Madam Speaker, the Oversight and Reform Committee marked up the DATA Act without holding a single hearing about the advisability of creating additional, duplicative reporting requirements for grantees, subgrantees, contractors and…
Madam Speaker, the Oversight and Reform Committee marked up the DATA Act without holding a single hearing about the advisability of creating additional, duplicative reporting requirements for grantees, subgrantees, contractors and subcontractors. The reporting requirements imposed by this bill would affect local and state governments, colleges and universities, and private sector federal contractors and subcontractors. I ask unanimous consent to include for the Record statements from the National Governors Association, National Association of Counties, National League of Cities, National Association of Chief Information Officers, International City/County Management Association, National Association of State Budget Officers, National Association of State Auditors, Comptrollers, and Treasurers, Government Finance Officers Association, and George Mason University opposing this legislation.
The authors of this bill believe that creating these additional regulations on the private sector and mandates on state and local governments will cost $51 million per year, which is the new spending authorized by the DATA Act. That only represents the direct cost, not the indirect costs taxpayers will bear if local and state governments and colleges and universities must spend more money filing paperwork to comply with the requirements of this bill. That cost also does not account for the costs to private sector businesses to comply with new regulations imposed by this bill. University and contractor associations have not taken a public position opposing this legislation because of last-minute changes to the bill made by Mr. Issa's staff.
These changes should have been made during Committee or Subcommittee markup, but our Committee engaged in no substantive deliberations about the content of the bill in that context. As a result, today we have a bill that probably is less costly to both public and private entities but nonetheless still creates new private and public sector regulations and mandates at a significant cost. I remain concerned that the laudable goal of creating a single reporting system for federal spending could be lost in a maze of duplicative and conflicting reporting requirements as a result of this bill.
It is ironic that a bill whose stated purpose is transparency would be rammed through Committee and then brought to the floor with last- minute changes made in the least public manner possible. As a result of this convoluted legislative process, there may be problems with the current text of the DATA Act which have not been subjected to review by the committee of jurisdiction. I hope that the Senate reviews the current text of this bill carefully not only because of the bill's costs, new regulations, and new mandates, but also because the haphazard manner in which the bill was written increases the likelihood that there are drafting errors, duplicative regulations, or provisions that are inconsistent with current law.
It should be obvious that our committee could work in a bipartisan manner to promote transparency through legislation like the DATA Act, but certain provisions of this bill and the lack of deliberation in developing it expose stakeholders to potential negative unintended consequences. For these reasons I must oppose this legislation.
Government Finance Officers Association; International
City/County Management Association; National
Association of Counties; National Association of State
Auditors, Comptrollers and Treasurers; National
Association of State Budget Officers; National
Association of State Chief Information Officers;
National League of Cities,
April 24, 2012.
Hon. Darrell Issa,
Chairman, Oversight and Government Reform Committee, House of
Representatives, Washington, DC.
Dear Chairman Issa: On behalf of the above listed
organizations, we are writing to commend you on your efforts
to further transparency and accountability in federal
spending and to express our sincere appreciation to your
staff in working with many of our organizations to include
recommended changes in the most recent draft amendment to
H.R. 2146, the Digital Accountability and Transparency Act.
We agree with the long term purpose of the Act to consolidate
and streamline the reporting of federal funds. However, in
addition to the overall goals of modernization, efficiency
and accountability, the shift toward data reporting
standardization should keep in mind the costs and burdens for
fiscally strained state and local governments and other
federal grant recipients.
While there are a number of positive changes contained in
the most recent draft, we remain concerned about the
magnitude of reporting and the stated timelines for
implementation. The lack of funding for state and local
governments to carry out the reporting and necessary
oversight is disappointing given the enormous administrative
challenges inherent in implementing Recovery Act-type
reporting for all grants and contracts. Having adequate staff
and sufficient equipment and data systems are essential to
effective implementation and oversight.
The ultimate success of Recovery Act reporting and the
resulting low level of fraud and abuse can be attributed not
only to the work of the Recovery Accountability and
Transparency Board but also to the commitment and dedication
of accountability and oversight professionals at the state
and local levels. It was recognized early on that the lack of
funding for state and local governments was a major oversight
and shortcoming of the original Recovery Act, and it appears
that this shortcoming will be repeated in the DATA Act.
We believe that an efficient and streamlined reporting
process, such as the one established in the DATA Act, hinges
on identifying challenges and establishing well thought out
and vetted business processes. Relying on the success of
reporting for a small number of ARRA grants and contracts and
expanding that universe to include all federal awards will
require significant planning and resources.
We have recently become aware that the current Recovery
Accountability and Transparency Board will conduct a grants
information reporting pilot project this summer to identify
cost efficiencies and the potential pitfalls of moving toward
a centralized system for data collection and warehousing.
Such a pilot would be an important step in identifying the
plausibility of expanding ARRA-like reporting requirements to
the entire universe of grants and contracts.
As we have suggested previously, we believe that developing
a phased-in approach to implementing the DATA Act would allow
for grant recipients to establish the appropriate processes
for such an enormous endeavor. Such an approach would also
give the Recovery Board an opportunity to undertake its
planned information reporting pilots and would help to
mitigate the reoccurring data quality problems that have
plagued USASpending.gov.
While we support the intent of the DATA Act, trying to
implement the requirements on all grants and contracts all at
once will severely limit the chances of meeting the intended
goals and objectives. We hope that you will reconsider the
legislation in its current form to develop a reasonable
phased-in approach for implementation and that you will
consider adding a funding provision to support state and
local governments, which will be essential partners for
successful implementation.
We look forward to continuing the dialog on this important
initiative. Please feel free to contact our representatives
in Washington should you have any questions or desire further
information.
Michael Belarmino, NACo.
Cornelia Chebinou, NASACT.
Lars Etzkorn, NLC.
Susan Gaffney, GFOA.
Elizabeth Kellar, ICMA.
Scott Pattison, NASBO.
Pam Walker, NASCIO.