34 U.S.C. § 20704 (CRIME CONTROL AND LAW ENFORCEMENT)
§ 20704. Grant accountability
(a) Definition
In this section, the term “covered grant” means a grant awarded by the Attorney General under section 20703 of this title, as amended by section 103.
(b) Accountability
All covered grants shall be subject to the following accountability provisions:
(1) Audit requirement
(A) In general
Beginning in the first fiscal year beginning after May 29, 2015, and in each fiscal year thereafter, the Inspector General of the Department of Justice shall conduct audits of recipients of a covered grant to prevent waste, fraud, and abuse of funds by grantees. The Inspector General shall determine the appropriate number of grantees to be audited each year.
(B) Definition
In this paragraph, the term “unresolved audit finding” means a finding in the final audit report of the Inspector General that the audited grantee has utilized grant funds for an unauthorized expenditure or otherwise unallowable cost that is not closed or resolved within 12 months from the date when the final audit report is issued.
(C) Mandatory exclusion
A recipient of a covered grant that is found to have an unresolved audit finding shall not be eligible to receive a covered grant during the following 2 fiscal years.
(D) Priority
In awarding covered grants the Attorney General shall give priority to eligible entities that did not have an unresolved audit finding during the 3 fiscal years prior to submitting an application for a covered grant.
(E) Reimbursement
If an entity is awarded a covered grant during the 2-fiscal-year period in which the entity is barred from receiving grants under subparagraph (C), the Attorney General shall—
(i) deposit an amount equal to the grant funds that were improperly awarded to the grantee into the General Fund of the Treasury; and
(ii) seek to recoup the costs of the repayment to the fund from the grant recipient that was erroneously awarded grant funds.
(2) Nonprofit organization requirements
(A) Definition
For purposes of this paragraph and covered grants, the term “nonprofit organization” means an organization that is described in section 501(c)(3) of title 26 and is exempt from taxation under section 501(a) of title 26.
(B) Prohibition
The Attorney General may not award a covered grant to a nonprofit organization that holds money in offshore accounts for the purpose of avoiding paying the tax described in section 511(a) of title 26.
(C) Disclosure
Each nonprofit organization that is awarded a covered grant and uses the procedures prescribed in regulations to create a rebuttable presumption of reasonableness for the compensation of its officers, directors, trustees and key employees, shall disclose to the Attorney General, in the application for the grant, the process for determining such compensation, including the independent persons involved in reviewing and approving such compensation, the comparability data used, and contemporaneous substantiation of the deliberation and decision. Upon request, the Attorney General shall make the information disclosed under this subsection available for public inspection.
(3) Conference expenditures
(A) Limitation
No amounts transferred to the Department of Justice under this title,1 or the amendments made by this title,1 may be used by the Attorney General, or by any individual or organization awarded discretionary funds through a cooperative agreement under this title,1 or the amendments made by this title,1 to host or support any expenditure for conferences that uses more than $20,000 in Department funds, unless the Deputy Attorney General or such Assistant Attorney Generals, Directors, or principal deputies as the Deputy Attorney General may designate, provides prior written authorization that the funds may be expended to host a conference.
(B) Written approval
Written approval under subparagraph (A) shall include a written estimate of all costs associated with the conference, including the cost of all food and beverages, audiovisual equipment, honoraria for speakers, and any entertainment.
(C) Report
The Deputy Attorney General shall submit an annual report to the Committee on the Judiciary of the Senate and the Committee on the Judiciary of the House of Representatives on all approved conference expenditures referenced in this paragraph.
(D) Annual certification
Beginning in the first fiscal year beginning after May 29, 2015, the Attorney General shall submit, to the Committee on the Judiciary and the Committee on Appropriations of the Senate and the Committee on the Judiciary and the Committee on Appropriations of the House of Representatives, an annual certification that—
(i) all audits issued by the Office of the Inspector General under paragraph (1) have been completed and reviewed by the appropriate Assistant Attorney General or Director;
(ii) all mandatory exclusions required under paragraph (1)(C) have been issued;
(iii) all reimbursements required under paragraph (1)(E) have been made; and
(iv) includes a list of any grant recipients excluded under paragraph (1) from the previous year.
(4) Prohibition on lobbying activity
(A) In general
Amounts awarded under this title,1 or any amendments made by this title,1 may not be utilized by any grant recipient to—
(i) lobby any representative of the Department of Justice regarding the award of grant funding; or
(ii) lobby any representative of a Federal, State, local, or tribal government regarding the award of grant funding.
(B) Penalty
If the Attorney General determines that any recipient of a covered grant has violated subparagraph (A), the Attorney General shall—
(i) require the grant recipient to repay the grant in full; and
(ii) prohibit the grant recipient from receiving another covered grant for not less than 5 years.
(Pub. L. 114–22, title I, § 117, May 29, 2015, 129 Stat. 245.)
heading: Editorial Notes
heading: References in Text
text: Section 103, referred to in subsec. (a), means section 103 of Pub. L. 114–22. For classification of section 103 to the Code, see Tables.
This title, referred to in subsec. (b)(3)(A), (4)(A), is title I of Pub. L. 114–22, May 29, 2015, 129 Stat. 228. For complete classification of title I to the Code, see Tables.
heading: Codification
text: Section was enacted as part of the Justice for Victims of Trafficking Act of 2015, and not as part of title II of the Trafficking Victims Protection Reauthorization Act of 2005 which comprises this chapter.
Section was formerly classified to section 14044b–1 of Title 42, The Public Health and Welfare, prior to editorial reclassification and renumbering as this section.
heading: Statutory Notes and Related Subsidiaries
heading: Grant Accountability
text: Pub. L. 115–392, § 22, Dec. 21, 2018, 132 Stat. 5259, provided that:
“(a) Definitions.—
In this section—
“(1) the term ‘covered agency’ means an agency authorized to award grants under this Act [see section 1(a) of Pub. L. 115–392, set out as a Short Title of 2018 Amendment note set out under section 1 of Title 18, Crimes and Criminal Procedure];
“(2) the term ‘covered grant’ means a grant authorized to be awarded under this Act; and
“(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 finding 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 otherwise unallowable cost that is not closed or resolved 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 [Dec. 21, 2018], 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 audited each year.
“(C) Mandatory exclusion.—
A recipient of funds under a covered grant that is found to have an unresolved audit finding shall not be eligible 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 unresolved 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 improperly awarded to the grantee into the General Fund of the Treasury; and
“(ii) seek to recoup the costs of the repayment to the fund from the recipient of the covered grant that was erroneously awarded grant funds.
“(2) Nonprofit organization requirements.—
“(A) Definition.—
For purposes of this paragraph and each covered grant program, the term ‘nonprofit organization’ means an organization that is described in section 501(c)(3) of the Internal Revenue Code of 1986 [26 U.S.C. 501(c)(3)] and is exempt 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 purpose of avoiding paying the tax described in section 511(a) of the Internal Revenue Code of 1986 [26 U.S.C. 511(a)].
“(C) Disclosure.—
Each nonprofit organization that is awarded a covered grant and uses the procedures prescribed in regulations to create 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 determining such compensation, including the independent persons involved in reviewing and approving 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 covered 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 covered official provides prior written authorization that the funds may be expended to host the conference.
“(B) Written approval.—
Written approval under subparagraph (A) shall include a written estimate of all costs associated with the conference, including the cost of all food, beverages, audio-visual equipment, honoraria for speakers, and entertainment.
“(C) Report.—
“(i) Department of justice.—
The Deputy Attorney General shall submit an annual report to the appropriate committees of Congress on all conference expenditures approved under this paragraph.
“(ii) Department of health and human services.—
The Deputy Secretary of Health and Human Services shall submit to the appropriate committees of Congress an annual report on all conference expenditures approved under this paragraph.
“(iii) Department of homeland security.—
The Deputy Secretary of Homeland Security shall submit to the appropriate committees of Congress an annual report on all conference expenditures approved under this paragraph.
“(4) Annual certification.—
Beginning in the first fiscal year beginning after the date of enactment of this Act, each covered official shall submit to the appropriate committees of Congress an annual certification—
“(A) indicating whether—
“(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 appropriate 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 determine if duplicate grant awards are awarded for the same purpose.
“(2) Report.—
If a covered official awards duplicate covered grants to the same applicant for the same purpose the covered official shall submit to the appropriate committees of Congress a report that includes—
“(A) a list of all duplicate covered grants awarded, including the total dollar amount of any duplicate covered grants awarded; and
“(B) the reason the covered official awarded the duplicate covered grants.”