Economic Stimulus Program Guide
By
Barbara DePompaOversight mechanisms designed to ensure transparency and a proper accounting of the funding appropriated via the American Recovery and Reinvestment Act of 2009 are still early in development, and that evolution is presenting numerous challenges for both government organizations and suppliers.
The White House has created numerous standards for accountability, oversight and transparency regarding stimulus funding, and government organizations must find ways to comply. Currently, program data pertaining to stimulus projects from each agency must be aggregated and quarterly reports are required. All reporting must also comply with Office of Management and Budget guidelines, which have rolled out in a ‘fluid’ fashion until now, and must somehow be standardized to make compliance easier,” said Deniece Peterson, a principal analyst for INPUT in Reston, Va.
Currently, suppliers receiving stimulus funding must report to
recovery.gov the number of jobs saved and/or added, for example. On state contracts, suppliers must report those numbers both to the state and to the
recovery.gov web site. Industry observers claim the flow of information, as reported to both the states and the federal government is an issue that is still, ‘in flux.’
Transparency Issues
And while transparency is considered crucial, it doesn’t come cheap. Perhaps not surprisingly, some industry suppliers are expected to steer clear of pursuing ARRA contracts because the estimated cost of administering and complying with regulatory compliance may reach 30% of the total amount awarded, said Stan Soloway, president and CEO, Professional Services Council.
And although federal organizations, such as GSA are expected to receive up to .5% for ARRA program administration and reporting efforts, state and local governments are concerned because current ARRA
regulations don’t include similar state funding for achieving compliance with reporting requirements.
Meanwhile, INPUT analysts report the complexity of providing job creation numbers, for example, is what drove a grade of ‘incomplete’ on INPUT’s recent 100 day ARRA report card.
It’s difficult to measure, for example, whether subcontractor jobs are created or saved in the official tally, said Soloway, who maintains that establishing common rules for measuring jobs saved will be nearly impossible.
Another area of concern – the evolving role of the General Accounting Office’s Office of the Inspector General. “GAO’s IG will want to know how money was spent and how efficiently that spending was completed,” Soloway said.
Still to Come
Soloway suggested leading experts have yet to be appointed to key posts on the Recovery Accountability and Transparency Board, which may further impact the types of information that must be reported in future audits, for example. The Recovery Accountability and Transparency Board recently issued a request for proposals for a firm-fixed-price contract to design, implement and host the
recovery.gov web site. At some point, reporting requirements and the frequency of updates for the site may be expanded and would require further design and integration, the RFP notice stated. The web site’s architecture must provide accurate information that could be made available to a wide range of people, processes and applications.
Over time, industry observers expect Congress will also take a look at stimulus funding initiatives, starting as early as this fall, as budgets roll out for 2010. No matter which ARRA projects are implemented, each agency must be able to define precisely what is being done internally, and disclose with clarity all information related to spending on the initiative. The agency must also be ready to alter reports to fit rules as they change over time, Soloway added.
To make it easier, Peterson expects that, in time, government oversight organizations will strive to consolidate information that must be reported to various local, state and federal agencies. “There’s a clear need for consolidation of all information required for ARRA reporting,” she said, and because the administration has been open to feedback from industry, she expects industry suppliers “will likely help government refine both reporting and contracting processes in the years to come.”