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The DATA Act

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.

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The DATA Act

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  1. The DATA Act Legislative Branch Implications

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

  3. 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.

  4. 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.

  5. 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 28th • President signed it on May 9, 2014 • DATA is Public Law No. 113-101

  6. 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.

  7. 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

  8. 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.

  9. 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.

  10. 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.

  11. 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.

  12. 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.

  13. Receipts/ Financing • Appropriation Federal Spending Information “Life-Cycle” • Payment • Apportionment • Obligation • Allotment • (Allocation) • Award • Commitment

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