OMB proposes federal grant management changes

The Office of Management and Budget has proposed consolidating the process that awards more than $600 billion annually in federal grants and financial assistance.

The proposals from OMB, published to the Federal Register on Feb. 1, seek to combine multiple sets regulations into "into a single, comprehensive and streamlined uniform policy guide," says OMB Controller Danny Werfel.

He says OMB published potential grant reform ideas in February 2012 and that comments on those plus input from the Council on Financial Assistance Reform were used to develop this proposal.

Proposed changes and measures include:

• combining eight OMB grant guidance documents into one that clarifies important differences for different agencies;
• allowing applicant risk assessments to be conducted at any point prior to an agency making an award;
• notices of funding opportunities will need to be open for a minimum of 30 days on grants.gov "unless required by statue or unless exigent circumstances dictate otherwise;"
• provide guidance to increase oversight of grant sub-recipients;
• limiting compliance requirements to seven areas that OMB feels, if violated, pose the greatest risk for waste, fraud or abuse; and
• concentrating audit resolution and oversight on higher dollar and higher risk awards.

The office says it is interested in broad public feedback and will use comments to develop a refined final guidance document. The comment period ends on May 2, 2013.

The reforms support both a November 2009 executive order to reduce improper payments and eliminate waste and a February 2011 memo promoting administrative flexibility, says Werfel.

-Geoff Whiting, FierceGovernment.com
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Recovery Board opens next frontier in financial accountability

A funny thing happened when Congress approved the American Recovery and Reinvestment Act in February 2009.

While politicians debated whether in was wise to invest more than $804 billion in an effort to stimulate the economy, lawmakers added a provision to the bill giving the Recovery Accountability and Transparency Board, an independent, non-partisan, non-political agency, oversight of the funds.

The "RAT Board" had two goals. One was to provide transparency over the Recovery money, and the other was to root out fraud, waste and mismanagement in the spending of those funds.

Four years later, debate may continue about the success or failure of the Recovery Act. But many consider the RAT Board to be a pioneer in government accountability and transparency.

Federal News Radio's week-long, on-air and online series, "Rise of the Money People: Financial management moves front and center as agencies make the final assault on wasted billions ," focuses on the methods and tools agencies employ in rooting out waste, fraud and abuse in government spending.

-Michael O'Connell, FederalNewsRadio.com
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Timeline: The Evolution of Financial Management in the Federal Government

(This interactive timeline is part of Federal News Radio's special report, Rise of the Money People.)

The roots of today's federal financial systems oversight can be traced back to the Accounting and Auditing Act of 1950, which authorized the head of each federal agency to establish internal controls over its assets.

The act also tasked the Government Accountability Office with drawing up accounting standards for agencies and, through audits, ensuring that agency internal controls met those standards.

Over the last three decades, Congress has expanded the scope of financial oversight at agencies, and, with the help of new technology, provided for greater transparency in agencies' fiscal reporting.

This timeline provides an overview of the initiatives introduced by the White House and legislation enacted by Congress to establish greater oversight of government spending.

-Michael O'Connell, FederalNewsRadio.com
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For Federal CFOs, the Pressure is on

Do you feel like the frog being boiled? Only four years ago, it was cool to be in government again – but now the pot’s boiling on extra high. The heat continues to rise with the taxpayers’ distrust of the management and stewardship of their money; whether it’s anything from ballooning deficits to irksome conference spending – the federal CFO community is in the thick of things. And the view from the bunker is not pretty either, as we emerge from the turbulence of continuing resolutions, threats of government shutdowns, whilst still toiling away under the cloud of sequestration. And do not forget what we all did to make the execution of the Recovery Act a success with transparency in reporting and very little instances of fraud, waste, and abuse?

As we approach the presidential election and despite recent history and events, there has been somewhat of a hiatus from new management initiatives – but expect this to change quickly (no matter who wins the election) with a newly invigorated administration, some severe externalities hanging over us, and a backlog of legislative proposals aimed at improving how the government spends its money. The federal CFO community will continue to experience increasing pressure and demands to keep performing with ever eroding levels of resources. I see that these challenges are starting to drive an emerging agenda for the federal CFO to address and work on over the next handful of years. So, here are four of the bigger things I see on the agenda:

1. Maintain the measure of fiscal integrity;
2. Build a relentless focus on cost management;
3. Mitigate severe human capital risks; and
4. Find capital to invest in new business systems (or find someone else to run them).

-Owen Barwell, GovExec.com
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Recovery Board testing accountability tools in the cloud

WILLIAMSBURG, Va.-- The Recovery Accountability and Transparency Board had so much success moving Recovery.gov to the cloud, it is looking there again to give agencies a new set of accountability tools.

Shawn Kingsberry, the board's chief information officer and assistant director for technology, said about four agencies are testing a new suite of data-analysis software to ensure Recovery Act funds are not being subject to waste, fraud or abuse.

The Recovery Board is working with several agencies to test out these accountability tools in the cloud. The tools include data- analysis software that can detect data anomalies on contracts, grants and loans issued with stimulus funding.  Agencies submit award or proposed award data to the board. The board then uses these tools to find potential issues with the vendor and passes that information back to the awarding agency. The agency can then decide what steps to take next.

Kingsberry said agencies can and should take a pause to make sure the funds are not falling victim to waste, fraud or abuse.

The Recovery Board's experience with putting software in the cloud has been successful. It first moved its site to the public cloud in April 2010.

Kingsberry said the board saved $750,000 by using Amazon Web Services and moved that money into mission needs to detect waste, fraud and abuse.

With the audit tools, the board will follow a similar path — starting small in the board's own data center to create the baseline and then moving it to the cloud, Kingsberry said.

-Jason Miller, FederalNewsRadio.com
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OMB not enamored of House-passed data transparency measure

The DATA Act, the government spending transparency bill that passed the House in April, has ruffled some feathers at the Office of Management and Budget, signs of which were on display Tuesday at a panel discussion of lessons learned from implementation of the 2009 Recovery Act.


Controller Danny Werfel, addressing a workshop put on by the nonprofit Partnership for Public Service and sponsored by Grant Thornton LLP, clashed with Obama administration colleague Earl Devaney, recently retired as chairman of the Recovery Accountability and Transparency Board, over whether new legislation is needed to advance their shared goals of improving transparency and accountability in agency spending.

The legislation known as the DATA Act (H.R. 2146), which is pending in the Senate, would impose a universal reporting requirement for recipients of federal grants, loans and contracts. It would require all agencies to use the same formats to publicly share their internal and external obligations and expenditures. A five-member Federal Accountability and Spending Transparency Commission would oversee the measure’s implementation.

Its components were heavily influenced by the online reporting and data consistency tools the Recovery Board pioneered during the financial crisis, and Devaney calls himself the DATA Act’s biggest fan.

-Charles S. Clark, GovExec.com
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GAO: Work needed to correct errors in TARP financial statements

The Government Accountability Office says it's found some sloppy accounting in the way Treasury is handling the Troubled Asset Relief Program, or TARP. The GAO calls the mistakes in financial reporting "significant" but not "material."


In the report, GAO said the Office of Financial Stability, the Treasury agency which implements TARP, improved its review and approval process for preparing its financial statements, but work still needs to be done to identify errors in draft documents.

The control weaknesses on the part of OFS did not signal a real loss of money, rather they exposed a risk of potential misstatements of the amounts reported in the financial statements.
-Michael O'Connell, FederalNewsRadio.com
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Recovery Board testing accountability tools in the cloud

WILLIAMSBURG, Va.-- The Recovery Accountability and Transparency Board had so much success moving Recovery.gov to the cloud, it is looking there again to give agencies a new set of accountability tools.

Shawn Kingsberry, the board's chief information officer and assistant director for technology, said about four agencies are testing a new suite of data-analysis software to ensure Recovery Act funds are not being subject to waste, fraud or abuse.

The Recovery Board is working with several agencies to test out these accountability tools in the cloud. The tools include data-analysis software that can detect data anomalies on contracts, grants and loans issued with stimulus funding.

-Jason Miller, FederalNewsRadio.com
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Effort to require online governmentwide spending reports advances on the Hill

Congressional supporters of a plan to pull all federal spending reports onto one uniform, searchable database believe they've put together a package of cost savings to offset the legislation's more than $500 million price tag, Rep. Darrell Issa, R-Calif., said Thursday.




Issa would not reveal what's included in the offset package, saying he wanted to get the details hammered down first.

The Digital Accountability and Transparency Act, which Issa sponsored in the House, essentially would take processes developed by the Recovery Accountability and Transparency Board, which tracks and reports on spending on the $787 billion stimulus bill, and apply them to all government spending.

Supporters say the database will save billions of dollars by making it more difficult for contractors and others to defraud the government, by lowering information technology costs and by reducing errors in transferring spending data between different systems.

The Transparency Caucus also is pushing legislation to expand whistleblower protections to members of the federal intelligence community and to prohibit agency inspector generals' offices being left vacant or filled by an acting IG, Issa and Transparency Caucus co-chairman Rep. Mike Quigley, D-Ill., said.


-Joseph Marks, NextGov.com
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Today's GAO Publications

The Government Accountability Office (GAO) today released the following testimonies:


Budget Process: Enforcing Fiscal Choices, by Susan J. Irving, director for federal budget analysis, strategic issues, before the Senate Committee on Finance.
GAO-11-626T, May 4.
http://www.gao.gov/products/GAO-11-626T

Recovery Act: Use of Transportation Funds, Outcomes, and Lessons Learned, by Phillip R. Herr, director, physical infrastructure, before the House Committee on Transportation and Infrastructure.
GAO-11-610T, May 4.
http://www.gao.gov/products/GAO-11-610T
Highlights - http://www.gao.gov/highlights/d11610thigh.pdf

Recovery Act: Preliminary Observations on the Use of Funds for Clean and Drinking Water Projects, by David C. Trimble, acting director, natural resources and environment, before the House Committee on Transportation and Infrastructure.
GAO-11-642T, May 4.
http://www.gao.gov/products/GAO-11-642T
Highlights - http://www.gao.gov/highlights/d11642thigh.pdf

OMB redefines federal financial health

Now armed with a newly signed Improper Payments Law, Office of Management and Budget controller Danny Werfel said it's time to re-think improper payments as "a key indicator of the health of federal financial management in the government today."


He told the gathering of federal, state, and local financial managers even though he understands the importance of audits as a tool of financial management in government, he is now also mindful of the shifting public perception of government spending. At the Association of Government Accountants, on the second day of their Internal Control and Fraud Conference Thursday, he suggested the issue of improper payments means more to citizens than the holy grail of the clean audit opinion.

Werfel used his AGA talk to offer some of the most current thinking on the topic of fraud and improper payments to come from OMB since Congress passed, and the President signed, a new Improper Payments bill into law within the last several months.


For one thing, he said his office is mulling over guidance on the issue of single audits, and was asked when it might be forthcoming.

Werfel also talked about the genesis of the new Improper Payments Law, and how it combined the best of the old Improper Payments Act of 2002, and the Recovery Audit Act. He said the new law reflects some lessons learned, the first being the need for partnerships between the federal, states and local auditing communities.


Werfel said it's important that financial officials understand the need to make adjustments when rules for good financial accountability and fraud avoidance become an unfair hurdle to citizens.


Finally, Werfel told his AGA audience that he's very excited about the possibilities surrounding a recently-unveiled fraud detection tool developed by the Recovery, Accountability and Transparency Board, which tracks the economic stimulus program.

Responding to a question, Werfel said that as the Recovery Board fraud tool is further developed and refined, OMB will work with the state and local auditing community about the possibility of sharing it.


-Max Cacas, FederalNewsRadio.com
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Recent GAO Publications

The Government Accountability Office (GAO) recently released the following publications:

Briefing on the Results of GAO's Audit of the Fiscal Years 2009 and 2008 U.S. Government's Consolidated Financial Statements.
GAO-10-502R, March 22.
http://www.gao.gov/cgi-bin/getrpt?GAO-10-502R

U.S. Insular Areas: Opportunities Exist to Improve Interior's Grant Oversight and Reduce the Potential for Mismanagement.
GAO-10-347, March 16.
http://www.gao.gov/cgi-bin/getrpt?GAO-10-347
Highlights - http://www.gao.gov/highlights/d10347high.pdf

Electronic Government: Implementation of the Federal Funding Accountability and Transparency Act of 2006.
GAO-10-365, March 12.
http://www.gao.gov/cgi-bin/getrpt?GAO-10-365
Highlights - http://www.gao.gov/highlights/d10365high.pdf

Recovery Act: California's Use of Funds and Efforts to Ensure Accountability, by Linda Calbom, western regional director, before the House Committee on Oversight and Government Reform, in Los Angeles, California.
GAO-10-467T, March 5.
http://www.gao.gov/cgi-bin/getrpt?GAO-10-467T
Highlights - http://www.gao.gov/highlights/d10467thigh.pdf

Recovery Act: Factors Affecting the Department of Energy's Program Implementation, by Patricia Dalton, managing director, natural resources and environment, before the Senate Committee on Energy and Natural Resources.
GAO-10-497T, March 4.
http://www.gao.gov/cgi-bin/getrpt?GAO-10-497T
Highlights - http://www.gao.gov/highlights/d10497thigh.pdf

Recovery Act: One Year Later, States' and Localities' Uses of Funds and Opportunities to Strengthen Accountability.
GAO-10-437, March 3.
http://www.gao.gov/cgi-bin/getrpt?GAO-10-437
Highlights - http://www.gao.gov/highlights/d10437high.pdf

The Federal Government's Long-Term Fiscal Outlook: January 2010 Update.
GAO-10-468SP, March 2.
http://www.gao.gov/cgi-bin/getrpt?GAO-10-468SP

State and Local Governments' Fiscal Outlook: March 2010 Update.
GAO-10-358, March 2.
http://www.gao.gov/cgi-bin/getrpt?GAO-10-358
Highlights - http://www.gao.gov/highlights/d10358high.pdf

Financial Audit: American Battle Monuments Commission's Financial Statements for Fiscal Years 2009 and 2008.
GAO-10-399, March 1.
http://www.gao.gov/cgi-bin/getrpt?GAO-10-399
Highlights - http://www.gao.gov/highlights/d10399high.pdf

Status of the Small Business Administration's Implementation of Administrative Provisions in the American Recovery and Reinvestment Act.
GAO-10-298R, January 19.
http://www.gao.gov/cgi-bin/getrpt?GAO-10-298R

"Maximizing DOD's Potential to Face New Fiscal Challenges and Strengthen Interagency Partnerships," by Gene L. Dodaro, acting comptroller general of the United States, before the National Defense University, Washington, D.C.
GAO-10-359CG, January 6, 2010.
http://www.gao.gov/cghome/d10359cg.pdf

Coast Guard: Observations on the Requested Fiscal Year 2011 Budget, Past Performance, and Current Challenges, by Stephen Caldwell, Director, Homeland Security and Justice Issues, before the Subcommittee on Coast Guard and Maritime Transportation, House Committee on Transportation and Infrastructure.
GAO-10-411T, February 25.
http://www.gao.gov/cgi-bin/getrpt?GAO-10-411T
Highlights - http://www.gao.gov/highlights/d10411thigh.pdf

Troubled Asset Relief Program: Treasury Needs to Strengthen Its Decision-Making Process on the Term Asset-Backed Securities Loan Facility.
GAO-10-25, February 5.
http://www.gao.gov/cgi-bin/getrpt?GAO-10-25
Highlights - http://www.gao.gov/highlights/d1025high.pdf

NASA: Key Management and Program Challenges, by Cristina Chaplain, director, acquisition and sourcing management, before the Subcommittee on Space and Aeronautics, House Committee on Science and Technology.
GAO-10-387T, February 3.
http://www.gao.gov/cgi-bin/getrpt?GAO-10-387T
Highlights - http://www.gao.gov/highlights/d10387thigh.pdf

Interview with Christine Shafik of DOE: “It is a transformational time”

Christine Shafik is director of the Office of Risk Management for the U.S. Department of Energy. In this role, she is responsible for the oversight of the department’s financial resource planning, as well as the management of the department’s Financial Management Oversight Program. She also plays a vital role in the implementation of an effective internal control program and in the management of the department’s audit resolution and follow-up activities. Finally, Shafik is responsible for providing a corporate financial review and analysis to the CFO of the department.

We had the chance to talk to her about the Recovery Act funds because the Department of Energy received around $40 billion to create more clean-energy jobs, as well as make the country less dependent on foreign oil. We learned how the Department of Energy has gone above and beyond OMB requirements, what forward-looking risk management means, and how Shafik manages an extremely large amount of information on a day-to-day basis.

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Forging New Paths to Improved Government Accountability Headlines Upcoming Government Financial Management Conference

ALEXANDRIA, Va. - (Business Wire) Dynamic speakers will share valuable insights on improving government financial management at the Association of Government Accountants’ (AGA’s) Eighth Annual National Leadership Conference. The conference, set for Feb. 18-19, will be held at the International Trade Center - The Ronald Reagan Building, in Washington, D.C.

The NLC features an impressive line-up of dynamic speakers that will share best practices, leadership secrets, and the knowledge governments need to become more effective. Join us to hear from the top financial management leaders and industry experts discuss fraud prevention, performance management and issues relating to the Recovery Act.

To review information about this conference visit www.agacgfm.org/nlc. If you would like to obtain press credentials to attend this conference, please contact Jennifer I. Curtin, MPA, at 410.430.1785, or at jcurtin@agacgfm.org.

AGA is the premier Association in advancing government accountability. We support the careers and professional development of government financial professionals working in federal, state and local governments as well as the private sector and academia. Founded in 1950, AGA has a long history as a thought leader for the government accountability profession. Through education, research, publications, certification and conferences, AGA promotes transparency and accountability in government. http://www.agacgfm.org/

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Recent GAO Publications

The Government Accountability Office (GAO) recently released the following publications:

Financial Audit: Office of Financial Stability (Troubled Asset Relief Program) Fiscal Year 2009 Financial Statements.
GAO-10-301, December 9.
http://www.gao.gov/cgi-bin/getrpt?GAO-10-301Highlights - http://www.gao.gov/highlights/d10301high.pdf

Recovery Act: States' Use of Highway and Transit Funds and Efforts to Meet the Act's Requirements, by Katherine A. Siggerud, managing director, physical infrastructure issues, before the House Committee on Transportation and Infrastructure.
GAO-10-312T, December 10.
http://www.gao.gov/cgi-bin/getrpt?GAO-10-312T
Highlights - http://www.gao.gov/highlights/d10312thigh.pdf

Smithsonian Institution: Implementation of Governance Reforms Is Progressing, but Work Remains.
GAO-10-190R, December 10.
http://www.gao.gov/cgi-bin/getrpt?GAO-10-190R
Highlights - http://www.gao.gov/highlights/d10190rhigh.pdf

Recovery Act: Status of States' and Localities' Use of Funds and Efforts to Ensure Accountability.
GAO-10-231, December 10.
http://www.gao.gov/cgi-bin/getrpt?GAO-10-231
Highlights - http://www.gao.gov/highlights/d10231high.pdf

Recovery Act: Status of States' and Localities' Use of Funds and Efforts to Ensure Accountability (Appendixes).
GAO-10-232SP, December 10.
http://www.gao.gov/cgi-bin/getrpt?GAO-10-232SP

Troubled Asset Relief Program: The U.S. Government Role as Shareholder in AIG, Citigroup, Chrysler, and General Motors and Preliminary Views on its Investment Management Activities, by Orice Williams Brown, director, financial markets and community investment, and A. Nicole Clowers, acting director, physical infrastructure, before the Subcommittee on Domestic Policy, House Committee on Oversight and Government Reform.
GAO-10-325T, December 16.
http://www.gao.gov/cgi-bin/getrpt?GAO-10-325T
Highlights - http://www.gao.gov/highlights/d10325thigh.pdf

Veterans Health Administration: Inadequate Controls over Miscellaneous Obligations Increase Risk over Procurement Transactions, by Kay L. Daly, director, financial management and assurance, before the Subcommittee on Oversight and Investigations, House Committee on Veterans' Affairs.
GAO-10-307T, December 16.
http://www.gao.gov/cgi-bin/getrpt?GAO-10-307T
Highlights - http://www.gao.gov/highlights/d10307thigh.pdf

Status of GAO Recommendations to the Department of Defense (Fiscal Years 2001-2008).
GAO-10-211R, December 16.http://www.gao.gov/cgi-bin/getrpt?GAO-10-211R

Formula Grants: Funding for the Largest Federal Assistance Programs Is Based on Census-Related Data and Other Factors.
GAO-10-263, December 15.
http://www.gao.gov/cgi-bin/getrpt?GAO-10-263
Highlights - http://www.gao.gov/highlights/d10263high.pdf

Impoundment Control Act: Use and Impact of Rescission Procedures, by Susan A. Poling, managing associate general counsel, office of general counsel, before the Subcommittee on Federal Financial Management, Government Information, Federal Services, and International Security, Senate Committee on Homeland Security and Governmental Affairs.
GAO-10-320T, December 16.
http://www.gao.gov/cgi-bin/getrpt?GAO-10-320T
Highlights - http://www.gao.gov/highlights/d10320thigh.pdf

UN Office for Project Services: Management Reforms Proceeding but Effectiveness Not Assessed, and USAID's Oversight of Grants Has Weaknesses.
GAO-10-168, November 19.
http://www.gao.gov/cgi-bin/getrpt?GAO-10-168
Highlights - http://www.gao.gov/highlights/d10168high.pdf

Recovery Act: Planned Efforts and Challenges in Evaluating Compliance with Maintenance of Effort and Similar Provisions.
GAO-10-247, November 30
http://www.gao.gov/cgi-bin/getrpt?GAO-10-247
Highlights - http://www.gao.gov/highlights/d10247high.pdf

Appropriations Decisions:

B-318499, Department of the Navy--Lunch for Volunteer Focus Group,
November 19, 2009
http://www.gao.gov/decisions/appro/318499.htm

B-318425, Chemical Safety and Hazard Investigation
Board--Interagency Agreement with the General Services
Administration, December 8, 2009
http://www.gao.gov/decisions/appro/318425.htm

Recent GAO Publications

The Government Accountability Office (GAO) recently released the following reports and correspondence:

Information Technology: Actions Needed to Fully Establish Program Management Capability for VA's Financial and Logistics Initiative.
GAO-10-40, October 26.
http://www.gao.gov/cgi-bin/getrpt?GAO-10-40
Highlights - http://www.gao.gov/highlights/d1040high.pdf

Recovery Act: Contract Oversight Activities of the Recovery Accountability and Transparency Board and Observations on Contract Spending in Selected States.
GAO-10-216R, November 30.
http://www.gao.gov/cgi-bin/getrpt?GAO-10-216R

U.S. Government Accountability Office: Performance and Accountability Report, Fiscal Year 2009.
GAO-10-234SP, November 13, 2009
http://www.gao.gov/cgi-bin/getrpt?GAO-10-234SP

Budget Issues: Electronic Processing of Non-IRS Collections Has Increased but Better Understanding of Cost Structure Is Needed.
GAO-10-11, November 20.
http://www.gao.gov/cgi-bin/getrpt?GAO-10-11
Highlights - http://www.gao.gov/highlights/d1011high.pdf

Indian Health Service: Updated Policies and Procedures and Increased Oversight Needed for Billings and Collections from Private Insurers.
GAO-10-42R, October 22.
http://www.gao.gov/cgi-bin/getrpt?GAO-10-42R

Centers for Medicare and Medicaid Services: Deficiencies in Contract Management Internal Control Are Pervasive.
GAO-10-60, October 23.
http://www.gao.gov/cgi-bin/getrpt?GAO-10-60
Highlights - http://www.gao.gov/highlights/d1060high.pdf

Federally Created Entities: An Overview of Key Attributes.
GAO-10-97, October 29.
http://www.gao.gov/cgi-bin/getrpt?GAO-10-97
Highlights - http://www.gao.gov/highlights/d1097high.pdf

Recent GAO Publications

The Government Accountability Office (GAO) recently released the following reports, correspondences and testimonies:

Recovery Act: Recipient Reported Jobs Data Provide Insight into Use of Recovery Act Funding, but Data Quality and Reporting Issues Need Attention.
GAO-10-223, November 19.
http://www.gao.gov/cgi-bin/getrpt?GAO-10-223
Highlights - http://www.gao.gov/highlights/d10223high.pdf

Grant Monitoring: Department of Education Could Improve Its Processes with Greater Focus on Assessing Risks, Acquiring Financial Skills, and Sharing Information.
GAO-10-57, November 19.
http://www.gao.gov/cgi-bin/getrpt?GAO-10-57
Highlights - http://www.gao.gov/highlights/d1057high.pdf

Financial Audit: Securities and Exchange Commission's Financial Statements for Fiscal Years 2009 and 2008.
GAO-10-250, November 16.
http://www.gao.gov/cgi-bin/getrpt?GAO-10-250
Highlights - http://www.gao.gov/highlights/d10250high.pdf

Financial Audit: Federal Housing Finance Agency's Fiscal Year 2009 Financial Statements.
GAO-10-218, November 16.
http://www.gao.gov/cgi-bin/getrpt?GAO-10-218
Highlights - http://www.gao.gov/highlights/d10218high.pdf

Financial Audit: IRS's Fiscal Years 2009 and 2008 Financial Statements.
GAO-10-176, November 10.
http://www.gao.gov/cgi-bin/getrpt?GAO-10-176
Highlights - http://www.gao.gov/highlights/d10176high.pdf

Financial Audit: Bureau of the Public Debt's Fiscal Years 2009 and 2008 Schedules of Federal Debt.
GAO-10-88, November 10.
http://www.gao.gov/cgi-bin/getrpt?GAO-10-88
Highlights - http://www.gao.gov/highlights/d1088high.pdf

U.S. Government Accountability Office: Performance and Accountability Report, Fiscal Year 2009.
GAO-10-234SP, November 13.
http://www.gao.gov/cgi-bin/getrpt?GAO-10-234SP

Department of Veterans Affairs: Improvements Needed in Corrective Action Plans to Remediate Financial Reporting Material Weaknesses.
GAO-10-65, November 16.
http://www.gao.gov/cgi-bin/getrpt?GAO-10-65
Highlights - http://www.gao.gov/highlights/d1065high.pdf

Millennium Challenge Corporation: MCC Has Addressed a Number of Implementation Challenges, but Needs to Improve Financial Controls and Infrastructure Planning.
GAO-10-52, November 6.
http://www.gao.gov/cgi-bin/getrpt?GAO-10-52
Highlights - http://www.gao.gov/highlights/d1052high.pdf

U.S. Postal Service: Financial Challenges Continue, with Relatively Limited Results from Recent Revenue-Generation Efforts, by Phillip Herr, director, physical infrastructure issues, before the Subcommittee on Federal Workforce, Postal Service, and the District of Columbia, House Committee on Oversight and Government Reform.
GAO-10-191T, November 5.
http://www.gao.gov/cgi-bin/getrpt?GAO-10-191T
Highlights - http://www.gao.gov/highlights/d10191thigh.pdf

Troubled Asset Relief Program: Continued Stewardship Needed as Treasury Develops Strategies for Managing and Divesting Financial Interests in Chrysler and GM.
GAO-10-151, November 2.
http://www.gao.gov/cgi-bin/getrpt?GAO-10-151
Highlights - http://www.gao.gov/highlights/d10151high.pdf

Integrity Committee's Process to Address Allegations of Wrongdoing by Inspectors General.
GAO-10-63R, October 15.
http://www.gao.gov/cgi-bin/getrpt?GAO-10-63R

Financial Management Systems: DHS Faces Challenges to Successfully Consolidate Its Existing Disparate Systems, by Kay L. Daly, director, financial management and assurance, and Nabajyoti Barkakati, Chief Technologist, Applied Research and Methods, Center for Technology and Engineering, before the Subcommittee on Management, Investigations, and Oversight, House Committee on Homeland Security.
GAO-10-210T, October 29.
http://www.gao.gov/cgi-bin/getrpt?GAO-10-210T
Highlights - http://www.gao.gov/highlights/d10210thigh.pdf

"Maximizing DOD's Untapped Potential to Improve Business Performance," by Gene L. Dodaro, acting comptroller general of the United States, before the DOD Performance Breakthrough Convention, in Lansdowne, Virginia.
GAO-10-184CG, October 14, 2009.
http://www.gao.gov/cghome/d10184cg.pdf

U.S. Department of Agriculture: Internal Control Would Improve Accountability for Certain Centrally Provided (Greenbook) Programs.
GAO-10-82, October 20.
http://www.gao.gov/cgi-bin/getrpt?GAO-10-82
Highlights - http://www.gao.gov/highlights/d1082high.pdf

U.S. Department of Agriculture: Charges to Agencies and Offices for Centrally Provided (Greenbook) Programs for Fiscal Years 1999 through 2009 (GAO-10-83SP), an E-supplement to GAO-10-82.
GAO-10-83SP, October 20.
http://www.gao.gov/cgi-bin/getrpt?GAO-10-83SP

The Federal Government's Long-Term Fiscal Outlook: Fall 2009 Update.
GAO-10-137SP, October 15.http://www.gao.gov/cgi-bin/getrpt?GAO-10-137SP

Defense Management: Widespread DCAA Audit Problems Leave Billions of Taxpayer Dollars Vulnerable to Fraud, Waste, Abuse, and Mismanagement, by Gregory D. Kutz, managing director, forensic audits and special investigations, before the Defense Acquisition Reform Panel, House Committee on Armed Services.
GAO-10-163T, October 15.
http://www.gao.gov/cgi-bin/getrpt?GAO-10-163T
Highlights - http://www.gao.gov/highlights/d10163thigh.pdf

VA Health Care: Ineffective Medical Center Controls Resulted in Inappropriate Billing and Collection Practices, by Kay L. Daly, director, financial management and assurance, before the Subcommittee on Health, House Committee on Veterans' Affairs.
GAO-10-152T, October 15.
http://www.gao.gov/cgi-bin/getrpt?GAO-10-152T
Highlights - http://www.gao.gov/highlights/d10152thigh.pdf

"Troubled Asset Relief Program: GAO's Oversight Role," by Gene L. Dodaro, acting comptroller general of the United States, before the Federal Deposit Insurance Corporation's accounting and auditing conference, in Arlington, Virginia.
GAO-10-150CG, October 1, 2009
http://www.gao.gov/cghome/d10150cg.pdf

Information Security: Concerted Effort Needed to Improve Federal Performance Measures.
GAO-09-617, September 14.
http://www.gao.gov/cgi-bin/getrpt?GAO-09-617
Highlights - http://www.gao.gov/highlights/d09617high.pdf

Contract Management: Extent of Federal Spending under Cost-Reimbursement Contracts Unclear and Key Controls Not Always Used.
GAO-09-921, September 30.
http://www.gao.gov/cgi-bin/getrpt?GAO-09-921
Highlights - http://www.gao.gov/highlights/d09921high.pdf

Fire Grants: FEMA Has Met Most Requirements for Awarding Fire Grants, but Additional Actions Would Improve Its Grant Process.
GAO-10-64, October 30.
http://www.gao.gov/cgi-bin/getrpt?GAO-10-64
Highlights - http://www.gao.gov/highlights/d1064high.pdf

Improper Payments: Progress Made but Challenges Remain in Estimating and Reducing Improper Payments, by Kay L. Daly, director, financial management and assurance, before the Subcommittee on Federal Financial Management, Government Information, Federal Services, and International Security, Senate Committee on Homeland Security and Governmental Affairs.
GAO-09-628T, April 22, 2009.
http://www.gao.gov/cgi-bin/getrpt?GAO-09-628T
Highlights - http://www.gao.gov/highlights/d09628thigh.pdf

Information Technology: Agencies Need to Improve the Implementation and Use of Earned Value Techniques to Help Manage Major System Acquisitions.
GAO-10-2, October 8.
http://www.gao.gov/cgi-bin/getrpt?GAO-10-2
Highlights - http://www.gao.gov/highlights/d102high.pdf

Recovery Act: Funds Continue to Provide Fiscal Relief to States and Localities, While Accountability and Reporting Challenges Need to Be Fully Addressed.
GAO-09-1016, September 23, 2009.
http://www.gao.gov/cgi-bin/getrpt?GAO-09-1016
Highlights - http://www.gao.gov/highlights/d091016high.pdf

Appropriations Decisions:

B-318426, District of Columbia Courts--Authority to Pay Settlements
and Judgments, November 2, 2009
http://www.gao.gov/decisions/appro/318426.htm

OMB wants better, faster, cheaper financial data

WILLIAMSBURG, Va. - The Obama administration has said little publicly about the assorted back office Lines of Business initiatives started under the Bush administration. Agencies and industry alike were left wondering what the plan was going forward, especially if consolidations with federal shared service providers still would be required.

At least for the financial management line of business, the Office of Management and Budget is offering some clarity.

Adam Goldberg, OMB's chief of the financial analysis and systems branch, says the LOB still is underway as it has been since 2003.

But OMB also has seen some additional potential improvements thanks to the Recovery Act.

"We have started to look at other opportunities where we could deliver financial management reforms probably a little earlier than we would be able to move all the agencies onto a consolidated financial system," says Goldberg at the 19th annual Executive Leadership Conference sponsored by IAC/ACT. "The direction we are going now is to continue with standardization and consolidation efforts and start to look at other solutions to deliver benefits to meet emerging needs like data and transparency reporting."

OMB believes the Recovery Act has shown that obtaining better and more accurate data more quickly is just the beginning.

"We want to look at other technology solutions to reduce the cost of transactions," he says. "We have to find ways to automate data from the time we get money from Congress until the time we spend it."

Goldberg adds that the Recovery Act has expanded who needs access to financial data.

"One of the things we are trying to do is understand how can we accelerate the capture and reporting of information and with Recovery Act and it's not just federal agencies that need to have access to the information to met reporting requirements, but we need to provide it out to state and localities and companies who are receiving monies under the Recovery Act to make sure they are able to fulfill the reporting requirements and make sure the numbers and reporting elements are in alignment with one another," he says.

Goldberg adds that OMB earlier in October issued the final set of standards so now agencies and industry have a complete set of financial management business process standards.

Along with these standards, agencies also received a common governmentwide accounting classification structure in 2008 to complete the updating of the federal financial management standards.

Goldberg says OMB now is leading an effort to make sure the common account classification structure and the business process standards align.

Goldberg adds that over the next six months OMB will finalize all the financial management information to ensure everything is aligned.

Vendor financial management system software providers eventually will have to meet the new standards.

As for the FM LOB, Goldberg says between 12 and 14 agencies have migrated to a shared service provider, including the Office of Personnel Management most recently.

-Jason Miller, WFED
READ MORE and LISTEN HERE

Better than the Heisman

Tuesday, October 13th, 2009 at 8:07 pm
Peter R. Orszag, Director OMB

Tonight, the Senate confirmed Danny Werfel as Controller, Office of Federal Financial Management (OFFM). This is great news for OMB, as Danny brings broad experience and financial acumen to the table. His skills will be tested, as there are serious challenges facing the federal government to improve transparency and drive better results for the American people.

I’ve written before about Danny’s essential role in implementing the President’s ambitious agenda through the transition as Acting Controller, and particularly his work in implementing — with unprecedented accountability and openness — the American Recovery and Reinvestment Act.

I look forward to his leadership in furthering President’s agenda and in our work going forward; he is, as he has been, vital to what we do.

I thank his wife, Beth, and their children, Sean and Molly, for sharing Danny with us. I join everyone at OMB in congratulating Danny and his family on his confirmation.

P.S. A point of clarification: OMB’s Danny Werfel is not to be confused with Danny Wuerffel, who won the 1996 Heisman trophy as quarterback at the University of Florida, last seen in Washington as a member of the ‘Skins in 2002.

PUBLISHERS NOTE: Congratulations, Danny - Well Deserved!!!
Are you sure you don't want to play QB on the weekends, as well?

OMB Memo: Fiscal Year 2009 Audited Financial Statement Reporting Deadline

M-10-04

The Federal financial management community plays a central role in providing transparency into the Government’s finances and initiating sound processes and controls that limit spending improprieties and other forms of error and waste. With the enactment of both the Emergency Economic Stabilization Act of 2008 (EESA) and the American Recovery and Reinvestment Act of 2009 (ARRA), this role has never been more critical. The success of these programs hinge, in large measure, on the ability to accurately account for economic recovery funds, report timely and reliable information on these funds to the public, and closely scrutinize transactions so that Federal funds are spent appropriately.

In addition to these efforts, Federal financial professionals, including auditors, currently are engaged in year-end activities to finalize and publish the annual financial statements of the Government. Audited financial statements are important for communicating the financial position and fiscal health of Federal agencies. The process of preparing the financial statements and having them audited requires significant planning, technical expertise, and hard work. While the statutory deadline for agency year-end financial statements is five months after the end of the fiscal year, Federal agencies and auditors, to their credit, have completed this process within 45 days after the end of the fiscal year for each of the last four years.

It is my expectation that Federal agencies will continue to meet this accelerated timetable, and I hereby request that Federal agencies treat 45 days after the end of the fiscal year as a deadline for submitting year-end financial statements. However, I also want to urge Federal agencies to evaluate whether resources are appropriately aligned to support diligence and thoroughness in the completion of year-end audited financial statements as well as the ongoing critical financial management and audit activities related to effective implementation of economic recovery programs. In making this determination, Federal agencies should collaborate closely with their Office of Inspector General. If you believe there is a risk that your agency cannot align these resources effectively within the time constraints of this accelerated deadline, I am requesting that you consult with the Office of Management and Budget (OMB) on whether an extension of the reporting deadline for audited financial statements will help to remediate this risk.