Notice2025-16948
Notice of Recipient Financial Reporting Demonstration
Primary source
Metadata and text below are from the Federal Register, a public-domain U.S. government work. Always verify the official published version before relying on it for any legal matter.
Published
September 4, 2025
Issuing agencies
Housing and Urban Development Department
Abstract
Through this notice, HUD solicits comments on a demonstration designed to increase understanding of how enhanced recipient reporting can help reduce the risk of fraud, waste, and abuse across grant programs. The demonstration will focus on testing HUD's design for a reporting portal to collect and analyze supporting financial evidence from recipients, including subrecipient information, to ensure that it is sufficient for its intended purpose. HUD will also refine the portal based on recommendations from participants. The demonstration will allow participants to increase HUD's understanding of the business process changes that may be needed by recipients in this future state. Approximately nine voluntary participants from three HUD grant programs will be included in this demonstration.
Full Text
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<title>Federal Register, Volume 90 Issue 169 (Thursday, September 4, 2025)</title>
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[Federal Register Volume 90, Number 169 (Thursday, September 4, 2025)]
[Notices]
[Pages 42775-42776]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2025-16948]
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DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
[Docket No. FR-6562-N-01]
Notice of Recipient Financial Reporting Demonstration
AGENCY: Office of the Chief Financial Officer, HUD.
ACTION: Notice.
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SUMMARY: Through this notice, HUD solicits comments on a demonstration
designed to increase understanding of how enhanced recipient reporting
can help reduce the risk of fraud, waste, and abuse across grant
programs. The demonstration will focus on testing HUD's design for a
reporting portal to collect and analyze supporting financial evidence
from recipients, including subrecipient information, to ensure that it
is sufficient for its intended purpose. HUD will also refine the portal
based on recommendations from participants. The demonstration will
allow participants to increase HUD's understanding of the business
process changes that may be needed by recipients in this future state.
Approximately nine voluntary participants from three HUD grant programs
will be included in this demonstration.
DATES: Comment Due Date: November 3, 2025.
ADDRESSES: Interested persons are invited to submit comments regarding
this notice to the Regulations Division, Office of General Counsel,
Department of Housing and Urban Development, 451 7th Street SW, Room
10284, Washington, DC 20410-0500. Communications must refer to the
above docket number and title. There are two methods for submitting
public comments. All submissions must refer to the above docket number
and title.
1. Electronic Submission of Comments. Interested persons may submit
comments electronically through the Federal eRulemaking Portal at
<a href="https://www.regulations.gov">https://www.regulations.gov</a>. HUD strongly encourages commenters to
submit comments electronically. Electronic submission of comments
allows the commenter maximum time to prepare and submit a comment,
ensures timely receipt by HUD, and enables HUD to make them immediately
available to the public. Comments submitted electronically through the
<a href="http://www.regulations.gov">www.regulations.gov</a> website can be viewed by other commenters and
interested members of the public. Commenters should follow the
instructions provided on that site to submit comments electronically.
2. Submission of Comments by Mail. Members of the public may submit
comments or requests for reevaluation by mail to the Regulations
Division, Office of General Counsel, Department of Housing and Urban
Development, 451 7th Street SW, Room 10284, Washington, DC 20410-0500.
FOR FURTHER INFORMATION CONTACT: Min Guo, U.S. Department of Housing
and Urban Development, 451 7th Street SW, Washington, DC 20410;
telephone number 202-402-7851 (this is not a toll-free number). HUD
welcomes and is prepared to receive calls from individuals who are deaf
or hard of hearing, as well as from individuals with speech or
communication disabilities. To learn more about how to make an
accessible telephone call, please visit <a href="https://www.fcc.gov/consumers/guides/telecommunications-relay-service-trs">https://www.fcc.gov/consumers/guides/telecommunications-relay-service-trs</a>.
SUPPLEMENTARY INFORMATION:
I. Background
The Federal government has a duty to the American public to ensure
that taxpayers' dollars are spent responsibly and only for permitted
purposes. In many of HUD's programs, the funds are awarded to grantees,
who then have the responsibility for restricting the use of grant funds
to legally eligible expenses. However, there is not a consolidated,
consistent mechanism for HUD to confirm that grantees are spending
their funds properly. This demonstration is intended to test one such
way of adding additional oversight to prevent waste, fraud, and abuse.
II. Demonstration
HUD will design and develop a recipient financial reporting portal
to allow recipients of HUD funds from the Public Housing, Community
Development Block Grant--Disaster Recovery, and Continuum of Care
programs to upload supporting evidence (e.g., receipts, invoices, or
pay records) to justify grant expenditures. The demonstration will
allow HUD to test how to increase grantee accountability while
increasing HUD's understanding of the business and technical
requirements for a reporting portal and grantees' resources and ability
to use such a system.
A. Increasing Transparency, Efficiency, and Compliance
Through the demonstration, HUD will gain a greater understanding of
current reporting burdens and what grant recipients need to meet future
reporting requirements. Specifically, this demonstration will validate
that every dollar received from HUD is accounted for, thereby promoting
trust and accountability. Further, the demonstration's centralized
system will seek to streamline the reporting process for recipients,
making it easier to manage and submit required information. Finally,
this demonstration aims to facilitate recipients' adherence to federal
requirements regarding the use of federal funds.
HUD will use this demonstration to evaluate the quality and
completeness of the evidence submitted through the preliminary portal
to ensure that HUD funds are being used the way they were intended. The
demonstration will allow for the refinement of the reporting portal,
business rules, reporting standards, and technical requirements. HUD
will also use the demonstration period to evaluate current reporting
burdens as compared to the level of burden placed on participants by
the new system.
B. Parameters of the Demonstration
Approximately nine voluntary participants will use the new
preliminary reporting system to upload documentation, such as a receipt
or invoice, that substantiates their use of funds from previous
drawdowns. Participants will be able to share feedback and user
experience with HUD to fine-tune the system as needed. Additionally,
HUD will review documents and request exhibits that detail the
following:
<bullet> Current accounting software and payroll systems.
<bullet> Current processes for recording cash disbursements.
<bullet> Current policies for management and oversight of the
agency's grants, cost allocation, and request for disbursements.
<bullet> Vouchers, or similar documentation, to track cash
disbursements.
<bullet> Sample proration used where allocation is made to various
grants.
HUD expects that the demonstration will last for approximately 2
months. After that time, the participants will no longer need to upload
documentation to the preliminary portal, while HUD evaluates the
results of the demonstration and determines what next steps are
appropriate and feasible.
III. Questions for Consideration
1. What types of evidence are most appropriate for demonstrating
the proper use of grant funds?
2. What are ways HUD can alleviate administrative burden as we
transition funding recipients to new grants management and reporting
systems?
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3. What documentation collected via a reporting portal would most
efficiently and effectively ensure that taxpayers' dollars are spent
responsibly and only for permitted purposes?
IV. Solicitation of Public Comment
In accordance with section 470 of the Housing and Urban-Rural
Recovery Act of 1983 (42 U.S.C. 3542), HUD is seeking comment on the
demonstration. Section 470 provides that HUD may not begin a
demonstration program not expressly authorized by statute until a
description of the demonstration program is published in the Federal
Register and a 60-day period expires following the date of publication,
during which time HUD solicits public comment and considers the
comments submitted. The public comment period provided allows HUD the
opportunity to consider those comments during the 60-day period and be
in a position to commence implementation of the demonstration following
the conclusion of the 60-day period.
Irving L. Dennis,
Principal Deputy Chief Financial Officer.
[FR Doc. 2025-16948 Filed 9-3-25; 8:45 am]
BILLING CODE 4210-67-P
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