Legislative Mandates

Slide - 1Friday March 30, 2009 - Version

Transparency & Accountability In Government - Business SolutionFederal Funding Accountability & Transparency Act (FFATA)

Troubled Assets Relief Program (TARP)American Recovery and Reinvestment Act (ARRA)

Lockheed Martin – KPMG - Orion Microsystems, Inc. - Eagle Eye Publishers

Transparency Business SolutionFederal Funding Accountability & Transparency Act (FFATA)


Lockheed MartinEagle Eye Publishers – KPMG - Orion Microsystems, Inc.





Legislative Mandates

• Federal Funding Accountability & Transparency Act – P.L. 109-282 Sec. 2(a)(2) - FULL DISCLOSURE OF ENTITIES RECEIVING FEDERAL FUNDING.

(2) FEDERAL AWARD.—The term ‘‘Federal award’’—(A) means Federal financial assistance and expenditures that—

(i) include grants, subgrants, loans, awards, cooperative agreements, and other forms of financial assistance;(ii) include contracts, subcontracts, purchase orders, task orders, and delivery orders;

(B) does not include individual transactions below $25,000; and(C) before October 1, 2008, does not include credit card transactions.

(3) SEARCHABLE WEBSITE.—The term ‘‘searchable website’’ means a website that allows the public to—(A) search and aggregate Federal funding by any element required by subsection (b)(1);(B) ascertain through a single search the total amount of Federal funding awarded to an entity by a Federal award described in paragraph (2)(A)(i),

by fiscal year;(C) ascertain through a single search the total amount of Federal funding awarded to an entity by a Federal award described in paragraph (2)(A)(ii),

by fiscal year; and(D) download data included in subparagraph (A) included in the outcome from searches.

• Emergency Economic Emergency Stabilization Act – Troubled Asset Relief Program – P.L. 110-343 Sec. 114 – Market Transparency

(a) PRICING.—To facilitate market transparency, the Secretary shall make available to the public, in electronic form, a description, amounts, and pricing of assets acquired under this Act, within 2 business days of purchase, trade, or other disposition.

(b) DISCLOSURE.—For each type of financial institutions that sells troubled assets to the Secretary under this Act, the Secretary shall determine whether the public disclosure required for such financial institutions with respect to off-balance sheet transactions, derivatives instruments, contingent liabilities, and similar sources of potential exposure is adequate to provide to the public sufficient information as to the true financial position of the institutions. If such disclosure is not adequate for that purpose, the Secretary shall make recommendations for additional disclosure requirements to the relevant regulators.

• American Recovery and Reinvestment Act – P.L. 111-5 Sec. 1526 – Board Website

(a) ESTABLISHMENT.—The Board shall establish and maintain, no later than 30 days after enactment of this Act, a user-friendly, public-facing website to foster greater accountability and transparency in the use of covered funds.

(b) PURPOSE.—The website established and maintained under subsection (a) shall be a portal or gateway to key information relating to this Act and provide connections to other Government websites with related information.

(c) CONTENT AND FUNCTION.—In establishing the website established and maintained under subsection (a), the Board shall ensure the following:(7) The website shall include detailed information on Federal Government contracts and grants that expend covered funds, to include the data

elements required to comply with the Federal Funding Accountability and Transparency Act of 2006 (Public Law 109–282), allowing aggregate reporting on awards below $25,000 or to individuals, as prescribed by the Director of the Office of Management and Budget.





Recovery.gov Program Challenges• Near Term Implementation (30-60days) – Long Term Migration Plan • Financial Management Challenges

Expenditure Data – Disbursements (Advances or Reimbursements) Reconciliation problems between Recovery.gov Call Reports and Agency Core Accounting System data (Systems of Record) Federal Core Accounting Systems lack of data collection of sub tier contractor & grantee expenditures

Obligation Data – Agency Core Accounting System verses FPDS and FAADS Timeliness of Data Quality of Data

Performance Data Lack of Data Measurement – Metrics by Federal Financial Management Systems, e.g., miles of roads constructed, quality of air, depth of water. Expected Performance Outcomes/Results Definitions – Goals & Objectives, e.g., miles of roads to be complete within a period of time and at a

identified cost. Non-Financial Data Sources Used for performance measurement, e.g., number of foreclosures, number of loans made

Federal Financial Institutions Examination Council's (FFIEC), Federal Deposit Insurance Corporation, Federal Housing Federal Housing Finance Board (FNFB) & Home Mortgage Disclosure Act (HMDA), data repositories.

• Information Technology Challenges No Standard Federal Governmentwide Data Element Taxonomy

Current Federal Account Classification Code Structure (ACCS) Civilian Agency Common Governmentwide Accounting Classification Structure (CGAC) Defense – Standard Financial Information Structure (SFIS)

Multiple Agency Supported Data Collection Methodology eXtensible Business Reporting Language (XBRL) Extract Transform & Load (ETL) File Transfer Protocol (FTP) Data Call Reports

Data Warehouse Technology Needs to Meet Data Aggregation and Response Requirements Databases (DB) Enterprise Data Warehouse (EDW)

• Data Analysis Challenges Qualified people using analytical tool capable of developing outcome oriented decision support presentations to present

Recovery.gov results Business Intelligence Tool Analytical Tools Dashboard and Scorecards





• Lockheed Martin - Placeholder

• KPMG, LLP - Placeholder

• Eagle Eye Publishers - Placeholder Commercial Off The Shelf (COTS) Software Can Replace FPDS & FAADS Data Collection & Reporting

Systems Beta web test site expenditure and obligation data

integration

• Enterprise Data Warehouse Vendor – Placeholder Commercial Off The Shelf (COTS) Hardware & Software Master Data Management capability to integrate disparate

Databases Parallel processing architecture to provide accelerated

response time Integrated analysis tool optimize to hardware configuration

Discriminators• Orion Microsystems, Inc.

Commercial Off The Shelf (COTS) Software Addresses both short-term and long-term requirements, i.e.,

Sub-Tier Data Collection & Reporting, including Grants, Contracts, Loans near term 2nd Tier reporting & long term nth Tier reporting required by FFATA & ARRA

Federal Core Accounting and Budget Fund Controls JFMIP & FSIO based supporting current Account Classification

Coding Structure (ACCS) and Accounting Control US Standard General Ledger (USSGL) compliant Complete Audit Trail Federal management, regulatory, & audit reporting System generated transaction register Automatic Reconciliation Performance Data Collection & Dashboard Reporting including

Identification of non-performing activities Obligation and Expenditure reporting DUNS & Congressional District reporting Instant access to data online Captures Grantee In-Kind Services Records Grant Matching Funds Tracks receipts from multiple sources Tracks Fixed Assets Automatic Import and Export processes Email alerts Data can be manually entered or automatically imported Federal Grant Reporting (SF269, 270, 272 & FFR) Available Immediately





Challenges

1. Near Term Implementation *30-60 days) – Long Term Migration Plan

2. Financial Management Challenges

3. Information Technology Challenges

4. Data Analysis Challenges

Challenges – Discriminators - CrosswalkTop 10 Discriminators

1. Commercial Off The Shelf (COTS) Software - Hardware & Software Applications Available Immediately

2. Parallel processing architecture to provide accelerated response time

3. Addresses both short-term and long-term requirements, i.e., Sub-Tier Data Collection & Reporting, including Grants, Contracts, Loans near term 2nd Tier reporting & long term nth Tier reporting required by FFATA & ARRA

4. Performance Data Collection & Dashboard Reporting including Identification of non-performing activities

5. Federal Grant Reporting (SF269, 270, 272 & FFR)

6. JFMIP & FSIO based supporting current Account Classification Coding Structure (ACCS) and Accounting Control

7. Lockheed Martin System Integration Staff

8. Lockheed Martin Discriminator

9. KPMG Financial Management Staff

10. KPMG Discriminator

Lockheed Martin KPMG Eagle Eye Publishers EDW Vendor

Lockheed Martin Orion Microsystems Eagle Eye Publishers EDW Vendor

KPMG Orion Microsystems Eagle Eye Publishers EDW Vendor

Lockheed Martin KPMG Orion Microsystems Eagle Eye Publishers EDW Vendor





• Lockheed Martin Contract Management Project Management Systems Integration Host Server Enterprise Data Warehouse (EDW) or other vendor Independent Verification & Validation

• KPMG, LLP Accounting Process Support Internal Control Support Risk Management Support Data Analysis Support Business Intelligence Support

• Teradata or Other EDW Vendor Enterprise Data Warehouse (EDW) TARP Data Collection from 1) Federal Financial

Institutions Examination Council's (FFIEC) & 2) Home Mortgage Disclosure Act (HMDA), and Other Sources Data As Defined

Analytical Tools Data Analysis Support Business Intelligence Support

Teaming Partners & Responsibilities

• Orion Microsystems, Inc. Expenditure Data Collection From:

Sub Tier Contractors Sub Tier Grantees

Performance Data Collection From: Sub Tier Contractors Sub Tier Grantees

Interface Data Collection with Eagle Eye Publishers Performance Reporting – Dashboard & Analysis Financial Management Reporting Financial Regulatory Reporting Financial Audit Reporting

• Eagle Eye Publishers or Other Vendor Internet Web Reporting:

Expenditure – http://beta.eagleeyeinc.com Obligation – http://usaspending.org

Obligation Data Collection FPDS – GSA Website FAADS – DOC/Census Website

Expenditure Data Collection Departments & Agencies Prime Contractors & Grantees

Initial Enterprise Data Warehouse (EDW) Support for Obligation & Expenditure Data – Subsequent data transferred to Lockheed or Other EDW vendor





1.5 What are the critical requirements or elements of this Guidance for which agencies must begin to immediately implement or prepare?

Transparency and Reporting• Major Communications. Beginning immediately, agencies receiving Recovery Act funds should determine which major

communications are appropriate for posting on Recovery.gov. (see Section 2.2 and Appendix 1 for required data fields and reporting instructions)

• Formula Block Grant Allocation Reports. As soon as information becomes available, Federal agencies are required to provide details on the allocations made for each formula block grant. (see Section 2.3 and Appendix 1 for required data fields and reporting instructions)

• Weekly Updates. Starting March 3rd, agencies must submit weekly reports providing a breakdown of funding, major actions taken to date, and major planned actions. (see Section 2.4 and Appendix 1 for required data fields and reporting instructions)

• Monthly Financial Reports. Starting May 8th, agencies must provide monthly financial reports providing obligations, expenditures, and other financial data by Treasury Account, vendor, and award number, as well as information on allocations of mandatory and entitlement programs by State, county, or other appropriate geographical unit. (see Section 2.5)

• Award Transaction Data Feeds. Starting on May 5th, agencies must provide all Recovery Act assistance transactions (primarily grants, loans, and loan guarantees) in the standard format currently provided to USASpending.gov. Agencies must also begin planning now for how they would provide this information on a more frequent basis if a decision is made to do so. (see Section 2.6)

• Agency Recovery Plan. No later than May 1st, agencies must provide their “Agency Recovery Plan” that describes both broad recovery goals and the agency’s coordinating efforts. Agencies should work with their Office of Management and Budget (OMB) representative to set an appropriate submission date and review process. (see Section 2.7)

• Recovery Program Plans. No later than May 1st, agencies must provide a separate “Recovery Program Plan” for each Recovery Act program named in the legislation. Agencies should work with their OMB representative to set an appropriate submission date and review process. (see Section 2.8)

Information Collection and Dissemination• Starting immediately, agencies must ensure all funds provided by the Recovery Act are clearly distinguishable from non-

Recovery Act funds in all agency financial systems, business systems (i.e., grant and contract writing systems), and reporting systems.

• To support reporting requirements, agencies need to have the appropriate contract/grant/loan number recorded on the obligation, expenditure, and other transactions in their financial system.

OMB Architecture & M-09-10 Guidance Requirements





OMB Architecture & M-09-10 Guidance Requirements - Cont.

1.5 What are the critical requirements or elements of this Guidance for which agencies must begin to immediately implement or prepare – Cont.?Information Collection and Dissemination

• Starting immediately, agencies must have all award documents and related communications include the clauses and provisions necessary to clarify that award recipients are legally obligated and must meet their reporting requirements under the Recovery Act and this Guidance.

• To facilitate transparency and reporting, agencies should establish a page on their existing website dedicated to the Recovery Act (i.e., www.agency.gov/recovery), which will link to Recovery.gov and will provide a single portal for all agency-specific information related to the Act.

• For each government contract or order (or modification to an existing contract or order) over $500,000, agencies should provide a summary of the contract or order (or modification to an existing contract or order), including a description of the required products and services, which will be made available publicly and linked to Recovery.gov.

• A summary of any contract or order (or modification to an existing contract or order), including a description of the required products and services, using Recovery Act funds shall be posted in a special section of the web site Recovery.gov unless the contract or order is both fixed-price and competitively awarded.

• By March 15th, each agency should begin identifying to OMB’s E-Gov Office current agency systems that collect or will collect significant Recovery Act program information from recipients, but are currently unable to make this information available to the public.

• Within one week of issuing this guidance, agencies must establish a dedicated page on their website for recovery efforts. Appendix 2 describes agency website requirements, guidelines, and best practices.

Budget Execution• Agencies must establish unique Treasury Appropriation Fund Symbols (TAFSs) in their financial systems for all Recovery Act

funding, unless a waiver is granted by the Director of OMB by February 25th.• Agencies should start planning now to submit apportionment requests to OMB in as expeditious a manner as possible.• Agencies receiving Recovery Act funds should determine whether they plan to procure goods and services from other agencies

in inter-agency agreements so they can inform the performing agencies as soon as possible.• Agencies in interagency agreements that perform services for other agencies that receive Recovery Act funds should start

planning now on fulfilling the reporting requirements resulting from the law.• Agencies that administer TAFSs that receive non-expenditure transfers or expenditure transfers from TAFSs that receive

Recovery Act funds should start planning now on fulfilling the reporting requirements resulting from the law.






1.5 What are the critical requirements or elements of this Guidance for which agencies must begin to immediately implement or prepare – Cont.?

Risk Management• Agencies must immediately review the risk framework provided in Chapter 3 of this Guidance, capture and report against the

common government-wide accountability measures, identify any additional agency-specific risks not provided for in Chapter 3, prioritize risk areas, and initiate risk mitigation strategies.

• At a minimum, immediate risk mitigation actions must address: oAudits and investigation of Recovery Act funds to identify and prevent wasteful spending and minimize waste, fraud, and abuse;oQualified personnel overseeing Recovery Act funds;oCompetitive awards maximized;oTimely award of dollars;oTimely expenditure of dollars;oCost overruns minimized; andoImproper payments minimized.

• To assess how well the Federal government and funding recipients are progressing in meeting the items above, agencies should begin preparing to track progress against the above accountability measures.

• To assess risks for individual programs that receive Recovery Act funding, agencies should consider the following when assessing risk (note that the following list is intended to be illustrative):

oWhich programs are receiving (or providing) the most funding;oAre program outputs and outcomes clear and measurable and do agencies have tools to measure those outputs and outcomes;oAre existing resources sufficient to achieve program objectives;oWho is (are) the final recipient(s) of funds (e.g., contractor, sub-contractor, state, locality, educational institution);oAre existing internal controls sufficient to mitigate the risk of waste, fraud, and abuse adequately;oAre there performance issues with (potential) funding recipients; andoAre there leading indicators or lagging indicators (e.g., error measurements) to monitor ongoing program performance.

• To assess how well the Federal government and funding recipients are progressing in meeting the items above, agencies should begin preparing to track progress against the above accountability measures.






1.5 What are the critical requirements or elements of this Guidance for which agencies must begin to immediately implement or prepare – Cont.? Risk Management• To assess risks for individual programs that receive Recovery Act funding, agencies should consider the following when

assessing risk (note that the following list is intended to be illustrative):oWhich programs are receiving (or providing) the most funding;oAre program outputs and outcomes clear and measurable and do agencies have tools to measure those outputs and outcomes;oAre existing resources sufficient to achieve program objectives;oWho is (are) the final recipient(s) of funds (e.g., contractor, sub-contractor, state, locality, educational institution);oAre existing internal controls sufficient to mitigate the risk of waste, fraud, and abuse adequately;oAre there performance issues with (potential) funding recipients; andoAre there leading indicators or lagging indicators (e.g., error measurements) to monitor ongoing program performance.

2.1 What reporting is required under the Recovery Act? There are eight different levels of reporting necessary to meet accountability and transparency objectives of the Recovery Act and this Guidance. The reporting requirements in this Guidance apply at the department or agency level, except those reporting requirements in Section 2.8.

Section Reporting Requirement Period

2.2 Major communications Immediate/Ongoing

2.3 Formula block grant allocation reports Immediate/Ongoing

2.4 Initial weekly reports to help populate early phases of Recovery.gov 3/3/09 – 5/12/09

2.5 Monthly financial reports Starting 5/8/09

2.6 Award-level reporting consistent with what is currently required for USASpending.gov Starting 5/5/09

2.7 Agency-wide Recovery Act plans NLT 5/1/09

2.8 Program-specific Recovery Act plans NLT 5/1/09

2.9 Recipient reporting Starting 5/8/09





Extended Functional Reporting & Dashboard Capabilities

• Integrated Government Accountability Report – GAO-09-11 Troubled Assets Relief Program, Performance Indicators (page 49 – 55)

Treasury-London Interbank Offered Rate (LIBOR) Spread (TED Spread) Corporate SpreadsMortgage RatesMortgage OriginationsMortgage OriginationsMortgage Foreclosure and Defaults

• Federal Deposit Insurance Corporation Analysis & Research ReportsBank Failure List

• Federal Financial Institutions Examination Council Bulk Data DownloadsCall ReportsBalance Sheet, Income Statement, Past Due Reports

• Home Mortgage Disclosure Act Reports• Federal Housing Finance Board

FHLBank System ReportingMonthly Interest Rate Survey (MIRS)





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Eagle Eye Publishers

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TARP Implementation

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Other TARPData Collection – FFIEC

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Monthly Performance Report Detail performance data on contracts and grants awarded

including FFATA data

Business Solution OMB Architecture





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Business Solution UBMatrix Architecture





Business Solution UBMatrix Architecture

Legislative Mandates

Documents

Transcript of Legislative Mandates