Wednesday, November 24, 2010

Government moves to enforce stimulus reporting rules





WASHINGTON — Federal agencies are attempting to take back $1.2 million in stimulus grants and contracts because the recipients haven't told the government what they're doing with the money.

The actions against seven recipients mark the first time the government has taken action to enforce the reporting requirements. Each has failed to file at least three quarterly reports.

"When we said we'd provide unprecedented transparency of Recovery Act spending, we meant business," said Andrea Mead, Recovery Act press secretary for Vice President Biden.
Mead said Tuesday that the repeat offenders represent a fraction of 1% of the $275 billion in Recovery Act money that went to grants and contracts.

The law requires stimulus recipients to submit detailed data every three months about the progress of their projects, the number of jobs funded and their top salaries — a model of transparency the Obama administration wants to extend to all federal spending. The full list of non-reporting recipients will be posted at Recovery.gov today.
The sanctions include freezing of funds, demands for repayment, or suspension from doing business with the government in the future.
Entities receiving sanctions include two historically black colleges in Alabama: Oakwood University in Huntsville and Talladega College.
The U.S. Department of Education says Oakwood received $39,541 in student aid it hasn't reported on. "Oakwood University has been non-responsive, after several messages were left, including a message with the president's office," said the agency's report to the Office of Management and Budget.
Sabrina Cotton, the vice president for financial services, said turnover in the financial aid office caused the university to miss three reports.

"When they went to the top level of this institution and said, 'Respond or else,' we responded," she said. "You accept the money, and you obey the rules. I believe Joe Biden is correct. I certainly don't want to mess with the vice president."
The department required the university to pay back the money by Jan. 10, 2011. A similar demand has been made to Talladega College, which has failed to account for $28,398 in student aid.

Other recipients with enforcement actions, according to agency reports submitted to the Office of Management and Budget:

•The Hawaii Centers for Independent Living received $106,200 from the U.S. Department of Education to assist elderly and disabled people. Kimo Keawe, executive director since August, said he found out about the problem this month and tried to correct it, but the system won't take late reports.

•Bayfield Early Education Programs, of Bayfield, Colo., received $700,000 in stimulus money from the U.S. Department of Agriculture. The department froze its funding Oct. 28, after which the organization filed a paper report.

•Sunland Industries LLC of Los Angeles got a $229,333 contract from the National Park Service to provide road materials to Lava Beds National Monument. The Department of Interior suspended the company from future federal contracts.

•Pridemore Construction of Salida, Colo., got $60,486 from the Bureau of Land Management to replace restrooms at the Five Points Recreation Site in Fremont County, Colo. The Department of Interior's inspector general is investigating.

•The Death Valley Timbisha Shoshone Tribe of California received $61,824 for disaster trailers and other emergency housing assistance from the U.S. Department of Housing and Urban Development. There is no federally recognized tribal government, and stimulus funds have been frozen.

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