1) In general.--Each report under subsection (a) 
        shall include, for the applicable period--
                  (A) a list of all grants for which an 
                applicant may submit an application using the 
                website established under section 6(e);
                  (B) a list of all Federal agencies that 
                provide Federal financial assistance to non-
                Federal entities;
                  (C) a list of each Federal agency that has 
                complied, in whole or in part, with the 
                requirements of this Act;
                  (D) for each Federal agency listed under 
                subparagraph (C), a description of the extent 
                of the compliance with this Act by the Federal 
                agency;
                  (E) a list of all Federal agencies exempted 
                under section 6(d);
                  (F) for each Federal agency listed under 
                subparagraph (E)--
                          (i) an explanation of why the Federal 
                        agency was exempted; and
                          (ii) a certification that the basis 
                        for the exemption of the Federal agency 
                        is still applicable;
                  (G) a list of all common application forms 
                that have been developed that allow non-Federal 
                entities to apply, in whole or in part, for 
                multiple Federal financial assistance programs 
                (including Federal financial assistance 
                programs administered by different Federal 
                agencies) through a single common application;
                  (H) a list of all common forms and 
                requirements that have been developed that 
                allow non-Federal entities to report, in whole 
                or in part, on the use of funding from multiple 
                Federal financial assistance programs 
                (including Federal financial assistance 
                programs administered by different Federal 
                agencies);
                  (I) a description of the efforts made by the 
                Director and Federal agencies to communicate 
                and collaborate with representatives of non-
                Federal entities during the implementation of 
                the requirements under this Act;
                  (J) a description of the efforts made by the 
                Director to work with Federal agencies to meet 
                the goals of this Act, including a description 
                of working groups or other structures used to 
                coordinate Federal efforts to meet the goals of 
                this Act; and
                  (K) identification and description of all 
                systems being used to disburse Federal 
                financial assistance to non-Federal entities.
          (2) Subsequent reports.--The second report submitted 
        under subsection (a), and each subsequent report 
        submitted under subsection (a), shall include--
                  (A) a discussion of the progress made by the 
                Federal Government in meeting the goals of this 
                Act, including the amendments made by the 
                Federal Financial Assistance Management 
                Improvement Act of 2008, and in implementing 
                the strategic plan submitted under section 8, 
                including an evaluation of the progress of each 
                Federal agency that has not received an 
                exemption under section 6(d) towards 
                implementing the strategic plan; and
                  (B) a compilation of the reports submitted 
                under section 8(c)(3) during the applicable 
                period.
    (c) Definition of Applicable Period.--In this section, the 
term ``applicable period'' means--
          (1) for the first report submitted under subsection 
        (a), the most recent full fiscal year before the date 
        of the report; and
          (2) for the second report submitted under subsection 
        (a), and each subsequent report submitted under 
        subsection (a), the period beginning on the date on 
        which the most recent report under subsection (a) was 
        submitted and ending on the date of the report.

SECTION 8. STRATEGIC PLAN.

    (a) In General.--Not later than 18 months after the date of 
enactment of the Federal Financial Assistance Management 
Improvement Act of 2008, the Director shall submit to Congress 
a strategic plan that--
          (1) identifies Federal financial assistance programs 
        that are suitable for common applications based on the 
        common or similar purposes of the Federal financial 
        assistance;
          (2) identifies Federal financial assistance programs 
        that are suitable for common reporting forms or 
        requirements based on the common or similar purposes of 
        the Federal financial assistance;
          (3) identifies common aspects of multiple Federal 
        financial assistance programs that are suitable for 
        common application or reporting forms or requirements;
          (4) identifies changes in law, if any, needed to 
        achieve the goals of this Act; and
          (5) provides plans, timelines, and cost estimates 
        for--
                  (A) developing an entirely electronic, web-
                based process for managing Federal financial 
                assistance, including the ability to--
                          (i) apply for Federal financial 
                        assistance;
                          (ii) track the status of applications 
                        for and payments of Federal financial 
                        assistance;
                          (iii) report on the use of Federal 
                        financial assistance, including how 
                        such use has been in furtherance of the 
                        objectives or purposes of the Federal 
                        financial assistance; and
                          (iv) provide required certifications 
                        and assurances;
                  (B) ensuring full compliance by Federal 
                agencies with the requirements of this Act, 
                including the amendments made by the Federal 
                Financial Assistance Management Improvement Act 
                of 2008;
                  (C) creating common applications for the 
                Federal financial assistance programs 
                identified under paragraph (1), regardless of 
                whether the Federal financial assistance 
                programs are administered by different Federal 
                agencies;
                  (D) establishing common financial and 
                performance reporting forms and requirements 
                for the Federal financial assistance programs 
                identified under paragraph (2), regardless of 
                whether the Federal financial assistance 
                programs are administered by different Federal 
                agencies;
                  (E) establishing common applications and 
                financial and performance reporting forms and 
                requirements for aspects of the Federal 
                financial assistance programs identified under 
                paragraph (3), regardless of whether the 
                Federal financial assistance programs are 
                administered by different Federal agencies;
                  (F) developing mechanisms to ensure 
                compatibility between Federal financial 
                assistance administration systems and State 
                systems to facilitate the importing and 
                exporting of data;
                  (G) developing common certifications and 
                assurances, as appropriate, for all Federal 
                financial assistance programs that have common 
                or similar purposes, regardless of whether the 
                Federal financial assistance programs are 
                administered by different Federal agencies; and
                  (H) minimizing the number of different 
                systems used to disburse Federal financial 
                assistance.
    (b) Consultation.--In developing and implementing the 
strategic plan under subsection (a), the Director shall consult 
with representatives of non-Federal entities and Federal 
agencies that have not received an exemption under section 
6(d).
    (c) Federal Agencies.--
          (1) In general.--Not later than 6 months after the 
        date on which the Director submits the strategic plan 
        under subsection (a), the head of each Federal agency 
        that has not received an exemption under section 6(d) 
        shall develop a plan that describes how the Federal 
        agency will carry out the responsibilities of the 
        Federal agency under the strategic plan, which shall 
        include--
                  (A) clear performance objectives and 
                timelines for action by the Federal agency in 
                furtherance of the strategic plan; and
                  (B) the identification of measures to improve 
                communication and collaboration with 
                representatives of non-Federal entities on an 
                on-going basis during the implementation of 
                this Act.
          (2) Consultation.--The head of each Federal agency 
        that has not received an exemption under section 6(d) 
        shall consult with representatives of non-Federal 
        entities during the development and implementation of 
        the plan of the Federal agency developed under 
        paragraph (1).
          (3) Reporting.--Not later than 2 years after the date 
        on which the head of a Federal agency that has not 
        received an exemption under section 6(d) develops the 
        plan under paragraph (1), and every 2 years thereafter 
        until the date that is 15 years after the date of 
        enactment of the Federal Financial Assistance 
        Management Improvement Act of 2008, the head of the 
        Federal agency shall submit to the Director a report 
        regarding the progress of the Federal agency in 
        achieving the objectives of the plan of the Federal 
        agency developed under paragraph (1).

SECTION [8] 9. COLLECTION OF INFORMATION.

           *       *       *       *       *       *       *

SECTION [9] 10. JUDICIAL REVIEW.

           *       *       *       *       *       *       *

SECTION [10] 11. STATUTORY REQUIREMENTS.

           *       *       *       *       *       *       *

SECTION [11] 12. EFFECTIVE DATE[ AND SUNSET].

    This Act shall take effect on the date of the enactment of 
this Act[ and shall cease to be effective 8 years after such 
date of enactment].

                                  
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