Recovery Act reporting becoming the norm

Only 366 recipient reports remain to be filed with the Recovery Accountability and Transparency Board.

Less than half of 1 percent of all recipients of stimulus contracts, grants and loans have failed to file mandatory spending reports, according to data released on Monday by the Recovery Act's primary oversight board.

Since October 2009, more than 75,000 prime recipients of Recovery Act funds, including contractors, state governments, universities and nonprofits, have submitted quarterly reports on their stimulus spending to the Recovery Accountability and Transparency Board. New data from the board show that through the most recent reporting period, which ended in December 2010, only 366 spending reports, or less than 0.5 percent, remain outstanding.

"That's good news to the recovery and to taxpayers," Chairman Earl Devaney wrote in a column posted on the board's website. "Most recipients, it is clear, accept the idea that if they take taxpayer dollars, they have a legal and ethical obligation to report on their spending."

The Recovery Act requires all prime recipients of agency stimulus funds to file a spending report outlining how they are using the funds and the number of employees detailed for the work, at the end of each calendar quarter.

The new figures represent a startling turnaround for the relatively new reporting program. In the initial reporting cycle, covering the period from March to October 2009, 4,359 recipients did not comply with the reporting requirement. In the second reporting period, which closed in January 2010, the number of non-reporters declined to 1,036, representing $583 million in unaccounted-for stimulus funds.

Devaney attributed the subsequent improvement in compliance, in part, to the board's strategy of embarrassing and then punishing those recipients who failed to file spending reports.

In February 2010, the board published a list of "two-time losers" on its website, Recovery.gov, highlighting recipients who had failed to file reports in the initial two periods.

And in April 2010, the Obama administration issued a presidential memo authorizing agencies to begin terminating the awards of noncomplying recipients, reclaiming unspent funds and potentially suspended or debarring those contractors or grantees from future awards.

Among the companies that have faced stiff punishment for their noncompliance was Sunland Industries LLC, a California-based women-owned small business. The company has repeatedly failed to file a report on a $229,000 award the National Parks Service issued in September 2009 to provide road materials to Lava Beds National Monument in Northeastern California, Devaney said. Sunland subsequently was suspended from government work, and the Interior Department inspector general has recommended a permanent debarment. The issue is under review, he said.

The board has not collected data on the total number of recipients that have been suspended or debarred, according to spokesman Ed Pound.

As of Jan. 31, the board and the agency inspectors general have received 5,703 complaints of wrongdoing associated with Recovery Act funds. More than 1,100 complaints have triggered active investigations, according to figures on the website.

At least one company, Eyak Technology LLC, an Alaska native corporation-owned small business with offices in Virginia, has argued that it does not have to file a spending report. Eyak initially was awarded a $1.1 million contract by the Homeland Security Department Customs and Border Patrol in September 20008 -- before passage of the Recovery Act -- to upgrade communication sites in Maine. The following year, DHS modified the contract and added a $656,960 task order using Recovery Act funds.

When the company claimed it did not legally have to report its spending on the task order, CBP attempted to pull back the Recovery Act funding. Eyak filed suit, claiming breach of contract. The case is now pending at the U.S. Civilian Board of Contract Appeals.

Eyak spokeswoman Melissa Zelinger said the company is not challenging the reporting requirements in general but is arguing that CBP "unlawfully used [American Recovery and Reinvestment Act] funds on the contract in question and therefore no ARRA reporting was required." The firm said the agency was prohibited from using Recovery Act funds on an existing contract unless it first modified the contract to incorporate a clause from the Federal Acquisition Regulations regarding the use of ARRA funds on the award. "The agency never modified the contract to incorporate the required FAR clause," Zelinger said. "Because the FAR clause was never incorporated into EyakTek's contract, the agency could not lawfully use ARRA funds and ARRA reporting requirements were not required by EyakTek. Given the emphasis on transparency of the use of Recovery Act funds, EyakTek would not agree to report when, in its opinion, the ARRA funds were unlawfully used by the agency." Eyak is believed to be the only Recovery Act recipient to argue in court that it is not required to file a spending report, Pound said.

For other recipients, the excuses for not reporting have run the gamut. Dell Federal Systems LP cited "clerical oversight" as the reason it did not report for two consecutive quarters on a $150,699 contract. Tampa Ship LLC, meanwhile, blamed its lapse on its staff's failure to renew a required government registration form. The best excuse, Devaney said, was a recipient who claimed to be "unexpectedly pulled out of the office for some out-of-town meetings for several days and was unable to connect laptop to a wireless connection.''

"The way I look at it, there are no good excuses for failing to report to taxpayers," Devaney said. "Recipient reporting is at the heart of the board's accountability program. You can be certain we will keep up the pressure on the relatively few recipients who ignore their reporting obligations."

NEXT STORY: Obama: Sorry, Feds--and Thanks!

X
This website uses cookies to enhance user experience and to analyze performance and traffic on our website. We also share information about your use of our site with our social media, advertising and analytics partners. Learn More / Do Not Sell My Personal Information
Accept Cookies
X
Cookie Preferences Cookie List

Do Not Sell My Personal Information

When you visit our website, we store cookies on your browser to collect information. The information collected might relate to you, your preferences or your device, and is mostly used to make the site work as you expect it to and to provide a more personalized web experience. However, you can choose not to allow certain types of cookies, which may impact your experience of the site and the services we are able to offer. Click on the different category headings to find out more and change our default settings according to your preference. You cannot opt-out of our First Party Strictly Necessary Cookies as they are deployed in order to ensure the proper functioning of our website (such as prompting the cookie banner and remembering your settings, to log into your account, to redirect you when you log out, etc.). For more information about the First and Third Party Cookies used please follow this link.

Allow All Cookies

Manage Consent Preferences

Strictly Necessary Cookies - Always Active

We do not allow you to opt-out of our certain cookies, as they are necessary to ensure the proper functioning of our website (such as prompting our cookie banner and remembering your privacy choices) and/or to monitor site performance. These cookies are not used in a way that constitutes a “sale” of your data under the CCPA. You can set your browser to block or alert you about these cookies, but some parts of the site will not work as intended if you do so. You can usually find these settings in the Options or Preferences menu of your browser. Visit www.allaboutcookies.org to learn more.

Sale of Personal Data, Targeting & Social Media Cookies

Under the California Consumer Privacy Act, you have the right to opt-out of the sale of your personal information to third parties. These cookies collect information for analytics and to personalize your experience with targeted ads. You may exercise your right to opt out of the sale of personal information by using this toggle switch. If you opt out we will not be able to offer you personalised ads and will not hand over your personal information to any third parties. Additionally, you may contact our legal department for further clarification about your rights as a California consumer by using this Exercise My Rights link

If you have enabled privacy controls on your browser (such as a plugin), we have to take that as a valid request to opt-out. Therefore we would not be able to track your activity through the web. This may affect our ability to personalize ads according to your preferences.

Targeting cookies may be set through our site by our advertising partners. They may be used by those companies to build a profile of your interests and show you relevant adverts on other sites. They do not store directly personal information, but are based on uniquely identifying your browser and internet device. If you do not allow these cookies, you will experience less targeted advertising.

Social media cookies are set by a range of social media services that we have added to the site to enable you to share our content with your friends and networks. They are capable of tracking your browser across other sites and building up a profile of your interests. This may impact the content and messages you see on other websites you visit. If you do not allow these cookies you may not be able to use or see these sharing tools.

If you want to opt out of all of our lead reports and lists, please submit a privacy request at our Do Not Sell page.

Save Settings
Cookie Preferences Cookie List

Cookie List

A cookie is a small piece of data (text file) that a website – when visited by a user – asks your browser to store on your device in order to remember information about you, such as your language preference or login information. Those cookies are set by us and called first-party cookies. We also use third-party cookies – which are cookies from a domain different than the domain of the website you are visiting – for our advertising and marketing efforts. More specifically, we use cookies and other tracking technologies for the following purposes:

Strictly Necessary Cookies

We do not allow you to opt-out of our certain cookies, as they are necessary to ensure the proper functioning of our website (such as prompting our cookie banner and remembering your privacy choices) and/or to monitor site performance. These cookies are not used in a way that constitutes a “sale” of your data under the CCPA. You can set your browser to block or alert you about these cookies, but some parts of the site will not work as intended if you do so. You can usually find these settings in the Options or Preferences menu of your browser. Visit www.allaboutcookies.org to learn more.

Functional Cookies

We do not allow you to opt-out of our certain cookies, as they are necessary to ensure the proper functioning of our website (such as prompting our cookie banner and remembering your privacy choices) and/or to monitor site performance. These cookies are not used in a way that constitutes a “sale” of your data under the CCPA. You can set your browser to block or alert you about these cookies, but some parts of the site will not work as intended if you do so. You can usually find these settings in the Options or Preferences menu of your browser. Visit www.allaboutcookies.org to learn more.

Performance Cookies

We do not allow you to opt-out of our certain cookies, as they are necessary to ensure the proper functioning of our website (such as prompting our cookie banner and remembering your privacy choices) and/or to monitor site performance. These cookies are not used in a way that constitutes a “sale” of your data under the CCPA. You can set your browser to block or alert you about these cookies, but some parts of the site will not work as intended if you do so. You can usually find these settings in the Options or Preferences menu of your browser. Visit www.allaboutcookies.org to learn more.

Sale of Personal Data

We also use cookies to personalize your experience on our websites, including by determining the most relevant content and advertisements to show you, and to monitor site traffic and performance, so that we may improve our websites and your experience. You may opt out of our use of such cookies (and the associated “sale” of your Personal Information) by using this toggle switch. You will still see some advertising, regardless of your selection. Because we do not track you across different devices, browsers and GEMG properties, your selection will take effect only on this browser, this device and this website.

Social Media Cookies

We also use cookies to personalize your experience on our websites, including by determining the most relevant content and advertisements to show you, and to monitor site traffic and performance, so that we may improve our websites and your experience. You may opt out of our use of such cookies (and the associated “sale” of your Personal Information) by using this toggle switch. You will still see some advertising, regardless of your selection. Because we do not track you across different devices, browsers and GEMG properties, your selection will take effect only on this browser, this device and this website.

Targeting Cookies

We also use cookies to personalize your experience on our websites, including by determining the most relevant content and advertisements to show you, and to monitor site traffic and performance, so that we may improve our websites and your experience. You may opt out of our use of such cookies (and the associated “sale” of your Personal Information) by using this toggle switch. You will still see some advertising, regardless of your selection. Because we do not track you across different devices, browsers and GEMG properties, your selection will take effect only on this browser, this device and this website.