1. AGA 2009 Tracking Survey Perceptions of Governmental Financial Management Prepared for the Association of Government Accountants December 29, 2009 © Harris Interactive 1

2. Methodology Audience: 1024 U.S. residents, 18 years or older Method: Online survey using the Harris panel Field Dates: November 30 – December 7, 2009 Survey Duration: 14 minutes © Harris Interactive 2

3. Study Objectives Track attitudes and opinions on government financial management from 2008 study. Measure broad perceptions of importance and satisfaction with regard to receiving financial management information from the government (local, state, federal). Assess the performance of the government on specific elements of financial management delivery to the public. Determine which sources of information Americans rely on for governments’ financial management information (local, state, federal) and how this information is used by the public. Evaluate a potential citizen reporting document the divulges government financial information to the public. Assess the awareness of and reactions to www.recovery.gov. © Harris Interactive 3

4. Executive Summary 4

5. The most common ways people are getting information on their federal, state, or local government’s financial management is hearing about it on the news and reading about it in newspapers. However, significantly more people are hearing about this information from their friends and family than in 2008. –Approximately 12%-16% (depending on government level) are getting financial management information from the government’s website (a new category this year). Availability of government financial management information continues to be very important to the public (approximately 75% thought it was ‘extremely’ or ‘very’ important across all government levels). –Availability of government financial management information is most important to older adults (ages 55 and older), those earning more than 100k per year, and college graduates. Though the public’s satisfaction with the government financial management information they’re getting is still low overall, it has increased significantly across all government levels since 2008. –As seen in 2008, the public is least satisfied with the financial management information they’re getting from the federal government. –Satisfaction, though still low, is significantly higher among younger adults (ages 18-34) and democrats. Government Financial Management Information © Harris Interactive 5 Blue text = Subgroup differences

6. Executive Summary Agreement that the government has a responsibility to provide understandable financial information to the public, that government officials are accountable to citizens about financial management, and that government officials should provide transparent financial management information is high (at least 85% strongly or somewhat agree) across all government levels. –When asked about the meaning of transparency, most connect the term with being clear, easy to understand, visible, and disclosed to everyone. –When asked about the meaning of accountability, most think it means taking responsibility. Reflecting on the past two years, the public generally considers state and local government financial reporting to have stayed the same, while they believe federal financial reporting has gotten worse. Government performance on a variety of metrics (responsible to the public for spending, open and honest in spending practices, provides timely financial statements/reports, etc.) remains low overall and varies across government levels in comparison to 2008. Federal government performance has improved slightly while state and local have shown a slight decline. Overspending and/or wasting money is a top concern about government financial management across all government levels. Choices made in spending is also a top concern for state and local government financial management. Opinions on Current Government Financial Management © Harris Interactive 6 Blue text = Subgroup differences

7. Executive Summary The majority of the public believe that an online report divulging federal, state, and local government financial information would be helpful to them. Most respondents indicated that the document would be most helpful at a local government level. –Though support for this document was high overall, it is highest among college graduates. The general consensus is that the “Revenue and Expenses” section of the Palm Beach document is the most useful section of the report. Approximately one-fifth (22%) of people have heard of www.recovery.gov. 11% have visited the website. www.recovery.gov –Males and those earning more than 100k per year were most likely to have heard of and/or visited the site. Of those who have visited the website, the majority say they would visit the site again and would tell other people about it. After hearing a description of www.recovery.gov, more than three-quarters (76%) indicated they would be likely to either visit or return to the website. www.recovery.gov –Importantly, those most likely to visit or return to the site are of the same demographics as those who believe the availability of government financial information is of top importance and are least satisfied with the current performance of government’s disclosure of financial management information: ages 55+, those earning more than 100k per year, and college graduates. Citizen Reporting Document Evaluation www.recovery.gov © Harris Interactive 7 Blue text = Subgroup differences

8. Executive Summary Approximately 80-90% (depending on government level) voted in the 2008 federal, state, and local elections. Of those who voted in the elections, roughly three-quarters say that financial management was an important factor in their candidate selection. –Not surprisingly, candidate financial management was most important to republicans and those earning more than 100k per year. Political Environment © Harris Interactive 8 Blue text = Subgroup differences

9. © Harris Interactive Survey Results 9

10. © Harris Interactive Information Sources on Government Financials 10

11. Sources of Government Financial Information Federal Government © Harris Interactive Q950. How do you currently get information about your federal, state and local governments’ financial management? By financial management, we mean how the government generates and spends its money. I do not get any information about my government’s financial management 2008 Base: All Respondents (n=1652) 2009 Base: All Respondents (n=1024) = Significantly higher than 2008 = Significantly lower than 2008 11

12. Sources of Government Financial Information State Government © Harris Interactive Q950. How do you currently get information about your federal, state and local governments’ financial management? By financial management, we mean how the government generates and spends its money. I do not get any information about my government’s financial management = Significantly higher than 2008 = Significantly lower than 2008 2008 Base: All Respondents (n=1652) 2009 Base: All Respondents (n=1024) 12

13. Sources of Government Financial Information Local Government © Harris Interactive Q950. How do you currently get information about your federal, state and local governments’ financial management? By financial management, we mean how the government generates and spends its money. I do not get any information about my government’s financial management 2008 Base: All Respondents (n=1652) 2009 Base: All Respondents (n=1024) = Significantly higher than 2008 = Significantly lower than 2008 13

14. Sources of Government Financial Information 2009 Source Comparison Across Government Levels © Harris Interactive Q950. How do you currently get information about your federal, state and local governments’ financial management? By financial management, we mean how the government generates and spends its money. 2009 Base: All Respondents (n=1024) 14

15. © Harris Interactive Importance of/Satisfaction with Information Received on Government Financial Management 15

16. Importance of Availability of Government Financial Management Federal Government © Harris Interactive Q960. How important to you personally is it that information about your federal, state and local governments’ financial management is available to you? Please select one response for each level of government. 2008 Base: All Respondents (n=1652) 2009 Base: All Respondents (n=1024) = Significantly higher than 2008 = Significantly lower than 2008 75% 72% 5% 16

17. Importance of Availability of Government Financial Management State Government © Harris Interactive Q960. How important to you personally is it that information about your federal, state and local governments’ financial management is available to you? Please select one response for each level of government. 74% 73% 5% 2008 Base: All Respondents (n=1652) 2009 Base: All Respondents (n=1024) = Significantly higher than 2008 = Significantly lower than 2008 17

18. Importance of Availability of Government Financial Management Local Government © Harris Interactive Q960. How important to you personally is it that information about your federal, state and local governments’ financial management is available to you? Please select one response for each level of government. 74% 72% 5% 6% 2008 Base: All Respondents (n=1652) 2009 Base: All Respondents (n=1024) = Significantly higher than 2008 = Significantly lower than 2008 18

19. Importance of Availability of Government Financial Management 2009 Importance Comparison Across Government Levels © Harris Interactive Q960. How important to you personally is it that information about your federal, state and local governments’ financial management is available to you? Please select one response for each level of government. 2008 Base: All Respondents (n=1652) 2009 Base: All Respondents (n=1024) 75% 74% 5% 6% 19

20. Use of Government’s Financial Management Information © Harris Interactive 20082009 Influence my voting decision 71%73% Contact my representative 48%50% Attend a town hall meeting or other political gathering 28%30% I may not do anything, but want to be informed on my government’s financial management 26%23% Other 3%2% Q965. How would you use information about your government’s financial management? 2008 Base: Get Information or Important to Get Info (n=1652) 2009 Base: Get Information or Important to Get Info (n=1004) 20

21. Satisfaction with Government Financial Management Information Received Federal Government © Harris Interactive Q955. How satisfied are you with the information you get about your governments’ financial management? 2008 Base: Get Information (n=1449) 2009 Base: Get Information (n=958) = Significantly higher than 2008 = Significantly lower than 2008 14% 5% 51% 60% 21

22. © Harris Interactive Q955. How satisfied are you with the information you get about your governments’ financial management? = Significantly higher than 2008 = Significantly lower than 2008 15% 7% 46% 49% 2008 Base: Get Information (n=1429) 2009 Base: Get Information (n=946) 22 Satisfaction with Government Financial Management Information Received State Government

23. © Harris Interactive Q955. How satisfied are you with the information you get about your governments’ financial management? = Significantly higher than 2008 = Significantly lower than 2008 2008 Base: Get Information (n=1408) 2009 Base: Get Information (n=927) 19% 13% 38% 40% 23 Satisfaction with Government Financial Management Information Received Local Government

24. © Harris Interactive Q955. How satisfied are you with the information you get about your governments’ financial management? 14% 15% 19% 51% 49% 40% 2008 Base: Get Information (n=varies) 2009 Base: Get Information (n=varies) 24 Satisfaction with Government Financial Management Information Received 2009 Satisfaction Comparison Across Government Levels

25. © Harris Interactive Government Financial Management Statement Agreement 25

26. Statement Agreement: Responsible, Transparent, Accountable Federal Government © Harris Interactive Q970. Please indicate the extent to which you agree or disagree with the following statements in relation to your federal government: 2009 Base: All Respondents (n=1024) 26

27. Statement Agreement: Responsible, Transparent, Accountable State Government © Harris Interactive Q975. Please indicate the extent to which you agree or disagree with the following statements in relation to your state government: 2009 Base: All Respondents (n=1024) 27

28. Statement Agreement: Responsible, Transparent, Accountable Local Government © Harris Interactive Q980. Please indicate the extent to which you agree or disagree with the following statements in relation to your local government: 2009 Base: All Respondents (n=1024) 28

29. Summary of Statement Agreement Federal/State/Local © Harris Interactive Q970-980. Please indicate the extent to which you agree or disagree with the following statements in relation to the federal/state/local government: 2009 Base: All Respondents (n=1024) 29

30. Meaning of “Transparency” © Harris Interactive Q985. Thinking back to one of the statements you just read: Government officials should provide information on financial management that is transparent to citizens; please describe what the word “transparent” means to you in relations to this statement. 2009 Base: Random Sampling of Respondents (n=219) 30

31. Meaning of “Accountability” © Harris Interactive Q990. Thinking back to one of the statements you just read: Government officials are accountable to citizens about financial management; please describe what the word “accountability” means to you in relation to this statement. 2009 Base: Random Sampling of Respondents (n=203) 31

32. Status of Government Financial Reporting © Harris Interactive Q995. Over the past two years, has financial reporting for federal, state, and local government gotten better or worse? 2009 Base: All Respondents (n=1024) 24% 16% 19% 43% 36% 28% 32

33. Performance of Government’s Financial Management Federal Government © Harris Interactive Q1110. Please indicate how well you think the federal government is performing on each of these statements. Please use a 10-point scale, where a “1” means you feel the federal government is not performing well at all and a “10” means you feel it is performing extremely well. 2008 Base: All Respondents (n=1652) 2009 Base: All Respondents (n=1024) = Significantly higher than 2008 = Significantly lower than 2008 33

34. Performance of Government’s Financial Management State Government © Harris Interactive Q1115. Please indicate how well you think the state government is performing on each of these statements. Please use a 10-point scale, where a “1” means you feel the state government is not performing well at all and a “10” means you feel it is performing extremely well. 2008 Base: All Respondents (n=1652) 2009 Base: All Respondents (n=1024) = Significantly higher than 2008 = Significantly lower than 2008 34

35. Performance of Government’s Financial Management Local Government © Harris Interactive Q1120. Please indicate how well you think the local government is performing on each of these statements. Please use a 10-point scale, where a “1” means you feel the local government is not performing well at all and a “10” means you feel it is performing extremely well. 2008 Base: All Respondents (n=1652) 2009 Base: All Respondents (n=1024) = Significantly higher than 2008 = Significantly lower than 2008 35

36. Performance of Government’s Financial Management 2009 Comparison © Harris Interactive Q1110-Q1120 Please indicate how well you think the federal/state/local government is performing on each of these statements. Please use a 10-point scale, where a “1” means you feel the local government is not performing well at all and a “10” means you feel it is performing extremely well. 2009 Base: All Respondents (n=1024) 36

37. Concerns about Government’s Financial Management © Harris Interactive FederalStateLocal Overspending or wasting money 34%37%30% The federal deficit 17%5%6% Pork barrel spending 11%6%3% Spending on war 11%3%1% Choices made in spending 10%29%35% Lack of accountability 9%14%11% Lack of transparency on spending 2%5%8% Q605/610/615. What is your biggest concern about the [federal/state/local] government’s financial management? 2009 Base: All Respondents (n=1024) 37

38. © Harris Interactive Citizen Reporting Document 38

39. Helpfulness of Citizen Reporting Document © Harris Interactive Q620. How helpful would this type of report be at the federal, state, and local level? 2009 Base: All Respondents (n=1024) 83% 78% 72% 17% 22% 28% 39

40. Most Important Information in Report © Harris Interactive Q625. What section of information contained in this report is most important to you? 2009 Base: Random Sampling of Respondents (n=177) What, if any, other information should be included in this report? More detailed information on expenditures19% More numerical information6% More detailed/complete information4% 2009 Base: Random Sampling of Respondents (n=222) 40

41. © Harris Interactive www.recovery.gov 41

42. Familiarity with www.recovery.gov © Harris Interactive Q635. Have you heard of the website www.recovery.gov? Q640. Have you ever visited www.recovery.gov? 2009 Base: All Respondents (n=1024) 42

43. Evaluation of www.recovery.gov © Harris Interactive Q645. Please indicate the extent to which you agree or disagree with the following statements in relation to www.recovery.gov? 2009 Base: Visited www.recovery.com (n=109) 43

44. Likelihood to Visit/Return to www.recovery.gov © Harris Interactive Q655. In case you did not know, www.recovery.gov is a website that allows American taxpayers to see what federal entities received Recovery money and how and where the money is being spent. It provides unprecedented transparency about how Recovery funds are being used at a federal level and increases accountability to guard against fraud, waste, and abuse of funds. Seeing this description, how likely are you to [visit/return to] www.recovery.gov? 2009 Base: All Respondents (n=1024) Likely: 76% Not Likely: 24% 44

45. Preference for State/Local Government Website © Harris Interactive Q660. www.recovery.gov currently only provides financial management information at a federal level. Would you like for a similar website to be provided for state and local governments as well? 2009 Base: All Respondents (n=1024) 45

46. © Harris Interactive Political Environment 46

47. Voting Eligibility and Participation © Harris Interactive Q662. Are you eligible to vote? Q665. Did you vote in the 2008 federal, state, and local elections? 2009 Base: All Respondents (n=1024) 2009 Base: Eligible Voters (n=1024) 47

48. Importance of Government Financial Management in Candidate Selection © Harris Interactive Q670. How important of a factor was overall financial management in determining which candidate you voted for? 2009 Base: All Respondents (n=1024) 73% 75% 73% 5% 4% 5% 48