Presentation on theme: "AGENDA Overview of American Recovery and Reinvestment Act (ARRA) and Impact on EPA Operations Job Creation/Saving Environmental Results Some Questions."— Presentation transcript:
0 Unprecedented Accountability and Transparency of Recovery Act Funds—Wave of the Future?Toronto, Ontario ChapterProfessional Development DayOctober 20, 2010Jeff Hart, CGFM, CFEAGA Past National President
1 AGENDAOverview of American Recovery and Reinvestment Act (ARRA) and Impact on EPA OperationsJob Creation/SavingEnvironmental ResultsSome Questions &Key Points To Take Away
2 Some Questions For Today How has this unprecedented level of accountability and transparency raised the bar for all US-EPA programs? Has it also raised the bar for all government programs? Has it raised the bar in Canada? Might it raise the bar around the world?
3 The American Recovery and Reinvestment Act (ARRA) President Obama signed the $787 BillionAmerican Recovery and Reinvestment Act (ARRA, or Recovery Act) of 2009 into law on February 17, 2009 in Denver, CO
4 The Recovery Act’s 3 Goals Create new jobs and save existing jobsSpur economic activity and invest in long-term growth, andFoster unprecedented levels of accountability and transparency in government spending.Save and Create more than 3.5 million jobs over two years;Take a big step toward computerizing Americans’ health records, reducing medical errors, and saving billions in health care costs;Revive the renewable energy industry and provide the capital over the next three years to eventually double domestic renewable energy capacity;Undertake the largest weatherization program in history by modernizing 75 percent of federal building space and more than one million homes;Increase college affordability for seven million students by funding the shortfall in Pell Grants, increasing the maximum award level by $500, and providing a new higher education tax cut to nearly four million students;As part of the $150 billion investment in new infrastructure, enact the largest increase in funding of our nation’s roads, bridges, and mass transit systems since the creation of the national highway system in the 1950s;Provide an $800 Making Work Pay tax credit for 129 million working households, and cut taxes for the families of millions of children through an expansion of the Child Tax Credit;Require unprecedented levels of transparency, oversight, and accountability.
5 ARRA Funding - $787 Billion The Recovery Act provides $787 Billion, which breaks down to:$288 Billion in tax cuts$224 Billion in increased federal spending for education and health care as well as entitlement programs (such as extending unemployment benefits), and$275 Billion for Federal contracts, grants and loans.
6 Where is The $787 Billion Going? Circle chart taken right off Recovery.gov, and do not add up to $787B for some reason.
7 $275 Billion for Federal Contracts, Grants and Loans 300 different programs spanning dozens of Federal AgenciesEPA$7.22 Billion for 6 programs$20 Million -- Inspector General
8 EPA’s ARRA Funding $7.22 Billion BFLUSTDERASFCWSRFDWSRFEPA’s $7.2 Billion was divided as such:I go into each of these programs in the following slides, and there is a list of acronyms at the back of the presentation.$4B for the Clean Water State Revolving Fund$2B for the Drinking Water State Revolving Fund$600M for the Superfund Program$300M for the Diesel Emissions Reduction Act Program$200M for the Leaking Underground Storage Tank Program$100M for the Brownfields Program$20M for the Office of the Inspector General
9 Region 8 ARRA Funding $384 Million $371M in Grants and Contracts$3.5M in ARRA Management and Oversight Funding$9.5M in set-asides for R8 TribesThis funding is managed out of HQ
10 Current Progress Q3 2010 Quarterly Report 15,764 jobs created or retained (36,092 to date)935 in Region 857 % CWSRF funds spent74% in Region 862% DWSRF funds spent
11 Current Progress Q3 2010 Quarterly Report 51 Superfund sitesinitiated construction9 in Region 88,500 diesel engines retrofitted, replaced or retired--reduced the lifetime emissions of carbon dioxide by 230,000 tons and particulate matter by 1,100 tons268 in Region 8649 LUST site assessments begun55 in Region 8263 Brownfields site assessments initiated10 initiated in Q in Region 8FY 2010 Quarter 3 HighlightsAs of June 30, 2010Clean Water State Revolving Fund 1,777 projects have begun construction with 124 complete $1.1 billion (30%) in funds went to “green” projectsDrinking Water State Revolving Fund 1,324 projects have begun construction with 110 complete $500 million (29%) in funds went to “green” projectsDiesel Emissions Reductions 8,500 diesel engines have been retrofitted, replaced, or retired These engines have reduced the lifetime emissions of carbondioxide by 230,000 tons and particulate matter by 1,100 tonsBrownfields 263 properties have been assessed with 8 properties cleaned up 15 properties totaling 23 acres are now ready for reuseLeaking Underground Storage Tanks 649 site assessments have begun with 340 completed 402 cleanups have begun with 326 completedSuperfund 51 sites and 57 remedial action projects have on-site construction Small business socio-economic contractors are leading cleanupsat 45% of sites
12 Colorado’s “Top 10” Categories of $1.588 Billion ARRA Funds State Fiscal Stabilization Fund$760,242,539IDEA Part B Grants to States$148,730,571MEDICAL ASSISTANCE PROGRAM$140,911,583Title I Grants to Local Educational Agencies$110,905,813Weatherization Assistance for Low-Income Persons (A)$79,531,213State Energy Program (A)$49,222,000Section 8 Housing Assistance Payments Program Special Allocations$35,545,846EPA Drinking Water SRF$34,352,000EPA Clean Water SRF$31,347,700Tax Credit Assistance Program$27,349,670Total CO budget=$19 billion, ARRA=8%
13 Gene L. Dodaro , Acting Comptroller General , U. S Gene L. Dodaro , Acting Comptroller General , U.S. Government Accountability Office“Experience tells us that the risk of fraud and abuse grows when billions of dollars are going out quickly, eligibility requirements are being established or changed, and new programs are being created.”GAO’s Role in Helping to Ensure Accountability and Transparency, March 9, 2009
14 A key objective of ARRA is to minimize fraud, waste, and abuse Even a 5% error rate places $40 billion of total program funding potentially at risk for fraud, waste and abuseThe federal government expects States to embed anti- fraud, waste and abuse efforts into ongoing oversight of programsExisting systems and controls may not be capable of addressing increased expectationsThe public has zero tolerance for fraud, waste and abuseAdditional funding for audits, law enforcement and inspector general oversight
15 OMB’s Recovery Act Guidance Stresses Accountability Funds awarded in a prompt, fair, reasonable mannerRecipients and uses of funds transparentFunds used for authorized purposes and instances of fraud, waste, error, and abuse mitigatedUnnecessary delays and cost overruns avoidedAchieve programmatic goals
16 Section 1512 Reporting : Data Elements Data elements to be collected were published in Federal Register 4/1/09Requires one report per awardThere are five sections:General Section:One report for each award that includes project period and awarding Federal agencySection 1: Project & Activity - Cash Received & DisbursementsSection 2: Project & Activity - Outputs & OutcomesStatus of Work CompletedJobs Created or RetainedSection 3: Subrecipient InformationCash Disbursed by RecipientDate of subaward and grant periodSection 4: Aggregate Awards - Total awards <$25,000Source: Federal Register April 1, 2009
17 Certification and Maintenance of Effort Certification elevated to the Governor, Mayor or other State officialsUpfront certification prior to spendingInfrastructure investment has been reviewedFull responsibility is accepted as to the appropriate use of the taxpayers’ fundsMaintenance of EffortFederal funds cannot be used to supplant local fundingMust be used for additive projects, not applied to cut-backsGovernments will need to document current level of effortSource: recovery.gov
18 Recovery Accountability and Transparency Act Board coordinate and conduct oversightquarterly reportsrecommendationsmay send Flash reports to the President and Congress problems that require immediate attentionestablished and maintains a user friendly website, Recovery.gov, to foster . accountability and transparency
19 Recovery Accountability and Transparency Act Board The Honorable Earl E. Devaney, ChairmanThe Honorable Phyllis K. Fong, Inspector General Department of AgricultureThe Honorable Todd J. Zinser, Inspector General Department of CommerceThe Honorable Gregory H. Friedman, Inspector General Department of EnergyThe Honorable Daniel Levinson, Inspector General Department of Health and Human ServicesThe Honorable Richard L. Skinner, Inspector General Department of Homeland SecurityThe Honorable Glenn A. Fine, Inspector General Department of JusticeThe Honorable Calvin L. Scovel, Inspector General Department of TransportationThe Honorable Eric M. Thorson, Inspector General Department of TreasuryThe Honorable J. Russell George, Treasury Inspector General for Tax AdministrationMary Mitchelson, Acting Inspector General Department of Education
20 Recovery.gov Website Detailed data on contracts and grants Progress reports on spending and accomplishmentsLinks to grant, loan, contract opportunitiesMap-based view of where the spending is goingSubscription content to be informed with targeted changesAbility for access to bulk data for individual analysisReports from GAO, IG, CEAVignettes on results/accomplishmentsResponses addressing public feedbackSource: Recovery Act Architecture Package v0.032
23 EPA OversightAssistant Administrator---”Senior Accountable Official”--lead and coordinate all agency activities related to stimulus fundingSteering Committee--senior managers monitor stimulus project planning and implementation meets weeklyInspector General--$20 million for oversight Public can track EPA's distribution of stimulus cash on the agency's Web site
26 Development of the Stewardship Plan Required broad participationPlan addresses following areas:Grants managementInteragency AgreementsContracts management and procurement issuesPayroll and human capitalBudget ExecutionPerformance reportingFinancial reportingOCFO Briefing: 2009 EPA Comptroller/FMO/Budget WorkshopSan Antonio, TX - April 2009
27 DRAFT RECOVERY ACT STEWARDSHIP PLAN EXECUTIVE SUMMARYMay 5, 2009The Recovery Act Steering Committee established an Agency-wide Internal Controls Workgroup that was charged with creating the Recovery Act Stewardship Plan.Subcommittees are made up of Program Office, administrative, and Regional representatives with an OIG advisor.The Stewardship Plan is based on the five GAO Internal Control Standards: Control Environment, Risk Assessment, Control Activities, Information and Communication, and Monitoring. Risk mitigation strategies from the OMB 02/18/2009 and 04/03/2009 Recovery Act Guidance documents and the OIG’s “Initial Plan for Oversight of Recovery Act Funds” were addressed. Additionally, OIG Open Audit Issues, OEI’s Management Action Plan, other agencies’ best practices (DOJ, USPS, Commerce, DOI, and NSF), and the Agency’s Katrina Stewardship Plan were all considered during the development of the Recovery Act Stewardship Plan.
30 OIG Focus IG focus on OMB accountability objectives Evaluate the process for awarding fundsReview the quality of data systemsAssess performanceIG will conduct:Performance auditsFinancial auditsInvestigations of fraud, waste, and abuseOCFO Briefing: 2009 EPA Comptroller/FMO/Budget WorkshopSan Antonio, TX - April 2009
31 Types of OIG Reviews Forensic Audits Performance Audits Program EvaluationsInvestigations
32 Forensic Audits of Recipients and Subrecipients
33 Identifying Candidates Unusual Patterns of DrawdownsPrior Report FindingsHotlinesRecovery Accountability and Transparency Board ReferralsPrior Issues with Recipient or Subrecipient
34 What Does the OIG Review? Construction SiteProgress/MaterialsIndividuals WorkingBuy American RequirementsDavis Bacon Requirements
35 Loan-Recipient Office What Is OIG Reviewing?Loan-Recipient OfficeProcurementFinancial SystemsProject OversightRecipient Reporting
36 On-Going Performance Audits Competition for DERA GrantsContractor Performance EvaluationsEPA and State Oversight of Clean Water SRF ProjectsImplementation of Recovery Act Stewardship Plan for Superfund Remedial Program Contracts
37 On-Going Performance Audits Resources for Recovery Act OversightUse of Interagency AgreementsFinancial Reporting of ARRAEffectiveness of EPA Data Quality Review Process
38 GAO Findings to DateMay 26, Clean Water Projects Are Underway, but Procedures May Not Be in Place to Ensure Adequate OversightDec. 10, 2009—One Quarter of Recovery Act Funds Administered by States and Localities Has Been Paid OutNov. 19, Recipient Reports: Good Initial Efforts to Ensure Accurate Reporting but Significant Data Quality Issues Need AddressingSept. 23, Need for Recovery Act Accountability and Reporting Challenges to Be Fully Addressed
39 GAO Findings to DateMay 26, Clean Water Projects Are Underway, but Procedures May Not Be in Place to Ensure Adequate OversightJune 22, EPA Submitted Accurate and Timely Recovery Act Financial ReportsSeptember 27, EPA Effectively Reviewed Recovery Act Recipient Data but Opportunities for Improvement Exist --Identified errors in 3 percent of recipient entries. EPA did not identify any of these errors as significant.Several OIG site inspections revealed nothing that would require action.
40 GAO Findings to DateMay 26, Clean Water Projects Are Underway, but Procedures May Not Be in Place to Ensure Adequate OversightDec. 10, 2009—One Quarter of Recovery Act Funds Administered by States and Localities Has Been Paid OutNov. 19, Recipient Reports: Good Initial Efforts to Ensure Accurate Reporting but Significant Data Quality Issues Need AddressingSept. 23, Need for Recovery Act Accountability and Reporting Challenges to Be Fully Addressed
41 Region 8 ARRA Monthly Report Sept. 2010 Outlay Rate and Jobs ReportedProgram(A) Amount Awarded(B) Total Outlays (thru 6/30/10)(B/A) Cumulative %National Average % OutlaysReported Jobs (for FY10 Q3)**Drinking Water SRF$134,452,000$99,708,20774%62%357Clean Water SRF$126,354,000$93,932,25857%363604b$1,303,000$761,57458%N/A (included in CWSRF)5Superfund$64,150,180$32,960,25651%56%140DERA$17,770,597$12,551,79871%43%45LUST$9,773,000$4,286,84144%38%19Brownfields$5,429,900$2,009,29237%26%6Totals$359,232,677$246,210,22669%935*Full Jobs Created number unavailable for Eureka IAG
42 R8 Outlays Compared to Awards Cumulative through the end of May 2010 Amounts in millions74%74%51%71%44%37%58%
43 Regional Accomplishments Cumulative through FY10 Q3 (6/31) Nearly $312M in CW and DW SRF projects have started construction.1 Superfund project achieved design completion.1 Brownfields property has been cleaned up.1,000 diesel engines have been retrofitted, replaced or retired.25,000 tons of CO2-equivalent emissions have been avoided.32 LUST assessments and 15 cleanups have been completed.
44 Selected 2010 Brownfields Accomplishments City of Missoula, MT$25, asbestos abatement at former freight depotNow a community nutrition center + 17 low-income homesProvides fresh local food for neighborhood with household income level $7,000 below medianhouseholds receiving public assistance is twice as high as the city overall
45 Selected 2010 DERA Accomplishments Sioux Falls, SD School DistrictReplacing 10 buses, new lower-emission models + installing 20 pre-heatersNew engines + idle reduction + fuel conservation programsHighest honor possible--Gold Level “Green Fleet Certification”
46 ARRA Success – Diesel Emissions Reduction Act (DERA), Decker, Montana State of MT in partnership with Decker Coal Company$700k to repower 4 high emissions oversized coal-hauling dump truck enginesOld engines used Ultra Low-Sulfur Diesel fuel but still emitted high levels of particulate matter and toxicsContact: Kyle Olson, EPA Region 8, Office of Partnerships and Regulatory Assistance,
47 Jobs, Health, + 76% Return on Investment 9.29 mechanical and administrative jobs created or retained in environmental justice community$532k in health care cost savings associated withpremature mortalitychronic & acute bronchitisrespiratory symptomsasthma exacerbationnonfatal heart attackshospital admissionsemergency room visitswork loss days, and minor restricted activity days
48 Exceeded Original Pollution Reduction Goals by 114% CO=carbon monoxideHC=hydrocarbonNOx=nitrogen oxide
49 Implications to EPAARRA significantly increased EPA’s Budget and Increases Risk of Error/MistakesWith limited time to obligate funds and high priority from the Administration to spend funds quickly/accurately/well, stewardship of funds takes on a “higher profile”Unprecedented transparency to public – EPA records/results open to increased scrutinyOCFO Briefing: 2009 EPA Comptroller/FMO/Budget WorkshopSan Antonio, TX - April 2009
50 Some Themes From PSMW-Halifax (June 2010)—Same in U.S. Difficult EconomyStructural DeficitsUnsustainable“Back to Balance”Cut Services/CostsIncreased Public Pressure to Reduce Costs Yet Maintain/Increase Services
51 Implications of Increased Transparency & Accountability Increased ScrutinyIncreased Risk & Decreased Tolerance for Mistakes & “Mismanagement”Increased Demand for Improved Management/ResultsIncreased Demand for Quality Data/Info
52 Open Government Directive December 2009, Office of Management and Budgetpublish government information online,improve information quality,create and institutionalize an open government culture, andcreate an enabling policy framework for open government.
53 High Note! Implications/Opportunities for Us FM’s Role More Important Than EverIncreased Attention on:Data/Info for Decision-makingInternal/Management ControlsID & Mitigating Risks (financial & program)Measuring/Improving Program Results
56 Recovery.gov opening book on open government “Agencies at all levels of government must view this as not just a passing management phenomenon, but as a way to rethink how government communicates with the public.…the new accountability and transparency movement will likely increase public expectations for real-time spending information.
57 October 17, Jeffrey C. Steinhoff, executive director of KPMG Government Institute and managing director of KPMG LLP“…government managers will be on the hot seat like never before.Is government turning a new page in accountability, transparency and intergovernmental relations?It will be up to everyone to find new ways to meet the goals of open government and satisfy a public that is more insistent than ever on knowing what it is getting for its tax dollars.”