Tom James and Jay McTigue February 2010

The American Recovery and Reinvestment Act: GAO’s Role in Helping Ensure Accountability

and Transparency During the First Year

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Purposes of the Recovery Act

1. To preserve and create jobs and promote economic recovery.

2. To assist those most impacted by the recession.3. To provide investments needed to increase economic

efficiency by spurring technological advances in science and health.

4. To invest in transportation, environmental protection, and other infrastructure that will provide long-term economic benefits.

5. To stabilize state and local government budgets, in order to minimize and avoid reductions in essential services.

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GAO’s “Bimonthly” State and Local Reporting Strategy

• Recovery Act requires GAO to “conduct bimonthly reviews and prepare reports on such reviews on the use by selected States and localities of funds made available in this Act.”

• Strategy• Longitudinal study of 16 states and the District of Columbia• Selection criteria based on the stated purposes of the Recovery

Act• Localities sampled within selected states • GAO senior executives coordinate work in each state

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GAO’s Selected States

1. Arizona2. California3. Colorado4. Florida5. Georgia6. Illinois7. Iowa8. Massachusetts9. Michigan10. Mississippi11. New Jersey12. New York13. North Carolina14. Ohio15. Pennsylvania16. Texas17. Washington, D.C.

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Reporting Objectives

1. States’ and localities’ use of funds

2. States’ and localities’ safeguards and ongoing oversight, audits, and evaluations

3. States’ and localities’ evaluation of impact

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GAO Recovery Act Information

• Bi-Monthly Review Reports: GAO-09-580; GAO-09-829; GAO-09-1016; and GAO-10-231

• Recipient Reporting: GAO-10-223

• GAO Recovery Act website: http://gao.gov/recovery