With $787 billion in taxpayer funds at stake, POGO took great interest in the Senate Committee on Homeland Security and Governmental Affairs' hearing this morning, "Follow the Money: State and Local Oversight of Stimulus Funding." One of the witnesses was Gene Dodaro from the GAO, who just released a report on their initial findings on the oversight of stimulus funds.
One of the GAO's most important and immediate concerns, which has also been raised by Recovery Accountability and Transparency Board Chair Earl Devaney and other Inspectors General, is the lack of stimulus funding designated to state and local oversight efforts:
"...officials in most of the states and the District expressed concerns regarding the lack of Recovery Act funding provided for accountability and oversight. Due to fiscal constraints, many states reported significant declines in the number of oversight staff--limiting their ability to ensure proper implementation and management of Recovery Act funds."
Towards that end, the GAO recommends that “the Director of OMB should clarify what Recovery Act funds can be used to support state efforts to ensure accountability and oversight.” The OMB is currently finalizing its implementation guidance.
Congress may make additional funds available specifically for accountability and oversight--Rep. Edolphus Towns (D-NY), Chairman of the House Oversight and Government Reform Committee, announced yesterday that he was introducing such legislation. While there were many accountability provisions in the stimulus bill, the fact that state auditors would receive a storm of new work without funding to support them was apparently overlooked.
Targeted local and state stimulus oversight funding creates a huge opportunity for states to share best oversight practices and develop new ones. In the coming weeks, POGO will be working with its partners in the Coalition for an Accountable Recovery and the state and local good government leaders who participate in the Aspen Institute's Rodel Fellowship Program to identify some of the most effective and innovative state mechanisms to ensure that stimulus funds are spent fairly and transparently. We're already excited, for instance, that some states have announced plans to post campaign finance information for stimulus contractors and subcontractors in order to shine a light on how money can play a role in the procurement process. But in addition to highlighting what is being done well, POGO will also take note when a state is lagging behind on its oversight planning and functions. We will be looking for systemic issues, not specific example of wasteful stimulus projects, which are being tracked by other groups like Stimulus Watch. If you are aware of systemic oversight problems at the state and local level, please contact us at [email protected] or [email protected].
Highlighting the tensions between state and federal oversight efforts, Pennsylvania's Auditor General Jack Wagner wrote to the GAO earlier this month to say that he was "extremely concerned" about his state agencies' ability to oversee the use of federal stimulus funds. This drew the ire of Governor Ed Rendell, whose office "strongly disagree[d] that the Commonwealth's internal controls are not sufficient."
Note to Government 2.0 geeks: for one week beginning April 27th, The Recovery Accountability and Transparency Board and the Office of Management and Budget, in partnership with the National Academy of Public Administration, will host a national online dialogue to engage leading information technology vendors, thinkers, and consumers in answering a key question: What ideas, tools, and approaches can make Recovery.gov a place where all citizens can transparently monitor the expenditure and use of recovery funds?
-- Ingrid Drake
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