1 / 17

Accountability & Transparency in the TARP & ARRA: GAO’s Role

Accountability & Transparency in the TARP & ARRA: GAO’s Role. Susan Offutt Chief Economist 15 October 2009 Society of Government Economists. Types of supreme audit institutions. Napoleonic Westminster Board. Audit responsibilities.

bien
Download Presentation

Accountability & Transparency in the TARP & ARRA: GAO’s Role

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript


  1. Accountability & Transparency in the TARP & ARRA: GAO’s Role Susan Offutt Chief Economist 15 October 2009 Society of Government Economists

  2. Types of supreme audit institutions • Napoleonic • Westminster • Board

  3. Audit responsibilities • Financial audits assess accuracy and fairness of financial statements • Compliance audits review gov’t taxing and spending for conformance with law • Performance audits aim to establish whether taxpayers have gotten what they paid for

  4. Performance audits • Performance measurement entails regular assessment of progress made toward goals • Program evaluation judges effectiveness of a program • Process or implementation • Outcome • Impact • Cost-benefit

  5. American Recovery & Reinvestment Act • Signed February 17, 2009 • Total cost (tax and spending): $787 billion • Purposes • Preserve and create jobs and promote recovery • Assist those most impacted by recession • Invest in science and health care technology • Invest in infrastructure • Stabilize state and local gov’t budgets

  6. GAO responsibilities under the Recovery Act • Conducting bimonthly reviews of selected states’ and localities’ use of funds • Commenting on recipient reports on the numbers of jobs created or preserved • Reviewing areas such as trade adjustment assistance, new education incentive grants, and efforts to increase small business lending • Monitoring downturn’s long term effect on states (primarily in change in health care costs)

  7. State & local reporting for bimonthly reviews • Longitudinal study of 16 states and DC • Represents about 2/3rds of US population and 2/3rds of intergovernmental assistance funds • Localities sampled within selected states • Describe use of funds • Assess up-front safeguards and ongoing monitoring, audits, and evaluations • Review plans to evaluate impact of funds

  8. American Recovery & Reinvestment Act • Arizona • California • Colorado • Florida • Georgia • Illinois • Iowa • Massachusetts • Michigan • Mississippi • New Jersey • New York • North Carolina • Ohio • Pennsylvania • Texas • Washington, D.C.

  9. Programs in GAO Review: 87% of estimated Fiscal Year 2009 Recovery Act Outlays to States and Localities Source: GAO analysis of data from CBO and Federal Funds Information for States.

  10. Projected versus Actual Federal Outlays to States and Localities under the Recovery Act Outlays in billions of dollars Source: GAO analysis of data from CBO, Recovery.gov and Federal Funds Information for States.

  11. Comparison of State and Local Recovery Act Funding Source: GAO analysis of CBO and FFIS data.

  12. GAO recommendations • Accountability and transparency • Reporting on impact • Communications and guidance

  13. Implementing and overseeing the Recovery Act • Expectations for “an unprecedented level of transparency and accountability” • Qualified personnel need to implement proper controls and accountability at all levels of gov’t • Close and ongoing coordination needed among federal, state, and local gov’ts • Accountability community has special responsbility to ensure collective efforts are coordinated well

  14. GAO’s work onfinancial markets and institutions • Oversight of Troubled Asset Relief Program (TARP) • Audits of FDIC Deposit Insurance Fund, FHFA, TARP, and US Gov’t Financial Statements • Evaluation of financial regulatory system • Participate in INTOSAI task force on the global financial crisis

  15. TARP components • $700 billion in TARP funds • As of September, $364 billion disbursed • Capital purchase program ($200b) • Targeted investment program ($40b) • Systemically significant failing institutions ($43b) • Automotive industry financing ($76b) • Consumer & business lending ($.1b) • Anticipated • Home affordable mortgage program • Public-private investment program

  16. GAO oversight • Must report to Congress every 60 days • Reports address range of management and program concerns • Recommendations to date • Better monitoring of use of TARP funds • Better articulation of purposes of programs • Improve management structure

More Related