The American Recovery and Reinvestment Act (ARRA) requires most recipients of Stimulus Funds to file quarterly reports. This bulletin provides an overview of these reports, including who must file, how the process works, and what information is required.
ARRA reporting requirements are sometimes referred to as “1512 reporting” – named for the section of the federal law that requires them. The reports are intended to provide both accountability and transparency regarding the use of federal Stimulus Funds.
The first 1512 reports are due in October 2009, and must provide information about the Stimulus Funds received and expended, the purpose of the expenditures, the number of jobs created or retained as a result of the Funds, and information about payments to certain vendors.
The following recipients are exempted from the 1512 reporting requirements:
- Individuals (but sole proprietorships are subject to 1512 reporting requirements);
- Most recipients of loan guarantees; and
- Recipients of entitlement funds or tax programs.
While federal contractors are not subject to 1512 reporting, they must comply with reporting requirements in interim Federal Acquisition Regulation (FAR) clause 52.204-11. These requirements specifically relate to use of Stimulus Funds and are substantively consistent with many of the 1512 reporting requirements.
To understand the 1512 reporting requirements, you must understand the terminology of the Stimulus Funds process.
Prime Recipients: Non-Federal entities that receive Stimulus Funds as Federal awards in the form of grants, loans or cooperative agreements directly from the Federal government. States, as well as private entities that receive Stimulus Funds directly from the Federal government, are Prime Recipients.
Sub-Recipients: Non-Federal entities that expend Federal awards received from another entity to carry out a Federal program. Stimulus Funds pass from a Prime Recipient to a Sub- Recipient through a legal instrument, for the purpose of supporting all or a portion of the project or program for which the Prime Recipient received the Stimulus Funds.
Busineses, non-profits and other entities that receive Stimulus Funds from a State are Sub-Recipients.
Vendors: Entities that provide products or services to a Prime Recipient or Sub-Recipient to help it carry out the project or program. A Vendor may be a dealer, distributor, merchant of other seller providing goods or materials required to carry out the project or program. To help distinguish between a Vendor and a Sub-Recipient, federal guidance identifies the following characteristics of a Vendor:
- Provides the goods and services within normal business operations;
- Provides similar goods or services to many different purchasers;
- Operates in a competitive environment;
- Provides good or services that are ancillary to the operation of the Federal program; and
- Is not subject to compliance requirements of the Federal program.
Who Must Report?
Prime Recipients of programs identified by the Federal government are subject to 1512 reporting requirements. The list of programs is available at www.recovery.gov/sites/default/files/OMB+Supplement.pdf. This list is updated periodically.
Prime Recipients may delegate some 1512 reporting requirements to Sub-Recipients. However, the Prime Recipient remains ultimately responsible for all 1512 reporting related to the Stimulus Funds it receives. Where the Sub-Recipient has been delegated responsibility for 1512 reporting, that delegation relates only to the funds received by the Sub-Recipient.
Vendors are not required to submit 1512 reports, nor may reporting requirements be delegated to Vendors. However, if a Vendor receives more than $25,000, the identity of the Vendor and other limited information must be reported by the Prime Recipient or Sub- Recipient who paid the Vendor.
What Data Must be Reported?
In general, the following information must be reported by Prime Recipients and delegated Sub-Recipients:
- The total amount of Stimulus Funds received;
- The total amount of Stimulus Funds spent;
- A list of projects and activities funded, including the name, description, completion status, and estimate of jobs created or retained*; and
- Certain sub-awards and other payments.
- State and local governments making infrastructure investments must give information regarding the purpose, total costs, and rationale for the project.
Details on the reporting requirements, including how to determine and report the number of jobs created or retained, will be the subject of Bricker & Eckler’s next Client Bulletin on this subject.
The Reporting Timeline
Beginning at the end of the third quarter of 2009, 1512 reporting will be required on a quarterly basis. Reports must be submitted within 10 days of the end of the quarter. So, the first reports are due on October 10, 2009, and should cover the period from the date of the award through September 30, 2009. Each subsequent report will be cumulative – including all funding expended.
In general, the reporting timeline will be as follows:
- Days 1 – 10 following the end of the calendar quarter: Prime Recipient and delegated Sub- Recipients prepare and submit information via www.FederalReporting.gov.
- Days 11-21 following the end of the calendar quarter: Prime Recipients ensure that all information is complete and accurate, including performing a data quality review. Corrections may be made during this time period. Federal agencies may perform an initial review of the information.
- Days 22 – 29 following the end of the calendar quarter: Federal agencies review and make any necessary comments on the information submitted and notify Prime Recipients and delegated Sub-Recipients about any questions or concerns. Corrections must be made by the 29th day.
- Day 30 following the end of the calendar quarter and beyond: Detailed reports are made available to the public on www.Recovery.gov.
The Mechanics of Reporting
The Federal government has created an online Web portal to collect all 1512 reports. Prime Recipients and delegated Sub-Recipients must submit reports through www.FederalReporting.gov.
Anyone who does 1512 reporting must register at www.FederalReporting.gov. This one-time registration process began on August 17, 2009. Prime Recipients and those Sub-Recipients to whom reporting responsibilities have been delegated should register within 10 days of receiving an award.
To register, you must (1) have a valid email address; (2) have a DUNS Number; and (3) be registered with the CCR (Prime Recipients only). If you need a DUNS (Data Universal Numbering System) Number, issued by Dun & Bradstreet, visit fedgov.dnb.com/ webform. To register in CCR (the Central Contractor Registration), go to www.ccr.gov.
Steps You Should Take
Prime Recipients should familiarize themselves with the details of 1512 reporting and register promptly www.FederalRerporting.gov. It is critically important to ensure that data related to Stimulus Funds is being tracked as needed to complete the quarterly reports.
Sub-Recipients should review relevant documents elated to Stimulus Funds received to verify whether any 1512 reporting obligations have been delegated by the Prime Recipient. If the Sub-Recipient has delegated reporting responsibilities, it should follow the guidance above for Prime Recipients.
Please note that it is possible for one entity to be a Prime Recipient with respect to some Stimulus Funding and a Sub-Recipient with respect to other Stimulus Funding.
Detailed federal guidance on reporting is available at: www.Recovery.gov/?q=content/recipient-reporting.
Each federal agency awarding Stimulus Funds has also issued supplemental reporting guidance. Information is available at: http://www.recovery.gov/?q=content/agency-guidance-reporting.
State, local, and tribal governments also have issued specific reporting guidance. Links to those sites are available at: http://www.recovery.gov/?q=content/state-local-tribal-and-territorialresources& mode=map. Some states have guidance tailored for certain types of funding, so please review state websites carefully.
Sub-Recipients of Stimulus Funds received from the State of Ohio should also review Guidance Memo #8 from the Ohio Office of Budget and Management, available at: http://obm.ohio.gov/LandingPages/ARRA/default.aspx.