Recovery.gov - Track the Money

AHRQ is currently developing a plan that specifies the kind and scope of activities that AHRQ will fund to achieve the program’s objectives. AHRQ is considering various approaches for this program, such as expanding and broadening comparative effectiveness research activities initiated at AHRQ in response to Section 1013 of the Medicare Prescription Drug, Improvement, and Modernization Act of 2003. Section 1013 legislation was designed, in part, to increase the availability of research that would inform the real-world decisions facing patients and clinicians. Specifically, AHRQ’s investments using Recovery Act funds may expand its Effective Health Care (EHC) Program, which supports research activities performed using rigorous scientific methods within a previously-established process that emphasizes stakeholder involvement and transparency, that is designed to prioritize among pressing health issues, and whose products are designed for maximum usefulness for health care decision makers.

All Recovery Act programs will be assessed by AHRQ staff on a quarterly basis for risk and to ensure that appropriate processes by which an organization's resources are directed, monitored, and measured are in place throughout the entire funding cycle. These assessments will be done consistent with the statutory requirements of the Federal Manager’s Financial Integrity Act and the Improper Payments Information Act, as well as OMB’s circular A-123 “Management’s Responsibility for Internal Control”.

AHRQ will build on current internal controls activities in accordance with both the Federal Managers' Financial Integrity Act (FMFIA) and Appendix A of OMB Circular A-123 to protect Recovery Act funds from misappropriation, mismanagement, waste, and abuse. During the A-123 review AHRQ will provide additional testing of key controls (if necessary) to ensure Recovery Act funds are included in AHRQ’s testing sample. Finally, AHRQ is in the process of drafting a comprehensive Risk Management Plan to identify, prioritize, and mitigate AHRQ and program specific-risks.

Historically, most of AHRQ’s grant awards are made to institutions that have had prior Federal funding and have demonstrated their ability to administer Federal funds. In accordance with HHS policy, for recipients that have not received prior Federal funding, non-profit status will be confirmed and a cursory assessment of the organization’s financial status will be made by AHRQ staff. These grants would be deemed high risk. Subsequent to funding, AHRQ will request that the OIG perform an audit to assess the recipients’ ability to properly expend and monitor grant funds where there are concerns. AHRQ anticipates that the majority of large grants will be awarded to institutions that have had prior Federal funding and have demonstrated their ability to administer Federal funds.

Contract awards are made to organizations that must demonstrate that they have an adequate accounting system that has been approved by a Federal agency. This accounting system must allow the organization to track Federal obligations, expenses, and reimbursements for each project funded. The adequacy of the accounting system is verified prior to award. AHRQ also provides a two level review of each invoice received to ensure that the expenses are allowable and appropriate to be distributed.

From a program standpoint, a potential risk for ineffective spending or waste is through non-performance of funded projects. To minimize this risk, AHRQ will carefully review and select projects for funding. The following criteria may be reviewed for each proposed project: understanding of the purpose and objectives of AHRQ’s comparative effectiveness research programs, technical approach, management plan, organizational experience, key personnel, stakeholder engagement, and facilities and database characteristics. AHRQ will also continue to standardize training required for program officials at the Agency working on contracts and grants. This will ensure effective oversight and management of contracts and grants and will decrease the risk of non-performance. AHRQ program officials will implement processes for identifying high and low performance which may include program officials overseeing project management plans and awardees submitting monthly status reports and quarterly self-assessments.

AHRQ will be open and transparent in all of its grants competitions that involve spending of Recovery Act funding consistent with statutory and OMB guidance.

AHRQ will ensure that recipient reporting required by Section 1512 of the Recovery Act and OMB guidance is made available to the public on Recovery.gov by October 10, 2009. AHRQ will inform recipients of their reporting obligation through standard terms and conditions, grant announcements, contract solicitations, and other program guidance. AHRQ will provide technical assistance to grantees and contractors and fully utilize Project officers to ensure compliance with reporting requirements.

AHRQ will include in all grants and contract funding announcements the standard terms and conditions for Recovery Act funds. These terms and conditions will convey to recipients the reporting requirements that are outlined in Section 2.9 of the OMB February 18 Guidance. In addition, AHRQ grants and contracts management will be available for technical assistance.

AHRQ will ensure that it complies with energy efficiency and green building requirements, if applicable. Little, if any, Recovery Act funds are expected to be used to fund equipment purchases. No Recovery Act funds will be used to fund construction projects.