Partnerships for Intergovernmental Management and Accountability: Collaborative Approaches to Government Problem-Solving 2014 Northeast Conference on Public Administration (NECoPA) November 6–8 | Portsmouth, New Hampshire at the Sheraton Harborside

Our Conference Theme public problems are not solved in silos collaborative relationships are often captured solely through the lens of government contracting or public private partnerships collaboration works in all shapes and sizes public goals are reached through any number of collaborative arrangements November 8, 2014 Sponsored by the Association of Government Accountants 2

The Panel Martin Benison, Comptroller, Commonwealth of Massachusetts William Kilmartin, Management Consulting Senior Manager–Health & Public Service, Accenture Craig C. Hall, Regional Coordinator for Accountability, Association of Government Accountants and Associate Faculty, University of Phoenix School of Business November 8, 2014 Sponsored by the Association of Government Accountants 3

Subject of the Panel The subject of this panel is to discuss three initiatives that share similar concepts about collaborative approaches to government problem-solving. o Association of Government Accountants > Partnership for Intergovernmental Management and Accountability o Alliance to Transform State Government Operations o The Council of State Governments’ > Focus on Federalism Initiative November 8, 2014 Sponsored by the Association of Government Accountants 4

About Each Initiative The Association of Government Accountants established the Partnership for Intergovernmental Management and Accountability (Intergovernmental Partnership) to open the lines of communication among all levels of government with the goal of improving performance and accountability. The Alliance to Transform State Government Operations (Alliance) seeks to engage a broad-cross section of operational professionals in identifying pathways to transforming government. The Alliance is a cross- section of state officials responsible for key functional areas and is represented by the Association of Government Accountants, National Association of State Auditors Comptrollers & Treasurers (NASACT,) National Association of State Budget Officers (NASBO,) National Association of State Chief Administrators (NASCA,) National Association of State Chief Information Officers (NASCIO,) National Association of State Personnel Executives (NASPE,) and National Association of State Procurement Officials (NASPO.) The Council of State Governments’ Focus on Federalism Initiative provides strategic direction and oversight in the advancement of the role of states in our federal system. November 8, 2014 Sponsored by the Association of Government Accountants 5

The Partnership for Intergovernmental Management and Accountability November 8, 2014 Sponsored by the Association of Government Accountants 6

Why the Partnership is Needed Trust Enhance Government Services Better Leverage Government Resources and Personnel Promote Consistent Policy Interpretation Drive Better Communication on Intergovernmental Matters Make Recommendations for Improved Intergovernmental Relations November 8, 2014 Sponsored by the Association of Government Accountants 7

Partnership History Develop a Foundation for Trust Created by AGA National Executive Committee in Partnership with OMB - September 2007 First meeting: October 12, 2007 Steering Committee Members Appointed by AGA and OMB November 8, 2014 Sponsored by the Association of Government Accountants 8

Decision on: Partnership's Purpose Steering Committee Statement: “…to open the lines of communication among governments…. The Partnership is dedicated to identifying and solving some of the most vexing financial management and accountability issues facing governments today.” “…to foster cooperation and communication between governments with the goal of improving program performance and accountability.” November 8, 2014 Sponsored by the Association of Government Accountants 9

Decision on: Philosophy Think Creatively Nothing Off the Table Informal Operate Primarily via Conference Calls Consensus Based Balance Between Steering Committee Guidance and Work Group Creativity Proxies/Designees Discouraged November 8, 2014 Sponsored by the Association of Government Accountants 10

Decision on: Organization Steering Committee 16 Members (Federal, State, Local, University, Non- Profits) Provides Overall Guidance Sets Goals, Priorities, General Timeframes List of Members at End of Presentation November 8, 2014 Sponsored by the Association of Government Accountants 11

Organization (Con’t.) Work Groups Projects Selected by Steering Committee Time Limited Specific Task Broad Based Expert Membership Federal and State Co-Chairs November 8, 2014 Sponsored by the Association of Government Accountants 12

Project Selection Criteria Related to government Mutual interest to all affected levels of government “Cross cutting”, i.e., applicable to more than one program area See website for more detail: November 8, 2014 Sponsored by the Association of Government Accountants 13

Decision on: Goals Enhance Service to Citizens Help Governments Leverage Resources Promote a Common Understanding and Consistent Application of Policy Serve as a Neutral Third Party Recommend Solutions Not Just Another Report November 8, 2014 Sponsored by the Association of Government Accountants 14

Future Projects Steering Committee will prioritize potential future projects based on: anticipated timeframe (long-term, medium and short-term) and, interest/ impact (high, medium and low) value across levels of government November 8, 2014 Sponsored by the Association of Government Accountants 15

Initial Projects Leveraging Audits/Erroneous Payments – Federal Government Initiated Streamline the Statewide Cost Allocation Process (A-87) – State Initiated Deliverables: February 2009 November 8, 2014 Sponsored by the Association of Government Accountants 16

Tools and Resources November 8, 2014 Sponsored by the Association of Government Accountants 17 Risk Assessment Monitoring ToolKit Financial and Administrative Monitoring ToolKit Fraud Prevention ToolKit Cooperative Audit Resolution and Oversight Initiative Candidate Assessment ToolKit for Grants Managers Making Better Decisions – Leveraging Government Resources in Challenging Financial Times Visit

Final Thoughts Partnership continues Used as a Model for ARRA regulations development Laid a Foundation other Initiatives o Super Circular o Initiative to Transform Government November 8, 2014 Sponsored by the Association of Government Accountants 18

Alliance November 8, 2014 Sponsored by the Association of Government Accountants 19

The prompting question: What are the top issues you see in transforming state government operations? “[Transformation is an] ongoing process that permeates the entire organization, and represents a sharp break with the past. This break is a major difference between transformation and simple reform. While reform is an attempt to go down the same path more efficiently, transformation involves the development or discovery of entirely new paths.” Charles Garfield Second to None: How Our Smartest Companies Put People First November 8, 2014 Sponsored by the Association of Government Accountants 20

The Other “Big 7” Associations: Covering the “back office” of State Governments November 8, 2014 Sponsored by the Association of Government Accountants 21

Executive Summit Convening of government leaders: March 28, participants, 34 states represented o Key Drivers o Enablers o Barriers/Challenges o Framework of Solutions/Strategies November 8, 2014 Sponsored by the Association of Government Accountants 22

The Summit: Four Topics Human Capital/Workforce of the Future Data Analytics and Predictive Analytics Consolidation/Optimization/Rationalization Enterprise Management November 8, 2014 Sponsored by the Association of Government Accountants 23

Human Capital/Workforce of the Future It’s about people. November 8, 2014 Sponsored by the Association of Government Accountants 24

Data Analytics and Predictive Analytics Big Data is like teenage sex: Everybody talks about it, no one really knows how to do it; everyone thinks everybody else is doing it, so everybody claims they are doing it. November 8, 2014 Sponsored by the Association of Government Accountants 25

Consolidation/ Optimization/ Rationalization “But these are MY servers!” Beware the presence of “folklaw!” November 8, 2014 Sponsored by the Association of Government Accountants 26

Enterprise Management Customer-focused, Minimizing Silos “You should be doing that anyway.” November 8, 2014 Sponsored by the Association of Government Accountants 27

After the Summit 1) Report from Summit 2) Each Association made presentations at the annual conference of other Associations 3) Webinar 4) Second Summit being planned for March November 8, 2014 Sponsored by the Association of Government Accountants 28

November 8, 2014 Sponsored by the Association of Government Accountants 29 CSG’s Focus on Federalism

The Council of State Governments November 8, 2014 Sponsored by the Association of Government Accountants 30 National Reach / Regional Strength

The Council of State Governments November 8, 2014 Sponsored by the Association of Government Accountants 31 Forum for Interbranch Cooperation

The Council of State Governments November 8, 2014 Sponsored by the Association of Government Accountants 32 Forum for Interbranch Cooperation

November 8, 2014 Sponsored by the Association of Government Accountants 33 CSG’s Focus on Federalism States are increasingly saddled with unfunded mandates and regulations that strain the their resources In 2011, unfunded mandates and regulations cost states, cities and the general public between $44 and $62 billion annually. Rules imposed on states by independent federal agencies such as the Securities and Exchange Commission and the Nuclear Regulatory Commission are not included in this figure and, more importantly, are not covered by the now nearly 20-year old Unfunded Mandate Reform Act. It is vital that states are afforded maximum flexibility in meeting the needs of their citizens and that our country reaches a much clearer understanding of the costs of mandates, regulatory action and pre-emption.

November 8, 2014 Sponsored by the Association of Government Accountants 34 CSG’s Focus on Federalism In 2013, CSG’s Federalism Task Force was created to: 1.Examine the current federalism relationship 2.Analyze remedies to the imbalance of power between states and the federal government, with particular attention paid to fiscal federalism 3.Develop principles to guide CSG’s activities as related to the federal government and the states

November 8, 2014 Sponsored by the Association of Government Accountants 35 CSG’s Focus on Federalism In 2013, CSG’s Federalism Task Force was created to: 4.Develop a framework for the role of the states in reviewing and reacting to adverse policies adopted at the federal level, including coercive, unfunded and underfunded mandates 5.Develop a network of partner organizations committed to assisting CSG in its advocacy for a stronger state presence and role in federalism-related policy discussions and remedies 6.Sustain a lasting organizational emphasis on federalism through CSG’s national and regional programming, deliverables, meetings and services

November 8, 2014 Sponsored by the Association of Government Accountants 36 CSG’s Focus on Federalism The CSG Federalism Task Force is guided by three key principles: Bipartisan participation Does not advocate for any special interest or single policy issue Representative of all of CSG-national, regional and affiliate 17 member task force composed of senior state leaders from around the country

November 8, 2014 Sponsored by the Association of Government Accountants 37 CSG’s Focus on Federalism In addition to regularized education programming for its members, CSG’s federalism work has focused on practical technical changes that may have a lasting impact on the states, including: 1.Reformation of the Advisory Commission on Intergovernmental Relations (ACIR) – or similar entity 2.Reissuance of the Consolidated Federal Funding Report (CFFR) 3.Updates to the Unfunded Mandates Reform Act (UMRA)

November 8, 2014 Sponsored by the Association of Government Accountants 38 CSG’s Focus on Federalism In Sept. 2014, CSG adopted a Statement of Principles on Federalism, including: 1. Principles for State-Federal Relations Though the federal government has a vital role to play in advancing national priorities through the powers enumerated to it by the U.S. Constitution, our founders recognized long ago that many of the challenges our citizens face can best be addressed at the state level. The Council of State Governments affirms the vital importance of the federal system to our nation’s future and encourages the federal government to adhere to the following principles when developing laws, enacting regulations or rendering judicial rulings which impact state powers.

November 8, 2014 Sponsored by the Association of Government Accountants 39 CSG’s Focus on Federalism In Sept. 2014, CSG adopted a Statement of Principles on Federalism, including: 2. Principles on Avoiding Pre-emption Before 1900 the federal government had enacted only 29 statutes that pre-empted state law; but since1900, there have been more than 500 federal pre-emptions. Federal pre-emption of state authority and responsibility should be the exception rather than the rule. While there is a legitimate role for federal pre-emption when the national interest is at risk, pre-emption should be engaged in sparingly and should be avoided in traditional areas of state responsibility, such as education and criminal justice. Federal entities should not take actions that serve to pre-empt, directly or indirectly, state revenue systems as the independent revenue raising authority of states is essential to their exercise of sovereign powers.

November 8, 2014 Sponsored by the Association of Government Accountants 40 CSG’s Focus on Federalism In Sept. 2014, CSG adopted a Statement of Principles on Federalism, including: 3. Principles on Avoiding Unfunded Mandates A 2011 report by the White House’s Office of Management and Budget (OMB) on the cost of federal regulation and the impact of unfunded mandates noted that federal mandates cost states, cities and the general public between $44 and $62 billion each year. Congress and the administration should avoid the imposition of both unfunded federal and partially funded mandates on states. The federal government should work with states to ensure the actions by independent federal agencies, not originally covered by the Unfunded Mandate Reform Act of 1995, receive the same level of scrutiny for unfunded mandates that acts of Congress currently receive.

November 8, 2014 Sponsored by the Association of Government Accountants 41 CSG’s Focus on Federalism In Sept. 2014, CSG adopted a Statement of Principles on Federalism, including: 4. Principle on Promoting Flexibility In 2010, grants in aid to state and local governments totaled more than $480 billion. Most of the 42 major state-federal grant programs, however, will see substantial cuts over the next decade as a result of the federal fiscal crisis. The federal government should ease restrictions, in times of federal funding decline, on the maintenance of effort, grant reporting requirements, and provide maximum flexibility, including the transfer of funds among related grant funding streams, to ensure that programs can be administered as effectively as possible without imposing new burdens on state budgets.

November 8, 2014 Sponsored by the Association of Government Accountants 42 CSG’s Focus on Federalism In Sept. 2014, CSG adopted a Statement of Principles on Federalism, including: 5. Principles on Promoting State Input in International Trade Agreements While the power to make treaties is solely a federal role, modern international trade agreements have moved beyond setting tariff limits to include commitments on state government procurement, regulatory transparency standards, and other requirements that impact the powers and duties of state governments. The federal government should actively work with states to preserve state interest in international trade agreements. The federal government should expand its single point of contact communications system on trade policy negotiations, which currently includes only the state executive branch, to include state legislative and judicial branch contacts.

November 8, 2014 Sponsored by the Association of Government Accountants 43 CSG’s Focus on Federalism Federalism continues to be a key emphasis of CSG into 2015 and beyond at both the national and regional levels 2015 programming will include an emphasis on: 1.Civics Education 2.Federal advocacy on behalf of states with regard to workforce and economic development 3.Bolstering the states’ roles to determine cooperative interstate policy without federal interference via interstate compacts (CSG’s National Center for Interstate Compacts) 4.Continued cooperation with other state- and local-focused associations on technical fixes to the federalism dynamic, e.g. ACIR, CFFR and unfunded mandates reform

Closing Thoughts November 8, 2014 Sponsored by the Association of Government Accountants 44

Information and Contacts Association of Government Accountants > Partnership for Intergovernmental Management and Accountability o Helena Simms, Director of Intergovernmental Programs for AGA Tel: 800.AGA.7211 ext Alliance to Transform State Government Operations o Helena Simms, Director of Intergovernmental Programs for AGA Tel: 800.AGA.7211 ext Council of State Governments’ > Focus on Federalism Initiative o John Mountjoy, Director of Policy Research for CSG Tel: November 8, 2014 Sponsored by the Association of Government Accountants 45

Questions November 8, 2014 Sponsored by the Association of Government Accountants 46 For a copy of this presentation please visit: