Texas Comptroller of Public Accounts

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American Recovery and Reinvestment Act (ARRA) Checklist

Items to consider when receiving, distributing and accounting for ARRA funds

Note: This list is not comprehensive and is not legal advice. It is intended as a helpful resource to be used for informational purposes only. Each state agency is familiar with its respective program requirements and is responsible for complying with state law, ARRA and other related federal laws, rules or guidance.

Parts Extracted from the Office of Management and Budget's Guidance for the Implementation of the American Recovery and Reinvestment Act of 2009, February 18, 2009 and April 3, 2009

Category Action
ARRA Accountability Adopt the ARRA accountability guidelines for federal agencies as the state agency's own:
  1. Make recipients and uses of all funds transparent;
  2. Ensure the reporting of the public benefit of the funds is clear, accurate, timely and transparent;
  3. Ensure funds are used for authorized purposes and that instances of fraud, waste error and abuse are mitigated;
  4. Ensure projects funded by ARRA funds avoid unnecessary delays and cost overruns; and
  5. Ensure program goals are achieved — those of specific programs, and improved results on job indicators.
Accounting Establish controls in conjunction with the agency's appropriations control officer to ensure ARRA funds are not comingled with non-ARRA funds.
Accounting Develop procedures to ensure that funds received by agency are deposited into the ARRA account (0369) maintained by the Comptroller's office and that the funds are properly coded and/or identified as ARRA funds.
Appropriations Take steps to ensure agency is aware of and is appropriated funds for any state matching requirements of the award and that it has a process in place to ensure that funds are expended within the timeframe specified by ARRA.
Audit (External) Ensure agency is prepared for an annual single audit for its federal fund awards.
Audit (Internal) Ensure internal auditor (IA) establishes protocol for review of ARRA funds and programs. IA reviews accounts to ensure ARRA funds are not being comingled with non-ARRA funds and that ARRA funds are going to the proper program. Internal auditor reviews agency processes to ensure controls present to mitigate risk of fraud, improper payments, etc.
Contracts Establish controls to ensure award process is fair and meets the goals of the ARRA.
Contracts Include contract provision that requires each recipient of funds to promptly refer to the agency's internal auditor any credible evidence that any person has submitted a false claim or has committed a criminal or civil violation of the law relating to fraud, conflict of interest, bribery, gratuity or similar fund misconduct, and require method to ensure organization is aware of and educated on this condition.
Contracts Consider contract financing that minimizes risk, such as payments based on interim/partial deliverables, milestones, percent of completion, etc.
Contracts Ensure that contracts are written to mitigate risk in schedule delays, cost overruns and performance risk. Contract requirements to have measurable outcomes consistent with the Act.
Contracts Draft award documents to require the use of a unique number on all documents relating to the award by all tiers of recipients, so that funds per program can be tracked.
Contracts Utilize contracts with Flowdown Provisions which require the initial contractor, in subcontracting any of its performance, to legally bind its subcontractors to perform and make such subcontractors subject to all the duties, requirements, and obligations of the contractor under the contractor's agreement with the state agency, including those ARRA provisions and other federal and state requirements. Contract may also make Contractor jointly and severally liable for all performances under the agreement including the performance of subcontractors in making assurances and filing reports.
Contracts/Audit Ensure that bids/proposals request the inclusion of information on their own internal controls, risk management and performance indicators. Agency has protocol to determine the same independently. Agency reviews applicant to see if there have been compliance problems in past.
Fraud Review agency programs receiving ARRA funds to indentify risks, prioritize risk areas and establish risk mitigation procedures. Which receives the most funds? Are there clear and measurable outcomes? What are the internal controls? Will leading indicators monitor program performance?
Outreach Ensure public receives notice of any new ARRA-funded grants or loans available through the agency.
Oversight Establish or make use of a preexisting executive level team to oversee ARRA funds received by the agency.
Oversight Ensure team establishes methods to meet and track ARRA accountability and transparency goals.
Oversight Ensure team is educated on OMB guidance and establishes a method or process to receive updates.
Oversight Develop procedures to meet ARRA's whistleblower provisions that begin in Section 1553.
Reporting Establish a process for preparation and submission of 1512/Use of Funds Reports to Recovery.gov and for posting its report on Comptroller's Web site. Review the OMB's proposed rule on collecting required data elements at 74 Fed. Reg. 14824 (April 1, 2009)
Reporting Ensure that the appropriate recipients of ARRA funds obtain, provide, and maintain a Data Universal Numbering System (DUNS) number and that the appropriate contractors maintain current registration in the Central Contractor Registration (CCR) database. For more guidance, review the Federal Funding Accountability and Transparency Act (FFATA) and the Federal Funding Information for States (FFIS) Web site.
Transparency Establish Web site to allow public to track fund awards, funded programs, contract awards, program progress and job creation.
Transparency Ensure agency's stimulus/recovery Web site promptly posts information on ARRA funds, agency programs, amounts of contracts/grants awarded per program, names of recipients of funds, summaries of contracts/grants, results of single audits and a method for reporting ARRA-related fraud.