428 
there are authorized to be appropriated to the Secretary for re-
views under this paragraph such sums as may be necessary. 
(3) PERFORMANCE ASSESSMENT.—In order to ensure that States 
and high-risk urban areas are using grants administered by the De-
partment appropriately to meet target capabilities and preparedness 
priorities, the Secretary shall— 
(A) ensure that each State or high-risk urban area conducts or 
participates in exercises under section 20508(b) of this title; 
(B) use performance metrics in accordance with the comprehen-
sive assessment system under section 20509 of this title and en-
sure that each State or high-risk urban area regularly tests its 
progress against the metrics through the exercises required under 
subparagraph (A); 
(C) use the remedial action management program under section 
20510 of this title; and 
(D) ensure that each State receiving a grant administered by 
the Department submits a report to the Secretary on its level of 
preparedness, as required by section 20512(c) of this title. 
(4) CONSIDERATION OF ASSESSMENTS.—In conducting program re-
views and performance audits under paragraph (2), the Secretary and 
the Inspector General of the Department shall take into account the 
performance assessment elements required under paragraph (3). 
(5) RECOVERY
AUDITS.—The Secretary shall conduct a recovery 
audit under section 2(h) of the Improper Payments Elimination and 
Recovery Act of 2010 (Public Law 111–204, 31 U.S.C. 3321 note) for 
any grant administered by the Department with a total value of not 
less than $1,000,000, if the Secretary finds that— 
(A) a financial audit has identified improper payments that can 
be recouped; and 
(B) it is cost-effective to conduct a recovery audit to recapture 
the targeted funds. 
(6) REMEDIES FOR NONCOMPLIANCE.— 
(A) IN GENERAL.—If, as a result of a review or audit under this 
subsection or otherwise, the Secretary finds that a recipient of a 
grant under this chapter has failed to substantially comply with 
any provision of law or with any regulations or guidelines of the 
Department regarding eligible expenditures, the Secretary shall— 
(i) reduce the amount of payment of grant funds to the re-
cipient by an amount equal to the amount of grants funds 
that were not properly expended by the recipient; 
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(ii) limit the use of grant funds to programs, projects, or 
activities not affected by the failure to comply; 
(iii) refer the matter to the Inspector General of the De-
partment for further investigation; 
(iv) terminate any payment of grant funds to be made to 
the recipient; or 
(v) take other actions the Secretary determines appro-
priate. 
(B) DURATION OF PENALTY.—The Secretary shall apply an ap-
propriate penalty under subparagraph (A) until the Secretary de-
termines that the grant recipient is in full compliance with the law 
and with applicable guidelines or regulations of the Department. 
(b) REPORTS BY GRANT RECIPIENTS.— 
(1) QUARTERLY REPORTS ON HOMELAND SECURITY SPENDING.— 
(A) IN GENERAL.—As a condition of receiving a grant under 
section 12503 or 12504 of this title, a State, high-risk urban area, 
or directly eligible tribe shall, not later than 30 days after the end 
of each Federal fiscal quarter, submit to the Secretary a report 
on activities performed using grant funds during that fiscal quar-
ter. 
(B) CONTENTS.—Each report submitted under subparagraph 
(A) shall at a minimum include, for the applicable State, high-risk 
urban area, or directly eligible tribe, and each subgrantee there-
of— 
(i) the amount obligated to that recipient under section 
12503 or 12504 in that quarter; 
(ii) the amount of funds received and expended under sec-
tion 12503 or 12504 by that recipient in that quarter; and 
(iii) a summary description of expenditures made by that 
recipient using the funds, and the purposes for which the ex-
penditures were made. 
(C) END–OF–YEAR REPORT.—The report submitted under sub-
paragraph (A) by a State, high-risk urban area, or directly eligible 
tribe relating to the last quarter of any fiscal year shall include— 
(i) the amount and date of receipt of all funds received 
under the grant during that fiscal year; 
(ii) the identity of, and amount provided to, any subgrantee 
for that grant during that fiscal year; 
(iii) the amount and the dates of disbursements of funds 
expended in compliance with section 12509(a)(1) of this title 
or under mutual aid agreements or other sharing arrange-
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ments that apply within the State, high-risk urban area, or 
directly eligible tribe, as applicable, during that fiscal year; 
and 
(iv) how the funds were used by each recipient or sub-
grantee during that fiscal year. 
(2) ANNUAL STATE PREPAREDNESS REPORT.—Any State applying 
for a grant under section 12504 shall submit to the Secretary annually 
a State preparedness report, as required by section 20512(c) of this 
title. 
(3) ANNUAL REPORT ON EXPENDITURES.— 
(A) DEFINITION
OF
HOMELAND
SECURITY
GRANT.—In this 
paragraph, the term ‘‘homeland security grant’’ means any grant 
made or administered by the Department, including— 
(i) the State Homeland Security Grant Program; 
(ii) the Urban Area Security Initiative Grant Program; 
(iii) the Law Enforcement Terrorism Prevention Program; 
(iv) the Citizen Corps; and 
(v) the Metropolitan Medical Response System. 
(B) LIST OF EXPENDITURES.—Not later than 12 months after 
the date of receipt of the grant, and every 12 months thereafter 
until all funds provided under the grant are expended, each State 
or local government that receives a homeland security grant shall 
submit a report to the Secretary that contains a list of all expendi-
tures made by the State or local government using funds from the 
grant. 
(c) REPORTS BY THE ADMINISTRATOR.— 
(1) FEDERAL
PREPAREDNESS
REPORT.—The Administrator shall 
submit to the appropriate committees of Congress annually the Federal 
Preparedness Report required under section 20512(a) of this title. 
(2) RISK ASSESSMENT.— 
(A) IN GENERAL.—For each fiscal year, the Administrator shall 
provide to the appropriate committees of Congress a detailed and 
comprehensive explanation of the methodologies used to calculate 
risk and compute the allocation of funds for grants administered 
by the Department, including— 
(i) all variables included in the risk assessment and the 
weights assigned to each variable; 
(ii) an explanation of how each variable, as weighted, cor-
relates to risk, and the basis for concluding there is a correla-
tion; and 
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(iii) any change in the methodologies from the previous fis-
cal year, including changes in variables considered, the 
weighting of those variables, and computational methods. 
(B) CLASSIFIED ANNEX.—The information required under sub-
paragraph (A) shall be provided in unclassified form to the great-
est extent possible, and may include a classified annex if nec-
essary. 
(C) DEADLINE.—For each fiscal year, the information required 
under subparagraph (A) shall be provided on the earlier of— 
(i) October 31; or 
(ii) 30 days before the issuance of any program guidance 
for grants administered by the Department. 
(3) TRIBAL FUNDING REPORT.—At the end of each fiscal year, the 
Administrator shall submit to the appropriate committees of Congress 
a report setting forth the amount of funding provided during that fiscal 
year to Indian tribes under any grant program administered by the De-
partment, whether provided directly or through a subgrant from a 
State or high-risk urban area. 
§ 12511. Identification of reporting redundancies and devel-
opment of performance metrics 
(a) DEFINITION OF COVERED GRANTS.—In this section, the term ‘‘cov-
ered grants’’ means grants awarded under section 12503 of this title, grants 
awarded under section 12504 of this title, and any other grants specified 
by the Administrator. 
(b) PLAN TO ELIMINATE REDUNDANT AND UNNECESSARY REPORTING 
REQUIREMENTS AND TO ASSESS EFFECTIVENESS OF PROGRAMS.—The Ad-
ministrator shall develop— 
(1) a plan, including a specific timetable, for eliminating any redun-
dant and unnecessary reporting requirements imposed by the Adminis-
trator on State, local and tribal governments in connection with the 
awarding of grants; and 
(2) a plan, including a specific timetable, for promptly developing a 
set of quantifiable performance measures and metrics to assess the ef-
fectiveness of the programs under which covered grants are awarded. 
(c) BIENNIAL REPORTS.—Not later than January 10, 2018, and every 
2 years thereafter, the Secretary shall submit to the appropriate committees 
of Congress a grants management report that includes— 
(1) the status of efforts to eliminate redundant and unnecessary re-
porting requirements imposed on grant recipients, including— 
(A) progress made in implementing the plan required under 
subsection (b)(1); 
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