Final answer:
The Office of Management and Budget (OMB) is responsible for prosecuting institutional violations of effort reporting, as it oversees the performance of federal bureaucracies and coordinates federal regulations.
Step-by-step explanation:
The federal agency responsible for prosecuting institutional violations of effort reporting is the Office of Management and Budget (OMB). The OMB has a broad mandate that includes overseeing the performance levels of federal bureaucracies, coordinating and reviewing federal regulations, and delivering executive orders and presidential directives.
While institutions like the Office of Research Integrity (ORI) and units within other agencies, such as the Office of Criminal Investigations (OCI), play roles in investigating and enforcing regulations and laws, it is the OMB that has the overarching responsibility for budgetary oversight, which includes effort reporting within government institutions.