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Stimulus grantees cited for poor oversight of federal funds

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By The Sunlight Foundation Reporting Group

The Carson City Airport Authority, which has benefited in the last four years from more than $13 million in federal funds, is now slated to receive another $9.6 million in stimulus money, even though an independent auditor cited problems earlier this year with how it manages its federal grants.

The airport authority, which saw a board member resign in 2008 while calling for an independent investigation into the authority’s directors, is one of dozens of organizations that received funds from the $787 billion American Recovery and Reinvestment Act despite having flaws in their management systems. Overall, federal agencies administering stimulus funds have awarded $119 million to 106 recipients that independent auditors cited in 2009 as having “significant deficiencies” in their ability to administer federal programs, a Sunlight review of Recovery.gov and Federal Audit Clearinghouse data has found.

Government regulations require nonprofits and state and local government agencies that annually spend more than $500,000 in federal funds to undergo audits (called “single audits“) to ensure these grantees are able to administer taxpayer funds effectively and efficiently, can detect and prevent fraud, waste, and abuse; and reliably report how they spent the funds. Summary data from the audits are collected and published by the Federal Audit Clearinghouse, Web site published by the Census Bureau, including whether a federal grantee has significant deficiencies in its management of federal funds. Significant deficiencies can vary from failing to file required documents to serious mismanagement of funds and even fraud. To get details on the seriousness of a significant deficiency, one must obtain the complete single audit report, which many agencies will release only after a formal request under the Freedom of Information Act.

According to Office of Management and Budget guidance, single audits are one of the tools that “will be used to drive accountability for Federal awards under the Recovery Act.” Yet millions have been awarded to recipients that have been flagged for having problems.

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The Sunlight Foundation Reporting Group is part of the Sunlight Foundation, a nonprofit, nonpartisan Washington, D.C.-based organization that uses cutting-edge technology and ideas to make government transparent and accountable.


Source: http://reporting.sunlightfoundation.com/2009/stimuluscarson/


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