Issues and Challenges in Government Accountability Ann Ebberts

Issues and Challenges in Government Accountability Ann Ebberts, CEO AGA April 20, 2016 1 www. agacgfm. org

AGENDA § § Transparency Driven by Legislation State Transparency Improving Public Understanding of Government Human Capital 2

TRANSPARENCY IN GOVERNMENT 3

TRANSPARENT AND TRANSPARENCY -- DEFINED • • Able to be seen through Easy to notice or understand Honest and open – not secretive Simple, clear, easy to understand Bottom line -- An honest way of doing things that allows other people to know exactly what you are doing 4

SPENDING TRANSPARENCY • Federal Financial Accountability and Transparency Act – established USASpending. gov in 2006 • Publish data for contracts, grants, other financial assistance • Digital Accountability and Transparency Act (DATA Act) passed in 2014 “…viewed as the most transformative legislation since the CFO Act of 1990” 5

DATA ACT OVERVIEW In May 2014, Public Law 113101 Digital Accountability and Transparency Act of 2014 (DATA Act) was signed into law with the purpose to establish government-wide financial data standards and increase the availability, accuracy, and usefulness of federal spending information. Establish Government-Wide Data Standards Simplify Reporting Improve Quality of Data 6 Source: OMB Presentation at FSS 2016

DATA ACT OBJECTIVES • Increase spending transparency for the public • Improve the quality and completeness of the spending data • Use the data to improve internal management of the federal government ü Allow state and local governments to target resources for maximum impact ü Reduce burden for recipient reporting 7

SPENDING TRANSPARENCY GOALS üGet the data: collect data from across government in a standard format üDisplay the data: develop a new website that will provide the data to the public in clear, consistent manner üUse the data: provide access to the data that meets the users needs 8

USASPENDING. GOV – A WORK IN PROCESS 9

FEDERAL SPENDING IN ARIZONA 10

FEDERAL SPENDING IN ARIZONA 11

DATA ACT TIMELINE AND IMPLICATIONS www. agacgfm. org/datahub § § No new data required § Enable commercial data Data reported differently products Automated grant reporting § Opportunity to reduce reporting burden Enhance government § No additional funding spending transparency Government-wide data standards identified/defined MAY 2015 Pilots MAY 2015 — MAY 2017 All agencies report under the standards MAY 2017 Guidance on applicability to recipients NOVEMBER 2018 12

DATA ACT REQUIREMENTS • Expanded data reporting on USAspending. gov for agency expenditures (initially 57 data elements): Appropriations Account: • Budget authority appropriated • Obligation • Outlay • Unobligated balance • Other budgetary resources Program Activity & Object Class: • Obligation • Outlay • Link the financial and award data. 13

WHO WILL USE THE DATA? • • Federal executives and program managers Federal CFOs State and local policy-makers and managers Private entrepreneurs Academics/ researchers General public Oversight entities How will YOU use the data? ? 14

Section 5 Pilot Requirements The goal of the Pilot is to implement Section 5 of the Digital Accountability and Transparency Act (DATA Act) of 2014, Pub. L. No. 113 -101, which requires the Federal Government to, “ establish a pilot program with the participation of appropriate Federal agencies to facilitate the development of recommendations for – (A) standardized reporting elements across the Federal government (§ 5(b)(1)(A)); (B) the elimination of unnecessary duplication in financial reporting (§ 5(b)(1)(B)); (C) the reduction of compliance costs for recipients of Federal awards (§ 5(b)(1)(C)). ” The Office of Management and Budget (OMB) has engaged HHS to serve as the executing agent for the Section 5 Grants Pilot. 15

Section 5 Grants Pilot – Approach & Framework DAP created the Section 5 Grants Pilot Framework, which takes a holistic approach to meeting the Section 5 Pilot Goals by: Section 5 Grants Pilot Framework • Collecting feedback through the National Dialogue (https: //cxo. dialogue 2. cao. gov/). • Analyzing data centric forms. • Testing models like the CDER Library, Consolidated FFR, Single Audit, NOA – POC, Learn Grants, and other models as appropriate. • Each component of the Framework interacts with and informs the others. • Time frames associated with each test model will align with legislative requirements to execute the Pilot by May 2017, and support OMB’s report due to Congress by August 2017. ü ü ü Section 5 Pilot Goals Standardize reporting elements. Eliminate unnecessary duplication. Reduce compliance costs for Federal award recipients. 16

Section 5 Grants Pilot Update DAP has conducted a Town Hall, a series of Subject Matter Expert (SME) meetings, and a Pretest Meeting to inform the development of the Section 5 Grants Pilot test models. Groups represented included: FDP, AGA, NGMA, DTC, ACT-IAC, NCURA May 2015 September 23 November 20 2015 May 2016 January 2016 Pilot Activities Begin OMB Concurs on Test Models Federal Register Notice Published* Section 5 Grants Pilot Town Hall May 2017 August 2017 Pilot Data Collection Ends Submit Report to Congress 2017 Design Effectiveness Pretest Meeting Select Pilot Participants Begin Collection of Pilot Data Paperwork Reduction Act (PRA) Review* November 2 Present time *The Federal Register Notice is a component of the PRA Review. Early Spring Upcoming Conferences NGMA (Arlington, VA) – March AGA (Anaheim, CA) – July NCURA (Washington, DC) – August 17

CONSOLIDATED FEDERAL FINANCIAL REPORTING (FFR) The Consolidated FFR test model will identify reductions in burden for both grantees and the Federal Government. The Consolidated FFR will allow grantees to submit the FFR form in one system, rather than in multiple entry systems. This will allow for a single point of data entry, earlier validation of FFR data, and a potential future streamlining of the close-out process. Standard data elements Duplicative reporting reduction Reduction in recipient burden Test: Provide grantees with one portal through which they can submit the entire FFR and identify potential changes from the time it takes to complete and submit the FFR in two separate portals. 18 Source: OMB/HHS Presentation at FSS 2016

OPPORTUNITIES FOR PARTICIPATION & SOURCES OF INFORMATION Send inquiries and feedback to DATAAct. PMO@hhs. gov. Access Learn Grants – (GIG) http: //www. grants. gov/web/grants/l earn-grants. html. Join the National Dialogue at https: //cxo. dialogue 2. cao. gov. Visit the CDER Library at https: //repository. usaspending. gov/ poc-tool/. Visit the DAP Website at http: //www. hhs. gov/dataactpmo. For more information on the DATA Act, visit https: //www. usaspending. gov/Page s/Data-Act. aspx. 19 Source: OMB/HHS Presentation at FSS 2016

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TRANSPARENCY INTO FEDERAL SPENDING IS GREAT…. BUT WHAT ABOUT THE STATES? ? ? 21

STATES SEEK SAME BENEFITS FROM DATA 22

U. S. PUBLIC INTEREST RESEARCH GROUP (U. S. PIRG) “RATES THE STATES” • U. S. PIRG Education Fund published “Following the Money 2015” providing data transparency ratings for our 50 states • 2015 marked the sixth year of the review, using A-F grades to rate the states • U. S. PIRG stated that transparency websites should be: ü Comprehensive – user-friendly portal to provide residents the ability to search government contracts, spending, subsidies and tax expenditures ü One-Stop – search all government expenditures on single website ü One-Click -- searchable and downloadable so that residents can search data, browse categories and sort by recipient, amount, legislative district, granting agency or keyword 23 Source: www. uspirg. org/sites/pirg/files/reports/Following the Money 2015. . .

U. S. PIRG – GRADING OF THE STATES 24

ARIZONA IS AN “B -- ADVANCING” STATE • Arizona: a grade of “B” (score 84) for 2015 • Improving in several areas over 2014: • Has a checkbook searchable by recipient, keyword and agency • Can download all or parts of check book for analysis • Citizens can find payments through easy to use search features AND conduct offline analysis Grade A – Leading # of States 14 B – Advancing 18 C – Middling 13 D – Lagging 2 F – Failing 3 • List below of the subsidy programs assessed and criteria that was fulfilled, i. e. checkbook-level and projected public benefits for: • Arizona Jobs Training Program • Arizona Competes Fund 25 Source: www. uspirg. org/sites/pirg/files/reports/Following the Money 2015. . .

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EXAMPLE OF DATA FOR ANALYSIS. . . 27

WHAT STATE GETS THE HIGHEST GRADE? • Ohio is setting a new national transparency standard with Ohio. Checkbook. com • Initiated by Ohio Treasurer Josh Mandel in 2011 • Cutting edge website propelled Ohio from in the country st* in government spending transparency to 1 among the 50 states *According to the U. S. Public Interest Research Group th 46 Features: • “Google-Style” search capabilities • Interactive charts and graphs allow users to drill down on state spending like never before • Compare and share with full social media integration 28

TREASURER’S TRANSPARENCY PROJECT -Ohio. Treasurer. gov • Started by posting all state employee and teacher salaries online in a searchable database for the first time in Ohio government history • 8 yrs of spending = $473 B • 130 M spending transactions • 4. 5 B pieces of spending data • December 2014 launched the Ohio. Checkbook. com 29

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DATA -- IMPROVING PUBLIC UNDERSTANDING OF GOVERNMENT Citizen-Centric Reporting (CCR) 32

CITIZEN-CENTRIC REPORTING (CCR) Fostering innovative means of communication between governments and their citizenry | www. agacgfm. org/ccr “Giving the citizens numbers they can understand. ” -Governing “A government’s obligation to the people for its actions and use of resources” -AGA’s definition of accountability . . . Access to spending data is the first step. The CCR provides the next logical step to informing our citizens. 33

CITIZEN-CENTRIC REPORTING (CCR) www. agacgfm. org/ccr Objective: Foster an innovative means of communication between governments and their citizenry; providing a condensed view of government financial and program performance in clear, non technical language § Short — 4 pages § Understandable, easy to read § Colorful — use pictures and graphics § Multi-year presentation to demonstrate improvement and/or challenges in achieving goals 34

CCR: PAGE 1 High-level information about agency/organization | www. agacgfm. org/ccr § Vision Statement § Strategic goals § Basic demographics § Table of Contents 35

CCR: PAGE 2 Key service and activity performance | www. agacgfm. org/ccr § Key service areas § Progress toward strategic goals or deliverables § Demonstrate accomplishments (2 -4 years) for nonfinancial outcomes 36

CCR: PAGE 3 Revenues and Expenditures| www. agacgfm. org/ccr § Revenue and cost data for major delivery areas § Well-labeled charts, graphs and tables § Reference audit conducted § Provide URL for moredetailed financial information 37

CCR: PAGE 4 Future Challenges and Economic Outlook| www. agacgfm. org/ccr Include items with future impact, such as: § Economic changes § Tax cuts or increases § Unemployment § Education § Environmental aspects § Ask for feedback by including a contact name and contact information 38

HUMAN CAPITAL CRISIS 39

PEOPLE – OUR MOST IMPORTANT ASSET 40

HUMAN CAPITAL – PDT 2015 EXECUTIVE SESSION More than 120 executives, representing all levels of government as well as academia -- gathered to discuss our workforce: § Issues for the human capital lifecycle – attracting, hiring, training, retiring § Pending “silver Tsunami” § Unfunded training programs § Spotty knowledge capture from retirees 41

AGREEMENT WAS REACHED § Human Capital challenge is pervasive at the federal, state and local levels § Government accounting/FM classes are scarce at the university/college level § FM professionals of the today/future need broader set of skills – critical thinking, cross functional collaboration, analytics, information technology § Need for communication to college students about rewarding careers in public service 42

THE FEDERAL “SILVER TSUNAMI” 43

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OPPORTUNITIES FOR THE FM COMMUNITY § Identify, document and share best practices § Identify key skillsets needed for today’s work as well as what is planned for the future § § critical thinking, cross functional collaboration, analytics, information technology hire new staff or train current staff? § Develop mentoring programs § Coordinate across programs to hire the best candidates § Reach out to college students about rewarding careers in public service 45

SO……. WHAT IS AGA DOING ABOUT THE ISSUE? § AGA established a Higher Education task force, with outreach to AGA members who teach, adjunct professors and to “sister” accounting organizations § Petitioning AICPA to add governmental accounting questions to CPA exam § Delivering presentations to Beta Alpha Psi chapters about careers in public service and benefits of CGFM § Discussing with university professors and administrators the demand from federal, state and local governments § Establishing a new “job board” on AGA website to promote job opportunities § Coordinating with NASACT, AICPA, AAA, IIA and others to highlight the demand “call to action” that is needed across the community § Working with agency leaders to recruit as “a whole” vs individual agencies 46

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CHECK US OUT AND CONNECT! @AGACGFM LINK WITH AGA 703 -684 -6931 EMAIL US! • Check us out at WWW. AGACGFM. ORG • aebberts@agacgfm. org 49

ANY QUESTIONS……? ? ? 50