First, they lessen the Federal government s concern about a recipient s fitness to continue to receive and manage research grant funds. Second, they strengthen the relationship of trust that exists between sponsor and recipient. Third, they suggest a presence of the stewardship necessary to properly safeguard the Federal investment in biomedical research. Compliance is the effective management of public funds to maximize research outcomes while avoiding fraud, institutional mismanagement, and poor management of Federal funds. HHS achieves compliance through project monitoring and institutional monitoring.
Noncompliance can have a negative impact on the recipient.
It can result in corrective actions, special terms and conditions of award, loss of expanded authorities, cost disallowance, and suspension or termination of award. Compliance issues can be raised through a variety of avenues. Possible sources of compliance issues are audits and reviews, false claims, or anonymous complaints, grants and program management oversight, and Office of Inspector General oversight. As the cases pointed out, the types of compliance issues are quite varied. An effective compliance program is an ongoing and dynamic process, which emphasizes a positive institutional culture with faculty and staff, that promotes outstanding research in the context of excellent research facilities and exemplary research administration.