There are a lot of legitimate concerns about the size of the economic stimulus legislation and where some of the specific funds are directed. A careful review of the transparency and oversight provisions gives Taxpayers for Common Sense some optimism that the Congress is providing agencies and entities overseeing the stimulus spending, the necessary tools to combat waste, fraud, and abuse.

The legislation also outlines an unprecedented plan to, on a real-time basis, keep taxpayers informed of where their money is going. Given the challenges that occurred with disclosure in Iraq and Katrina spending, it is unclear that some of the reporting challenges can be met. But the oversight provisions in the House stimulus proposal are in a very good state. Here are the main oversight proposals:

1.    Each federal agency shall publish on www.recovery.gov the following information:

A)   a plan for using the funds made available in this legislation

B)   all announcements for grant competitions, formula grant allocations, and competitive grant awards in H.R. 1

A)   A description of the project funded;

B)   The purpose of the project;

C)   The total cost of the project;

D)   The underlying rationale for spending economic stimulus money on that particular project;

E)   The local contact or the local government contact for the project and an email address for the federal official the public can contact.

F)   In the case of state or local agencies, a certification from the governor, mayor or other executive that the project has received a complete review and vetting as required by law. By signing the letter, the government executive is certifying that the project is an appropriate use of taxpayer money. If the certification is not made, taxpayer money will not be available for the project.

G)   When general operational grants for state or local government agencies or other entities are distributed, these groups will need to publish on recovery.gov a description of the intended use of the funds which will include the number of jobs created or sustained.

H)   Each contract awarded or grant awarded using economic stimulus funds will be posted on the web and linked to www.recovery.gov. Proprietary data will remain confidential. 

3.    Any Inspector General of a federal or executive agency shall review concerns raised about spending from the economic stimulus legislation when warranted.

A)   Findings from Inspector General reports will be sent immediately to department and agency heads.

B)   Inspector General audits conducted on economic stimulus spending shall be posted online and made available on www.recovery.gov.

C)   Inspectors General shall examine any records related to funding in the economic stimulus legislation.

A)   They shall conduct reviews of selected states and localities and how they have spent the money.

B)   The GAO reports will be posted online and made available on www.recovery.gov.

C)   The GAO may examine any records regarding the spending in the economic stimulus legislation.

6.    The Federal Acquisition Regulation will apply to contracts awarded with economic stimulus funds. “To the maximum extent possible,” contracts will be awarded as fixed price contracts through competitive bidding. The legislation allows for existing contracts to be used to award contracts expeditiously. Any contracts that are not a fixed-price contract and not competitively awarded shall be posted in a special section of www.recovery.gov.

7.    The legislation establishes a board which will be called the “Recovery Act Accountability and Transparency Board” to coordinate and conduct oversight of Federal spending under the legislation to prevent “waste, fraud and abuse.”

A)   The Chief Performance Officer of the President will chair the board. The remaining members of the board will be designated by the President from the Inspectors General and deputy secretaries of the Departments of Education, Energy, Health and Human Services, Transportation and other agencies. The term on the board shall be determined by the President.

B)   The board will coordinate oversight of spending to prevent waste, fraud and abuse in economic stimulus spending.

C)   The board will ensure that contracts and grants under this act meets applicable standards and specifies a purpose of the money and how performance will be measured.

D)   That contract requirements for economic stimulus funds follow all applicable federal laws.

E)   Will investigate spending to determine whether contract rules were followed, where money has been wasted or other abuses are taking place.

F)   Will review whether there is sufficient contract and grant officers overseeing the spending and whether they are adequately trained or have the resources to conduct their jobs.

G)   The Board will produce “flash reports” on management and funding problems that need immediate attention. It is shall also produce quarterly reports summarizing its finds and the investigations conducted by the Inspectors General and an annual report. It may also issue additional reports as appropriate. All reports will be released on www.recovery.gov

H)   The Board will make recommendations to federal agencies on ways to reduce waste, fraud and abuse. Within 30 days of receiving the recommendations, the agency shall release a report to whether they agree or disagree with the recommendations and what steps need to be taken to implement the recommendations.

I)     Office space will be provided to the Board within the Executive Office of the President.

A)   The website will act as a gateway of information related to the economic stimulus bill.

B)   The website will provide materials explaining the economic stimulus legislation for taxpayers and that the “materials shall be easy to understand and regularly updated.”

C)   The website will include a database of findings from audits, Inspectors General and the Government Accountability Office.

D)   The website will provide relevant economic, financial, grants and contract information in user-friendly formats to enhance taxpayer awareness on how the money is being spent.

E)   The website will provide detailed data on contracts awarded by the government, including the following information: competitive contracting rates; notification of solicitations for contracts to be awarded and information about the process used to award the contracts.

F)   The website shall provide printable rewards on funds made available in legislation to each state and congressional district.

G)   The website shall be enhanced and updated as necessary to carry out the purposes of the legislation.