Federal Grant Financial Reporting Requirements and Databases: Frequently Asked Questions Page: 4 of 11
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Federal Grant Financial Reporting Requirements and Databases: FAQ
Introduction
Congressional authorization of federal assistance to state and local governments can be traced as
far back as 1808, when the first federal grant program was adopted to provide funds to states to
support the National Guard.' Since that time, there has been significant growth in the number of
federal assistance programs to state and local government. There are currently over 2,321
congressionally authorized federal assistance programs.2 The growing number, perceived
fragmentation, and complexity of these programs create challenges for federal agencies and
congressional stakeholders in standardizing various financial and administrative aspects of federal
grant program management.3 Federal agencies administering grant programs face challenges in
providing timely, accurate, and detailed information on federal grant awards. This can be
attributed, in part, to the way grant funds are distributed from the federal to the local level. This
may also be attributed to the limitations of the databases used to track the distribution of federal
grant funds. These limitations include questions regarding the validity of the data, and the limited
ability to track the distribution of grant funds to the subgrant recipient level. Without complete
and valid information about the distribution of federal grant funds, Congress may have a
diminished capacity to engage in effective oversight of federal grants. Federal grant recipients are
currently required to report grant project related information to federal agencies.4 This
information is contained within a number of federal grant databases with limited public
accessibility. The information reported by grant recipients varies depending on the federal
program and the individual grant award.
Federal grants are available for a variety of purposes. Federally funded grant projects may include
purchasing fire and police equipment, constructing housing for low-income populations,
providing disaster recovery assistance and other social services, and funding educational
activities. Organizations generally coordinate the application and administration of federal grants,
and individuals are beneficiaries of the grant projects and services provided by organizations.
Organizations seeking federal grant funds are required to register in federal grant systems prior to
applying for federal grants. Once grant funds are awarded, recipients are required to report
information to federal agencies regarding the use of the federal grant funds. The information
provided to the federal government by federal grant recipients is contained in several different
federal databases. The general public has access to selected information contained in these
databases.
This report provides an introduction to reporting requirements placed on federal grant recipients,
including requirements that must be met to seek federal grant funds. It also describes the types of
information collected on grant recipients, the databases containing information about grant
awards, and the availability of that information to the public. The reporting requirements
discussed in this report are financial reporting requirements for grant recipients and do not
include performance related reporting.
1 Morton Grodzins, The American System (Chicago: Rand McNally, 1966), pp. 34-37.
2 Catalog of Federal Domestic Assistance, February 11, 2016, at http://www.cfda.gov.
3 For additional information on federal grant administration challenges, see CRS Report R42769, Federal Grants-in-
Aid Administration: A Primer, by Natalie Keegan.
4 The grant recipient reporting requirements vary program to program based on statutory and regulatory provisions.Congressional Research Service
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Keegan, Natalie. Federal Grant Financial Reporting Requirements and Databases: Frequently Asked Questions, report, February 11, 2016; Washington D.C.. (https://digital.library.unt.edu/ark:/67531/metadc824580/m1/4/: accessed April 18, 2024), University of North Texas Libraries, UNT Digital Library, https://digital.library.unt.edu; crediting UNT Libraries Government Documents Department.