On March 12, the Office of Management and Budget (OMB) Controller, Danny Werfel, released a memo to federal agency heads reviewing the internal control planning and reporting requirements for all programs funded under the Disaster Relief Appropriations Act that was signed into law by the President on January 29, 2013. The memo focuses on additional internal controls, improper payments procedures, and the recapture of grant funds that are unexpended 24 months after agency obligation. Regarding internal controls, the guidance calls for conducting additional levels of review, increasing monitoring and oversight of grant recipients, continuing collaboration with Inspector Generals, resolving audit findings quickly (within six months of audit completion when possible), and adopting a disciplined improper payments protocol. The memo also directs agencies to implement improper payment measurements using the most cost-effective methods available. Regarding unexpended grant funds, the memo describes agency responsibilities to meet the statutory requirement that grantees must expend award funds within a 24-month period after the agency obligates the funds. According to OMB’s guidance, each agency must require grantees to return to the agency any funds not expended within the 24-month window. The memo also describes the support and oversight roles of the Hurricane Sandy Rebuilding Task Force and the Recovery Accountability and Transparency Board.

Link: Memorandum