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June, 2001 U.S.
Department of Health and Human Services
 Federal Financial
Assistance Management Improvement Act of 1999 - Public Law 106-107
Initial Plan
The Federal Financial Assistance Management Improvement Act of
1999 (P.L.106-107, "the Act") provides both a mandate
and a challenge for the administration of Federal financial
assistance programs and activities. This initial plan fulfills the
requirements of subsections 5(a) and (d) of the Act that the
agencies develop implementation
plans and submit them to the Congress and to the Director of the
Office of Management and Budget by May 20, 2001.
The purposes of the Act are to (1) improve the effectiveness
and performance of Federal financial assistance programs, (2)
simplify Federal financial assistance application and reporting
requirements, (3) improve the delivery of services to the public,
and (4) facilitate greater coordination among those responsible
for delivering the services.
Federal financial assistance includes grants, cooperative
agreements, loans, loan guarantees, scholarships, and other forms
of assistance. The grant and cooperative agreement portion of that
enterprise, referred to in this plan as "grants,"
involves more than 600 programs and their subprograms, with awards
of more than $325 billion a year, administered by 26 Federal
agencies. The Act states that some Federal administrative
requirements are duplicative, burdensome, and conflicting,
sometimes impeding cost-effective delivery of services at the
local level. Grant recipients deal with increasingly complex
problems that require the delivery and coordination of many kinds
of services. Their need to respond to excessive Federal grant
administration requirements only adds to that complexity.
The Federal grant process needs to be improved for all
recipients whether State, local, or Native American tribal
governments, public housing authorities, or private non-profit
organizations, including institutions of higher education. In
light of the cooperative effort needed to implement the Act
effectively, the Federal grant-making
agencies jointly have developed the initial plan for submission to
Congress.
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