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Overview of Key Provisions of the
American Recovery and Reinvestment Act
Presented by:
Edward T. Waters, Esquire
Stacia Davis Le Blanc, Esquire
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Disclaimer
 This webinar has been prepared by the
attorneys of Feldesman Tucker Leifer Fidell
LLP. The opinions expressed in these
materials are solely their views.
 This presentation is provided with the
understanding that the authors are not
rendering legal or other professional
services.
 We will be not be covering the Tax
Provisions contained in Division B
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Overview
 What are the special reporting requirements?
 What is the Recovery Accountability and
Transparency Board?
 What role will the OIG play?
 What are the new whistleblower provisions?
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The Basics
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The American Recovery and Reinvestment Act of 2009
Multiple Statutory Purposes:
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Create and save jobs
Jump-start the economy
Foundation for long-term economic growth
Modernize the nation's infrastructure
Enhance America's energy independence
Expand educational opportunities
Increase access to health care
Provide tax relief
Protect those in greatest need
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What money is ARRA supplying and where is it going?
 $787 Billion dollars of spending
provisions and tax provisions
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ARRA Money Allocated to Agencies Thus Far…
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State Fiscal Stabilization Fund – Title XIV
 $53.6 Billion administered by Dept. of Education
 No "supplement not supplant" provision applicable
to fiscal stability funds.
 Upon prior approval from the Secretary, may treat
any portion of such funds as non-Federal
funds for the purpose of any requirement to
maintain fiscal effort under any other program...
 Maintenance of Effort provision may be waived or
modified under certain conditions.
 Deadline for agency obligation of funds is
September 30, 2011.
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Applicability
 Recipient
 Any entity, other than an individual, that
receives recovery funds directly from the
Federal Government through grant, loan,
cooperative agreement or contract
 Includes a State that receives recovery funds
- Contractors are “recipients”
 Recovery Funds
 Any funds that are made available from
appropriations under this Act
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Definitions
 “Obligated” vs. “Expended”
 Obligated means that the federal agencies
awarded funds to other entities
 Expended means that the agencies spent the
funds
 Agencies must obligate or expend funds
by September 30, 2010
 Recipients do not have to spend the
money by Sept. 30, 2010.
 Remember: The obligation deadline for State
Fiscal Stabilization Funds is Sept. 30, 2011.
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How To Monitor ARRA Implementation
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Recovery.Gov
Grants.Gov
FederalSpending.Gov
Federal Funding Opportunities on agency sites
Recovery Act Terms and Conditions
 Special Conditions in supplemental awards
 Recovery Accountability and Transparency
Board Actions
 GAO and OMB Reports
 IG Findings
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Reporting
Requirements
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Who Must Report:
 Prime recipients of Discretionary Funds
 First tier subawards made by these prime
recipients.
 Recipients of Entitlement or other
Mandatory programs are not required to
report, except as specifically required by
OMB
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ATTENTION: Separate Accounting of ARRA Funds
 Recovery Act funds can be used in
conjunction with other funding as necessary
to complete projects, however . . .
 tracking and reporting must be separate to
meet the reporting requirements of the
Recovery Act and OMB Guidance.
 You will likely need to set up separate cost
centers to track Recovery Act money
separately from your other grant money
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What Must Recipients Report?
(2)
 jobs created
 jobs retained by the project or activity
 For infrastructure investments made by
State and local governments
 purpose, total cost, and rationale of the
agency for funding the project, and
 name of the person to contact at the agency
if there are concerns
 Subgrants and Subcontracts (FFATA)
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OMB Guidance on Recipient Reports
 On Feb. 18, 2009, OMB released Initial
Implementing Guidance for ARRA:
 http://www.recovery.gov/files/Initial%20Recovery%20Act%20Imple
menting%20Guidance.pdf
 Within 180 days of enactment, as a
condition of continued receipt of funds
recipients must have complied with
reporting requirements under this Act
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Administrative Cost Shifting
 Set-Aside for Reporting and
Recordkeeping Costs § 1552
 Federal agencies may, after following the notice
and comment rulemaking requirements under the
APA, reasonably adjust applicable limits on
administrative expenditures
 Help recipients defray the costs of data collection
requirements initiated pursuant to the Act
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Inspectors
General:
Reviews,
Investigations,
and Audits
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ARRA and the Inspectors General
 $250 million in additional funding for agency
IGs to hire experienced auditors and
investigators
 ARRA mandates that an IG shall review, as
appropriate, any concerns raised by the
public about specific investments of stimulus
funds
 ARRA provides new authority giving IGs
 access to records and interviews of contractors
or grantees, including their employees and
 subcontractors or subgrantees
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Inspector General Reviews
 What is an IG “Review?”
 Not an Audit
 Not an Investigation
 Is it an “Inspection”?
 What standards are applied?
 What is the outcome of an IG “review?”
 What due process is provided to
grantee?
 IGs will post outcomes on website
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IG Investigations and Audits
 ARRA investigations emphasize:
 preventing and identifying fraud
 timely investigations when potential criminal activity
occurs
 response to the new sources of whistleblower
complaints
 OMB Circular A-133 Audits will not be sufficient to
provide effective feedback on stimulus programs
 Results of A-133 audits are not available until at least 9
months after fiscal year end
 Perform risk analyses of those programs to determine
the types of testing that should be done
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Recovery
Accountability
and
Transparency
Board
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Board Membership
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Functions of the RAT Board
 Reviewing whether the reporting of contracts and
grants meets applicable standards, specifies the
purposes, and measures performance;
 Reviewing whether competition requirements have
been satisfied;
 Auditing or reviewing covered funds to determine
 wasteful spending,
 poor contract or grant management, or
 other abuses and
 Referring matters appropriate for investigation to
the agency IG
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Functions of the RAT Board
(2)
 Reviewing whether there are sufficient qualified
acquisition and grant personnel overseeing
covered funds;
 Reviewing whether personnel whose duties
involve acquisitions or grants made with covered
funds receive adequate training; and
 Reviewing whether there are appropriate
mechanisms for interagency collaboration relating
to covered funds
 Coordinating and collaborating with the IG Council
on Integrity and Efficiency
 Use website as means for public feedback
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Whistleblower
Provisions and
Protections
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IGs and Whistleblowers – New Protections
 Federal officials must act on evidence of:
 gross mismanagement,
 waste, or
 illegality related to stimulus expenditures
 IGs are required to complete these whistleblower
investigations within 180 days, subject to certain
extensions.
 A violation of law, rule, or regulation
related to the competition for or negotiation
of a contract or grant
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Federal Grants Law
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Whistleblower Protections § 1553
 “Prohibition of Reprisals – An employee of any non-Federal
employer receiving covered funds may not be
discharged, demoted, or otherwise discriminated
against as a reprisal for disclosing, including a disclosure
made:
 in the ordinary course of an employee’s duties,
 to the Board, an inspector general, the Comptroller General,
 a member of Congress, a State or Federal regulatory or law
enforcement agency,
 a person with supervisory authority over the employee (or
such other person working for the employer who has the
authority to investigate, discovery, or terminate misconduct),
 a court or grant jury, the head of a Federal agency, or their
representatives, information that the employee reasonably
believes is evidence of . . .
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