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Under pressure to spend stimulus money quickly, many states are using the federal funds for short-term projects and to fill budget gaps rather than spending on long-term improvements, according to a report by congressional investigators
Across the United States, as of June 19, 2009, Treasury had outlayed about $29 billion of the estimated $49 billion in Recovery Act funds projected for use in states and localities in fiscal year 2009. More than 90 percent of the $29 billion in federal outlays has been provided through the increased Medicaid Federal Medical Assistance Percentage (FMAP) and the State Fiscal Stabilization Fund (SFSF) administered by the Department of Education.
GAO’s work focused on nine federal programs that are estimated to account for approximately 87 percent of federal Recovery Act outlays in fiscal year 2009 for programs administered by states and localities.
Quote:
Accountability and Transparency
To leverage Single Audits as an effective oversight tool for Recovery Act programs, the Director of OMB should
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develop requirements for reporting on internal controls during 2009 before significant Recovery Act expenditures occur, as well as for ongoing reporting after the initial report;
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provide more direct focus on Recovery Act programs through the Single Audit to help ensure that smaller programs with high risk have audit coverage in the area of internal controls and compliance;
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evaluate options for providing relief related to audit requirements for low-risk programs to balance new audit responsibilities associated with the Recovery Act; and
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develop mechanisms to help fund the additional Single Audit costs and efforts for auditing Recovery Act programs.
Who's supposed to be overseeing this stimulus money?
The first stimulus may just have been a trial balloon and now Obama is talking very seriously about asking for another. I think the Congress critters have learned just how much that first one did aside from the pork that got spent and since the rest is sitting we don't need another one. This may well be his first big defeat, and with a Congress all his own party.
You talk about stimulus money being misspent and that reminds me of the two governors who have been taken apart by their legislatures, Sanford and Palin, for saying they didn't want that money because of the systems they would have to create to spend that money and what it would cost them in a couple of years. I really think that the Congress critters learned a thing or two the last two weeks while they were at home from their constituents.
The administration told all of us how much good that stimulus money would do and now with recovery on its way none of that money, except for the pork, has been spent nearly 6 months after its passage.
Probably the Government Accountability Office
2nd paragraph of that link:
Quote:
The report, scheduled to be released Tuesday by the Government Accountability Office (GAO) at a House oversight hearing, also says many states aren't meeting some goals and requirements of the economic recovery program
....
As required by the $787 billion stimulus law, the GAO is monitoring stimulus spending in 16 states and the District of Columbia that will receive two-thirds of the federal funds. It reports to Congress every two months.
I wonder what the consequences are for states that are misusing the money.
I didn't see the article mention that.
Accountability
States have implemented various internal control programs; however, federal Single Audit guidance and reporting does not fully address Recovery Act risk. The Single Audit reporting deadline is too late to provide audit results in time for the audited entity to take action on deficiencies noted in Recovery Act programs. Moreover, current guidance does not achieve the level of accountability needed to effectively respond to Recovery Act risks. Finally, state auditors need additional flexibility and funding to undertake the added Single Audit responsibilities under the Recovery Act.
The first stimulus may just have been a trial balloon and now Obama is talking very seriously about asking for another. I think the Congress critters have learned just how much that first one did aside from the pork that got spent and since the rest is sitting we don't need another one. This may well be his first big defeat, and with a Congress all his own party.
How about a link to this incredible information?
Obama said he doesn't want to do another stimulus.
Congress is saying that Obama's not doing enough, but don't want to do any more.
I can't link to NPR, but heard it about an hour ago.
who is surprised that states are using stimulus money to keep government jobs rather than to hire new workers? some of these states gave government workers raises instead of layoffs.
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