Devaney: Stimulus tracking technology the model for government transparency

The technology that tracks stimulus investments has successfully delivered a new level of transparency with regard to government spending and will soon be used throughout the government to combat fraud, according to testimony from Recovery Accountability and Transparency Board Chairman Earl Devaney.

In his opening statement for Tuesday's Senate Committee on Homeland Security and Governmental Affairs Subcommittee on Federal Financial Management hearing on using technology to transform the government, Devaney said his team has used sophisticated software tools to detect fraud before stimulus funds leaves federal agencies. He said a similar pilot program is now under way for the Centers for Medicare and Medicaid, and termed the initial results as "very positive."

"Looking back over the Board's 18-month existence, I can say without hesitation that our oversight program has been successful and will help transform the way the Inspector General community combats fraud in the future," Devaney said in his prepared remarks. "We have been able to uncover relationships that might not have been found without the special tools we are using."

Devaney said the media's focus on criminal indictments in response to Recovery Act fraud is misplaced, since the Board's focus is on preventing waste and fraud before they occur. He said the analytical tools used in the Recovery Board's state-of-the-art command center focus on intercepting fraud before it happens, but said prosecutions would eventually emerge.

"Simply put, the Board's skilled analysts look for early warning signs of trouble. They use the software to search colossal amounts of data, looking for potential problems such as criminal convictions, lawsuits, tax liens, bankruptcies, risky financial deals, and suspension and debarment proceedings."

Devaney also praised the Recovery Board's IT team for its innovative approach to developing a centralized reporting system for agencies receiving stimulus funds (FederalReporting.gov) and a website that allows the public to track how the money is spent (Recovery.gov). He said both sites have been running smoothly and have raised the bar for accountability, usability and transparency in the government.

The Board is currently engaged in a second round of focus group and usability testing for Recovery.gov in cities such as Detroit and Phoenix, with the goal of improving the site and providing further detail to users tracking stimulus funds. According to a July report from the Government Accountability Office, less than a quarter of the projects on the site include comprehensive data on cost, schedule, purpose and location.

Devaney said the biggest challenge he has faced is the lack of a single, consistent, government-wide system to number contract and grant awards. He said every agency currently has its own alphanumeric coding system, hampering efforts to track spending across multiple agencies.

"While this may not sound like a big deal, it is," Devaney said. "I have therefore decided to dedicate a considerable portion of my remaining time in the government to fixing this problem."

Danny Werfel, controller in the Office of Management and Budget's Office of Federal Financial Management, used his opening statement to detail the administration's efforts to crack down on the almost $110 billion in improper payments made during fiscal year 2009.

A recent memorandum from President Obama established a "Do Not Pay List" through which agencies can check the status of a potential contractor or individual by searching multiple government databases at once. Werfel said the administration is also hiring contractors that use sophisticated software tools to identify overpayments that can be recovered. The goal is to recover at least $2 billion in improper payments over the next three years.