Federal Assistance Reform Act of 1981

Federal Assistance Reform Act of 1981 - Title I: Consolidation of Federal Assistance Programs - Directs the President: (1) prior to each regular session of Congress, to examine the various Federal assistance programs to determine if consolidation of any such program is necessary or desirable to promote the efficiency, administration, or coordination of such programs; and (2) upon making such a determination, transmit to Congress a plan for consolidating functionally related programs. Requires that such a plan: (1) designate a single agency to administer the plan and the consolidated programs; (2) specify the terms and conditions under which such programs will be administered; (3) expire no later than ten years after enactment of this Act; and (4) include a message describing the difference between the terms and conditions of the programs to be consolidated before and after consolidation, and assessing the plan's effects on the costs of implementing the programs.

Directs the President to transmit a report on the administration of this title to Congress within 60 days of each session of Congress.

Prohibits a consolidation plan from: (1) consolidating programs which are not functionally related; (2) designating an administering agency that did not administer any program to be consolidated; (3) expanding the number or groups of persons eligible for assistance by consolidating programs; or (4) excluding any person or group who is eligible for assistance under one of the programs to be consolidated from eligibility for assistance under the consolidation plan.

Terminates the consolidation authority under this title ten years after it becomes effective.

Declares that a consolidation plan shall become effective upon approval by the President of a congressional resolution approving the plan. Sets forth House and Senate procedures for considering such a resolution.

Authorizes the aggregation of appropriations for programs consolidated under such a plan.

Title II: Financial Management and Audit of Federal Assistance Programs - Requires the Director of the Office of Management and Budget (OMB): (1) in consultation with the Comptroller General of the United States, to establish and maintain standard procedures to be utilized by all Federal agencies for the administration, accounting, and financial auditing of Federal assistance to State and local governments and nonprofit organizations; and (2) to prescribe directives to agencies for coordinating Federal, State, and local audits of grant programs.

Requires an independent, biennial financial and compliance audit of State and local government entities, nonprofit organizations, and subgrantees which receive Federal assistance. Requires such an audit of an organization which receives less than $100,000 a year to be conducted quinquennially. Establishes the responsibility of State and local governments and nonprofit organizations to utilize independent auditors to conduct audits of Federal assistance recipients within their jurisdictions in accordance with generally accepted auditing standards.

Makes the Federal Government responsible for: (1) utilizing the quality review process to be established by the Director of OMB and the Comptroller General to assure the proper performance of such audits; and (2) conducting audits which are not financial and compliance audits.

Directs the OMB to establish methods of payment of independent auditors for the expense of performing all or any part of an audit on behalf of the Government.

Title III: Integrated Grant Development - Integrated Grant Development Act of 1981 - Directs the President to issue guidelines necessary to assure that Federal agencies: (1) identify related Federal assistance programs that would be suitable for providing joint funding; (2) issue guidelines and develop materials to assist in the development of projects drawing support from different assistance programs; (3) review and modify administrative requirements which impede integrated grant development for projects; (4) establish common administrative rules with respect to related programs to assist in integrated grant development for specific projects; and (5) create joint or common procedures for processing applications, supervising projects, and evaluating performance (including procedures insuring that agencies participating in integrated grant programs contribute proportionately to the lead agency's costs of administering the program).

Requires the heads of Federal agencies to cooperate with respect to Federal assistance programs which may be suitable for providing joint support of projects of State or local governments or nonprofit organizations.

Declares that the Director of OMB shall have responsibility for carrying out the provisions of this title.

Specifies guidelines to be followed by each Federal agency participating in an integrated grant program when processing applications for assistance from State or local governments or nonprofit organizations.

Sets forth special authorities to be utilized by an agency providing support to a project assisted by more than one Federal program only when a problem cannot be solved through other actions by this title or other applicable law. Directs an agency to adopt uniform provisions governing the financial management of a project, the timing of Federal payments for such project, the form of assistance, and accountability procedures when such project otherwise would be subject to conflicting administrative rules. Permits the review of integrated grant project proposals by a single board or committee. Allows an agency to delegate its functions for the administration of a Federal assistance program to another agency with the approval of the President. Authorizes the establishment of a management fund with respect to a project receiving support from more than one program. Permits the transfer to such fund of the proportionate share of payments for the project from each affected appropriation. Directs the OMB to report to the Appropriations Committees of Congress on the savings effected by integrated grants.

Requires the recipients of assistance under a program financed by a management fund to keep records necessary for an effective audit. Grants access to the papers and records of such a recipient to the Comptroller General and the head of the agency administering the management fund.

Terminates the provisions of this title five years after they become effective. Directs the President, at least two years before the provisions expire, to transmit to Congress a report which evaluates and makes recommendations for the administration of this title.

Repeals the Joint Funding Simplification Act of 1974.

Title IV: Administration of Generally Applicable Federal Assistance Requirements - Defines the term "generally applicable requirement" as any requirement with which a recipient of Federal assistance has to comply in order to achieve national policy objectives, and which applies to programs administered by two or more agencies.

Requires the President, within 120 days after enactment of this title, to designate Federal agencies to: (1) coordinate the preparation of national policy assistance standards for one or more generally applicable requirements in various subject areas; and (2) report on the implementation of such requirements. Directs the President to establish a date for the preparation of such standards which shall be not later than two years after enactment of this Act for existing requirements or two years after a requirement is established by statute or administrative rule.

Directs each designated agency to organize and chair a task force to prepare such standards. Requires such a task force to consist of each assistance agency responsible for implementing the national policy objective. Requires that such standards eliminate any unnecessary compliance burdens for assistance recipients while ensuring the achievement of national policy assistance objectives.

Directs each agency which administers a program to which such standards apply, to implement such standards within 120 days after they are published by a designated agency. Directs each designated agency to coordinate the implementation of such standards, and to insure that such standards are revised only on the first day of each fiscal year.

Requires the head of each assistance agency to designate a senior official to: (1) coordinate such agency's actions to comply with such standards; and (2) ensure active agency participation in the development and implementation of such standards. Authorizes such agency head to certify that State and local governments are in compliance with State and local government requirements that contain the same requirements as national policy assistance standards.

Directs a designated agency to report to the President concerning any impediments to the development of such standards. Permits the President to direct the agency to prepare a proposed bill for transmission to Congress, to remove such impediments. Allows the President to submit to Congress proposed legislation exempting certain programs from inappropriate generally applicable requirements.

Authorizes the President to delegate responsibility for monitoring the overall implementation of this title to the Director of OMB or the head of any other Federal agency.

Title V: Miscellaneous - Amends the Intergovernmental Cooperation Act of 1968 to require any Federal agency which administers a program of Federal assistance to a State government or a political subdivision, upon request, to provide written information to a designated State agency on the amount and purpose of such assistance.

Requires any Federal agency: (1) to provide notice to a State or local government before withdrawing or refusing to renew financial assistance; (2) upon request, to provide such government with an opportunity to demonstrate why such action should not be taken; and (3) upon request, to explain why such a government's application for assistance was rejected.

Authorizes the head of a Federal agency to waive any changed requirements for the receipt of grants with respect to a State, local government, or nonprofit organization which has expended substantial effort to apply for such grant under the existing requirements.

Directs the United States Advisory Committee on Intergovernmental Relations: (1) to conduct a study of alternative methods of delivering public services supported by grants-in-aid in order to improve the effectiveness and efficiency of such services; and (2) to report its findings and recommendations to Congress and the President.

Requires the Director of OMB to prepare a list of the 100 largest Federal assistance programs of each year. Directs the head of an agency which administers each such program to prepare and transmit to the Director an analysis of the administrative costs of such program during the preceding year.

Requires the Director of OMB to report to Congress concerning a pilot program to develop and implement methods to assess the administrative costs of Federal assistance programs.