Download ppt - Transparency, Metrics & Outcomes ARRA Performance Requirements and Beyond

Rod MasseyVice President, Public AdministrationSAP Industry Solutions

Transparency, Metrics & OutcomesARRA Performance Requirements and Beyond

© SAP AG 2009. All rights reserved. / Page 2

1. How is ARRA Different?

2. Recovery.Gov

3. ARRA Requirements for Transparency & Accountability

4. Performance Measurement for the Recovery Act

5. Evolving ARRA Performance and Beyond

6. Ongoing Concerns

Agenda

How is ARRA Different? Accountability and Transparency Now

American Recovery and Reinvestment Act (ARRA) Funds unprecedented effort to jumpstart economy, create or save millions of jobs, and address

long-neglected challenges – extraordinary response to worst economic crisis since the Great Depression

Requires high levels of transparency and accountability so tax payers will know how, when, and where tax dollars are spent

New Levels of Efficiency and Accountability “Rigorous internal controls, oversight mechanisms, and other approaches to meet the

accountability objectives of the bill.” “Enhancements to standard processes for awarding and overseeing funds to meet accelerated

timeframes and other unique challenges posed by the recovery bill’s transparency and accountability framework.”

New Reporting and Heightened Transparency Requirements to Demonstrate Value to the Public On May 8th, 2009, Agencies began submitting financial data to www.recovery.gov” On October 10th, 2009, prime recipients must submit their first report to Agencies, followed by

quarterly reports thereafter


ARRA Allocates Stimulus Funds to State and Local Governments to Support Many Programs

US

$ (

Bill

ions

)

Total Allocation

Source: Input


Georgia’s Estimated Recovery Act Funding by Major Programs

ARRA in the State of Georgia

Use of Funds Health, transportation, and education program funding

provided to states and localities account for an estimated 90% of fiscal year 2009 funds.

Georgia’s participation in the three largest health, transportation and education funds is significant through early April.

Awarded grants of $521 million in increased Medicaid Federal Medical Assistance Percentage (FMAP) funds from Centers for Medicare and Medicaid (CMS), about $312 million drawn down

Apportioned about $932 million in Transportation – Highway Infrastructure Investment by US Department of Transportation – of which no funds obligated. As of April 30, Governor Perdue certified that that the Georgia Department of Transportation plans to spend $374 million on over 100 projects throughout the state.

Allocated about $1 billion of State Fiscal Stabilization Fund monies by the US Department of Education. State fiscal year 2010 budget included $521 million in state fiscal stabilization funds.

Governor Perdue appointed a Recovery Act Accountability Officer, who formed a Recovery Act implementation team which comprises:

Senior management team Officials from 31 state agencies A group to support accountability and transparency,

and Cross-agency teams Sources: Based on Report to Congressional Committees, “Recovery Act: As Initial Implementation Unfolds in States and Localities, Continued Attention to Accountability Issues Is Essential”, Government Accountability Office, April 2009 and http://stimulusaccountability.ga.gov/02/gov/stimulus/home/0,2804,134245182,00.html

Sources: Based on Report to Congressional Committees, “Recovery Act: As Initial Implementation Unfolds in States and Localities, Continued Attention to Accountability Issues Is Essential”, Government Accountability Office, April 2009 and http://stimulusaccountability.ga.gov/02/gov/stimulus/home/0,2804,134245182,00.html

Other programs

Education

Health

Medicaid

Transportation

23%

Note: Other programs include those for housing, energy, and employment and training. The Office of Planning and Budget estimates are based on federal announcements and estimates from Federal Funds Information for States.

Source: Georgia Office of Planning and Budget.


Where is the Stimulus Money Going?

Prime Organization Makes Sub-

Awards

Recovery Funds will Flow from the Federal Government to Prime Recipients

Federal Agency Develops

Agency-wide and Program –wide Recovery

Plans

Federal Agency Develops

Solicitations

Federal Agency Makes Awards and Obligates

Funds

Federal Agency Begins Support of Recovery Act

Prime Organization Receives Funding

(Sends Infrastructure Cert.)

Federal Agency Disburses Funds

Data required in legislation

States

Counties/Local

Private Sector

Tribes

Sources: Based on Section 1511, Certifications; Section 1512, Reports on Use of Funds, American Recovery and Investment Act of 2009 and Initial Implementing Guidance issued on Feb 18, 2009 by Office of Management and Budget (OMB)


Who are Recipients of ARRA Funds?

Prime “Recipient” Any entity that receives recovery funds directly

from the Federal Government Includes a State that receives recovery funds Is not an individual Funds may be received through grant, loan, or

contract Required to report directly to recovery.gov on a

quarterly basis starting October 10th, 2009 on funds received through discretionary appropriations

“Sub-grant” recipients and subcontractors Entity that receives recovery funds from a

prime recipient or as a subcontract Not required to report directly to recovery.gov

Individuals Not defined as “recipients” in the law Do not report to recovery.gov

Sources: Based on Section 1512, Reports on Use of Funds, American Recovery and Investment Act of 2009 and Initial Implementing Guidance issued on Feb 18, 2009 by Office of Management and Budget (OMB)

Agency Programs

Act

Affected Agencies

Appropriations in Act

Recipients

Projects/Activities

Awards

Recovery Act Reporting Estimates

1

12

150

200+

1,000+

10,000+

100,000+


Clearly Showing Value of Recovery Funds to the Public is Critical

Five objectives for federal agencies flow down to state and local governments Recovery funds awarded and distributed promptly, fairly, reasonably Recipients and uses of all recovery funds are transparent to the public; public

benefits of these funds must be reported clearly, accurately, and in a timely manner Recovery funds are for authorized purposes and every step is taken to prevent instances of

fraud, waste, error, and abuse Projects funded under the recovery legislation avoid unnecessary delays and cost overruns Programs must meet specific goals and targets and contribute to improved performance on

broad economic indicators

We cannot overstate the importance of this effort. We are asking the American people to trust their government with an unprecedented level of funding to address the economic emergency. In return, we must prove to them that their dollars are being invested in initiatives and strategies that make a difference in their communities and across the country.”

OMB Memorandum Feb. 9, 2009

“




2. Recovery.Gov




6. Ongoing Concerns

Agenda

Recovery.GovInformation Flow

Recovery Website Recovery Website Recovery Website Recovery Website

Recovery Website Recovery Website Recovery Website

Good Government Organizations

National Recovery WebsiteCompaniesPublic


Staging DB

Federal Agency Reporting Feeds from Existing Federal Solutions Feeds from Prime Recipients

Likely Conceptual ArchitectureMid to Long Term

Review content and select content to post to

recovery.gov

Citizen supplies feedback

Validate content and post to recovery.gov

Agency Web Server

USAspending.govWeb Service

Major Communications

Formula Block Grant Allocations

Financial Activity Report

Grants.govWeb Service

FBO.govWeb Service Web Service

AgencyDB

AgencyDB

XHTMLXHTML

Summary Data

XHTML

XHTML

Preferred Method

DB

Sources: Based on Section 1512, Reports on Uses of Funds, American Recovery and Investment Act of 2009; Initial Implementing Guidance issued on Feb 18, 2009 and updated Implementing Guidance issued on Apr 3, 2009 by Office of Management and Budget (OMB)Sources: Based on Section 1512, Reports on Uses of Funds, American Recovery and Investment Act of 2009; Initial Implementing Guidance issued on Feb 18, 2009 and updated Implementing Guidance issued on Apr 3, 2009 by Office of Management and Budget (OMB)




2. Recovery.Gov




6. Ongoing Concerns

Agenda

ARRA Requires Prime Award Recipients to Report Information Quarterly to Recovery.gov

Public(includes state, local and tribal representatives

or groups)

GAO

Recovery.gov

Inspector General

Findings of reviews, along with any audits conducted of funds made available in this Act

Bimonthly reviews, reports on such reviews, audits

Federal Agency

Program-Specific Recovery Act Plan: Funding table, objectives, activities, characteristics, delivery schedule, measures, transparency, accountability, barriers to implementation

Announcements for grant/contract competitions / solicitations

Council of Economic Advisers

Quarterly reports to Congress detailing the estimated impacts of programs under this Act on employment, economic growth, and other key economic indicators (not required in legislation for recovery.gov)

Recovery Act Accountability

and Transparency

Board

Quarterly and annual reports

Feedback on the performance of contracts awarded for purposes of carrying out this Act

Prime Award Recipient

Quarterly report with funds received, funds obligated, funds expended, project details, FFATA details for sub awards, infrastructure specific details

Award Transaction Data Feeds: Detailed data on contracts and grants awarded including FFATA data and a brief summary of the contract if over $500K

State and local government infrastructure certifications

Weekly Report: By TAS: Total appropriations, obligations, expenditures

Weekly Report: Major actions taken to date and major planned actions

Monthly Financial Report: obligations and expenditures by Treasury Account, vendor, award number, allocations of mandatory / entitlement programs by state, county, local

Agency-Wide Recovery Act Plan: Recovery goals, list of recovery programs, amounts per appropriation title, agency oversight approach

Major Communications: in press release format that are of interest to a broad cross section of the American public, and focus on Presidential priorities and programs with a major nationwide impact

Formula Block Grant Allocations Reports: grant, amount, description, etc

Feedback on the performance of the Recovery.Gov solutionto provide opportunities for future improvement

State and local governments

Key Actors and the Information Flows to Recovery.gov

Sources: Based on Section 1511, Certifications and Section 1512, Reports on Uses of Funds, American Recovery and Investment Act of 2009; Initial Implementing Guidance issued on Feb 18, 2009 and updated Implementing Guidance issued on Apr 3, 2009 by Office of Management and Budget (OMB)Sources: Based on Section 1511, Certifications and Section 1512, Reports on Uses of Funds, American Recovery and Investment Act of 2009; Initial Implementing Guidance issued on Feb 18, 2009 and updated Implementing Guidance issued on Apr 3, 2009 by Office of Management and Budget (OMB)


Governor, Mayor or Other Chief Executive Must Certify Infrastructure Investments to Get Funds

Governor, mayor or other chief executive must certify and report to recovery.gov that: The infrastructure investment is an appropriate use of taxpayer dollars Must includes description of investment, estimated total cost, and amount of total funds to

be used in the certification

Sources: Based on Section 1511, Certifications and Section 1512, Reports on Uses of Funds, American Recovery and Investment Act of 2009; Initial Implementing Guidance issued on Feb 18, 2009 and updated Implementing Guidance issued on Apr 3, 2009 by Office of Management and Budget (OMB)Sources: Based on Section 1511, Certifications and Section 1512, Reports on Uses of Funds, American Recovery and Investment Act of 2009; Initial Implementing Guidance issued on Feb 18, 2009 and updated Implementing Guidance issued on Apr 3, 2009 by Office of Management and Budget (OMB)


Quarterly Reporting by Prime Recipients is Likely to Require the Following Data





2. Recovery.Gov




6. Ongoing Concerns

Agenda

Quality

Primary Factors Acting on Performance Measurement for the Recovery Act

Where is funding associated with the Act applied? When is the funding distributed? How are the agency activities performing compared to initial targets? What are the results of the distributed funding?

EFFICIENCY

vs.Quality

Cost Schedule

Scope

EFFECTIVENESS

Cross Government Goals/Objectives

Agency Goals/Objectives

ProgrammaticOutcomes

Project/Activity Outputs

Is a subset of Supports measurement of


Quarterly Reporting by Prime Recipients is Likely to Require the Following Data


EfficiencyEfficiency

EffectivenessEffectiveness


Estimating Jobs Created or Retained is Required by Section 1512, “The Jobs Accountability Act”

March 31 changes to Federal Acquisition Regulations (FAR) provided guidance for estimating jobs funded by Federal Agency Contracts and similar guidance is in progress for grants recipients Components of the guidance for estimating created or retained jobs are:

Only compensated jobs are to be estimated Recipients should report full-time equivalent (FTE) estimates cumulatively created or

retained using the definition of a full-time schedule defined by the recipient FTE calculations are based on aggregate hours worked to ensure temporary or part

time labor is not overstated Grant recipients will also address the impact on the work forces of sub-recipients using a

method they deem most accurate without creating undue cost or burden First estimate of direct jobs due from recipients on October 10, 2009


The primary purpose of the Recovery Act is to create and retain jobs by promoting sound economic recovery. At its signing, President Obama said, “The Act provides a direct fiscal boost to help lift our Nation from the greatest economic crisis in our lifetimes and lay the foundation for further growth. This recovery plan will help to save or create as many as three to four million jobs by the end of 2010.”

Quarterly Report to the President on Implementing the American Recovery and Reinvestment Act of 2009, May 2009

“

Agency Recovery Act plans includeKey Performance Indicators (KPIs)

Federal Agencies presented Plans for Recovery Act programs Agencies will be held accountable for reporting these performance measures For existing programs these performance measures are likely already in use For new Recovery Act programs, prime recipients need to be prepared to gather and report these performance

measures

Existing: Unemployment Insurance Administration State Grants Recovery Plan, Department of Labor Payment timeliness: Percentage of intrastate UI first payments made within 14 days in states with a waiting

week and 21 days if no waiting week Establish overpayments: Dollar amount established for recovery as a percentage of estimated overpayments

that states can detect and recover under state law.

New: Broadband Technology Opportunities Program (BTOP) Recovery Plan, Department of Commerce Job creation Expanded broadband access -- Number of areas where service will be made available or improved, and how

many homes and businesses are passed by the network Stimulate private-sector investments High-speed access to "strategic institutions" Encourage broadband demand


Source: http://www.recovery.gov/?q=content/program-plan-tags&type=meas_text&keyword=states&pageno=1Source: http://www.recovery.gov/?q=content/program-plan-tags&type=meas_text&keyword=states&pageno=1



2. Recovery.Gov




6. Ongoing Concerns

Agenda


Effectively Managing Economic Stimulus Funds and Programs Presents New Challenges

PublicPublic

Procurement / Contracting

Procurement / Contracting

Elected Officials / Executives


FinanceFinance

Program Management

Program Management

Other AgenciesOther Agencies

Poor policy execution Unable to identify impact of government spending Limited ability to cascade policy and objectives

across and beyond the organization Budget shortfall, “in the red”

Lack of financial performance insight Planning and forecasting is inaccurate Cannot track financial progress &

performance against targets

Little visibility to public Cannot show where tax

dollars are spent, low public confidence

Struggle to meet reporting requirements due to long reporting cycles

Non-compliance Potential for fraud, waste, abuse Limited compliance management

increases costs Short timelines increase risk - little

due diligence, vague contractsLack of coordination Lack coordinated alignment, strategy and

execution across multiple organizations Disconnected processes across the community Bad quality of data, little sharing of information

Program delays, wasted fundsStruggle to meet aggressive deadlines to disburse funds Cannot determine best programs to fund Unable to track progress and performance against targets

Economic ImpactEconomic Impact

Evolution of PerformanceARRA Reporting and Beyond

Fro

m O

utp

uts

to

Ou

tco

mes

Improved Transparency

Reporting

Analytics

BusinessIntelligence

Performance Optimization and Analytics

Platform

PerformanceMonitoring

StrategyManagement

Collaborative PerformanceOptimization

(aka, Policy to Outcome)

PerformanceManagement

PUBLICVALUE

Public ROI


Performance Monitoring Required by ARRA is a Step Towards Greater Transparency

MEDIUM-TERMMEDIUM-TERMSHORT-TERMSHORT-TERM LONG-TERMLONG-TERM

PERFORMANCE MONITORING

“How did we do last month?”

“How did we do last month?”

Program FulfillmentProgram Fulfillment

Compliance, Transparency& Accountability

Compliance, Transparency& Accountability

PERFORMANCE MANAGEMENT

“How can we do better next month?”“How can we do

better next month?”

Performance OptimizationPerformance Optimization

Operational EfficiencyOperational Efficiency

STRATEGY MANAGEMENT

“How can we achieve our strategic goals?”

“How can we achieve our strategic goals?”

Collaborative OutcomesCollaborative Outcomes

Maximize Employee ResourcesMaximize Employee Resources

Fo

un

da

tio

nM

an

ag

em

en

t a

nd

Re

po

rtin

g f

or

AR

RA

Fu

nd

s

Collaborative Performance Optimization

Collaborative Performance Optimization

Performance Optimization and Analytics PlatformPerformance Optimization and Analytics Platform


A Performance Optimization and Analytics Platform Improves ARRA Transparency

Strategy

Insight Decisions

Execution

Insight

Enterprise Performance Management

Strategy Management

Business Planning

Profitability andCost Management Consolidation

Spend Analytics

Data Integration

Data Quality Management

Master Data Management

Metadata Management

Information Management

Business Intelligence

Reporting Query, Reporting, and Analysis

Dashboards and Visualization

Search and Navigation

Advanced Analytics

Governance, Risk,and Compliance

RiskManagement

Access Control

Process Control

Global Trade Services

Environment, Health and Safety

Unified Information

Business Network

Optimization

Collaborative Decisions


Fragmented DataSources

Non-Integrated Applications

Multiple UserInterfaces

Unstructured Data

Structured Data

Planning

Strategy

Costing



Program ManagerProgram Manager

FinanceFinance

?!?!

?!?!

?!?!

ContractingContracting


PublicPublic

?!?!

?!?!

?!?!

XXXX

?!?!

Technology Environment Can Hinder ARRA Fulfillment


Unstructured Data

Structured Data



Program ManagerProgram Manager

FinanceFinance

All Applications

All Data

A Platform Approach Can Streamline Management and Reporting of ARRA Funds

ContractingContracting


PublicPublic


Visibility into Funding Categories

Visibility into Funding Categories

Financial and Job Results

Financial and Job Results

Status of Spend and Job ResultsStatus of Spend and Job Results

Geo representation of spend

Geo representation of spend

Enablement of Public Sentiment

Reporting

Enablement of Public Sentiment

Reporting

Link to Recovery.gov

reporting

Link to Recovery.gov

reporting

A Platform Approach can Enable Total Economic Stimulus Reporting and Visualization



PublicPublic

Procurement / ContractingProcurement / Contracting

Elected Officials /

Executives

Elected Officials /

Executives

FinanceFinance

Program ManagementProgram Management


EconomicImpactEconomicImpact

Monitor financial performance Ensure compliance, accountability and “auditability” Establish and analyze cost, schedule and

performance metrics for accurate reconciliation Track stimulus funds distinct from normal financial

and budgetary applications

Communicate public transparency Inform public of progress

against program funding Clearly communicate

strategy, results and outcomes in timely manner

Ensure compliance Monitor and detect fraud via

improved controls Improve sourcing and

procurement management to increase purchasing power and

Expend funds rapidly with improved oversight

Promote collaborative outcomes Align, coordinate and streamline planning, programs

and resources within and beyond organizational boundaries

Open, flexible, architecture fosters interoperability

Track program fulfillment Meet mandated timelines to

disburse funds to warranted programs

Track progress and performance against targets

Effectively manage and adjust program scope, costs, schedules resources and risk

Align policy to outcomes Clear line of sight from strategy to execution,

spanning policy to programs to projects to outcomes Cascade and align strategy across and beyond the

organization Position your agency (and constituents) for continued

investments / revenue

New Performance Process and Technology Approaches Enable Economic Stimulus Goals and Beyond



2. Recovery.Gov




6. Ongoing Concerns

Agenda

Concerns About Guidance and Measuring the Impact of Recovery Act Funds Persist

How do states and local officials measure the impact of the Recovery Act? Additional clarity needed on methodologies to estimate the number jobs created and retained Further guidance is needed for measuring the economic and jobs impact where Recovery Act

funds are combined with other federal, state, or local funds

How does government make best use of single audits to provide effective oversight? Single audit process needs to be modified to be a more timely and effective audit and

oversight tool for the Recovery Act Internal controls review are important before significant funds are disbursed

How do states receive information about primary recipients in their state, when the state is not the primary recipient, but has a state-wide interest in this information?

How do states and local officials fund the additional accountability and oversight required by the Recovery Act? Significant declines in the number of oversight staff due to fiscal constraints limit state and

local governments’ ability to ensure proper implementation and management of Recovery Act funds

Sources: Based on Report to Congressional Committees, “Recovery Act: As Initial Implementation Unfolds in States and Localities, Continued Attention to Accountability Issues Is Essential”, Government Accountability Office, April 2009. Sources: Based on Report to Congressional Committees, “Recovery Act: As Initial Implementation Unfolds in States and Localities, Continued Attention to Accountability Issues Is Essential”, Government Accountability Office, April 2009.


States May Recover Administrative Costs for Recovery Act Programs

Rationale: Majority of Recovery Act funds are disbursed by States State governments need to build administrative capacity to

meet reporting and other responsibilities under the Recovery Act

States generally receive reimbursements for administrative costs after the fact

How to: Use the State-wide Cost Allocation Plan (SWCAP)

submitted annually to the Department of Health and Human Services (HHS) for review and approval

May include Recovery Act administrative costs as an addendum plan to SWCAP

Recovery Act administrative costs should not be in excess of 0.5% of total Recovery Act funds received by the State

Alternatives for Administrative Cost Reimbursement: Estimated Costs for Centralized Services – based on

budgeted or estimated costs of service Billed Services – methodology for identifying, recording,

and charging administrative costs

Where to find guidance: Office of Management and Budget (OMB) M-09-18

Memorandum for the Heads of Departments and Agencies regarding Payments to State Grantees for Administrative Costs of Recovery Act Activities, May 11, 2009 http://www.whitehouse.gov/omb/assets/memoranda_fy2009/m09-18.pdf

OMB Circular A-87, Cost Principles for States, Local and Tribal Indian Governments, Attachment C, State/Local Wide Central Cost Allocation Plans http://www.whitehouse.gov/omb/circulars_a087_2004/

Department of Health and Human Services (HHS), Program Support Center, Financial Management, Cost Allocation, contains information for State, Local and Tribal Indian Governments, hospitals, non-profit organizations, colleges and universities http://rates.psc.gov/fms/dca/asmb%20c-10.pdf


Recovery Act – Useful Websites

US Government websites Recovery.gov – http://www.recovery.gov/ Office of Management and Budget (OMB) – Reporting Guidance

http://www.whitehouse.gov/omb/recovery_default/ FedBizOpps – Federal Government contracting opportunities and awards, not limited to

Recovery Act - https://www.fbo.gov/index?s=main&mode=list&tab=list Grants.gov – Federal Government Grant applications and awards http://www.grants.gov/ Government Accountability Office (GAO) – Recovery Act reports and mechanisms to

report stimulus fraud http://www.gao.gov/

Recovery Act General Information Council of State Governments – http://www.staterecovery.org/ Recovery.org – http://www.recovery.org/ Government Technology – Economic Stimulus http://www.govtech.com/gt/289136

SAP Solutions for Economic Recovery http://www.sap.com/usa/industries/economic_recovery/index.epx



“Our American story is not – and has never been – about things coming easy. It’s about rising to the moment when the moment is hard, converting crisis into opportunity, and seeing to it that we emerge from whatever trials we face stronger than we were before.”

Barack Obama , President of the United States of America


Thank you!