Federal assistance in the United States
Encyclopedia
In the United States
, federal assistance, also known as federal aid, federal benefits, or federal funds, is defined as any federal program, project, service, and activity provided by the federal government
that directly assists or benefits the American public in the areas of education
, health
, public safety
, public welfare, and public works
, among others. The assistance, which can reach to over $400 billion dollars annually, is provided and administered by federal government agencies
, such as the U.S. Department of Housing and Urban Development
and the U.S. Department of Health and Human Services
, through special programs to recipients.
Each program is created with a specific purpose and has unique operations and activities, (i.e., no program is made for the same purpose and to operate the same way as a previously existing program) and it is assigned an official name for which to differentiate them from each other. A program may be called by a different term than its official name by the general public, by an entity, or even by law or regulation; such as by the type of activity or service it engages, by a specific project name (e.g., the Big Dig tunnel project), or any other similar term. This type of name, title or term given to a program is called the “popular name”. However, the official name of program is standardized within the federal government so that federal agencies can maintain better accountability of their assigned assistance.
For example, an individual who receives rent assistance payments through the Section 8 Housing Choice Voucher
program might not know the exact official name of the program, and may simply call it the “rent subsidizing” program, due to its type of activity or service. However, since there are many other rent subsidizing programs provided by the federal government, standard program names must be maintained in order to differentiate them. In this case, programs such as Supportive Housing for the Elderly (Sec. 202), which is a project-based rental assistance program exclusively for the elderly and Section 8 Housing Assistance Payments Program-Special Allocations, a rent assistance program usually tied to public housing
projects, also engage in the activity of rent subsidizing.
s or awards. Recipients must first apply for the award directly to the federal agency which administers the program. The agency must then determine the amount of assistance to be awarded and notifies the recipient of the award. In order for an award to be considered official, a contract or grant agreements is entered between the agency and the recipient where details of the use of the award and the restrictions and limitations of the award are included.
Federal awards may specify a time period during which the recipient may use the assistance which is called the Period of Availability of Federal Funds. Most grants have a term of one year (although some may have a longer lifespan, even indefinitely), and the recipient must use the assistance within that timeframe. This is done because federal assistance is tied to the federal government’s budget process, and any funds not used by a recipient within the specified time limit is reverted to other uses.
As a condition of receiving Federal awards or grants, recipients must agree to comply with the applicable laws and regulations related to the program and its agency, as well as any provisions included in the contracts and grant agreements entered between the recipient and the agency. Failure to do so may lead to sanctions, including fines and penalties, exclusion or suspension from participating in federal assistance programs and activities, and/or criminal charges. Most federal program regulations for which agencies and recipients must always comply are compiled in the Code of Federal Regulations
, with summaries and guidance for these regulations contained in OMB Circular letters.
Every program is designed with a specific recipient in mind. Certain programs have restrictions on who may receive the assistance because of the nature of its activity or service. Examples include infrastructure programs and grants which are usually restricted to States, local governments, and U.S. territories given that these are usually the only entities that administer public roads, bridges, etc., or health-related research grants which individuals may be eligible so long as they satisfy certain criteria, such as that they have a professional or scientific degree, 3 years of research experience, and be a citizen of the United States.
For example, crime-prevention federal programs may be assigned to a State Attorney General’s Office (AGO) (considered a State government). This State office may decide to assign part of its federal grant through sub-grants (also known as sub-awards) to cities and counties within the State (considered local governments) for crime-prevention activities such as neighborhood watch programs or supplying new equipment to police forces. The original recipient, the AGO, has become a Pass-through entity and the cities and counties have become “sub-recipients”, all the while the assistance is still serving the federal program’s purpose to prevent crime. Sub-recipients may in turn pass on the assistance to another sub-recipient to serve the purpose required by the federal program, for example if the cities mentioned above pass on part of their assistance to nonprofit organizations dedicated to patrolling neighborhoods at night. Therefore, a recipient may be considered a pass-through entity and a sub-recipient at the same time.
Certain programs may require the original recipient to pass on the assistance to sub-recipients (i.e., the federal program requires that the assistance be provided to nonprofit neighborhood watch organizations, and the assistance passes recipient through recipient until it reaches them), while others may require that the recipient not pass on the assistance (i.e., State must use the assistance entirely on its own). Some programs award assistance to a pass-through entity who is neither the direct applicant nor the ultimate beneficiary, such as the Pell Grant program where students apply and receive the aid but it is the university’s responsibility to receive and administer the applications and disburse the aid.
Pass-through entities and sub-recipients are equally responsible for the management of federal aid received. The federal government monitors the federal aid provided to any recipient and requires all pass-through entities to monitor the aid they pass on. Noncompliance of a federal regulation on the part of the sub-recipient may also be attributed to the pass-through entity because it is still responsible for the funds it passed on.
(GSA) since 1984. The GSA achieves these tasks by maintaining the Federal assistance information database, which incorporates all federal agency programs that provide grants and awards to recipients. The Office of Management and Budget assists the GSA in maintaining the database by serving as an intermediary agent between the Federal agencies and GSA.
In addition to these tasks, the Federal Program Information Act requires the GSA to provide federal assistance information to the general public through the Catalog of Federal Domestic Assistance (CFDA), a free register which incorporates both federal agency and federal program information. This register acts both as a directory
and as a dictionary
, facilitating both recipients and the general public in finding information of a specific program.
Currently, programs in the Catalog are being classified by the GSA into 15 types of assistance, which are then sub-classified into seven financial types of assistance and eight non-financial types of assistance:
, which is an annual examination of a recipient’s operations and records in order to determine whether or not the recipient complied with laws and regulations applicable to the assistance received. Additionally, Federal agencies routinely visit recipients and inspect their records and statements to check for situations of noncompliance with laws and regulations, as well as require periodic financial and performance reports in order to monitor recipient operations. Federal agencies also require pass-through entities to perform similar procedures to their sub-recipients since they are responsible for the assistance they pass on.
United States
The United States of America is a federal constitutional republic comprising fifty states and a federal district...
, federal assistance, also known as federal aid, federal benefits, or federal funds, is defined as any federal program, project, service, and activity provided by the federal government
Federal government of the United States
The federal government of the United States is the national government of the constitutional republic of fifty states that is the United States of America. The federal government comprises three distinct branches of government: a legislative, an executive and a judiciary. These branches and...
that directly assists or benefits the American public in the areas of education
Education
Education in its broadest, general sense is the means through which the aims and habits of a group of people lives on from one generation to the next. Generally, it occurs through any experience that has a formative effect on the way one thinks, feels, or acts...
, health
Health
Health is the level of functional or metabolic efficiency of a living being. In humans, it is the general condition of a person's mind, body and spirit, usually meaning to be free from illness, injury or pain...
, public safety
Public Safety
Public safety involves the prevention of and protection from events that could endanger the safety of the general public from significant danger, injury/harm, or damage, such as crimes or disasters .-See also:* By nation...
, public welfare, and public works
Public works
Public works are a broad category of projects, financed and constructed by the government, for recreational, employment, and health and safety uses in the greater community...
, among others. The assistance, which can reach to over $400 billion dollars annually, is provided and administered by federal government agencies
United States Federal Executive Departments
The United States federal executive departments are among the oldest primary units of the executive branch of the federal government of the United States—the Departments of State, War, and the Treasury all being established within a few weeks of each other in 1789.Federal executive...
, such as the U.S. Department of Housing and Urban Development
United States Department of Housing and Urban Development
The United States Department of Housing and Urban Development, also known as HUD, is a Cabinet department in the Executive branch of the United States federal government...
and the U.S. Department of Health and Human Services
United States Department of Health and Human Services
The United States Department of Health and Human Services is a Cabinet department of the United States government with the goal of protecting the health of all Americans and providing essential human services. Its motto is "Improving the health, safety, and well-being of America"...
, through special programs to recipients.
Definition
The term assistance (or benefits) is defined by the federal government as:Federal assistance programs
In order to provide Federal assistance in an organized manner, the federal government provides assistance through federal agencies. It is the agency’s responsibility to adequately provide assistance, as well as manage, account, and monitor the responsible use of federal funds which were utilized for that assistance. The agencies then supply the assistance to beneficiaries (known as recipients, see below), such as States, hospitals, poverty-stricken families, etc., through hundreds of individual programs. These programs are defined by the federal government as: “any function of a Federal agency that provides assistance or benefits for: (1) a State or States, territorial possession, county, city, other political subdivision, grouping, or instrumentality thereof; (2) any domestic profit or nonprofit corporation or institution; or (3) an individual; other than an agency of the Federal government”. Therefore, programs (or “functions”) can refer to any number of activities or services provided by agencies, such as building a bridge, providing food or medicine vouchers to the poor, or providing counseling to violence victims. Programs are assigned to offices within a federal agency and may include administrative personnel which work directly or indirectly with the program.Each program is created with a specific purpose and has unique operations and activities, (i.e., no program is made for the same purpose and to operate the same way as a previously existing program) and it is assigned an official name for which to differentiate them from each other. A program may be called by a different term than its official name by the general public, by an entity, or even by law or regulation; such as by the type of activity or service it engages, by a specific project name (e.g., the Big Dig tunnel project), or any other similar term. This type of name, title or term given to a program is called the “popular name”. However, the official name of program is standardized within the federal government so that federal agencies can maintain better accountability of their assigned assistance.
For example, an individual who receives rent assistance payments through the Section 8 Housing Choice Voucher
Section 8 (housing)
Section 8 of the United States Housing Act of 1937 , as repeatedly amended, authorizes the payment of rental housing assistance to private landlords on behalf of approximately 3.1 million low-income households...
program might not know the exact official name of the program, and may simply call it the “rent subsidizing” program, due to its type of activity or service. However, since there are many other rent subsidizing programs provided by the federal government, standard program names must be maintained in order to differentiate them. In this case, programs such as Supportive Housing for the Elderly (Sec. 202), which is a project-based rental assistance program exclusively for the elderly and Section 8 Housing Assistance Payments Program-Special Allocations, a rent assistance program usually tied to public housing
Public housing
Public housing is a form of housing tenure in which the property is owned by a government authority, which may be central or local. Social housing is an umbrella term referring to rental housing which may be owned and managed by the state, by non-profit organizations, or by a combination of the...
projects, also engage in the activity of rent subsidizing.
Examples of Federal assistance programs
- Aid to Families with Dependent ChildrenAid to Families with Dependent ChildrenAid to Families with Dependent Children was a federal assistance program in effect from 1935 to 1996, which was administered by the United States Department of Health and Human Services...
- Alcohol, Drug Abuse, and Mental Health Services Block GrantAlcohol, Drug Abuse, and Mental Health Services Block GrantThe Alcohol, Drug Abuse, and Mental Health Services Block Grant is a federal assistance block grant given by the United States Department of Health and Human Services.-External links:*...
- Child and Adult Care Food ProgramChild and Adult Care Food ProgramThe Child and Adult Care Food Program is a type of United States Federal assistance provided by the U.S. Department of Agriculture to States in order to provide a daily subsidized food service for an estimated 3.2 million children and 112,000 elderly or mentally or physically impaired adults in...
- Community Development Block GrantCommunity Development Block GrantThe Community Development Block Grant , one of the longest-running programs of the U.S. Department of Housing and Urban Development, funds local community development activities such as affordable housing, anti-poverty programs, and infrastructure development...
- Conservation Reserve ProgramConservation Reserve ProgramThe Conservation Reserve Program is a cost-share and rental payment program under the United States Department of Agriculture , and is administered by the USDA Farm Service Agency . Technical assistance for CRP is provided by the USDA Forest Service and the USDA Natural Resources Conservation...
- Federal Pell Grant
- Food Stamp ProgramFood Stamp ProgramThe United States Supplemental Nutrition Assistance Program , historically and commonly known as the Food Stamp Program, is a federal-assistance program that provides assistance to low- and no-income people and families living in the U.S. Though the program is administered by the U.S. Department of...
- Head Start
- Local Law Enforcement Block GrantLocal Law Enforcement Block GrantLocal Law Enforcement Block Grants were federal assistance block grant programs provided by the United States Department of Justice to local governments, which would then use the funds to support public safety or crime prevention efforts. It was part of the Bureau of Justice Assistance...
- Nutrition Assistance for Puerto RicoNutrition Assistance for Puerto RicoNutrition Assistance for Puerto Rico or NAP is a federal assistance nutritional program provided by the US Department of Agriculture solely to the Commonwealth of Puerto Rico, a self-governing dependency of the United States. It provides over $1.5 billion in supplemental economic resources to help...
- Section 8 Housing Choice Voucher
- Temporary Assistance for Needy FamiliesTemporary Assistance for Needy FamiliesTemporary Assistance for Needy Families is one of the United States of America's federal assistance programs. It began on July 2, 1997, and succeeded the Aid to Families with Dependent Children program, providing cash assistance to indigent American families with dependent children through the...
Federal grants and awards
Programs administer assistance by “granting” or “awarding” a portion of the assistance to recipients. These are called Federal grantFederal grant
In the United States, federal grants are economic aid issued by the United States government out of the general federal revenue. A federal grant is an award of financial assistance from a federal agency to a recipient to carry out a public purpose of support or stimulation authorized by a law of...
s or awards. Recipients must first apply for the award directly to the federal agency which administers the program. The agency must then determine the amount of assistance to be awarded and notifies the recipient of the award. In order for an award to be considered official, a contract or grant agreements is entered between the agency and the recipient where details of the use of the award and the restrictions and limitations of the award are included.
Federal awards may specify a time period during which the recipient may use the assistance which is called the Period of Availability of Federal Funds. Most grants have a term of one year (although some may have a longer lifespan, even indefinitely), and the recipient must use the assistance within that timeframe. This is done because federal assistance is tied to the federal government’s budget process, and any funds not used by a recipient within the specified time limit is reverted to other uses.
As a condition of receiving Federal awards or grants, recipients must agree to comply with the applicable laws and regulations related to the program and its agency, as well as any provisions included in the contracts and grant agreements entered between the recipient and the agency. Failure to do so may lead to sanctions, including fines and penalties, exclusion or suspension from participating in federal assistance programs and activities, and/or criminal charges. Most federal program regulations for which agencies and recipients must always comply are compiled in the Code of Federal Regulations
Code of Federal Regulations
The Code of Federal Regulations is the codification of the general and permanent rules and regulations published in the Federal Register by the executive departments and agencies of the Federal Government of the United States.The CFR is published by the Office of the Federal Register, an agency...
, with summaries and guidance for these regulations contained in OMB Circular letters.
Types of federal grants
Given the enormous size of federal assistance provided, the Federal government has designed different types of grants, each with its own unique way of awarding and/or operating:- Project grants are awardAwardAn award is something given to a person or a group of people to recognize excellence in a certain field; a certificate of excellence. Awards are often signifiedby trophies, titles, certificates, commemorative plaques, medals, badges, pins, or ribbons...
ed competitively. Project grants are the most common form of grants and a large number are found in scientificScienceScience is a systematic enterprise that builds and organizes knowledge in the form of testable explanations and predictions about the universe...
researchResearchResearch can be defined as the scientific search for knowledge, or as any systematic investigation, to establish novel facts, solve new or existing problems, prove new ideas, or develop new theories, usually using a scientific method...
, technologyTechnologyTechnology is the making, usage, and knowledge of tools, machines, techniques, crafts, systems or methods of organization in order to solve a problem or perform a specific function. It can also refer to the collection of such tools, machinery, and procedures. The word technology comes ;...
development, educationEducationEducation in its broadest, general sense is the means through which the aims and habits of a group of people lives on from one generation to the next. Generally, it occurs through any experience that has a formative effect on the way one thinks, feels, or acts...
(such as Federal Pell Grants), social services, the artsARtsaRts, which stands for analog Real time synthesizer, is an audio framework that is no longer under development. It is best known for previously being used in KDE to simulate an analog synthesizer....
and health careHealth careHealth care is the diagnosis, treatment, and prevention of disease, illness, injury, and other physical and mental impairments in humans. Health care is delivered by practitioners in medicine, chiropractic, dentistry, nursing, pharmacy, allied health, and other care providers...
types of assistance. - Formula grants provide funds as dictated by a law. Examples of this type of grant includes Aid to Families with Dependent Children and the Job Training Partnership Act, and the Work Incentive Program. These can be sub-categorized as either Categorical or Block:
- Categorical grantsCategorical grantCategorical grants are grants, issued by the United States Congress, which may be spent only for narrowly-defined purposes. Additionally, recipients of categorical grants are often required to match a portion of the federal funds...
may be spent only for narrowly defined purposes and recipients often must match a portion of the federal funds. - Block grants combine categorical grants into a single program. Examples of this type of grant includes the Community Development Block Grant and the Alcohol, Drug Abuse, and Mental Health Services Block Grant. Recipients of block grants have more leeway in using funds than recipients of individual categorical grants.
- Categorical grants
- Earmark grantsEarmark (politics)In United States politics, an earmark is a legislative provision that directs approved funds to be spent on specific projects, or that directs specific exemptions from taxes or mandated fees...
are explicitly specified in appropriationAppropriation (law)In law and government, appropriation is the act of setting apart something for its application to a particular usage, to the exclusion of all other uses....
s of the U.S. CongressUnited States CongressThe United States Congress is the bicameral legislature of the federal government of the United States, consisting of the Senate and the House of Representatives. The Congress meets in the United States Capitol in Washington, D.C....
. They are not competitively awarded, and have become controversial because of the involvement of political lobbyistsLobbyingLobbying is the act of attempting to influence decisions made by officials in the government, most often legislators or members of regulatory agencies. Lobbying is done by various people or groups, from private-sector individuals or corporations, fellow legislators or government officials, or...
used in the process of awarding them to recipients. In fiscal year 1996 appropriations, the Congressional Research ServiceCongressional Research ServiceThe Congressional Research Service , known as "Congress's think tank", is the public policy research arm of the United States Congress. As a legislative branch agency within the Library of Congress, CRS works exclusively and directly for Members of Congress, their Committees and staff on a...
found 3,023 earmarks totalling $19.5 billion1000000000 (number)1,000,000,000 is the natural number following 999,999,999 and preceding 1,000,000,001.In scientific notation, it is written as 109....
, while in FY2006 it found 12,852 earmarks totalling $64 billion.
Recipients
A recipient of federal awards or funds is defined as any non-federal entity that receives federal assistance and which is part of, and/or located within, the United States and its territories and possessions. Recipients are grouped into six main categories, as established by the GSA:- State governmentsU.S. stateA U.S. state is any one of the 50 federated states of the United States of America that share sovereignty with the federal government. Because of this shared sovereignty, an American is a citizen both of the federal entity and of his or her state of domicile. Four states use the official title of...
- This category includes any of the 50 States of the United States and the District of Columbia (Washington, D.C.), or any agency or instrumentality of these governments, with the exception of institutions of higher education (collegeCollegeA college is an educational institution or a constituent part of an educational institution. Usage varies in English-speaking nations...
s and universitiesUniversityA university is an institution of higher education and research, which grants academic degrees in a variety of subjects. A university is an organisation that provides both undergraduate education and postgraduate education...
) and hospitalHospitalA hospital is a health care institution providing patient treatment by specialized staff and equipment. Hospitals often, but not always, provide for inpatient care or longer-term patient stays....
s. - Local governmentsLocal government in the United StatesLocal government in the United States is generally structured in accordance with the laws of the various individual states. Typically each state has at least two separate tiers: counties and municipalities. Some states have their counties divided into townships...
- This category includes any county, parish, municipality, city, town, township, village, State-designated Indian tribal government, local public authority, school district, special district, intrastate district, council of governments, sponsor group representative organizations, and other regional or interstate government entity, or any agency or instrumentality of a local government, which are located within the U.S. - Territories and possessionsInsular areaAn insular area is a United States territory, that is neither a part of one of the fifty U.S. states nor the District of Columbia, the federal district of the United States...
- This category includes the CommonwealthsCommonwealth (United States insular area)In the terminology of the United States insular areas, a Commonwealth is a type of organized but unincorporated dependent territory.The definition of "Commonwealth" according to current U.S. State Department policy reads: "The term 'Commonwealth' does not describe or provide for any specific...
of Puerto RicoPuerto RicoPuerto Rico , officially the Commonwealth of Puerto Rico , is an unincorporated territory of the United States, located in the northeastern Caribbean, east of the Dominican Republic and west of both the United States Virgin Islands and the British Virgin Islands.Puerto Rico comprises an...
and the Northern Mariana IslandsNorthern Mariana IslandsThe Northern Mariana Islands, officially the Commonwealth of the Northern Mariana Islands , is a commonwealth in political union with the United States, occupying a strategic region of the western Pacific Ocean. It consists of 15 islands about three-quarters of the way from Hawaii to the Philippines...
, the Virgin IslandsUnited States Virgin IslandsThe Virgin Islands of the United States are a group of islands in the Caribbean that are an insular area of the United States. The islands are geographically part of the Virgin Islands archipelago and are located in the Leeward Islands of the Lesser Antilles.The U.S...
, GuamGuamGuam is an organized, unincorporated territory of the United States located in the western Pacific Ocean. It is one of five U.S. territories with an established civilian government. Guam is listed as one of 16 Non-Self-Governing Territories by the Special Committee on Decolonization of the United...
, Trust Territory of the Pacific IslandsTrust Territory of the Pacific IslandsThe Trust Territory of the Pacific Islands was a United Nations trust territory in Micronesia administered by the United States from 1947 to 1986.-History:...
, and American SamoaAmerican SamoaAmerican Samoa is an unincorporated territory of the United States located in the South Pacific Ocean, southeast of the sovereign state of Samoa...
. - Indian Tribal governmentsNative Americans in the United StatesNative Americans in the United States are the indigenous peoples in North America within the boundaries of the present-day continental United States, parts of Alaska, and the island state of Hawaii. They are composed of numerous, distinct tribes, states, and ethnic groups, many of which survive as...
- This category includes the governing body or a governmental agency of any IndianNative Americans in the United StatesNative Americans in the United States are the indigenous peoples in North America within the boundaries of the present-day continental United States, parts of Alaska, and the island state of Hawaii. They are composed of numerous, distinct tribes, states, and ethnic groups, many of which survive as...
tribe, band, nation, or other organized group or community (including any Native village) within the U.S. and its territories. These must first be certified by the U.S. Secretary of the InteriorUnited States Secretary of the InteriorThe United States Secretary of the Interior is the head of the United States Department of the Interior.The US Department of the Interior should not be confused with the concept of Ministries of the Interior as used in other countries...
as eligible to receive assistance under special programs and services provided through the Bureau of Indian Affairs. - Non-profit organizations and institutionsNon-profit organizationNonprofit organization is neither a legal nor technical definition but generally refers to an organization that uses surplus revenues to achieve its goals, rather than distributing them as profit or dividends...
– This category includes semi-public, public and private institutions of higher education and hospitals, Native American Indian Organizations, and any other semi-public and private nonprofit organizations. However, Federally funded research and development centerFederally funded research and development centerFederally Funded Research and Development Centers conduct research for the United States Government. They are administered in accordance with U.S Code of Federal Regulations, Title 48, Part 35, Section 35.017 by universities and corporations....
s are excluded from this category. - Private individuals – This category includes Native AmericansIndian AmericanIndian Americans are Americans whose ancestral roots lie in India. The U.S. Census Bureau popularized the term Asian Indian to avoid confusion with Indigenous peoples of the Americas who are commonly referred to as American Indians.-The term: Indian:...
, homeowners, students, farmers, artists, scientists, consumers, small businesses, refugees, aliens, veterans, senior citizens, low-income persons, health and education professionals, builders, contractors, developers, handicapped persons, and the physically afflicted. Examples of direct assistance to these individuals include Section 8 vouchers, Pell Grant scholarships, and disaster relief awards, among many others.
Every program is designed with a specific recipient in mind. Certain programs have restrictions on who may receive the assistance because of the nature of its activity or service. Examples include infrastructure programs and grants which are usually restricted to States, local governments, and U.S. territories given that these are usually the only entities that administer public roads, bridges, etc., or health-related research grants which individuals may be eligible so long as they satisfy certain criteria, such as that they have a professional or scientific degree, 3 years of research experience, and be a citizen of the United States.
Pass-through entities and sub-recipients
The federal government allows certain entities mentioned above to act as a Pass-through entity in order to provide the federal assistance to another recipient. The Pass-through entity is still considered a recipient, but the assistance assigned to it may be “passed on” or “passed-through it” to another recipient. The entity which receives the assistance from a pass-through entity is considered a sub-recipient. This is allowed because certain federal programs may not have the organizational structure to provide assistance directly to the final recipient and requires support from other entities.For example, crime-prevention federal programs may be assigned to a State Attorney General’s Office (AGO) (considered a State government). This State office may decide to assign part of its federal grant through sub-grants (also known as sub-awards) to cities and counties within the State (considered local governments) for crime-prevention activities such as neighborhood watch programs or supplying new equipment to police forces. The original recipient, the AGO, has become a Pass-through entity and the cities and counties have become “sub-recipients”, all the while the assistance is still serving the federal program’s purpose to prevent crime. Sub-recipients may in turn pass on the assistance to another sub-recipient to serve the purpose required by the federal program, for example if the cities mentioned above pass on part of their assistance to nonprofit organizations dedicated to patrolling neighborhoods at night. Therefore, a recipient may be considered a pass-through entity and a sub-recipient at the same time.
Certain programs may require the original recipient to pass on the assistance to sub-recipients (i.e., the federal program requires that the assistance be provided to nonprofit neighborhood watch organizations, and the assistance passes recipient through recipient until it reaches them), while others may require that the recipient not pass on the assistance (i.e., State must use the assistance entirely on its own). Some programs award assistance to a pass-through entity who is neither the direct applicant nor the ultimate beneficiary, such as the Pell Grant program where students apply and receive the aid but it is the university’s responsibility to receive and administer the applications and disburse the aid.
Pass-through entities and sub-recipients are equally responsible for the management of federal aid received. The federal government monitors the federal aid provided to any recipient and requires all pass-through entities to monitor the aid they pass on. Noncompliance of a federal regulation on the part of the sub-recipient may also be attributed to the pass-through entity because it is still responsible for the funds it passed on.
Catalog of Federal Domestic Assistance
The task of organizing and categorizing federal assistance programs into a uniform and standardized system has been assigned to the U.S. General Services AdministrationGeneral Services Administration
The General Services Administration is an independent agency of the United States government, established in 1949 to help manage and support the basic functioning of federal agencies. The GSA supplies products and communications for U.S...
(GSA) since 1984. The GSA achieves these tasks by maintaining the Federal assistance information database, which incorporates all federal agency programs that provide grants and awards to recipients. The Office of Management and Budget assists the GSA in maintaining the database by serving as an intermediary agent between the Federal agencies and GSA.
In addition to these tasks, the Federal Program Information Act requires the GSA to provide federal assistance information to the general public through the Catalog of Federal Domestic Assistance (CFDA), a free register which incorporates both federal agency and federal program information. This register acts both as a directory
Directory (databases)
Generally, a directory, as used in computing and telephony, refers to a repository or database of information which is heavily optimized for reading, under the assumption that data updates are very rare compared to data reads...
and as a dictionary
Dictionary
A dictionary is a collection of words in one or more specific languages, often listed alphabetically, with usage information, definitions, etymologies, phonetics, pronunciations, and other information; or a book of words in one language with their equivalents in another, also known as a lexicon...
, facilitating both recipients and the general public in finding information of a specific program.
Currently, programs in the Catalog are being classified by the GSA into 15 types of assistance, which are then sub-classified into seven financial types of assistance and eight non-financial types of assistance:
Financial type assistance
- Formula Grants (A) – Includes allocations of money to States or their subdivisions in accordance with distribution formulas prescribed by law or administrative regulation, for activities of a continuing nature not confined to a specific project. Examples of this type of assistance include transportation and infrastructure grants designated by CongressUnited States CongressThe United States Congress is the bicameral legislature of the federal government of the United States, consisting of the Senate and the House of Representatives. The Congress meets in the United States Capitol in Washington, D.C....
, such as the Community Development Block GrantCommunity Development Block GrantThe Community Development Block Grant , one of the longest-running programs of the U.S. Department of Housing and Urban Development, funds local community development activities such as affordable housing, anti-poverty programs, and infrastructure development...
(CDBG). - Project Grants (B) – Includes funding of specific projects for fixed or known periods. Project grants can include fellowships, scholarships, research grants, training grants, traineeships, experimental and demonstration grants, evaluation grants, planning grants, technical assistance grants, survey grants, and construction grants.
- Direct Payments for Specified Use (C) – Includes financial assistance from the Federal government provided directly to individuals, private firms, and other private institutions to encourage or subsidize a particular activity by conditioning the receipt of the assistance on a particular performance by the recipient. One example of this type of assistance is the Section 8 Housing Choice Voucher program.
- Direct Payments with Unrestricted Use (D) – Includes financial assistance from the Federal government provided directly to beneficiaries who satisfy Federal eligibility requirements with no restrictions being imposed on the recipient as to how the money is spent. Included are payments under retirement, pension, and compensatory programs.
- Direct Loans (E) – Includes financial assistance provided through the lending of Federal monies for a specific period of time, with a reasonable expectation of repayment, of which may or may not require the payment of interest.
- Guaranteed/Insured Loans (F) – Includes programs in which the Federal government makes an arrangement to indemnify a lender against part or all of any defaults by those responsible for repayment of loans.
- InsuranceInsuranceIn law and economics, insurance is a form of risk management primarily used to hedge against the risk of a contingent, uncertain loss. Insurance is defined as the equitable transfer of the risk of a loss, from one entity to another, in exchange for payment. An insurer is a company selling the...
(G)– Includes financial assistance provided to assure reimbursement for losses sustained under specified conditions. Coverage may be provided directly by the Federal government or through private companies, and may or may not involve the payment of premiums.
Non-financial type assistance
- Sale, Exchange, or Donation of Property and Goods (H) – Includes programs which provide for the sale, exchange, or donation of Federal real property, personal property, commodities, and other goods including land, buildings, equipment, food and drugs.
- Use of Property, Facilities, and Equipment (I) – Includes programs which provide for the loan of, use of, or access to Federal facilities or property wherein the federally owned facilities or property do not remain in the possession of the recipient of the assistance.
- Provision of Specialized Services (J) – Includes programs that provide Federal personnel directly to perform certain tasks for the benefit of communities or individuals. These services may be performed in conjunction with non-federal personnel, but they involve more than consultation, advice, or counseling. Examples include the legal representation provided by the “Protection of Voting Rights” and the 'Civil Rights of Institutionalized PersonsCivil Rights of Institutionalized Persons ActThe Civil Rights of Institutionalized Persons Act of 1980 is a United States federal law intended to protect the rights of people in state or local correctional facilities, nursing homes, mental health facilities and institutions for people with intellectual and developmental disabilities.CRIPA is...
" programs. - Advisory Services and Counseling (K) – Includes programs which provide Federal specialists to consult, advise, or counsel communities or individuals to include conferences, workshops, or personal contacts.
- Dissemination of Technical Information (L) – Includes programs that provide for the publication and distribution of information or data of a specialized or technical nature frequently through clearinghouses or libraries.
- Training (M)– Includes programs that provide instructional activities conducted directly by a Federal agency for individuals not employed by the Federal government.
- Investigation of Complaints (N) – Includes federal administrative agency activities that are initiated in response to requests to examine or investigate violations of Federal statutes, policies, or procedures.
- Federal Employment (O) – Includes programs that reflect the Government-wide responsibilities of the Office of Personnel Management in the recruitment and hiring of Federal civilian agency personnel.
CFDA number
In order to assist in locating a federal program, the General Services Administration assigns a two-digit number unique to each federal agency authorized to provide assistance, and a three digit number to each federal assistance program within that agency. With these designations, a federal assistance program is identified by the combination of both numbers which in turn creates a five digit number divided by a dot (55.555). The two digit numbers assigned to federal agencies are:- 02 – United States Agency for International DevelopmentUnited States Agency for International DevelopmentThe United States Agency for International Development is the United States federal government agency primarily responsible for administering civilian foreign aid. President John F. Kennedy created USAID in 1961 by executive order to implement development assistance programs in the areas...
(USAID) - 10 – United States Department of AgricultureUnited States Department of AgricultureThe United States Department of Agriculture is the United States federal executive department responsible for developing and executing U.S. federal government policy on farming, agriculture, and food...
(USDA) - 11 – Department of Commerce (DOC)
- 12 – Department of DefenseUnited States Department of DefenseThe United States Department of Defense is the U.S...
(DoD) - 14 – Department of Housing and Urban Development (HUD)
- 15 – Department of the Interior (DOI)
- 16 – United States Department of JusticeUnited States Department of JusticeThe United States Department of Justice , is the United States federal executive department responsible for the enforcement of the law and administration of justice, equivalent to the justice or interior ministries of other countries.The Department is led by the Attorney General, who is nominated...
(DOJ) - 17 – Department of LaborUnited States Department of LaborThe United States Department of Labor is a Cabinet department of the United States government responsible for occupational safety, wage and hour standards, unemployment insurance benefits, re-employment services, and some economic statistics. Many U.S. states also have such departments. The...
(DOL) - 19 - United States Department of StateUnited States Department of StateThe United States Department of State , is the United States federal executive department responsible for international relations of the United States, equivalent to the foreign ministries of other countries...
(DOS) - 20 – Department of TransportationUnited States Department of TransportationThe United States Department of Transportation is a federal Cabinet department of the United States government concerned with transportation. It was established by an act of Congress on October 15, 1966, and began operation on April 1, 1967...
(DOT) - 21 – Department of the TreasuryUnited States Department of the TreasuryThe Department of the Treasury is an executive department and the treasury of the United States federal government. It was established by an Act of Congress in 1789 to manage government revenue...
(TREAS) - 45 – National Endowment for the HumanitiesNational Endowment for the HumanitiesThe National Endowment for the Humanities is an independent federal agency of the United States established by the National Foundation on the Arts and the Humanities Act of 1965 dedicated to supporting research, education, preservation, and public programs in the humanities. The NEH is located at...
(NEH) - 66 – United States Environmental Protection AgencyUnited States Environmental Protection AgencyThe U.S. Environmental Protection Agency is an agency of the federal government of the United States charged with protecting human health and the environment, by writing and enforcing regulations based on laws passed by Congress...
(EPA) - 81 – Department of EnergyUnited States Department of EnergyThe United States Department of Energy is a Cabinet-level department of the United States government concerned with the United States' policies regarding energy and safety in handling nuclear material...
(DOE) - 84 – Department of EducationUnited States Department of EducationThe United States Department of Education, also referred to as ED or the ED for Education Department, is a Cabinet-level department of the United States government...
(ED) - 93 – Department of Health and Human Services (HHS)
- 94 – Corporation for National and Community ServiceCorporation For National and Community ServiceThe Corporation for National and Community Service is a federal agency that engages more than five million Americans in service through Senior Corps, AmeriCorps, and Learn and Serve America, and other national service initiatives...
(CNCS) - 96 – Social Security AdministrationSocial Security AdministrationThe United States Social Security Administration is an independent agency of the United States federal government that administers Social Security, a social insurance program consisting of retirement, disability, and survivors' benefits...
(SSA) - 97 – Department of Homeland Security (DHS)
Monitoring activities
Due to the extensive amount of assistance provided by the federal government, the Federal agencies rely on numerous monitoring activities performed by themselves, pass-through entities, and external sources. The most common monitoring procedure used is the Single AuditSingle Audit
In the United States, the Single Audit, also known as the OMB A-133 audit, is a rigorous, organization-wide audit or examination of an entity that expends $500,000 or more of Federal assistance received for its operations...
, which is an annual examination of a recipient’s operations and records in order to determine whether or not the recipient complied with laws and regulations applicable to the assistance received. Additionally, Federal agencies routinely visit recipients and inspect their records and statements to check for situations of noncompliance with laws and regulations, as well as require periodic financial and performance reports in order to monitor recipient operations. Federal agencies also require pass-through entities to perform similar procedures to their sub-recipients since they are responsible for the assistance they pass on.
See also
- Code of Federal RegulationsCode of Federal RegulationsThe Code of Federal Regulations is the codification of the general and permanent rules and regulations published in the Federal Register by the executive departments and agencies of the Federal Government of the United States.The CFR is published by the Office of the Federal Register, an agency...
- Index of Dependency
- Public housingPublic housingPublic housing is a form of housing tenure in which the property is owned by a government authority, which may be central or local. Social housing is an umbrella term referring to rental housing which may be owned and managed by the state, by non-profit organizations, or by a combination of the...
- Public welfare
- Single AuditSingle AuditIn the United States, the Single Audit, also known as the OMB A-133 audit, is a rigorous, organization-wide audit or examination of an entity that expends $500,000 or more of Federal assistance received for its operations...
- SubsidySubsidyA subsidy is an assistance paid to a business or economic sector. Most subsidies are made by the government to producers or distributors in an industry to prevent the decline of that industry or an increase in the prices of its products or simply to encourage it to hire more labor A subsidy (also...
Primary sources
- 2006 Catalog of Federal Domestic Assistance (CFDA) of the United States General Services AdministrationGeneral Services AdministrationThe General Services Administration is an independent agency of the United States government, established in 1949 to help manage and support the basic functioning of federal agencies. The GSA supplies products and communications for U.S...
- United States Office of Management and BudgetUnited States Office of Management and BudgetThe Office of Management and Budget is a Cabinet-level office, and is the largest office within the Executive Office of the President of the United States .The current OMB Director is Jacob Lew.-History:...
Circular A-133: Compliance Supplement - U.S. State Department Bureau of Educational and Cultural Affairs, Grants Division, Grant Terminology
- U.S. Department of Justice, Office of Justice Programs, Glossary of Terms
Secondary sources
- Understanding Single Audits by Henry Flood, Grantsmanship Center Magazine, Fall 2002, retrieved on June 30, 2006
- The Single Audit Act: Audits of States, Local Governments and Non-Profit Organizations; AICPA Audit Committee Toolkit: Non-profit Organizations; American Institute of Certified Public AccountantsAmerican Institute of Certified Public AccountantsFounded in 1887, the American Institute of Certified Public Accountants is the national professional organization of Certified Public Accountants in the United States, with more than 370,000 CPA members in 128 countries in business and industry, public practice, government, education, student...
Further reading
- Rhett D. Harrell (May 4, 2006), Local Government and Single Audits 2006, CCH (Wolters Kluwer), ISBN 0-8080-9023-2
OMB Circulars
The following is a list of circular letters issued by the U.S. Office of Management and Budget which provide significant information and guidance for Federal agencies, recipients, auditors, and the general public over the use and management of federal funds, operations of federal assistance programs, and agencies’ and recipients’ compliance with laws and regulations imposed by the federal government:- OMB Circular A-21, “Cost Principles for Educational Institutions”
- OMB Circular A 87, “Cost Principles for State, Local, and Indian Tribal Governments”
- OMB Circular A-110, “Uniform Administrative Requirements for Grants and Agreements with Institutions of Higher Education, Hospitals, and Other Non-Profit Organizations”
- OMB Circular A-122, “Cost Principles for Non-Profit Organizations”
- OMB Circular A-128, “Audits of State and Local Governments”
- OMB Circular A-133, “Audits of States, Local Governments, and Non-Profit Organizations”
- OMB Circular A-133 Compliance Supplement
External links
- OMB Grants Management website
- Catalog of Federal Domestic Assistance website. It includes a list of all non-classified federal programs for which awards are made to recipients.
- Government Finance Officers Association
- President's Council on Integrity & Efficiency (maintained by the Offices of Inspector General)
- Single Audit Clearinghouse. Users may inquire about a specific recipient’s submission of its Single Audit reports.
- General Accounting Office