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

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

3. TRANSPARENCY IN GOVERNMENT

4. 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

5. 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”

6. Source: OMB Presentation at FSS 2016
DATA ACT OVERVIEW
In May 2014, Public Law 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
Source: OMB Presentation at FSS 2016

7. 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
Allow state and local governments to target resources for maximum impact
Reduce burden for recipient reporting

8. Spending transparency goals
Get the data: collect data from across government in a standard format
Display the data: develop a new website that will provide the data to the public in clear, consistent manner
Use the data: provide access to the data that meets the users needs

9. USASPENDING.gov – a WORK IN PROCESS

10. Federal spending in Arizona

11. Federal spending in Arizona

12. DATA ACT TIMELINE AND IMPLICATIONS
No new data required
Enable commercial data products
Data reported differently
Automated grant reporting
Opportunity to reduce reporting burden
Enhance government spending transparency
No additional funding
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

13. 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:
Link the financial and award data.

14. 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????

15. 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 , 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.

16. Section 5 Grants Pilot Framework
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 (
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. .
Section 5 Pilot Goals
Standardize reporting elements.
Eliminate unnecessary duplication.
Reduce compliance costs for Federal award recipients.

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

18. 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.
Source: OMB/HHS Presentation at FSS 2016

19. OPPORTUNITIES FOR PARTICIPATION & SOURCES OF INFORMATION
Send inquiries and feedback to
Join the National Dialogue at
Visit the CDER Library at
Access Learn Grants – (GIG)
Visit the DAP Website at
For more information on the DATA Act, visit
Source: OMB/HHS Presentation at FSS 2016

21. Transparency into federal spending is great…. but WHAT ABOUT THE STATES???

22. States seek same benefits from data

23. 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:
Comprehensive – user-friendly portal to provide residents the ability to search government contracts, spending, subsidies and tax expenditures
One-Stop – search all government expenditures on single website
One-Click -- searchable and downloadable so that residents can search data, browse categories and sort by recipient, amount, legislative district, granting agency or keyword
Source: the Money

24. U.S. Pirg – grading of the states

25. Arizona is an “B -- Advancing” State
Grade
# of States
A – Leading 14
B – Advancing 18
C – Middling 13
D – Lagging 2
F – Failing 3
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
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
Source: the Money

27. Example of data for analysis . . .

28. What state gets the highest grade?
Ohio is setting a new national transparency standard with OhioCheckbook.com
Initiated by Ohio Treasurer Josh Mandel in 2011
Cutting edge website propelled Ohio from 46th in the country in government spending transparency to 1st* among the 50 states *According to the U.S. Public Interest Research Group
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

29. TREASURER’S TRANSPARENCY PROJECT -- OhioTreasurer.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 = $473B
130 M spending transactions
4.5B pieces of spending data
December 2014 launched the OhioCheckbook.com

32. Data -- Improving public understanding of government Citizen-Centric Reporting (CCR)

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

34. CITIZEN-CENTRIC REPORTING (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

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

36. CCR: PAGE 2 Key service areas
Key service and activity performance |
Key service areas
Progress toward strategic goals or deliverables
Demonstrate accomplishments
(2-4 years) for non-
financial outcomes

37. CCR: PAGE 3 Revenue and cost data for major delivery areas
Revenues and Expenditures|
Revenue and cost data for major delivery areas
Well-labeled charts, graphs and tables
Reference audit conducted
Provide URL for more- detailed financial information

38. CCR: PAGE 4 Include items with future impact, such as:
Future Challenges and Economic Outlook|
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

39. Human Capital Crisis

40. People – our most important asset

41. Human Capital – PDT2015 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, retaining, retiring
Pending “silver Tsunami”
Unfunded training programs
Spotty knowledge capture from retirees

42. 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

43. THE FEDERAL “SILVER TSUNAMI”

45. 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

46. 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 and “call to action” that is needed across the community
Working with agency leaders to recruit as “a whole” vs individual agencies

49. CHECK US OUT AND CONNECT!
@AGACGFM
LINK WITH AGA
US!
Check us out at

50. ANY QUESTIONS……???