M-09-10
MEMORANDUM FOR THE HEADS OF DEPARTMENTS AND AGENCIES
FROM: Peter R. Orszag, Director
SUBJECT: Initial Implementing Guidance for the American Recovery and Reinvestment Act of 2009
This memorandum transmits the first installment of government-wide guidance for carrying out programs and activities enacted in the American Recovery and Reinvestment Act (“Recovery Act”) of 2009. Please bring this memorandum and attachment to the attention of any personnel within your organization who will be involved in these matters.
The Administration is committed to investing Recovery Act dollars with an unprecedented level of transparency and accountability so Americans know where their tax dollars are going and how they are being spent. The guidance issued today contains critical action steps that Federal agencies must take immediately to meet these objectives and to implement the Act effectively. Of particular note, the guidance addresses Federal agency requirements to provide spending and performance data to the “Recovery.gov” website. To deliver a website that allows citizens to hold the government accountable for every dollar spent, the law and guidance require Federal agencies to implement mechanisms to accurately track, monitor, and report on taxpayer funds.
More broadly, the guidance establishes requirements for various aspects of Recovery Act planning and implementation. These requirements are intended to meet crucial accountability objectives:
• Funds are awarded and distributed in a prompt, fair, and reasonable manner; • The recipients and uses of all funds are transparent to the public, and the public benefits of these funds are reported clearly, accurately, and in a timely manner; • Funds are used for authorized purposes and instances of fraud, waste, error, and abuse are mitigated; • Projects funded under this Act avoid unnecessary delays and cost overruns; and • Program goals are achieved, including specific program outcomes and improved results on broader economic indicators.
Additional guidance providing further detail and covering a fuller range of items will be issued within 30-60 days of this memorandum. Questions about this memorandum or the guidance generally can be addressed to your organization’s OMB counterparts or to [email protected].
Thank you for your attention to these matters.
Initial Implementing Guidance for the American Recovery and Reinvestment Act of 2009
Table of Contents
Section 1: General Information………………………………………… 2
Section 2: Agency Plans and Public Reporting………………………… 9
Section 3: Governance and Risk Management………………………… 19
Section 4: Budget Execution…………………………………………… 25
Section 5: Grants………………………………………………………… 32
Section 6: Contracts…………………………………………………… 38
Section 7: Loans and Loan Guarantees……………………………… 49
Appendix 1……………………………………………………………… 54
Appendix 2……………………………………………………………… 58
Section 1 – General Information
1.1 What is the purpose of this Guidance? The purpose of this Guidance is to promulgate an initial set of government-wide requirements and guidelines that Federal agencies must immediately implement or prepare for in order to effectively manage activities under the American Recovery and Reinvestment Act (Recovery Act) of 2009.
The Guidance outlines necessary enhancements to standard processes for awarding and overseeing funds to meet accelerated timeframes and other unique challenges posed by the Recovery Act’s transparency and accountability framework. More specifically, the Guidance: • Answers questions and clarifies issues related to the mechanics of implementing the Recovery Act; • Provides initial clarification on what information will be reported on Recovery.gov and what information will be required to be reported on agency websites; • Instructs agencies on initial steps which must be taken to meet these reporting requirements, including incorporation of recipient reporting requirements in award documents and communications with funding recipients; and • Establishes a common framework for agencies to manage the risks associated with implementing Recovery Act requirements.