Z Sample CPE Tracking OMB Circular A-123 History Letter 1981 OMB - PDF document

4/23/2019 DATA Act April 24| 2–3:50 PM ET | 2 CPEs | FOS: AUDG #AGAwebinars 1 Z Sample CPE Tracking OMB Circular A-123 History Letter 1981 – OMB First Issued Circular No. A-123, Internal Control Systems • • 1982 – OMB Issued Internal Control Guidelines and the Federal Managers Financial Integrity Act was • enacted • 1983 – OMB Issued an Updated Circular No. A-123, Internal Control Systems • • 1986–OMB Updated A-123 to Require Management Control Plans to guide efforts • • 1995–OMB updated A-123, Management Accountability and Control to reflect GPRA, CFO Act, IG • Act • 2004 – OMB updated A-123, Management’s Responsibility for Internal Control and added Appendix A, • Internal Control Over Financial Reporting 2 1

4/23/2019 Speakers Amy Edwards Deputy Assistant Secretary, Accounting Policy and Financial Transparency U.S. Treasury Natalie Rico Policy Analyst, Office of Federal Financial Management OMB 3 Speakers (cont.) Michelle Sager Director GAO Moderator: Christian Hoehner Senior Director of Policy, Data Coalition 4 2

4/23/2019 Amy Edwards Deputy Assistant Secretary, Accounting Policy and Financial Transparency U.S. Treasury Natalie Rico Policy Analyst, Office of Federal Financial Management OMB 5 DATA Act: Updates on the Implementation Amy B. Edwards Deputy Assistant Secretary Accounting Policy and Financial Transparency U.S. Department of the Treasury 6 6 3

4/23/2019 Digital Accountability and Transparency Act (DATA Act) Goal Track around $4 trillion dollars in annual spending on a quarterly basis and link Procurements Grants data from the budget, accounting, and Contracts procurement and financial assistance $4 databases into one common format Trillion in Federal Spending Loans and Other Challenge Other Agency Assistance Expenditures Collect, store, and display more than 400 data elements from over 100 federal agencies Better Data. Better Decisions. Better Government 7 7 DATA Act Reporting Process Flow A Submitted by B agencies from financial C systems Data DATA Agency Data Standards Certification Act Store Broker May 2017 D Extracted from intermediary E award data systems F DATA Act Information DATA Act Broker Certification Data Store Model Schema (DAIMS) Full Broker released in Senior Accountable Once certified, agency Released in April 2016. September 2016 . Agency files Officials (SAO) certify FY17 data is transmitted to Contains 400+ data are combined and validated. Q2 data by April 30, 2017 the Treasury Data elements Store. 8 8 4

4/23/2019 User-Centered Design 9 9 User Personas 10 10 5

4/23/2019 USAspending.gov 11 11 Michelle Sager Director, Strategic Issues U.S. Government Accountability Office (GAO) GAO’s Oversight of the DATA Act: Past, Present, and Future 12 6

4/23/2019 DATA Act Background Usefulness, Accuracy, and Transparency  Make it possible to gauge the magnitude of the federal investment to address ongoing government management challenges  Help agencies make fully informed decisions about how federal resources should be allocated  Provide the audit community with additional tools to detect and prevent improper payments and fraudulent spending  Promote transparency to the public and enhance civic engagement 13 13 Looking Back: Selected Findings Federal Data Transparency GAO’s prior reviews of federal spending data found: • persistent challenges with the quality of data on USAspending.gov • roughly $619 billion in assistance awards that were not properly reported • few awards—between 2 and 7 percent—contained information fully consistent with agency records on all data elements tested • a lack of government-wide data standards limited the accuracy, transparency, and usefulness of the data • Key reports include GAO-14-476 and GAO-10-365 14 14 7

4/23/2019 DATA Act Background Overseeing Implementation • Nation's first legislative mandate for data transparency • Requires OMB and Treasury to transform federal spending from disconnected documents to open, standardized data which is publicly available • Builds off experiences and lessons from the Recovery Act • Body of GAO work 15 15 DATA Act Requirements: GAO and OIGs Digital Accountability and Transparency Act of 2014, Public Law 113-101, 128 Stat. 1146, (May 9, 2014) Requirements for OIGs Review a statistically valid sampling of spending data submitted under the DATA Act by the agency and submit reports assessing the completeness, timeliness, and accuracy of the data sampled and the implementation and use of data standards. Requirements for GAO Review OIG reports and submit reports to Congress in 2017, 2019, and 2021 assessing the completeness, timeliness, and accuracy of the data submitted under the DATA Act and the implementation and use of data standards by federal agencies. See GAO-18- 138 and GAO-18-546. 16 8

4/23/2019 Looking Back: Selected Findings Mandated Report on Data Quality (GAO-18-138) • The DATA Act requires GAO to report to Congress and the public on data quality in 2017, 2019, and 2021 • Data quality encompasses timeliness, completeness, and accuracy (consistency with agency records) • Tested data from a Treasury database linked to Beta.USAspending.gov and covered Q2 FY2017 • Accuracy findings based on a sample of 402 budget and award transactions projectable to the 24 CFO Act agencies 17 17 Looking Back: Selected Findings Almost All Agency Data Submissions Were Timely, But We Identified Issues with Completeness Regarding Timeliness • 78 agencies submitted Q2 FY2017 data by the statutory deadline of May 8, 2017 or shortly thereafter Regarding Completeness • Financial assistance programs with an estimated annual spend of $80.8 billion were not included in the data reported for Q2 FY2017 • Thirteen agencies submitted files intended to link budget and award information that did not contain any data 18 18 9

4/23/2019 Looking Back: Selected Findings Budget Information Was Largely Consistent but Award Information Was Largely Inconsistent or Unverifiable Consistency of records • Between 0 to 1 percent of award records were fully consistent with agency sources • Between 56 to 75 percent of budget records were fully consistent Consistency of data elements • 4 of 7 budget data elements were “significantly consistent” with agency sources • 11 of the 26 award data elements were “significantly inconsistent” 19 19 Looking Back: Selected Findings Different Definitions of Primary Place of Performance Affect Reporting 20 20 10

4/23/2019 Looking Back: Selected Findings Award Descriptions Submitted by Agencies Varied Greatly 21 21 Looking Back: Selected Findings GAO’s Review of OIG Reports on Data Quality of Agency Submissions (GAO-18-546) • The second part of GAO’s mandated review examined the findings of 53 data quality reports issued by federal OIGs in 2017 • For the 24 CFO Act Agencies: 18 of 24 OIGs did not find agency data to be generally complete, timely, accurate, or of quality • For 29 non-CFO Act Agencies: 20 of 29 OIGs did not find agency data to be generally complete, timely, accurate, or of quality 22 22 11

4/23/2019 Looking Back: Selected Findings Agency OIGs Identified a Variety of Control Deficiencies 23 23 Current Data Quality Reviews GAO Coordination with OIGs • Bi-monthly coordination meetings • Collaboration on revision of IG Guide to Compliance • Review of OIG reports and supporting documentation Page 24 24 12

4/23/2019 Current Data Quality Reviews Key Differences between GAO and OIG DATA Act Reviews in 2019 OIGs • Statistical sample timeframe: Q4 FY2018 • Statistical sample timeframe: Q1 FY2019 • Results projectable governmentwide • Results projectable to an individual agency • Data sampled from Treasury database underlying • Data sampled from each agency’s submission USAspending • All 57 data elements reviewed, as applicable • Selected data elements reviewed • Examines agencies’ internal controls over source • Financial analytical tests of FY 2018 data systems and data submissions • Examines issues related to data governance and • Reviews linkages between files other challenges 25 25 Current Data Quality Reviews GAO’s 2019 Mandated Data Quality Review Three broad objectives: 1. Assess the quality of the government-wide data reported as required by the DATA Act 2. Describe any challenges with the implementation and use of data standards and how they affect data quality 3. Describe any progress made to develop a data governance structure and assess how the current approach to data governance affects data quality Approach for assessing data quality: • Selected a random sample of 405 records from 30 federal agencies. The results from this sample will be projectable government-wide. • Will assess the quality of selected data elements by comparing sampled data to agency source records and conducting analytical procedures to test budget and summary-level data 26 26 13