The DATA Act Legislative Branch Implications

“ “The DATA Act is about to shake up federal operations.” --- Joseph Marks, NextGov, 4/28/14

DATA’s Purpose = Accurate, Complete, Useful Governmentwide Spending Data  Governmentwide Data Standards: Establish Government- wide data standards for financial data  Full Disclosure of Federal Funds: Disclose direct Federal agency expenditures and link Federal contract, loan, and grant spending information to Federal agency programs;  Simple Recipient Reporting: Streamline and consolidate reporting for entities receiving Federal funds  Data Analytics: Apply approaches developed by the Recovery Accountability and Transparency Board to spending across the Federal Government, both for IG functions and program functions.

Genesis of DATA Act  FFATA: In 2006, the Federal Funding Accountability and Transparency Act created USASpending.gov and directed agencies to report information on the award of taxpayer dollars, and recipients to report information on subawards.  Public Interest Groups: Data quality problems highlighted by Sunlight Foundation’s Clearspending reports and other groups led to calls for action to improve FFATA.  Recovery Board: Successful implementation of American Recovery and Reinvestment Act transparency measures provided model for federal spending transparency reform.  GAO Reports: Government Accountability Office (GAO) has identified federal agencies’ inability to provide program-by-program spending information as a major contributor to waste, duplication and fragmentation.

Legislative History  Digital Accountability and Transparency Act (DATA Act) first introduced in the House and Senate in 2011 by Rep. Darrell Issa (R-CA) and Senator Mark Warner (D-VA), and cosponsored by Rep. Elijah Cummings (D-MD) and Senator Rob Portman (R-OH)  Final version (S. 994) moved in the Senate on April 10, 2014 as a House/Senate compromise.  House adopted it on April 28 th  President signed it on May 9, 2014  DATA is Public Law No

Governmentwide Data Standards  Established by Secretary of the Treasury and Director of OMB.  Common data elements, such as those developed and maintained by an international voluntary consensus standards body, federal agencies, and accounting standards organizations;  Machine readable, nonproprietary, searchable, and platform independent;  Unique identifiers for Federal awards and recipients, applicable governmentwide;  Consistent with and implement applicable accounting principles and Capable of being continually upgraded as necessary;  Produce consistent and comparable data, including across program activities; and establish a standard method of conveying the reporting period, reporting entity, unit of measure, and other associated attributes.

Full Disclosure of Federal Funds  By Appropriations Account agencies will report  the amount of budget authority appropriated  the amount obligated  unobligated balances  any other budgetary resources  the appropriations made for each object class (codes for the nature of services provided or received)  the outlays made for each object class  By Program Activity agencies will report  from which accounts and in what amount appropriations are obligated  from which accounts and in what amounts outlays are made.  the amount obligated for each object class  the outlays made for each object class

Simple Recipient Reporting  DATA establishes a 2-year pilot program, run by OMB or a designee, to test consolidation of recipient reporting.  Consolidated/streamlined reporting can save states, localities, universities and other recipients of federal funds money by reducing overhead.  At the end of the 2-year pilot, OMB is required to apply the data standards developed under DATA in a way that reduces compliance burden, simplifies the reporting process, and reduces duplicative reports.

Data Analysis Center  Secretary of the Treasury can establish a data analysis center, modeled on the Recovery Operations Center of the Recovery Board, to assist agencies and inspectors general with analytics.  Importantly, the center will be able to enter into MOUs to assist IGs and other law enforcement in the conduct of criminal and other investigations.  Recovery Operations Center assets transfer to Treasury.

Implementation Timeline  May 2014: Enacted.  May 2015:  Treasury and OMB issue data standards.  OMB begins recipient reporting pilot program  May 2017:  Federal agencies required to report using new standards (2 years after guidance on standards is issued)  Treasury and OMB required to ensure spending information published at least quarterly- ideally monthly  USASpending.gov data required to adhere to data standards.  Recipient reporting pilot program ends, OMB submits report to Congress.  May 2018  OMB issues guidance to agencies on application of data standards to recipient reports.

DOD Temporary Delay  Upon request by the Secretary of Defense, OMB may grant an extension of the May 2016 reporting deadline to the Department of Defense for a period of not more than 6 months to report financial and payment information data in accordance with new data standards.  OMB may not grant more than 3 extensions to the Secretary of Defense.  OMB has to inform the relevant Congressional Committees in writing of the reasons for each extension.  This accommodation was requested by Senate Armed Services Committee, under the auspices of not disrupting DOD’s efforts to meet their statutory goal to become audit-ready by 2017.

Legislative Implications of DATA  The reports required by DATA will give Congress more complete, thorough, accurate and timely information about how agencies actually spend the taxpayer money Congress authorize and appropriate.  The new spending information will impact budget writing, appropriation, authorizing, and oversight.  By supplying the appropriation information in standardized data, we can complete the “lifecycle of federal spending information” envisioned by reformers in both the executive and legislative branch.

Federal Spending Information “Life-Cycle” 13 Appropriation Apportionment Allotment (Allocation) Commitment Obligation Payment 360 Spending Life Cycle DATA Act FFATA (USAspending.gov) Award Receipts/ Financing