To ensure accountability in Federal grant programs administered by the Department of Justice.

SA 860. Mr. GRASSLEY submitted an amendment intended to be proposed
to amendment SA 738 proposed by Mr. Inouye to the bill H.R. 2112,
making appropriations for Agriculture, Rural Development, Food and Drug
Administration, and Related Agencies programs for the fiscal year
ending September 30, 2012, and for other purposes; which was ordered to
lie on the table; as follows:

After section 217 of title II of division B, insert the
following:
Sec. 218. (a) Oversight of Department of Justice
Programs.--All grants awarded by the Attorney General using
funds made available under this Act shall be subject to the
following accountability provisions:
(1) Audit requirement.--Beginning in fiscal year 2012, and
in each fiscal year thereafter, the Inspector General of the
Department of Justice shall conduct an audit of not fewer
than 10 percent of all recipients of grants using funds made
available under this Act to prevent waste, fraud, and abuse
of funds by grantees.
(2) Mandatory exclusion.--A recipient of a grant awarded by
the Attorney General using funds made available under this
Act that is found to have an unresolved audit finding shall
not be eligible to receive any grant funds under a grant
program administered by the Attorney General during the 2
fiscal years beginning after the 6-month period described in
paragraph (5).
(3) Priority.--In awarding grants using funds made
available under this Act, the Attorney General shall give
priority to eligible entities that, during the 3 fiscal years
before submitting an application for a grant, did not have an
unresolved audit finding showing a violation in the terms or
conditions of a Department of Justice grant program.
(4) Reimbursement.--If an entity is awarded grant funds by
the Attorney General using funds made available under this
Act during the 2-fiscal-year period in which the entity is
barred from receiving grants under paragraph (2), the
Attorney General shall--
(A) deposit an amount equal to the grant funds that were
improperly awarded to the grantee into the General Fund of
the Treasury; and
(B) seek to recoup the costs of the repayment to the fund
from the grant recipient that was erroneously awarded grant
funds.
(5) Defined term.--In this subsection, the term
``unresolved audit finding'' means an audit report finding,
statement, or recommendation that the grantee has utilized
grant funds for an unauthorized expenditure or otherwise
unallowable cost that is not closed or resolved within a 6-
month period beginning on the date of an initial notification
of the finding or recommendation.
(6) Matching requirement.--
(A) In general.--Unless otherwise explicitly provided in
authorizing legislation, no funds may be expended for grants
to non-federal entities until a 25 percent non-Federal match
has been secured by the grantee to carry out this subsection.
(B) Cash requirement.--Not less than 60 percent of the
matching requirement described in subparagraph (A) shall be
in cash.
(C) In-kind contributions.--No more than 40 percent of the
matching requirement described in subparagraph (A) may be in-
kind contributions. In this subparagraph, the term `` `in-
kind contributions' '' means legal or other related
professional services and office space that directly relate
to the purpose for which the grant was awarded.
(7) Nonprofit organization requirements.--
(A) Definition.--For purposes of this section and the grant
programs described in this Act, the term ``nonprofit
organization'' means an organization that is described in
section 501(c)(3) of the Internal Revenue Code of 1986 and is
exempt from taxation under section 501(a) of such Code.
(B) Prohibition.--The Attorney General may not award a
grant using funds made available under this Act to a
nonprofit organization that holds money in offshore accounts
for the purpose of avoiding paying the tax described in
section 511(a) of the Internal Revenue Code of 1986.
(C) Disclosure.--Each nonprofit organization that is
awarded a grant using funds made available under this Act and
uses the procedures prescribed in regulations to create a
rebuttable presumption of reasonableness for the compensation
of its officers, directors, trustees and key employees, shall
disclose to the Attorney General, in the application for the
grant, the process for determining such compensation,
including the independent persons involved in reviewing and
approving such compensation, the comparability data used, and
contemporaneous substantiation of the deliberation and
decision. Upon request, the Attorney General shall make the
information disclosed under this subsection available for
public inspection.
(8) Administrative expenses.--Unless otherwise explicitly
provided in authorizing legislation, not more than 8 percent
of the amounts appropriated under this Act may be used by the
Attorney General for salaries and administrative expenses of
the Department of Justice.
(9) Conference expenditures.--
(A) Limitation.--No amounts appropriated to the Department
of Justice under title II of division B of this Act may be
used by the Attorney General, or by any individual or
organization awarded funds under this Act, to host or support
any expenditure for conferences, unless the Deputy Attorney
General or the appropriate Assistant Attorney General
provides prior written authorization that the funds may be
expended to host a conference.
(B) Written approval.--Written approval under subparagraph
(A) may not be delegated and shall include a written estimate
of all costs associated with the conference, including the
cost of all food and beverages, audio/visual equipment,
honoraria for speakers, and any entertainment.
(C) Report.--The Deputy Attorney General shall submit an
annual report to the Committee on the Judiciary of the Senate
and the Committee on the Judiciary of the House of
Representatives on all conference expenditures approved and
denied.
(10) Prohibition on lobbying activity.--
(A) In general.--Amounts appropriated under this Act may
not be utilized by any grant recipient to--
(i) lobby any representative of the Department of Justice
regarding the award of grant funding; or
(ii) lobby any representative of the Federal Government or
a State, local, or tribal government regarding the award of
grant funding.

[[Page S6771]]

(B) Penalty.--If the Attorney General determines that any
recipient of a grant under this Act has violated subparagraph
(A), the Attorney General shall--
(i) require the grant recipient to repay the grant in full;
and
(ii) prohibit the grant recipient from receiving another
grant under this Act for not less than 5 years.
(11) Annual certification.--Beginning in the first fiscal
year beginning after the date of the enactment of this Act,
the Assistant Attorney General for the Office of Justice
Programs, the Director of the Office on Violence Against
Women, and the Director of the Office of Community Oriented
Policing Services shall submit, to Committee on the Judiciary
of the Senate, the Committee on Appropriations of the Senate,
the Committee on the Judiciary of the House of
Representatives, and the Committee on Appropriations of the
House of Representatives, an annual certification that--
(A) all audits issued by the Office of the Inspector
General under paragraph (1) have been completed and reviewed
by the Assistant Attorney General for the Office of Justice
Programs;
(B) all mandatory exclusions required under paragraph (2)
have been issued;
(C) all reimbursements required under paragraph (4) have
been made; and
(D) includes a list of any grant recipients excluded under
paragraph (2) from the previous year.
(b) Use of Funds.--The Office of the Inspector General
shall conduct the audits described in subsection (a) using
the funds appropriated to the Office of the Inspector General
under this Act.
______