The  act sunsets in November 2007. Hundreds of federal grant programs implement various  domestic policies and have administrative requirements that may be  duplicative, burdensome, or conflicting—which can impede the  effectiveness of grants programs. Some Progress Made in Streamlining Grant Administration across Agencies, but More Progress Is Needed

To implement P.L. 106-107’s requirement to improve the effectiveness and  performance of federal grants, a common plan was developed and most,  but not all, grant-making agencies have submitted reports annually on their  progress toward this plan as required by the law. The work groups have  identified several changes that should be made, but many of these are still  in the developmental or approval stages. Some specific objectives included (1) streamlining,  simplifying, and improving announcements of funding opportunities and  related business processes, application requirements and procedures, and  award documents; (2) streamlining and simplifying standard and unique  report forms, allowing for electronic submission of reports, achieving  greater uniformity in federal business processes for reporting, and  improving reporting by recipients; (3) simplifying and standardizing, to the  extent appropriate, general administrative requirements and agency  treatment of them in the terms and conditions of award; and (4) fully  developing and implementing a portal for identifying and applying for  grants, and ensuring that any revised electronic data standards are  interoperable and present a common face to grant-making agencies,  applicants, and recipients. 106-107 and the common plan emphasized, coordination among the  agencies and with grantees in the planning and implementation of grant- streamlining initiatives can increase the likelihood that the standard  processes and policies developed will meet the diverse needs of all the  stakeholder groups. However, the P.L. The lack  of clear goals and timelines for the cross-agency work groups to complete  tasks and for agencies to implement systems undoubtedly has contributed  to the lack of progress in implementing these proposals. 106-107 have a mixed  record of coordinating with grantees. Grants.gov publicizes its plans and  meeting minutes on its Web site and solicits ongoing grantee input through  its Web site, regular satisfaction surveys, and outreach meetings with  grantees. Unlike Grants.gov,  the work groups have neither made information about their work public  nor solicited ongoing grantee input, and approaches outlined in the  common plan, such as establishing an ombudsman position, have not been  implemented. Without ongoing grantee input, the reforms are less likely to  meet the needs of the grantees and achieve the purposes of the act. 106-107 requirements,  such as the development of common electronic systems to manage and  report on the use of funding from similar federal grant programs  administered by different agencies, move forward. Detailed Information on Grants.gov

As cross-agency teams identified the need for streamlining, agency  representatives and the Office of Management and Budget (OMB)  recognized that potential grantees needed a simpler and more consistent  way to identify and apply for federal grant opportunities.
Why GAO Did This Study

The federal government distributed about $400 billion in federal grants in fiscal year 2003 through about 1,000 different federal grant programs administered by several federal agencies with different administrative requirements. Congress, concerned that some of these requirements may be duplicative, burdensome, or conflicting--and could impede cost-effective delivery of services--passed the Federal Financial Assistance Management Improvement Act of 1999, commonly called P.L. 106-107, and mandated that GAO assess the act's effectiveness. This report addresses (1) progress made to streamline and develop common processes for grantees and (2) the coordination among the Office of Management and Budget (OMB), the agencies, and potential grant recipients.

What GAO Found

More than 5 years after passage of P.L. 106-107, grant agencies have made progress in some areas of grant administration, but in other areas, particularly the development of common reporting systems, progress is just beginning. Grant-making agencies together developed a common plan for streamlining processes. Several cross-agency teams identified changes that should be made, and these plans are in various stages of completion. For example, a Web-based system, Grants.gov, is now available to help potential grantees identify grant opportunities and apply for them electronically. Common forms are being developed to eliminate duplication and unnecessary differences among agencies. However, efforts toward common electronic systems for reporting financial and performance information have not been developed, although the law requiring them sunsets in 2007. Further, individual agencies have not all reported on their progress annually, as required. The individual agencies and the cross-agency work groups have a mixed record of coordinating with grantees. For example, the cross-agency work groups solicited public input to their early plan. Grants.gov publicizes its plans and solicits ongoing grantee input through its Web site and user surveys. However, the work groups generally have not made information about their work public nor solicited ongoing grantee input. Without such input, reforms are less likely to meet the needs of grantees. In general, the oversight of streamlining initiatives has shifted, potentially contributing to the lack of progress on all aspects of grant management.