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					 American Recovery
  and Reinvestment
 Act and GAO’s Role


Heather MacLeod, Assistant Director
   Physical Infrastructure Issues

             April 15, 2011
American Recovery & Reinvestment Act

• Signed February 17, 2009
• Purposes:
   • preserve and create jobs and promote recovery
   • assist those most impacted by the recession
   • invest in science and health-care technology
   • invest in infrastructure
   • stabilize state and local government budgets




                                                     2
 Projected versus Actual Federal Outlays to
States and Localities under the Recovery Act

   Outlays in billions of dollars
  120


  100
                                                                                 Estimated

    80                                                                           Actual (as of Mar. 18, 2011)

    60


    40


    20


      0
              2009           2010           2011           2012           2013          2014     2015   2016
                                                             Fiscal year
 Source: GAO analysis of data from CBO, Recovery.gov and Federal Funds Information for States.
                                                                                                                3
                 Composition of State and Local
                     Recovery Act Funding:
                 2009 Actual and 2012 Estimated

        Fiscal Year 2009                                                                          Fiscal Year 2012
                         1% 2% 3%
                                                              Health                                                               17%


                                                              Education and
                                    6%                        Training                                              1%

                                                              Transportation                                 19%

                                                                                                                                                  16%
                                    28%                       Income Security
             60%
                                                              Community                                30%
                                                              Development

                                                              Energy and
                                                              Environment
2010      2011     2012                                                                                                             17%
       Fiscal year

  Source: GAO analysis of CBO and FFIS data. Data reflect estimated and actual federal outlays for a select set of Recovery Act-funded programs
  administered by states and localities. The Supplemental Nutrition Assistance Program (Food Stamps) and Unemployment Compensation
  payments are not included.

                                                                                                                                                  4
GAO’s Role in the American Recovery &
          Reinvestment Act

GAO responsibilities include:
   • conducting bimonthly reviews of selected states and
     localities
   • commenting on estimated recipient reports of the number
     of jobs created and retained
   • reviewing areas such as trade adjustment assistance, new
     education incentive grants, and efforts to increase small
     business lending
   • studying effects of economic downturns on states and
     federal assistance to alleviate these effects
   • fraud reporting hotline (email fraudnet@gao.gov or call
     1-800-424-5454)

                                                                 5
           GAO’s Bimonthly Review
             Reporting Strategy


Reporting strategy for initial bimonthly reviews:

   • Longitudinal study of 16 states and the District of
     Columbia
   • Selection represents about two-thirds of U.S.
     population and two-thirds of the intergovernmental
     assistance funds provided by the Recovery Act
   • Localities sampled within selected states



                                                           6
GAO’s Monitoring of Selected States

                             1. Arizona
                             2. California
                             3. Colorado
                             4. Florida
                             5. Georgia
                             6. Illinois
                             7. Iowa
                             8. Massachusetts
                             9. Michigan
                            10. Mississippi
                            11. New Jersey
                            12. New York
                            13. North Carolina
                            14. Ohio
                            15. Pennsylvania
                            16. Texas
                            17. Washington, D.C.




                                              7
          GAO’s Bimonthly Review
           Reporting Objectives


GAO has assessed:

  (1)uses of Recovery Act funds,

  (2)approaches taken to ensure accountability for
    Recovery Act funds, and

  (3)efforts to evaluate the impact of the Recovery Act
    funds



                                                          8
GAO’s Selection of Key Programs


• GAO selected various programs for review based on
  size and risk

• Key programs included in GAO audits include:

   •   Medicaid Federal Medical Assistance Percentage (FMAP)
   •   State Fiscal Stabilization Fund (SFSF)
   •   Highway Infrastructure Investment Program
   •   Weatherization Assistance Program
   •   Workforce Investment Act (WIA) Youth Program


                                                           9
   GAO’s Efforts in Selected States


• GAO completed seven reports focused on the 16 states and
  D.C.

• GAO examined numerous federal, state, and local programs
  that received Recovery Act funds.

• GAO also coordinated roles and planned approaches and
  timelines with the broader accountability community
  including state and local government auditors and federal
  inspectors general.



                                                              10
GAO’s Current Bimonthly Approach

• GAO is now taking a nationwide approach to looking at
  Recovery Act programs, including in-depth work in selected
  states, as appropriate.

• Recent reports include:
   • Head Start program (December 2010)
   • Energy Efficiency and Conservation Block Grant program (April
     2011)

• Planned reports include:
   • Transportation Programs (anticipated June 2011)
   • Clean Water and Drinking Water State Revolving Fund
     (anticipated June 2011)
   • Education programs (anticipated September 2011)

                                                                     11
Recovery Act Challenges for Officials at
      All Levels of Government


 • Expectations for an unprecedented level of
   transparency and accountability
 • Qualified personnel need to implement proper
   controls and accountability at all levels of government
 • Close and ongoing coordination needed among
   federal, state, and local governments
 • Accountability community: special responsibility to
   ensure collective efforts are well-coordinated


                                                         12
           GAO’s Recovery Act
            Recommendations
GAO has made over 60 recommendations in a variety
 of areas including:
  • Accountability and Transparency
  • Reporting on Impact and Guidance
  • Resource Allocation and Capacity
  • State and Federal Data Collection and Quality
  • Administrative Support and Oversight
  • Communication with State and Local Recipients


                                                    13
  GAO’s Recovery Act Single Audit
        Recommendations
• Recommendations to the Office of Management (OMB)
   • To leverage Single Audits as an oversight tool for Recovery Act
     programs we made seven recommendations to OMB related to
     guidance, timelines, and other issues.
   • All of these recommendations remain open.

• Matters for Congressional Consideration
   • Consider amending the Single Audit Act or enact new legislation
     that provides for more timely internal control reporting, as well as
     coverage for smaller Recovery Act programs with high risk.
   • Consider mechanisms to provide additional resources to support
     those charged with carrying out the Single Audit Act and related
     audits.


                                                                            14
GAO on the Web
General Web site: http://www.gao.gov/
Recovery Act Oversight: http://www.gao.gov/recovery/


Contact
Chuck Young, Managing Director, Public Affairs, youngc1@gao.gov, (202) 512-4800
U.S. Government Accountability Office
441 G Street NW, Room 7149, Washington, D.C. 20548

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
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material separately.



                                                                                            15

				
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