§60505 Audit and Accountability of Grantees

Summary

Requires the Justice Department’s Inspector General to audit people and groups that get grants under sections 60511, 60521, or 60531, starting in fiscal year 2019 and every year after, to stop waste, fraud, and abuse. Covered grantee means a recipient of those grants. Nonprofit means an organization listed under 26 U.S.C. 501(c)(3) and exempt under 501(a). An unresolved audit finding means the Inspector General’s final audit says a grantee used grant money for an unauthorized or unallowable cost and that problem was not closed or fixed during the 12-month period before the final report. If a grantee has an unresolved audit finding, it cannot get covered grant funds in the fiscal year after the year the finding covers. If a grantee still gets funds during the one-fiscal-year ineligibility, the Attorney General must put the same amount into the General Fund of the Treasury and try to recover that payment from the grantee. When awarding grants, the Attorney General should give priority to applicants who, in the 2 years before applying, did not have an unresolved audit finding. Nonprofits that keep money offshore to avoid the tax in 26 U.S.C. 511(a) cannot get covered grants. Nonprofits must list officer, director, and trustee pay and explain how pay was decided. Grant money cannot be used to lobby about grant awards; if a grantee does lobby, the Attorney General must make them repay the grant and bar them from getting covered grants for at least 5 years from the violation date.