I 112th CONGRESS 1st Session H. R. 1376 IN THE HOUSE OF REPRESENTATIVES April 5, 2011 Mr. Posey introduced the following bill; which was referred to the Committee on Oversight and Government Reform A BILL To require State governments to submit fiscal accounting reports as a condition to the receipt of Federal financial assistance, and for other purposes.

1.

Short title

This Act may be cited as the National Activity Based Total Accountability Act of 2011.

2.

Findings and Purpose

(a)

Findings

The Congress finds as follows: (1)The Federal Government sends hundreds of billions of dollars to the States each and every year. (2)In fiscal year 2009, among the money sent to the States were $325 billion for health and human services, $57 billion for transportation, $47 billion for housing and urban development, $45 billion for education, and $31 billion for agriculture. (3)States receive money from the Federal Government through grants, loans, loan guarantees, property, cooperative agreements, interest subsidies, insurance, food commodities, and direct appropriations, among others means. (4)Every State spends money for common activities such as health care, transportation, housing, education, agriculture and other issues, yet some States are more effective than others when spending these Federal taxpayer dollars. (5)Taxpayers, legislators, and agencies should be able to objectively and reliably share data comparing apples-to-apples performance measurements that identify what government does and what it really costs. (6)Activity-based total accountability will show which States are the most effective with taxpayer dollars and lead to competition among States. (7)States demonstrating that they are more efficient with tax dollars by having lower activity costs will serve as models for others to ensure that there is more accountability for how tax dollars are spent and to ensure that the taxpayer is getting the best value for their dollar. (b)

Purpose

The purpose of this Act is to improve the policymaking process and government accountability at the State level by requiring annual accountings from State governments in a format that uses total accountability measures, including unit-cost data.

3.

State fiscal accounting reports

(a)

In general

Not later than 15 days before the end of a Federal fiscal year, each State government that receives Federal financial assistance in that Federal fiscal year shall submit a State fiscal accounting report for the Federal fiscal year to the Director of the Office of Management and Budget (hereinafter in this Act referred to as the Director). (b)

Contents of report

Each State fiscal accounting report shall include— (1)a one-page summary that lists the total funding and expenditures of each budget entity of the State government; and (2)for each budget entity of the State government, a unit-cost summary for the Federal fiscal year. (c)

Publication of reports

The Director shall publish each report received under this section on an Internet Web site of the Director not later than 30 days after receiving that report.

4.

Standardization of State fiscal accounting reports

(a)

Standardization of reports

The Director shall ensure that each State fiscal accounting report is in such standardized form as the Director may prescribe. Such form shall permit the comparison of the information contained in a State fiscal accounting report with the information contained in every other State fiscal accounting report. (b)

Initial reports

Not later than 180 days after the date of enactment of this Act, each State government that is required to submit a report under section 3 shall submit to the Director a description of the programs and other activities carried out by each budget entity of that State government over that fiscal year, including such information on those programs or activities as the Director may require. (c)

Classification system

Based on the descriptions submitted under subsection (b) and on what the Director determines to be the most relevant data available (including data from the most recent census), the Director shall by rule do the following: (1)Establish a uniform system for classifying such programs and activities within categories (hereinafter in this Act referred to as agency activities) identified by the Director. (2)For each agency activity, identify conduct (hereinafter in this Act referred to as an activity unit) that, in the determination of the Director, constitutes a completed instance of such agency activity. (3)For each agency activity, identify, to the extent practicable, performance measures for that agency activity, and, in publishing a report under section 3(c), link electronically such performance measures to that agency activity.

5.

Unit-cost summary

Each unit-cost summary for a budget entity of a State government shall be in such form as the Director may prescribe, be one page long, and include the following: (1)A statement of funds available, as described under section 6. (2)For each agency activity that the budget entity began, attempted, continued, or completed, a line-item listing as described under section 7. (3)A reconciliation of funds available with adjusted expenditures as described under section 8.

6.

Statement of funds available

(a)

In general

A statement of funds available shall identify— (1)in accordance with subsection (b), each source of funds available for expenditure or obligation by the budget entity and the amount of such funds; and (2)the sum of all amounts identified under paragraph (1). (b)

Identification of sources

In identifying the sources of funds available for expenditure or obligation by the budget entity, the budget entity shall include the following: (1)All funds made available by State appropriations laws. (2)Any Federal financial assistance provided by a Federal department or agency. (3)Any other sources the Director determines appropriate.

7.

Agency activity line item listings

(a)

In general

A line item listing for an agency activity shall— (1)identify— (A)the agency activity; (B)in accordance with subsection (b), the total amount of funds that the budget entity expended in carrying out the agency activity; (C)the number of activity units of the agency activity the budget entity began, attempted, continued, or completed; and (D)the unit-cost of the agency activity, determined in accordance with subsection (c); and (2)describe as many of the following as are relevant to the agency activity: (A)What conduct constitutes an activity unit. (B)Each purpose for which the budget entity engaged in that agency activity. (C)Each person that is an intended beneficiary of that agency activity. (b)

Special rules for determination of expenditures

(1)

Allocation of expenditures for certain agency activities

If the Director determines that there is an agency activity for which no method of measuring the accomplishment of the agency activity exists, an expenditure for that agency activity must be consistently allocated to what is, in the determination of the Director, a sufficiently similar agency activity for which such a method exists. (2)

Payments to contractors or subordinate entities included

An identification of the total amount of funds that a budget entity expended shall include any amounts paid to a contractor or subordinate entity. (c)

Determination of unit-Cost

(1)

In general

The unit-cost of an agency activity shall be determined in accordance with the following formula: µ UC =———————————————————. φ (2)

Definition of terms in formula

For purposes of the formula in paragraph (1)— (A)UC is the unit-cost of the agency activity; (B)µ is the amount described in subsection (a)(1)(B); and (C)φ is the number described in subsection (a)(1)(C).

8.

Reconciliation of funds available with adjusted expenditures

(a)

In general

A reconciliation of funds available with adjusted expenditures shall— (1)identify the adjusted expenditures of the budget entity; and (2)explain any difference between the adjusted expenditures and the sum of all funds available for expenditure or obligation by the budget entity (determined in accordance with section 6). (b)

Determination of adjusted expenditures

(1)

In general

The adjusted expenditures of the budget entity shall be determined in accordance with the following formula:  AE = EXP + PT + REV. (2)

Definition of terms in formula

For purposes of the formula in paragraph (1)— (A)AE is the adjusted expenditures; (B)EXP is the sum of all expenditures by the budget entity for agency activities; (C)PT is the sum of all pass-throughs identified by the budget entity under subsection (c); and (D)REV is the sum of all reversions identified by the budget entity under subsection (c). (c)

Identification of Pass-Throughs and Reversions

A budget entity may identify an amount as a pass-through or a reversion if the amount satisfies criteria established by the Director.

9.

Noncompliance

If the Director determines that a State government has failed, with respect to a Federal fiscal year, to file a sufficient and timely State fiscal accounting report under this Act, the Director shall so inform the head of each Federal department or agency. Each such head shall withhold 10 percent of any Federal financial assistance provided to the State government for the next Federal fiscal year.

10.

Rules

The Director is authorized to make such rules as may be necessary to carry out this Act.

11.

Definitions

In this Act: (1)The term State government means the government of each of the several States, the District of Columbia, and any commonwealth, territory, or possession of the United States. (2)The term budget entity means a State agency or the State judiciary. (3)The term agency activity means major operational activities carried out by a budget entity. (4)The term Federal financial assistance has the meaning given such term in section 7501 of title 31, United States Code, and also includes any other amounts that the Director determines appropriate.