Government Grants: Audits and Investigations

Venable’s attorneys guide clients through every stage of federal grant audits and investigations, providing experienced counsel and strategic advocacy to address findings, mitigate risk, and resolve inquiries from auditors, inspectors general, and other federal authorities.

Every grantee that expends $1 million or more in federal grant funds must undergo an annual audit under the Single Audit Act. Venable has a vast amount of experience in guiding clients through each step of this process, from preparing for auditor requests and responding to findings, to addressing cost disallowances and negotiating with funding agencies.

Whether arising from routine reviews or more formal investigations, our team also helps clients navigate inquiries from Offices of Inspector Generals (OIGs) and other federal officials into their program operations. We assist in responding to information requests and subpoenas, managing communications with agency officials, and developing strategies to mitigate potential findings or enforcement actions, including those stemming from Department of Justice inquiries, civil investigative demands (CIDs), or grand jury subpoenas. When necessary, our representation may include an independent review of compliance, conversations regarding culpability and liability, and pragmatic, reasonable, and responsible discussions with and responses to federal auditors and investigators.

While Venable will counsel clients on approaches and potential audit defenses, as well as important mitigation and corrective measures, we will also vigorously advocate for our clients, where and when appropriate.

Representative Matters
+

  • Defended a nationally recognized university before DHS auditors seeking to recover more than $200 million in federal funds issued by FEMA under the Stafford Act. Resolved the matter by refunding only small inadvertent duplicative payments made by FEMA, which were less than 5% of the original amount alleged to have been unallowable. The matter also included discussions with federal investigators, ultimately convincing such investigators that any noncompliance was not tantamount to fraud
  • Represented a national nonprofit in an investigation by Department of Interior (DOI). After performing an internal investigation, we were able to demonstrate to DOI investigators that the perceived compliance issues were baseless. DOI investigators closed the matter without action
  • Represented a state agency in audits by Housing and Urban Development (HUD) regarding the use of federal funds. Successfully disputed and defended against all cost unallowability claims and resolved audits with relatively minor programmatic changes
  • Responded to CID for a large nonprofit grantee providing social services funded by HHS
  • Represented multiple mid-sized nonprofit AmeriCorps grantees in responding to AmeriCorps OIG subpoenas and assisted a national nonprofit AmeriCorps grantee in successfully resolving audit findings asserted by the AmeriCorps OIG
  • Guided multiple nonprofit clients in navigating HHS OIG audits, investigations, and subpoenas in various programs, from healthcare to refugee support
  • Assisted a large HHS-funded nonprofit with an internal review of prior cost accounting errors and preparation of a corrective action proposal to the funding agency, which resulted in a substantial reduction of the grantee’s potential liability
  • Negotiated the reduction of a disallowance of over $10 million asserted by HHS’s Health Resources and Services Administration (HRSA) to approximately $500,000, based upon extensive internal review and presentation of adequate supporting documentation in the audit resolution process