S. Rept. 116-96 - GRANT REPORTING EFFICIENCY AND AGREEMENTS TRANSPARENCY ACT OF 2019116th Congress (2019-2020)
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Calendar No. 200
116th Congress } { Report
SENATE
1st Session } { 116-96
_______________________________________________________________________
GRANT REPORTING EFFICIENCY AND AGREEMENTS TRANSPARENCY ACT OF 2019
__________
R E P O R T
of the
COMMITTEE ON HOMELAND SECURITY AND
GOVERNMENTAL AFFAIRS
UNITED STATES SENATE
to accompany
H.R. 150
TO MODERNIZE FEDERAL GRANT REPORTING, AND FOR OTHER PURPOSES
[GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]
September 10, 2019.--Ordered to be printed
__________
U.S. GOVERNMENT PUBLISHING OFFICE
89-010 WASHINGTON : 2019
COMMITTEE ON HOMELAND SECURITY AND GOVERNMENTAL AFFAIRS
RON JOHNSON, Wisconsin, Chairman
ROB PORTMAN, Ohio GARY C. PETERS, Michigan
RAND PAUL, Kentucky THOMAS R. CARPER, Delaware
JAMES LANKFORD, Oklahoma MAGGIE HASSAN, New Hampshire
MITT ROMNEY, Utah KAMALA D. HARRIS, California
RICK SCOTT, Florida KYRSTEN SINEMA, Arizona
MICHAEL B. ENZI, Wyoming JACKY ROSEN, Nevada
JOSH HAWLEY, Missouri
Gabrielle D'Adamo Singer, Staff Director
Joseph C. Folio III, Chief Counsel
Patrick J. Bailey, Chief Counsel for Governmental Affairs
Daniel J. Spino, Professional Staff Member
David M. Weinberg, Minority Staff Director
Zachary I. Schram, Minority Chief Counsel
Yogin J. Kothari, Minority Professional Staff Member
Laura W. Kilbride, Chief Clerk
Calendar No. 200
116th Congress } { Report
SENATE
1st Session } { 116-96
======================================================================
GRANT REPORTING EFFICIENCY AND AGREEMENTS TRANSPARENCY ACT OF 2019
_______
September 10, 2019.--Ordered to be printed
_______
Mr. Johnson, from the Committee on Homeland Security and Governmental
Affairs, submitted the following
R E P O R T
[To accompany H.R. 150]
[Including cost estimate of the Congressional Budget Office]
The Committee on Homeland Security and Governmental
Affairs, to which was referred the bill (H.R. 150) to modernize
Federal grant reporting, and for other purposes, having
considered the same, reports favorably thereon with an
amendment (in the nature of a substitute) and recommends that
the bill, as amended, do pass.
CONTENTS
Page
I. Purpose and Summary..............................................1
II. Background and Need for the Legislation..........................2
III. Legislative History..............................................3
IV. Section-by-Section Analysis......................................3
V. Evaluation of Regulatory Impact..................................5
VI. Congressional Budget Office Cost Estimate........................5
VII. Changes in Existing Law Made by the Act, as Reported.............7
I. Purpose and Summary
The purpose of H.R. 150, the Grant Reporting Efficiency and
Agreements Transparency Act of 2019, or the GREAT Act, is to
improve and modernize reporting by recipients of Federal
grants. The bill does so by requiring the Director of the
Office of Management and Budget (OMB), and the Secretary of the
Executive Branch agency that awards the most Federal grants
each year, to create data standards for grantee reporting
requirements across the Federal Government.\1\
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\1\On Sept. 26, 2018, the Committee approved S. 3484, the Grant
Reporting Efficiency and Agreements Transparency Act of 2018. That bill
is substantially similar to H.R. 150. Accordingly, this committee
report is in large part a reproduction of Chairman Johnson's committee
report for S. 3484, S. Rep. No. 115-354 (2018).
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II. Background and the Need for Legislation
In 2014, Congress approved, and President Barack Obama
signed, the Digital Accountability and Transparency (DATA) Act,
the nation's first open data law.\2\ Included among the Act's
provisions was the authorization of a 12-month pilot program to
examine whether the establishment of data reporting standards
across Federal agencies would reduce duplicative reporting
requirements for Federal award recipients.\3\
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\2\Pub. L. No. 113-101 (2014).
\3\Id. at Sec. 5(b).
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The DATA Act tasked OMB with implementing the pilot
program.\4\ As authorized, the pilot program applied standard
data reporting requirements to contracts, grants, and sub-
awards with a combined value over $1 billion.\5\ OMB examined
Federal spending data and how Federal awardees reported data
back to the Federal Government to analyze the influence of
standardized terms and interoperable financial data systems.\6\
The pilot program also included a variety of award recipients
as participants, including recipients that accept awards from
multiple Federal programs across multiple Federal agencies.\7\
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\4\Id. at (b)(1).
\5\Id. at (b)(2)(A).
\6\Office of Mgmt. & Budget, Report to Congress: DATA Act Pilot
Program 4 (Aug. 10, 2017), available at https://www.whitehouse.gov/
sites/whitehouse.gov/files/omb/sequestration_reports/
2017_data_act_section5_report.pdf.
\7\Id. at 4.
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OMB also tasked several agencies with overseeing differing
aspects of the pilot program, including the Department of
Health and Human Services (HHS).\8\ OMB made HHS responsible
for the grants portion of the DATA pilot program due to its
high involvement with grant recipients and maintenance of
Grants.gov.\9\ To address inconsistent terms used in grant
reporting, HHS created the Common Data Element Repository
(CDER) Library model.\10\ The CDER is an online repository of
Federal Government program data, terms, and attributes of grant
reporting.\11\ CDER is designed to provide a framework of
agreed-upon data standards, improve transparency, and promote
consistency in definitions and terms in the Federal grant
world.\12\ Using CDER, HHS collected and analyzed data related
to grants from a 12-month reporting period.\13\
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\8\Id.
\9\Id. at 32. Grants.gov is a centralized website that allows grant
seekers to find and apply for federal funding opportunities.
Grants.gov, About the Grants.gov Program Management Office, https://
www.grants.gov/web/grants/support/about-grants-gov.html (last visited
June 18, 2019).
\10\Dep't of Health & Human Services, Common Data Repository (CDER)
Library, https://www.hhs.gov/about/agencies/asfr/data-act-program-
management-office/common-data-element-repository/index.html (last
visited June 18, 2019).
\11\Dep't of Health & Human Services, Common Data Element
Repository (CDER) Library, https://repository.usaspending.gov/
cder_library/ (last visited June 18, 2019).
\12\Id.
\13\Office of Mgmt. & Budget, supra note 6 at 37.
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Upon completion of the grant portion of the pilot program,
HHS, and ultimately OMB, concluded that grant reporting could
be completed in a more accurate and timely fashion if they had
access to an online repository containing defined data
standards, such as the CDER Library.\14\ OMB issued guidance to
Federal agencies, explaining how agencies are to apply data
standards in the hopes of lessening the compliance burden and
simplify the reporting process.\15\ OMB had four
recommendations for grant reporting: (1) require that reported
data elements are defined; (2) require that reported data is
collected and maintained in a central location; (3) allow data
to be re-used and auto-populated across the Government; and (4)
have resources available to explain requirements and business
processes when necessary.\16\
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\14\Memorandum from Mick Mulvaney, Director, Office of Mgmt. &
Budget, to Heads of Executive Departments and Agencies (Sept. 5, 2018)
available at https://www.whitehouse.gov/wp-content/uploads/2018/09/M-
18-24.pdf; Office of Mgmt. & Budget, supra note 6 at 42.
\15\Memorandum from David Mader, Controller, Office of Mgmt. &
Budget, to Heads of Executive Departments and Agencies (May 3, 2016)
available at https://obamawhitehouse.archives.gov/sites/default/files/
omb/financial/memos/management-procedures-memorandum-no-2016-03-
additional-guidance-for-data-act-implementation.pdf.
\16\Office of Mgmt. & Budget, supra note 6 at 6.
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Although the DATA Act pilot program had a two-year sunset,
the positive feedback from HHS's work with the pilot program as
it related to Federal grants led to the introduction of H.R.
150. H.R. 150 implements all four of OMB's recommendations for
Federal agencies to modernize reporting by defining and
imposing data standards in an open repository managed by HHS
and OMB. The data standards OMB and HHS establish will be
applied government-wide to all Federal grant recipients'
reporting to ensure continuity and efficiency.
III. Legislative History
H.R. 150 was introduced on January 3, 2019, by
Representatives Virginia Foxx (R-NC-5), Cynthia Axne (D-IA-3),
Ben Cline (R-VA-6), Scott DesJarlais (R-TN-4), Tom Emmer (R-MN-
6), Jimmy Gomez (D-CA-34), Josh Harder (D-CA-10), Robin Kelly
(D-IL-2), Derek Kilmer (D-WA-6), Mark Meadows (R-NC-11), Ralph
Norman (R-SC-5), Gary Palmer (R-AL-6), Mike Quigley (D-IL-5),
Harley Rouda (D-CA-48), Pete Stauber (R-MN-8), and Mark Walker
(R-NC-6). On January 17, 2019, a motion to suspend the rules
and pass the bill was agreed to by yeas and nays (422-0).
The Act was referred to the Committee on Homeland Security
and Governmental Affairs. The Committee considered H.R. 150 at
a business meeting on June 19, 2019. During the business
meeting, Senators James Lankford, Gary Peters, Maggie Hassan,
and Michael Enzi offered a substitute amendment to better
specify the standard-setting agency, to require guidance to be
updated every ten years, and to provide more time for Federal
agencies to establish data standards and guidance. Both the
Lankford substitute amendment and the Act, as amended, were
passed by voice vote en bloc with Senators Johnson, Portman,
Paul, Lankford, Romney, Scott, Enzi, Hawley, Peters, Carper,
Hassan, Sinema, and Rosen present.
IV. Section-by-Section Analysis of the Bill, as Reported
Section 1. Short title; table of contents
This section establishes the short title of the Act as the
``Grant Reporting Efficiency and Agreements Transparency Act of
2019'', or the ``GREAT Act.'' This section also provides a
table of contents for the Act.
Section 2. Purposes
This section lays out the purposes of the bill, to improve
Federal awardee's reporting to the Federal Government by
creating and using data standards when reporting annual
productivity, budget requests, and other correspondence. The
data standards are to be created by the Director of OMB and the
Secretary of the standard-setting agency (as defined in section
4 of this bill).
Section 3. Definitions
This section explains that the terms agency, Director,
Federal award, and Secretary have the same meanings as they are
given in section 6401 of title 31, United States Code, which
are added by section 4 of this bill.
Section 4. Data standards for grant reporting
This section adds a new Chapter 64 to follow chapter 63 in
title 31 of the United States Code.
New section 6401 of Chapter 64 provides definitions for the
terms ``agency,'' ``core data elements,'' ``Director,''
``Executive department,'' ``Federal award,'' ``Secretary,''
``standard-setting agency,'' and ``State.''
New section 6402 provides that the Executive department
that issues the most Federal awards in a calendar year shall be
considered the standard-setting agency. The Secretary of the
standard-setting agency and Director of OMB shall establish the
Government-wide data standards for all reporting by Federal
award recipients. The data standards need to be consistent with
accounting and reporting principles, nonproprietary, and yield
information by being fully searchable and machine-readable.
New section 6403 details that the Secretary of the
standard-setting agency and Director of OMB need to produce
guidance directing all agencies to apply the data standards
established under new section 6402 to all applicable reports
from award recipients, not later than three years after the
date of enactment of this bill. The guidance will help
assimilate current reporting practices, while allowing some
exceptions, such as for Indian Tribes. The Director must update
the guidance at least every 10 years.
New section 6404 explains the requirements of agencies.
Within one year of the Director issuing or updating guidance
under new section 6403, agencies are required to have all grant
and cooperative agreements recipients use the data standards
established for all information collection requests.
Section 5. Single audit act
This section amends Sections 7502 and 7505 of United States
Code to require all audit-related information be electronic and
machine-readable.
Section 6. Consolidation of assistance-related information; publication
of public information as open data
This section requires OMB and the standard-setting agency
to collect, publish, and maintain the Federal award information
received from the reports. The Federal award information is to
be displayed in a government-wide data set that is publically
available.
Section 7. Evaluation of nonproprietary identifiers
This section establishes that OMB and the standard-setting
agency should decide on using nonproprietary identifiers for
the data standards, keeping in mind the accessibility and cost
to recipients of Federal awardees.
Section 8. Rule of construction
This section clarifies that provisions of this Act shall
not be interpreted to require the collection of data that is
not already required.
Section 9. No additional funds authorized
This section makes clear that no additional funds are
authorized to carry out this bill.
V. Evaluation of Regulatory Impact
Pursuant to the requirements of paragraph 11(b) of rule
XXVI of the Standing Rules of the Senate, the Committee has
considered the regulatory impact of this bill and determined
that the bill will have no regulatory impact within the meaning
of the rules. The Committee agrees with the Congressional
Budget Office's statement that the bill contains no
intergovernmental or private-sector mandates as defined in the
Unfunded Mandates Reform Act (UMRA) and would impose no costs
on state, local, or tribal governments.
VI. Congressional Budget Office Cost Estimates
U.S. Congress,
Congressional Budget Office,
Washington, DC, July 25, 2019.
Hon. Ron Johnson,
Chairman, Committee on Homeland Security and Governmental Affairs, U.S.
Senate, Washington, DC.
Dear Mr. Chairman: The Congressional Budget Office has
prepared the enclosed cost estimate for H.R. 150, the GREAT
Act.
If you wish further details on this estimate, we will be
pleased to provide them. The CBO staff contacts are Chinmayee
Balabhadrapatruni and Matthew Pickford.
Sincerely,
Phillip L. Swagel.
Enclosure.
[GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]
The bill would
Direct the Office of Management and Budget
to designate an executive agency to establish data
standards for reporting information about federal grant
programs
Aim to facilitate the management of federal
grants and cooperative agreements
Require federal grant award data to be
publicly available
Estimated budgetary effects would primarily stem from
The cost of establishing data standards,
modifying reporting systems, and training personnel
across 26 federal agencies
Bill summary: H.R. 150 would require the Office of
Management and Budget (OMB) and a designated executive agency
to jointly establish data standards for information reported by
recipients of federal grants. The act also would require that
information to be publicly available, subject to certain
restrictions.
Estimated federal cost: The estimated budgetary effect of
H.R. 150 is shown in Table 1. The costs of the legislation fall
within all budget functions that include grant programs.
TABLE 1.--ESTIMATED INCREASES IN SPENDING SUBJECT TO APPROPRIATION UNDER H.R. 150
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By fiscal year, millions of dollars--
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2019 2020 2021 2022 2023 2024 2019-2024
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Estimated Authorization........................ 0 10 10 10 10 10 50
Estimated Outlays.............................. 0 10 10 10 10 10 50
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Basis of estimate: CBO assumes that H.R. 150 will be
enacted near the end of 2019 and that spending will follow
historical patterns for similar activities.
Under current law, the government uses several databases to
monitor and track federal spending on grants. For example, the
Department of Health and Human Services (HHS) uses
www.grants.gov to provide information about federal grants and
contracts. A similar OMB website, www.usaspending.gov, provides
information on award amounts for all federal contracts, grants,
and loans. Information from HHS and OMB indicates that under
current law, the federal government has standardized some
reporting requirements by grant recipients, but that
information is not collected or reported consistently by all
federal programs.
For this estimate, CBO assumes that HHS would be the lead
agency to implement H.R. 150. HHS typically spends $10 million
to $12 million annually on its grants website, and CBO expects
that implementing H.R. 150 would involve a similar level of
effort across the 26 major departments and agencies.
Implementing the act would require personnel from multiple
departments and agencies to develop the data elements, modify
computer systems, and train staff. In total, CBO estimates
implementing the act would cost $50 million over the 2020-2024
period; that spending would be subject to the availability of
appropriated funds.
Pay-As-You-Go considerations: The Statutory Pay-As-You-Go
Act of 2010 establishes budget-reporting and enforcement
procedures for legislation affecting direct spending or
revenues. H.R. 150 could affect direct spending by agencies
that are not funded through annual appropriations; therefore
pay-as-you-go procedures apply. CBO estimates, however, that
net changes in direct spending would be insignificant. Enacting
the bill would not affect revenues.
Increase in long-term deficits: CBO estimates that enacting
H.R. 150 would increase on-budget deficits by an insignificant
amount in the four consecutive 10-year periods beginning in
2030.
Mandates: None.
Estimate prepared by: Federal costs: Chinmayee
Balabhadrapatruni and Matthew Pickford; Mandates: Andrew
Laughlin.
Estimate reviewed by: Kim P. Cawley, Chief, Natural
Resources Cost Estimate Unit; H. Samuel Papenfuss, Deputy
Assistant Director for Budget Analysis.
VII. Changes in Existing Law Made by the Bill, as Reported
In compliance with paragraph 12 of rule XXVI of the
Standing Rules of the Senate, changes in existing law made by
the bill, as reported, are shown as follows: (existing law
proposed to be omitted is enclosed in brackets, new matter is
printed in italic, and existing law in which no change is
proposed is shown in roman):
UNITED STATES CODE
* * * * * * *
TITLE 31--MONEY AND FINANCE
* * * * * * *
SUBTITLE V--GENERAL ASSISTANCE ADMINISTRATION
Chap. Sec.
61. Program Information........................................... 6101.
* * * * * * *
64. Data standards for grant reporting............................ 6401.
* * * * * * *
Chapter 64--Data Standards for Grant Reporting
Sec.
6401. Definitions.
6402. Data standards for grant reporting.
6403. Guidance applying data standards for grant reporting.
6404. Agency requirements.
SEC. 6401. DEFINITIONS.
In this chapter:
(1) Agency.--The term ``agency'' has the meaning
given the term in section 552(f) of title 5.
(2) Core data elements.--The term ``core data
elements'' means data elements that relating to
financial management, administration, or management
that
(A) are not program-specific in nature or
program-specific outcome measures, as defined
in section 1115(h) of this title; and
(B) are required by agencies for all or the
vast majority of recipients of Federal awards
for purposes of reporting.
(3) Director.--The term ``Director'' means the
Director of the Office of Management and Budget.
(4) Executive department.--The term ``Executive
department'' has the meaning given the term in section
101 of title 5.
(5) Federal award.--The term ``Federal award''--
(A) means the transfer of anything of value
for a public purpose of support or stimulation
authorized by a law of the United States,
including financial assistance and Government
facilities, services, and property;
(B) includes a grant, a subgrant, a
cooperative agreement, or any other
transaction; and
(C) does not include a transaction or
agreement--
(i) that provides for conventional
public information services or
procurement of property or services for
the direct benefit or use of the
Government; or
(ii) that provides only--
(I) direct Government cash
assistance to an individual;
(II) a subsidy;
(III) a loan;
(IV) a loan guarantee; or
(V) insurance.
(6) Secretary.--The term ``Secretary'' means the head
of the standard-setting agency.
(7) Standard-setting agency.--The term ``standard-
setting agency'' means the Executive department
designated under section 6402(a)(1).
(8) State.--The term ``State'' means each State of
the United States, the District of Columbia, each
commonwealth, territory, or possession of the United
States, and each federally recognized Indian Tribe.
SEC. 6402. DATA STANDARDS FOR GRANT REPORTING.
(a) In General.--
(1) Designation of standard-setting agency.--The
Director shall designate the Executive department that
administers the greatest number of programs under which
Federal awards are issued in a calendar year as the
standard-setting agency.
(2) Establishment of standards.--Not later than 2
years after the date of enactment of this chapter, the
Secretary and the Director shall establish Government-
wide data standards for information reported by
recipients of Federal awards.
(3) Data elements.--The data standards established
under paragraph (2) shall include, at a minimum--
(A) standard definitions for data elements
required for managing Federal awards; and
(B) unique identifiers for Federal awards and
recipients of Federal awards that can be
consistently applied Governmentwide.
(b) Scope.--The data standards established under subsection
(a)--
(1) shall include core data elements;
(2) may cover information required by law to be
reported to any agency by recipients of Federal awards,
including audit-related information reported under
chapter 75 of this title; and
(3) may not be used by the Director or any agency to
require the collection of any data not otherwise
required under Federal law.
(c) Requirements.--The data standards established under
subsection (a) shall, to the extent reasonable and
practicable--
(1) render information reported by recipients of
Federal awards fully searchable and machine-readable;
(2) be nonproprietary;
(3) incorporate standards developed and maintained by
voluntary consensus standards bodies;
(4) be consistent with and implement applicable
accounting and reporting principles; and
(5) incorporate the data standards established under
the Federal Funding Accountability and Transparency Act
of 2006 (31 U.S.C. 6101 note).
(d) Consultation.--In establishing the data standards under
subsection (a), the Secretary and the Director shall consult
with--
(1) the Secretary of the Treasury to ensure that the
data standards established under subsection (a)
incorporate the data standards established under the
Federal Funding Accountability and Transparency Act of
2006 (31 U.S.C. 6101 note);
(2) the head of each agency that issues Federal
awards;
(3) recipients of Federal awards and organizations
representing recipients of Federal awards;
(4) private sector experts;
(5) members of the public, including privacy experts,
privacy advocates, auditors, and industry stakeholders;
and
(6) State and local governments.
SEC. 6403. GUIDANCE APPLYING DATA STANDARDS FOR GRANT REPORTING.
(a) In General.--Not later than 3 years after the date of
enactment of this chapter--
(1) the Secretary and the Director shall jointly
issue guidance to all agencies directing the agencies
to apply the data standards established under section
6402(a) to all applicable reporting by recipients of
Federal awards; and
(2) the Director shall prescribe guidance applying
the data standards established under section 6402(a) to
audit-related information reported under chapter 75 of
this title.
(b) Guidance.--The guidance issued under subsection (a)
shall--
(1) to the extent reasonable and practicable--
(A) minimize the disruption of existing
reporting practices of, and not increase the
reporting burden on, agencies or recipients of
Federal awards; and
(B) explore opportunities to implement modern
technologies in reporting relating to Federal
awards;
(2) allow the Director to permit exceptions for
classes of Federal awards, including exceptions for
Federal awards granted to Indian Tribes and Tribal
organizations consistent with the Indian Self-
Determination and Education Assistance Act (25 U.S.C.
5301 et seq.), if the Director publishes a list of
those exceptions and submits the list to the Committee
on Homeland Security and Governmental Affairs of the
Senate and the Committee on Oversight and Reform of the
House of Representatives; and
(3) take into consideration the consultation required
under section 6402(d).
(c) Updating Guidance.--
(1) In general.--Not less frequently than once every
10 years, the Director shall update the guidance issued
under subsection (a).
(2) Procedures.--In updating guidance under paragraph
(1), the Director shall, to the maximum extent
practicable, follow the procedures for the development
of the data standards and guidance prescribed under
this section and section 6402.
SEC. 6404. AGENCY REQUIREMENTS.
Not later than 1 year after the date on which guidance is
issued or updated under subsection (b) or (c), respectively, of
section 6403, the head of each agency shall--
(1) ensure that all of the Federal awards that the
agency issues use data standards for all future
information collection requests; and
(2) amend existing information collection requests
under by chapter 35 of title 44 (commonly known as the
``Paperwork Reduction Act'') to comply with the data
standards established under section 6402 of this
chapter, in accordance with the guidance issued by the
Secretary and the Director under section 6403 of this
chapter.
* * * * * * *
Chapter 75--Requirement for Single Audits
* * * * * * *
SEC. 7502. AUDIT REQUIREMENTS; EXEMPTIONS.
(a) * * *
* * * * * * *
(h) The non-federal entity shall transmit the reporting
package, in an electronic form consistent with the data
standards established under chapter 64 and which shall include
the non-Federal entity's financial statements, schedule of
expenditures of Federal awards, corrective action plan defined
under subsection (i), and auditor's reports developed pursuant
to this section, to a Federal clearinghouse designated by the
Director, and make it available for public inspection within
the earlier of--
* * * * * * *
SEC. 7505. REGULATIONS.
(a) * * *
* * * * * * *
(d) Such guidance shall require audit-related information
reported under this chapter to be reported in an electronic
form consistent with the data standards established under
chapter 64.
* * * * * * *
[all]