As we have previously  reported, program consolidations may help address these problems. We identified a total of 15 consolidations from fiscal year 1990  through 2012, (see figure 3 and appendix I). Most of these consolidations  either combined a number of grant programs used for specific activities  (such as Shelter Plus Care), known as categorical grants, into a broader  categorical grant, such as the CoC program, or established a  Performance Partnership, which offers additional flexibility in using funds  across multiple programs but is held accountable for meeting certain  performance measures. One grant program consolidation enacted in 2009–HUD’s CoC program— was created by consolidating multiple categorical grant programs. Hybrid approaches can improve the efficiency of grant  administration and may reduce fragmentation, overlap, and duplication. In general, the  actions taken are similar to the 1980s era of block grant actions because  in both instances, state and local governments in the three case study  consolidations relied on existing grant management structures and  established relationships to facilitate implementation of the selected grant  program consolidations. In addition to these actions, state officials reported to us that the  TA program and NEPPS case study grant program consolidations  provided them with flexibility in administering the programs. Existence of carry-over funds from predecessor grant program:  States reported to us that the budget impact of the TA program  consolidation was delayed because they relied on carry over funds from  predecessor grant programs while these funds were still available. These  performance accountability challenges identified by federal, state, and  local officials include lack of central oversight in the states, lack of or  inaccurate performance data, and conflicting reporting requirements, as  illustrated in table 3. Lessons Learned Can Inform Both the Design and Review of Grant Program Consolidations

		Ambiguity of Consolidations’ Goals May Create Grant Management Challenges

The key to any consolidation initiative is identifying and agreeing on the  goals of the consolidation, regarding grant administration and changed  programmatic outcomes (if any) and designing and planning for  successful implementation, according to findings from the case studies  and our prior GAO work. Grant consolidations offer the opportunity to  improve administration by enlarging the limits of narrowly targeted grants  and by reducing fragmentation, overlap, and duplication. What opportunities will be addressed  through the consolidation and what problems will be solved? However, as our prior work found few executive branch  agencies regularly conduct in-depth program evaluations to assess their  programs’ impacts or to learn how to improve results. OMB, as the focal point for overall management in the executive branch, plays a key role in improving the performance of  federal grant programs and has developed or contributed many tools to  encourage improvements to federal grants and program performance. OMB staff stated there is a need for improved  guidance relative to grant program consolidation opportunities. Agencies  and, the Congress—as well as grantees—can benefit from guidance,  which currently does not exist, to assist with identifying consolidation  opportunities, particularly those requiring statutory changes and  developing consolidation proposals. Agency Comments and Our Evaluation

We provided a draft of this report for review and comment to the  Administrator of the Environmental Protection Agency, the Secretaries of  the Departments of Housing and Urban Development and Transportation,  and the Director of the Office of Management and Budget (OMB). Describe approaches taken to grant programs that have been  consolidated from fiscal year 1990 through 2012. Examine federal, state, and local actions taken to administer the  selected case study consolidated grant programs. The selected  locations and grant program consolidations are not generalizable, but  they provided important insights about grant consolidations. The four states we selected  were Colorado, Delaware, Florida, and Massachusetts. For objective 3, to analyze lessons learned for future  consideration of grant program consolidations, we reviewed existing  literature pertaining to grants management and identified key questions to  consider when evaluating grant program consolidations, and attributes for  conducting a program consolidation evaluation.
Why GAO Did This Study

GAO has previously reported that consolidations may help increase the effectiveness and efficiency of government programs.
GAO was asked to review grant program consolidations in regard to reducing overlap and duplication. This report: (1) describes approaches taken to grant programs that have been consolidated from fiscal year 1990 through 2012, (2) examines federal, state and local actions taken to administer the programs, and (3) analyzes lessons learned for future consideration of grant program consolidations.
GAO reviewed literature on grant program consolidations. For this review GAO selected three case study grant program consolidations, the TA and CoC programs, and the National Environmental Performance Partnership System. GAO conducted interviews with state and local officials in Colorado, Delaware, Florida, and Massachusetts. GAO selected these states and localities based on several selection criteria, such as state participation and funding. The selected locations and grant program consolidations are not generalizable, but they provided important insights about grant consolidations.

What GAO Found

Consolidations from fiscal years 1990 through 2012. There is no authoritative, accurate tally of enacted grant program consolidations. In addition, there is no commonly accepted definition of what constitutes a grant program consolidation. From a variety of sources, GAO identified 15 grant program consolidations during this period. Most of these consolidations either combined a number of grant programs used for specific activities (such as Shelter Plus Care), known as categorical grants, into a broader categorical grant, such as the Continuum of Care (CoC) program or established a Performance Partnership, which offers additional flexibility in using funds across multiple programs but maintains accountability for meeting certain performance measures. Block grant approaches to consolidation prior to 1990 combined programs for broad purposes, such as work assistance. The more recent approaches, referred to as hybrid, often combine categorical grant programs and emphasize strong performance standards and accountability. Hybrid approaches can improve the efficiency of grant administration and may reduce fragmentation, overlap, and duplication.
State and local government actions. State and local officials in the three case study consolidations GAO selected for review relied on existing grant management structures and established relationships to facilitate implementation of the grant program consolidations. In the Transportation Alternatives (TA) program the impact of the consolidation was delayed by states and local officials' reliance on carryover funds from predecessor grant programs while these funds were still available. Officials reported both benefits and challenges ranging from administrative flexibility such as lack of central oversight by states, lack of or inaccurate performance data, and conflicting reporting requirements.
Lessons to consider. The key to any grant program consolidation initiative is identifying and agreeing on goals—such as improved grant administration and changed programmatic outcomes—and to design and plan for successful implementation, according to findings from the case studies and prior GAO reports. Grant consolidations offer the opportunity to improve grant administration by expanding the opportunities of narrowly targeted grants and by reducing fragmentation, overlap, and duplication. Consolidation initiatives that answer key questions can provide a data-driven consolidation rationale and show stakeholders that a range of alternatives has been considered. These evaluations should include responses to key questions such as the following: What are the goals of the consolidation? What opportunities will be addressed through the consolidation and what problems will be solved?
GAO's prior work found that few executive branch agencies regularly conduct in-depth program evaluations to assess their programs' impact. The Office of Management and Budget (OMB), as the focal point for overall management in the executive branch, plays a key role in improving the performance of federal grant programs and has developed or contributed many tools to encourage improvements to federal grants and program performance. Agencies, the Congress—as well as grantees—can benefit from guidance, which currently does not exist, to assist with identifying consolidation opportunities, particularly those requiring statutory changes, and developing consolidation proposals.

What GAO Recommends

GAO recommends OMB develop guidance on identifying grant program consolidation opportunities and the analysis to improve their outcomes. GAO incorporated technical comments from the Environmental Protection Agency, Departments of Housing and Urban Development and Transportation, and OMB.