Federal Assistance Manual Chapter 5-65

CHAPTER 5-65 OVERDUE REPORTS

• 5-65-00 Purpose
  
• 5-65-10 Applicability
  
• 5-65-20 Policy
  
• 5-65-30 Actions to Obtain Reports
  
• 5-65-40 Waiver of Reporting Requirements and Extension of Due Dates
  
• 5-65-50 Fund Cutoff
  
• 5-65-60 Additional Actions

5-65-00 PURPOSE

This chapter provides guidance on actions to be taken on overdue reports.

5-65-10 APPLICABILITY

This chapter applies to all OSM financial assistance programs that require the recipient to submit progress, financial, or other reports.

5-65-20 POLICY

1. The timing and content of reports required as a condition of a grant shall be in accordance with the guidelines in Chapter 5-60A/R.

2. When reports are overdue, OSM shall take vigorous and effective action to obtain them with due concern for recipient rights and program needs.

3. As stated in condition #13 of the grant agreement, "No subsequent [regulatory or reclamation] grants, monetary increase amendments, or time extension amendments shall be approved unless all overdue final performance reports have been submitted by the recipient to the appropriate OSM Office. Exceptions to this policy can be approved only by the Deputy Director, OSM or his designee."

5-65-30 ACTIONS TO OBTAIN REPORTS

1. Reminder. Prior to the end of the reporting period, the RCC/FO shall notify the recipient of the due date for submittal of financial and/or performance report(s) required as a condition of the grant. This will prevent reporting delinquencies due to mere oversight on the part of recipients and so reduce the need for the actions described in this chapter.

2. First Letter. If a report is not submitted by the due date, the RCC/FO shall call the recipient to provide notification of the delinquency, request the report(s) and establish a revised due date. The conversation shall be confirmed in a letter to the recipient, which shall also state that, if the report(s) cannot be submitted by the revised due date, the recipient should explain the reason and state the date by which OSM will receive the report(s). A copy of this letter will be sent to DFM. See sample letter at Exhibit X5-65-1.

3. Second Letter. If neither the report(s) nor an acceptable explanation is submitted by the revised due date, a second letter shall be sent by the RCC/FO to the recipient stating that failure to submit the report within 30 days of the date of the letter may result in suspension or termination of the grant or cooperative agreement, withholding of any additional awards for the project, and possibly additional and even more severe enforcement actions. See sample letter at Exhibit X5-65-2.

5-65-40 WAIVER OF REPORTING REQUIREMENT AND EXTENSIONS OF DUE DATES

1. The RCC/FO may waive a reporting requirement only before the due date for the report(s). The approval to waive a reporting requirement shall be based on the premise that the purposes for which the report is to be used will be accomplished through other means. If a reporting requirement is waived, the RCC/FO shall notify the grantee in writing, with a copy to DFM.

2. When a report is overdue, the only acceptable reasons for setting a new due date shall be that the report cannot be furnished in a timely manner for reasons legitimately beyond the control of the recipient. The recipient shall be informed or reminded of this policy in the first letter sent when a report becomes overdue or in the notice of payment withholding.

3. If, at any time, the recipient does provide an acceptable explanation why the overdue report cannot be submitted by the scheduled due date, a new due date shall be set. Further extensions of the due date should only be given if justified. Any letters setting a new due date shall advise the recipient that failure to meet the revised due dates may result in fund cutoff and the possibility of additional or even more severe enforcement actions.

4. If, without an acceptable explanation, the recipient fails to submit the report(s) by the revised due date, the fund cutoff actions in 5-65-50 may be taken without delay or further warning letters.

5-65-50 FUND CUTOFF

If neither the report nor an acceptable explanation is received within 30 days of the second letter, the RD/FOD shall coordinate with the AD-FA and AD-PS. A joint decision will be made whether to make no further payments to the recipient until the overdue report is received.

1. If the decision is made to make no further payments, the grant or cooperative agreement shall be suspended. The suspension notice shall set a final date by which the report must be received. If the report or anacceptable explanation is not received by that date, the suspension shall be converted into a termination.

2. The DFM shall send a copy of the notice of payment withholding to the RD/FOD, and shall ensure that the AD-PS is kept informed of actions taken.

5-65-60 ADDITIONAL ACTIONS

In addition to the actions previously stated in this chapter, when a recipient is delinquent in submitting a report, the following actions may be appropriate but should be only considered after first consulting with the AD-PS.

1. Withholding further payments on all active grants. Cash withheld during the period of delinquency, if otherwise payable, shall be released when payments are resumed.

2. Withholding any additional awards otherwise approved and pending for the specific program.

3. Awarding no OSM grant or cooperative agreement funds while the report is overdue for all or some of the other eligible programs conducted by the recipient organization.

4. Making a site visit to determine whether the recipient is violating other terms of the grant or cooperative agreement or requesting the DOI Inspector General to make a special audit of the recipient.

EXHIBIT X5-65-1

Dear

This letter confirms our telephone conversation of [date] and outlines the agreement reached regarding the submission of the following delinquent report(s):

Grant No.:

Report Description: [Financial Status Report, Forms SF269 or OSM 49 and/or Performance Report, Form OSM 51]

Report Due for Period:

As you are aware, financial and programmatic reports for the above grant are due 30 days after the end of the reporting period; closeout reports are due 90 days after the end of the performance period.

Acceptance of a grant or cooperative agreement award carries with it the obligation for proper and timely accountability, both programmatic and fiscal. The delay in submitting reports not only places an unnecessary and costly burden upon our grants administration process, but it also delays the dissemination of project program results, and hampers our efforts to promptly and properly account for public funds.

In keeping with the understanding reached in our telephone conversation, we will expect to receive the overdue report(s) by [date].

If you are unable to meet the agreed-to deadline, it is imperative that you inform us as soon as possible of the reasons why you are unable to meet the deadline and when you will submit the report(s).

If you have any questions regarding this matter, or if I can be of assistance in expediting the submission of the report(s), please do not hesitateto contact me at [telephone].

Sincerely,

RCC/FO Official

cc: DFM

EXHIBIT X5-65-2