(3) the term ‘‘covered official’’ means the head 
of a covered agency. 
(b) ACCOUNTABILITY.—All covered grants shall be 
subject to the following accountability provisions: 
(1) AUDIT REQUIREMENT.— 
(A) DEFINITION.—In this paragraph, the 
term ‘‘unresolved audit finding’’ means a find-
ing in the final audit report of the Inspector 
General of a covered agency that the audited 
grantee has utilized funds under a covered 
grant for an unauthorized expenditure or other-
wise unallowable cost that is not closed or re-
solved within 12 months from the date when 
the final audit report is issued. 
(B) AUDITS.—Beginning in the first fiscal 
year beginning after the date of enactment of 
this Act, and in each fiscal year thereafter, the 
Inspector General of a covered agency shall 
conduct audits of recipients of covered grants to 
prevent waste, fraud, and abuse of funds by 
grantees. The Inspector General shall determine 
the appropriate number of grantees to be au-
dited each year. 
(C) MANDATORY EXCLUSION.—A recipient 
of funds under a covered grant that is found to 
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have an unresolved audit finding shall not be el-
igible to receive funds under a covered grant 
during the first 2 fiscal years beginning after 
the end of the 12-month period described in 
subparagraph (A). 
(D) 
PRIORITY.—In 
awarding 
covered 
grants, a covered official shall give priority to 
eligible applicants that did not have an unre-
solved audit finding during the 3 fiscal years 
before submitting an application for the covered 
grant. 
(E) REIMBURSEMENT.—If an entity is 
awarded funds under a covered grant during 
the 2-fiscal-year period during which the entity 
is barred from receiving covered grants under 
subparagraph (C), a covered official shall— 
(i) deposit an amount equal to the 
amount of the grant funds that were im-
properly awarded to the grantee into the 
General Fund of the Treasury; and 
(ii) seek to recoup the costs of the re-
payment to the fund from the recipient of 
the covered grant that was erroneously 
awarded grant funds. 
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(2) 
NONPROFIT
ORGANIZATION
REQUIRE-
MENTS.— 
(A) DEFINITION.—For purposes of this 
paragraph and each covered grant program, the 
term ‘‘nonprofit organization’’ means an organi-
zation that is described in section 501(c)(3) of 
the Internal Revenue Code of 1986 and is ex-
empt from taxation under section 501(a) of 
such Code. 
(B) PROHIBITION.—A covered grant may 
not be awarded to a nonprofit organization that 
holds money in offshore accounts for the pur-
pose of avoiding paying the tax described in 
section 511(a) of the Internal Revenue Code of 
1986. 
(C) DISCLOSURE.—Each nonprofit organi-
zation that is awarded a covered grant and uses 
the procedures prescribed in regulations to cre-
ate a rebuttable presumption of reasonableness 
for the compensation of its officers, directors, 
trustees, and key employees, shall disclose to 
the applicable covered official, in the application 
for the covered grant, the process for deter-
mining such compensation, including the inde-
pendent persons involved in reviewing and ap-
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proving such compensation, the comparability 
data used, and contemporaneous substantiation 
of the deliberation and decision. Upon request, 
a covered official shall make the information 
disclosed under this subparagraph available for 
public inspection. 
(3) CONFERENCE EXPENDITURES.— 
(A) 
LIMITATION.—No 
amounts 
made 
available to a covered agency to carry out a cov-
ered grant program may be used by a covered 
official, or by any individual or entity awarded 
discretionary funds through a cooperative 
agreement under a covered grant program, to 
host or support any expenditure for conferences 
that uses more than $20,000 in funds made 
available by the covered agency, unless the cov-
ered official provides prior written authorization 
that the funds may be expended to host the 
conference. 
(B) WRITTEN
APPROVAL.—Written ap-
proval under subparagraph (A) shall include a 
written estimate of all costs associated with the 
conference, including the cost of all food, bev-
erages, audio-visual equipment, honoraria for 
speakers, and entertainment. 
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(C) REPORT.— 
(i) DEPARTMENT
OF
JUSTICE.—The 
Deputy Attorney General shall submit an 
annual report to the appropriate commit-
tees of Congress on all conference expendi-
tures approved under this paragraph. 
(ii) DEPARTMENT
OF
HEALTH
AND 
HUMAN SERVICES.—The Deputy Secretary 
of Health and Human Services shall sub-
mit to the appropriate committees of Con-
gress an annual report on all conference 
expenditures approved under this para-
graph. 
(iii) DEPARTMENT OF HOMELAND SE-
CURITY.—The Deputy Secretary of Home-
land Security shall submit to the appro-
priate committees of Congress an annual 
report on all conference expenditures ap-
proved under this paragraph. 
(4) ANNUAL CERTIFICATION.—Beginning in the 
first fiscal year beginning after the date of enact-
ment of this Act, each covered official shall submit 
to the appropriate committees of Congress an an-
nual certification— 
(A) indicating whether— 
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(i) all audits issued by the Office of 
the Inspector General of the applicable 
covered agency under paragraph (1) have 
been completed and reviewed by the appro-
priate official; 
(ii) all mandatory exclusions required 
under paragraph (1)(C) have been issued; 
and 
(iii) 
all 
reimbursements 
required 
under paragraph (1)(E) have been made; 
and 
(B) that includes a list of any recipients of 
a covered grant excluded under paragraph (1) 
from the previous year. 
(c) PREVENTING DUPLICATIVE GRANTS.— 
(1) IN
GENERAL.—Before a covered official 
awards a covered grant, the covered official shall 
compare potential awards under the covered grant 
program with other covered grants awarded to deter-
mine if duplicate grant awards are awarded for the 
same purpose. 
(2) REPORT.—If a covered official awards du-
plicate covered grants to the same applicant for the 
same purpose the covered official shall submit to the 
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