There are currently more than 32,000 projects funded with Recovery Act dollars. The Act requires first-tier recipients of this money — prime contractors and state and local grantees — to compile and report statistics, such as job creation and retention that they have not typically had to report before. Specifically, beginning October 10, 2009, these first-tier recipients are required to file quarterly reports with the federal agencies that funded the projects. These reports must (i) identify the amount of Recovery Act funds received, obligated and expended; (ii) describe the project goals and progress against schedule and budget; (iii) calculate the number of jobs created and retained; (iv) identify expenditures to sub-recipients and vendors; and (v) in certain cases, disclose compensation of the recipient’s and sub-recipient’s five most highly compensated officers.
In turn, the federal agencies will be required to review what promises to be an unprecedented amount of information. Not only will the federal agencies be required to review this data in accordance with the aforementioned guidelines, but they also will be required to have adopted and implemented risk management plans to identify and mitigate potential fraud, waste and abuse in connection with Recovery Act-funded projects.