Stanley J. Czerwinski Director, Strategic Issues U.S. Government Accountability Office 2013 ALGA Conference May 7, 2013 Expanding The Transparency of Federal Spending Data The Data Act and Local Government Impacts

Existing Spending Transparency Systems 2 USAspending.gov Award Data Sources Transparency of Spending Data

Existing Spending Transparency Systems Recipients’ Award & Subaward Data FedReporting.gov Recovery.gov 3 Agency Validation Recovery.gov Award and Spending Data Sources Transparency of Spending Data

Key Concerns 4 GAO, Government Transparency: Efforts to Improve Information on Federal Spending, GAO T (Washington, DC: July 18, 2012) Clear governance Obtaining stakeholder input Ensuring data accuracy Minimizing burden and cost of reporting Assisting entities doing the reporting Providing resources to support system and process changes

Data Legislation: H.R Federal Accountability and Transparency Commission Reliance on agency and recipient data Requires the Commission to establish common data elements and reporting standards Establishes an advisory committee to the Commission representing stakeholders Transparency of Spending Data

Data Legislation: S Federal Accountability Spending Transparency Board Reliance on Agency Data Requires Treasury to establish common data elements and reporting standards Requires Board to solicit input from recipients Transparency of Spending Data

Transparency Efforts Underway GAT Board (OMB and agency officials) Governance Structure Existing federal data sources Treasury’s federal disbursement data Data Sources DOD (contracts) and HHS (grants) Recovery Board: Piloting central reporting and common award ID Data Standardization OMB exploring opportunities for collaboration Stakeholder Input 7 Transparency of Spending Data

GAO’s Earlier Work on USAspending 8 GAO, Electronic Government: Implementation of the Federal Funding Accountability and Transparency Act of 2006, GAO (Washington, D.C.; Mar. 12, 2010) GAO found: Widespread inconsistencies between USAspending.gov data and agency data Nine agencies did not report grants data to USAspending.gov No data on subawards (required by FFATA) Similar work underway to update this.

9 GAO on the Web General Web site: ARRA Oversight: Long Term Federal and State/Local Fiscal Outlook: Contact Stanley J. Czerwinski, Director, Strategic Issues, (202) Chuck Young, Managing Director, Public Affairs, (202) U.S. Government Accountability Office 441 G Street NW, Room 7149, Washington, D.C Copyright This is a work of the U.S. government and is not subject to copyright protection in the United States. The published product may be reproduced and distributed in its entirety without further permission from GAO. However, because this work may contain copyrighted images or other material, permission from the copyright holder may be necessary if you wish to reproduce this material separately. Contact Information

Joah G. Iannotta, Ph.D., Assistant Director, Forensic Audits and Investigative Service U.S. Government Accountability Office 2013 ALGA Conference May 7, 2013 U.S. GAO’s Intergovernmental Data Sharing Community of Practice The Data Act and Local Government Impacts

Joint Forum on Data Analytics Convened in January 2013 by the Government Accountability Office (GAO), the Council of the Inspectors General on Integrity and Efficiency (CIGIE), and the Recovery Accountability and Transparency Board. Explored ways in which oversight and law enforcement agencies use data analytics and share information to assist in the detection and prevention of fraud, waste, and abuse. Discussed need for greater coordination and information- sharing across all levels of government. In response, GAO is developing two communities of practice—one focused on intergovernmental data sharing and a second on federal use of data analytics. A report on the Forum will be jointly issued by GAO, CIGIE, and the Recovery Board in late May. Page 11

Intergovernmental Data Sharing Community of Practice The intergovernmental community of practice will bring together federal, state, and local government officials to discuss challenges and opportunities in sharing data to facilitate oversight and law enforcement. Topics for discussion will likely include: Legal Considerations – Privacy Act Technological Challenges – Incompatible data systems Cultural Challenges – Reluctance to share data Success Stories and Lessons Learned Page 12

Joining the Intergovernmental Data Sharing Community of Practice Participants encouraged to join this community of practice include U.S. federal, state, and local government employees in oversight and law enforcement positions with interest and expertise in data analytics. Please see our flyer for information on how to register as a member to receive information on upcoming discussion groups. Joah Iannotta: Page 13

14 Kip Memmott Director of Audit Services Sonia Montano Audit Supervisor City and County of Denver - Office of the Auditor 2013 ALGA Conference May 7, 2013 Implementing Federal Mandates: An Ideal Role for Local Government Auditors CITY AND COUNTY OF DENVER OFFICE OF THE AUDITOR The Data Act and Local Government Impacts

From Theory to Practice 15 Federal legislative mandate impact on local governments Ideal role for local government internal audit functions Case Study: How the Denver Auditor’s Office Proactively Assisted the City to Prepare for the American Recovery and Reinvestment Act

From Theory to Practice 16 Federal Legislative Mandate Impact on Local Governments Bottom Feeder Paradigm – Most highly impacted but lowest amount of input The Federal Mandate Equation for Local Governments: Ideal Role for Local Government Internal Audit Functions Real-Time Value-Add Proposition Overcoming Negative Perceptions of Audit Value Three Approaches Used by Denver Auditor Expedited Implementation Requirements Lack of Resources Political Exposure High Risk for Failure

Real-Time Value-Add Methods for Local Government Auditors 17 Audit Plan Flexibility Ability to quickly respond to emerging risks Audit horizon methodology Educational Role Helping to educate administration officials about federal mandate requirements including changes on real-time basis Frequent informal communication Liaison with U.S. Government Accountability Office Effective Reporting Interim reporting – Audit Alerts Comprehensive Performance Audits

A Case Study: the Denver Auditor’s Office and the American Recovery & Reinvestment Act 18 The Recovery Act o $840 Billion o Major Goals Transparency and accountability requirements and federal guidance similarities between the DATA Act and stimulus funds o Transparency o Reporting City and County of Denver o ARRA Funds Received o Oversight o Transparency

Value- Added Methods Utilized by Denver Auditor’s Office for ARRA 19 Timely Response to Enactment of ARRA o Audit Team assigned within weeks of President Obama signing Bill in Denver Educational Role o Audit Team meeting with City Team assigned to administer and monitor ARRA Funds o Valued Resource – real-time consultation on shifting requirements & liaison role with GAO Effective Internal and External Communication o Interim communications – Audit Alerts o Performance audits – assuring and educating citizenry

Audit Alerts 20 Objectives and Methodologies o Recovery Act requirements and general provisions o City’s proposed internal controls to comply with those requirements o City’s first quarter federal reporting of the ARRA activity Recommended Actions o For City agencies o For the ARRA Management Group

Performance Audits 21 Objectives o Policies and procedures in accordance with applicable federal compliance requirements o Proper management of ARRA funding o Proper reporting to grantors o Impact of the ARRA funds Methodologies o Interviews o Reviewing federal and state reported data on o Expenditure testing o Benchmarking

Audit Impact 22 Oversight, management, and transparency of ARRA grants improved throughout the process Reporting issues were addressed real-time Minimized administrative costs Improved controls for Citywide grant administration Grant programs that demonstrate tangible impacts for the City

ARRA Funds Long-Term Impact 23

24 City and County Of Denver - Auditor’s Office on the Web General Web site: CCD Reports: Audit Alerts American Recovery and Reinvestment Act Readiness & Governance Released October 7, 2009 ARRA Readiness & Governance 2009ARRA Readiness & Governance 2009 Released February 10, 2010 ARRA Funding 1st QuarterARRA Funding 1st Quarter City American Recovery and Reinvestment Act Funding Performance Audits Released January 2011 ARRA Funding 2011ARRA Funding 2011 Released May 2012 ARRA Funding 2012ARRA Funding 2012 Contact Kip Memmott, Director, Audit Services, (720) Sonia Montano, Internal Audit Supervisor, (720) City and County of Denver – Auditor’s Office 201 West Colfax Avenue, Dept. 705, Denver CO, Contact Information