This is the accessible text file for GAO report number GAO-09-672T 
entitled 'Recovery Act: GAO's Efforts to Work with the Accountability 
Community to Help Ensure Effective and Efficient Oversight' which was 
released on May 5, 2009. 

This text file was formatted by the U.S. Government Accountability 
Office (GAO) to be accessible to users with visual impairments, as part 
of a longer term project to improve GAO products' accessibility. Every 
attempt has been made to maintain the structural and data integrity of 
the original printed product. Accessibility features, such as text 
descriptions of tables, consecutively numbered footnotes placed at the 
end of the file, and the text of agency comment letters, are provided 
but may not exactly duplicate the presentation or format of the printed 
version. The portable document format (PDF) file is an exact electronic 
replica of the printed version. We welcome your feedback. Please E-mail 
your comments regarding the contents or accessibility features of this 
document to Webmaster@gao.gov. 

This is a work of the U.S. government and is not subject to copyright 
protection in the United States. It may be reproduced and distributed 
in its entirety without further permission from GAO. Because this work 
may contain copyrighted images or other material, permission from the 
copyright holder may be necessary if you wish to reproduce this 
material separately. 

Testimony: 

Before the Subcommittee on Investigations and Oversight, Committee on 
Science and Technology, House of Representatives: 

United States Government Accountability Office: 
GAO: 

For Release on Delivery: 
Expected at 2:00 p.m. EDT:
Tuesday, May 5, 2009: 

Recovery Act: 

GAO's Efforts to Work with the Accountability Community to Help Ensure 
Effective and Efficient Oversight: 

Statement of Gene L. Dodaro: 
Acting Comptroller General: 

GAO-09-672T: 

GAO Highlights: 

Highlights of GAO-09-672T, a testimony to the Subcommittee on 
Investigations and Oversight, Committee on Science and Technology, 
House of Representatives. 

Why GAO Did This Study: 

This testimony discusses GAO’s efforts to coordinate with the 
accountability community—the Recovery Accountability and Transparency 
Board (the Board), the Inspectors General (IGs), and state and local 
government auditors—to help ensure effective and efficient oversight of 
American Recovery and Reinvestment Act (Recovery Act) funds. The 
Recovery Act assigns GAO a range of responsibilities including 
bimonthly reviews of the use of funds by selected states and 
localities. Because funding streams will flow from federal agencies to 
the states and localities, it is important for us to coordinate with 
the accountability community. Also, on March 19, 2009, GAO testified 
before this Subcommittee about the more than $21 billion in Recovery 
Act funds estimated to be spent for research and development (R&D) 
activities at four federal agencies. 

This statement discusses (1) GAO’s efforts to fulfill its 
responsibilities under the Recovery Act; (2) GAO’s coordination with 
others in the accountability community; (3) GAO’s authorities to assist 
whistleblowers and elicit public concerns; and (4) updated information 
on the status of Recovery Act funds for R&D. It is based in part on GAO’
s first bimonthly Recovery Act report, Recovery Act: As Initial 
Implementation Unfolds in States and Localities, Continued Attention to 
Accountability Issues Is Essential (GAO-09-580), and GAO’s March 5, 
2009 testimony, American Recovery and Reinvestment Act: GAO’s Role in 
Helping to Ensure Accountability and Transparency (GAO-09-453T). 

What GAO Found: 

GAO is carrying out its responsibilities to review the uses of Recovery 
Act funds and will also target certain areas for additional review 
using a risk-based approach. GAO’s first bimonthly report examined the 
steps 16 states, the District of Columbia, and selected localities are 
taking to use and oversee Recovery Act funds. These states contain 
about 65 percent of the U.S. population and are estimated to receive 
about two-thirds of the intergovernmental grant funds available through 
the Recovery Act. GAO’s report made several recommendations to the 
Office of Management and Budget (OMB) toward improving accountability 
and transparency requirements; clarifying the Recovery Act funds that 
can be used to support state efforts to ensure accountability and 
oversight; and improving communications with Recovery Act funds 
recipients. 

Soon after the Recovery Act passed, GAO began to coordinate with the 
accountability community. By the end of February 2009, GAO conducted 
initial outreach to IGs, the Board, OMB, and state and local auditors. 
Now, GAO participates in regular coordination conference calls with 
representatives of these constituencies to discuss Recovery Act efforts 
and regularly coordinates with individual IGs. GAO also participates in 
discussions with state and local organizations to further foster 
coordination. The work of GAO’s 16 state and District of Columbia teams 
that resulted in the first bimonthly report on the actions of selected 
states and localities under the Recovery Act also exemplifies the level 
of coordination we are undertaking with the accountability community. 
For example, teams working in the states collected documents from and 
interviewed State Auditors, Controllers, and Treasurers; state IGs; and 
other key audit community stakeholders to determine how they planned to 
conduct oversight of Recovery Act funds. 

Provisions in statute as well as a fraud reporting hotline facilitate 
GAO’s ability to evaluate allegations of waste, fraud, and abuse in the 
federal government. Under GAO’s authorizing statute, subject to certain 
limited exceptions, all agencies must provide the Comptroller General 
with access to information about the duties, powers, activities, 
organization and financial transactions of that agency, including for 
the purpose of evaluating whistleblower complaints. The Whistleblower 
Protection Act and the Recovery Act provide additional authority for 
GAO to assist whistleblowers. GAO also maintains a fraud reporting 
service, which has recently generated more than 25 allegations of 
misuse of Recovery and other federal funds. These allegations are 
currently under review by our forensic audit team. 

Since GAO first provided this Subcommittee with an estimate of the 
Recovery Act R&D funds to be spent, agencies have submitted program 
plans to OMB that include, among other things, programs’ objectives, 
schedules, and the types of financial awards to be used. OMB expects to 
approve these plans by May 15, 2009. As of April 28, 2009, only the 
Department of Energy’s Office of Science had obligated Recovery Act R&D 
funds for project expenditures. 

View [hyperlink, http://www.gao.gov/products/GAO-09-672T] or key 
components. For more information, contact Patricia Dalton at (202) 512-
3841 or daltonp@gao.gov. 

[End of section] 

Chairman Miller, Ranking Member Broun, and Members of the Subcommittee: 

I am pleased to be here today to discuss our efforts to carry out GAO's 
oversight roles related to the American Recovery and Reinvestment Act 
of 2009 (Recovery Act).[Footnote 1] An important part of our work 
entails coordinating with the accountability community including the 
federal Inspectors General (IGs), the Recovery Accountability and 
Transparency Board, and state and local government auditors. I will 
also provide updated information on the status of Recovery Act funds to 
be spent for research and development (R&D) activities, about which we 
testified before this Subcommittee in March 2009.[Footnote 2] 

The Recovery Act delineates an important set of responsibilities for 
the accountability community. GAO is required to conduct bimonthly 
reviews of the use by selected states and localities of funds made 
available under the act; we issued the first of these bimonthly reviews 
on April 23, 2009.[Footnote 3] GAO is also charged with reporting on, 
among other things, specific areas including trade adjustment 
assistance, new education incentive grants, new health care tax 
credits, and the effects of national economic downturns on states-- 
especially in the Medicaid area--over the past several decades. 
[Footnote 4] IGs across government are expected to audit the efforts of 
federal agencies' operations and programs related to the Recovery Act, 
both individually within their particular entities and collectively, as 
many of them are members of the Recovery Accountability and 
Transparency Board (the Board). The Board will help prevent waste, 
fraud, and abuse by reviewing contracts and grants to ensure they meet 
applicable standards, satisfy applicable competition requirements, and 
are overseen by sufficient numbers of trained acquisition and grants 
personnel. The Board is charged with reporting to the President, Vice 
President, and the Congress any potential problems requiring immediate 
attention in addition to reporting quarterly and annually. 

As we testified before the Subcommittee on March 19, 2009, the Recovery 
Act's combined spending and tax provisions are estimated to cost $787 
billion, including more than $21 billion in additional spending for R&D-
related activities at the Department of Energy (DOE), Department of 
Commerce, National Science Foundation (NSF), and National Aeronautics 
and Space Administration (NASA). These activities include supporting 
fundamental research, demonstrating and deploying advanced energy 
technologies, purchasing scientific instrumentation and equipment, and 
constructing or modernizing research facilities. Our earlier testimony 
identified several R&D programs that deserve special attention from 
agency managers and IGs based on our prior work. Sustained oversight 
attention on these programs will be critical as Recovery Act funds are 
spent. 

Because funding streams of the Recovery Act--including R&D funding-- 
will flow from different federal agencies to the states, localities and 
institutions within them, we have been coordinating with the IGs and 
the Board, as well as with state and local auditors. My statement today 
discusses (1) GAO's efforts to fulfill its responsibilities under the 
Recovery Act; (2) GAO's coordination with the Board, IGs, and state and 
local government auditors; (3) GAO's authorities to assist 
whistleblowers and elicit concerns from the public; and (4) updated 
information on Recovery Act funds to be spent for R&D from our previous 
testimony. 

Our Reporting to Date under the Recovery Act: 

In order to meet our mandate to conduct bimonthly reviews and prepare 
reports on selected states' and localities' use of funds, we have 
selected 16 states and the District of Columbia to track over the next 
few years to provide an ongoing longitudinal analysis of the use of 
funds under the Recovery Act.[Footnote 5] These states contain about 65 
percent of the U.S. population and are estimated to receive about two- 
thirds of the intergovernmental grant funds available through the 
Recovery Act. In addition to reporting on the core group of 16 states, 
we will review the recipient reports from all 50 states. These 
recipient reports are to include information on funds received, the 
amount of Recovery funds obligated or expended to projects or 
activities, the projects or activities for which funds were obligated 
or expended, and the number of jobs created or preserved as a result of 
Recovery Act funds. The Recovery Act also included a number of specific 
mandates on which GAO must take action between April 2009 and February 
2014.[Footnote 6] 

Our first bimonthly report, issued two weeks ago, covers the actions of 
selected states and localities under the Recovery Act as of April 20, 
2009. About 90 percent of the $49 billion in Recovery Act funding being 
provided to states and localities in fiscal year 2009 will be through 
health, transportation, and education programs. (See appendix I for 
federal programs that are receiving Recovery Act funding and are 
administered by states and localities.) Our first report focused 
particularly on Recovery Act funds for the three largest programs in 
these categories-
-Medicaid Federal Medical Assistance Percentage grant awards, highway 
infrastructure investment, and the Department of Education's State 
Fiscal Stabilization Fund. We reported on the status of states' 
activities related to these three programs. The report contains 
separate appendixes on each of the 16 states and the District of 
Columbia that discuss the plans and uses of funds in these three major 
programs as well as selected other programs that are receiving Recovery 
Act funds. The report also makes several recommendations to the Office 
of Management and Budget (OMB) directed toward improving accountability 
and transparency requirements; clarifying the Recovery Act funds that 
can be used to support state efforts to ensure accountability and 
oversight; and improving communications with Recovery Act funds 
recipients about when funds become available for their use and when 
federal guidance is modified or newly released. OMB concurred with the 
overall objectives of our recommendations and plans to work with us to 
further accountability for these funds. 

In consultation with the Congress in exercising our general statutory 
authority to evaluate the results of government programs and 
activities, we also will continue to target programs for additional 
review using a risk-based approach and will incorporate reviews of 
Recovery Act funding where practicable when we are examining base 
programs. There are many implementation challenges to ensuring adequate 
accountability and efficient and effective implementation of the 
Recovery Act. Experience tells us that the risk for fraud, waste, and 
abuse grows when billions of dollars are going out quickly, eligibility 
requirements are being established or changed, new programs are being 
created, or a mix of these characteristics. This suggests the need for 
a risk-based approach to target for early attention specific programs 
and funding structures based on known strengths, vulnerabilities, and 
weaknesses, such as a track record of improper payments or contracting 
problems. Of particular concern to this Subcommittee will be the extent 
to which Recovery Act R&D funding is effectively expended, and we 
discuss the initial implementation of R&D funding below. 

GAO's Coordination with the Accountability Community: 

Regular and frequent GAO coordination with federal IGs, the Board, and 
state and local government auditors is a critical component of our work 
to ensure effective and efficient oversight. With several early 
coordination meetings, we laid the foundation for this ongoing 
coordination soon after the act was passed. First, I reached out to the 
IG community and, with Ms. Phyllis Fong, the Chair of the Council of 
Inspectors General on Integrity and Efficiency, hosted an internal 
coordination meeting on February 25, 2009, with Inspectors General or 
their representatives from 17 agencies. It was a very productive 
discussion in which we outlined coordination approaches going forward. 
In addition, soon after the President appointed him as Chair of the 
Board on February 23, 2009, I talked with Mr. Earl Devaney, former 
Inspector General at the Department of the Interior, to begin to 
coordinate such efforts as the audit of the U.S. government's 
consolidated financial statements whereby GAO relies on the individual 
efforts of the IG's financial audits of their departments and entities 
across the government. I am confident that we will coordinate our 
respective efforts well, both with the IG community and with the Board. 

We also reached out to the state and local audit community and 
participated in initial coordination conference calls. The first call, 
on February 26, 2009, included state auditors or their representatives 
from 46 states and the District of Columbia. The next day, we held a 
similar discussion with auditors from many localities across the 
country. State and local auditors perform very important oversight 
functions within their jurisdictions and have unique knowledge about 
their governments; we are continuing to coordinate with them closely as 
we carry out our responsibilities. 

It is also important for us to coordinate with OMB, especially in 
regard to the reporting requirements and other guidance to fund 
recipients and on what information is to be collected in order to 
adequately evaluate how well the Recovery Act achieves its objectives. 
We participate in weekly coordination conference calls with OMB, the 
Board, IGs, and state and local auditors. The impetus to schedule these 
calls was a letter OMB Director Peter Orszag and I received from the 
National Association of State Auditors, Comptrollers, and Treasurers; 
the National Association of State Budget Officers; the National 
Association of State Chief Information Officers; and the National 
Association of State Procurement Officials. This letter expressed their 
strong interest in coordinating reporting and compliance aspects of the 
Recovery Act. During these calls, we provide updates on our Recovery 
Act activities, and OMB provides updates on its actions. One important 
outcome of these calls thus far has been to call OMB's and the Board's 
attention to the need to clarify certain reporting requirements. For 
example, the Recovery Act requires federal agencies to make information 
publicly available on the numbers of jobs created and retained as a 
result of Recovery Act funded activities. Our work in the states 
yielded information that local level officials needed to define how to 
capture these data, and the state and local auditors were able to 
corroborate what we had heard. We included a recommendation to OMB in 
our first bimonthly report on the Recovery Act actions of selected 
states and localities to clarify this requirement, and OMB generally 
concurred with this recommendation. 

In addition to these regular calls, we are actively participating in 
discussions with state and local organizations to further foster 
coordination within the accountability community. These organizations 
include the National Association of State Auditors, Comptrollers, and 
Treasurers; the National Association of State Budget Officers; the 
National Association of State Procurement Officials; the National 
Association of State Chief Information Officers; the National Governors 
Association; the National Conference of State Legislatures; and the 
National League of Cities. For example, in March 2009, we participated-
-along with a state auditor, local auditor, and inspector general--in a 
webinar hosted by the National Association of State Auditors, 
Comptrollers, and Treasurers for its members. 

As Acting Comptroller General, I also serve as the Chairman of the 
National Intergovernmental Audit Forum (NIAF). The NIAF is an 
association that has existed for over 3 decades as a means for federal, 
state, and local audit executives to discuss issues of common interest 
and share best practices. NIAF's upcoming May meeting will bring 
together these executives, including OMB, to update them on the 
Recovery Act and provide another opportunity to discuss emerging issues 
and challenges. In addition, a number of Intergovernmental Audit Forum 
meetings have been scheduled at the regional level that seek to do the 
same, and this regional coordination is directly contributing to our 
work in the states. For example, GAO's western regional director 
recently made a presentation at the Pacific Northwest Audit Forum 
regarding GAO's efforts to coordinate with state and local officials in 
conducting Recovery Act oversight. In conjunction with that forum and 
at other related forums, she has regularly participated in meetings, 
panel discussions, and break-out discussions with the principals of 
state and local audit entities to coordinate efforts to provide 
oversight of Recovery Act spending. 

The work of our 16 state teams that resulted in our first bimonthly 
report on the actions of selected states and localities under the 
Recovery Act also exemplifies the level of coordination we are 
undertaking with the accountability community. During the conduct of 
our work, we collected documents from and interviewed State Auditors, 
Controllers, and Treasurers; state Inspectors General; and other key 
audit community stakeholders to determine how they planned to conduct 
oversight of Recovery Act funds. We also coordinated as appropriate 
with legislative offices in the states concerning state legislatures' 
involvement with decisions on the use of Recovery Act funds. In 
addition, we relied on reporting and data collected from the Federal 
Audit Clearinghouse, which operates on behalf of OMB to assist 
oversight agencies in obtaining audit information on states, local 
governments, and non-profit organizations. Illustrative examples 
follow: 

* Our team working in Georgia coordinated closely with that state's 
State Accounting Office, the State Auditor, and Inspector General among 
others, to understand their plans for mitigating risks and overseeing 
Recovery Act funding. For example, the Inspector General developed a 
database specifically to track Recovery Act complaints and a public 
service announcement to alert the public of how to report fraud, waste, 
and abuse. 

* Our team working in North Carolina coordinated with the State Auditor 
regarding that state's plans to ensure that Recovery Act funds are 
segregated from other federal funds coming through traditional funding 
streams to help ensure accountability and transparency. 

* Our team working in New Jersey coordinated with the state's new 
Recovery Accountability Task Force, which will review how state and 
local agencies spend Recovery Act funds as well as provide guidance and 
best practices on project selection and internal controls. As part of 
the Task Force, the state Comptroller has responsibility for 
coordinating all of the oversight agencies within the state. 

* Our team working in California is coordinating with the state's newly 
appointed Recovery Act Inspector General, who is seeking to make sure 
that Recovery Act funds are spent as intended and to identify instances 
of waste, fraud, and abuse. In addition, the team relied on the work of 
the State Auditor, whose most recent single audit identified numerous 
material weaknesses associated with programs included in GAO's review. 

GAO's Authorities to Assist Whistleblowers and Elicit Public 
Contributions: 

Provisions in GAO's authorizing statute, the Whistleblower Protection 
Act, and the Recovery Act as well as a dedicated fraud reporting 
hotline facilitate our ability to evaluate allegations of waste, fraud 
and abuse in the federal government. Under our authorizing statute, we 
have authority to access information needed for the effective and 
efficient performance of our reviews and evaluations. Subject to 
certain limited exceptions, all agencies must provide the Comptroller 
General access to information he requires about the duties, powers, 
activities, organization, and financial transactions of that agency, 
[Footnote 7] including for the purpose of evaluating whistleblower 
complaints. 

Moreover, the Recovery Act applies certain federal whistleblower 
protections to the employees of recipients of Recovery funds. The 
Whistleblower Protection Act prohibits personnel actions taken against 
federal employees in reprisal for the disclosure of evidence of a 
violation of any law, rule, or regulation, gross mismanagement, a gross 
waste of funds, an abuse of authority, or a substantial and specific 
danger to public health or safety. Similarly, the Recovery Act 
prohibits reprisals against employees of nonfederal recipients of 
Recovery funds, but its protections only relate to disclosures 
regarding the use of Recovery funds. The Recovery Act provides 
employees of a nonfederal entity receiving a contract, grant, or other 
payment funded in whole or part by Recovery funds may not be 
discharged, demoted, or otherwise subject to discrimination as a 
reprisal for disclosing to the Board, an IG, the Comptroller General, 
the Congress, a state or federal regulatory or law enforcement agency, 
the employee's supervisor, a court or grand jury, or a federal agency 
information about mismanagement, waste, danger to public health or 
safety, or a violation of law regarding the use of Recovery Act funds. 
People who believe they have been subject to reprisal may submit a 
complaint to the appropriate inspector general for investigation and 
seek redress through the courts. Table 1 outlines the coverage of 
Whistleblower Act and Recovery Act provisions. 

Table 1: Coverage of Whistleblower Act and Recovery Act Provisions: 

Provision: Coverage; 
Section 1553 of the Recovery Act: Employees of a non-federal entity 
(state or local government, contractor, etc.) receiving a contract, 
grant, or other payment funded in whole or in part by the Act; 
Whistleblower Protection Act (5 U.S.C. § 2302(b)(8)): Employees of 
federal executive branch agencies except FBI, CIA, and intelligence 
agencies. 

Provision: Protected disclosures; 
Section 1553 of the Recovery Act: Gross mismanagement of a contract or 
grant funded by the Act; gross waste of funds provided by the Act; 
substantial and specific danger to public health or safety related to 
the use of the Act's funds; abuse of authority related to the use of 
the Act's funds; or a violation of any law, rule, or regulation related 
to a contract or grant related to the Act's funds; 
Whistleblower Protection Act (5 U.S.C. § 2302(b)(8)): Violation of any 
law, rule, or regulation; gross mismanagement; gross waste of funds; 
abuse of authority; or a substantial and specific danger to public 
health or safety. 

Provision: Disclosure to; 
Section 1553 of the Recovery Act: Recovery Act Accountability and 
Transparency Board; any inspector general; GAO; Congress; state or 
federal regulatory or law enforcement agency; the employee's supervisor 
or another employee authorized to investigate, discover, or terminate 
misconduct; a court or grand jury; or a federal agency; 
Whistleblower Protection Act (5 U.S.C. § 2302(b)(8)): Anyone if the 
disclosure is not prohibited by law or is not of classified 
information; or the Special Counsel or an inspector general (if 
disclosure would be otherwise prohibited). 

Provision: Prohibited actions; 
Section 1553 of the Recovery Act: Termination, demotion, or 
discrimination because of the disclosure; 
Whistleblower Protection Act (5 U.S.C. § 2302(b)(8)): The taking, 
failure to take, or threat to take any personnel action because of the 
disclosure. 

Provision: Enforcement mechanism; 
Section 1553 of the Recovery Act: Investigation by the relevant 
agency's inspector general. The agency may then order reinstatement 
with back pay or other corrective action, as well as fees and expenses. 
The employee has an independent right to file a civil action if the 
agency declines to take action; 
Whistleblower Protection Act (5 U.S.C. § 2302(b)(8)): Investigation by 
Special Counsel. The employee has an independent right to appeal the 
action to the Merit Systems Protection Board. 

Source: GAO analysis. 

[End of table] 

Section 902 of the Recovery Act gives us additional authority to 
examine the relevant records of contractors, subcontractors, or state 
or local agencies administering contracts that are awarded with 
Recovery Act funds. We may also interview officers and employees of 
such contractors or their subcontractors as well as officers or 
employees of any state or local agency administering such transactions. 
This additional authority could be applied to examining allegations 
made by whistleblowers. 

As part of our normal operations, we maintain a fraud reporting 
service. Anyone can report evidence of fraudulent activity to FraudNet 
through an automated answering system, a dedicated fax line, a 
dedicated email address, a dedicated mailing address, or an online form 
accessible from our Web site at [hyperlink, http://www.gao.gov]. 
Information about how to provide evidence of fraud is available on our 
web site at [hyperlink, http://gao.gov/fraudnet.htm] and on the last 
page of every GAO report. After the Recovery Act was passed, we 
coordinated with the IG community to publicize the use of FraudNet as a 
means to solicit public input and gather information on potential 
instances of waste, fraud, and abuse in the allocation and spending of 
Recovery Act funds. We also issued a press release on March 30, 2009, 
which was cited by the national news media in articles about the 
Recovery Act. Over the past few months, Fraudnet has received more than 
25 allegations related to the misuse of Recovery Act, Troubled Asset 
Relief Program,[Footnote 8] or other related funds. These allegations 
are currently under review by GAO's Forensic Audits and Special 
Investigations (FSI) unit, a specialized team with many years of 
experience conducting fraud investigations. FSI coordinates with the IG 
community as appropriate to ensure that there is no duplication of 
investigative efforts across the federal government. Further, in cases 
where GAO determines that another agency is better positioned to 
perform an investigation, FSI will refer relevant information to the 
appropriate agency. Although it is too soon to discuss details of the 
allegations we have received or the status of ongoing investigations, 
we will continue to work with our partners in the IG community, with 
the appropriate law enforcement agencies, and with the Congress, to 
ensure that all allegations are reviewed and investigated. 

Updated Information on the Recovery Act's R&D Funding: 

On March 19, 2009, we testified before this Subcommittee on our role in 
helping to ensure accountability and transparency for Recovery Act 
science R&D funding. Our statement identified over $21 billion in 
related funding appropriated to DOE; the National Institute of 
Standards and Technology (NIST) and the National Oceanographic and 
Atmospheric Administration (NOAA) within the Department of Commerce; 
NSF; and NASA. As initial implementation of the Recovery Act unfolds, 
we are tracking these agencies' activities to plan for science R&D 
expenditures. Table 2 provides information on the status of these 
agencies R&D-related Recovery Act funds, as of April 28, 2009. To 
collect this information, we worked with agencies' officials and 
coordinated with agencies' IGs. As implementation of the act 
progresses, further evaluations will continue to be coordinated with 
agencies' IGs to prevent duplication and minimize any overlap in our 
work. 

Table 2: Status of Recovery Act R&D-Related Funding, as of April 28, 
2009 (Dollars in millions): 

Agency: DOE: Energy Efficiency and Renewable Energy[A]; 
Recovery Act appropriation: $4,900; 
OMB apportionment: $4,900; 
CFO allotment: $2,400; 
Program obligations: $0[B]; 
Program expenditures: $0. 

Agency: DOE: Fossil Energy; 
Recovery Act appropriation: $3,400; 
OMB apportionment: $0; 
CFO allotment: $0; 
Program obligations: $0; 
Program expenditures: $0. 

Agency: DOE: Science; 
Recovery Act appropriation: $1,600; 
OMB apportionment: $1,600; 
CFO allotment: $738; 
Program obligations: $342; 
Program expenditures: $0. 

Agency: DOE: Advanced Research Projects Agency - Energy; 
Recovery Act appropriation: $400; 
OMB apportionment: $400[C]; 
CFO allotment: $2; 
Program obligations: $0; 
Program expenditures: $0. 

Agency: DOE: Innovative Technology Loan Guarantee Program; 
Recovery Act appropriation: $6,000; 
OMB apportionment: $35; 
CFO allotment: $35; 
Program obligations: $0; 
Program expenditures: $0. 

Agency: Department of Commerce: NIST; 
Recovery Act appropriation: $610[D]; 
OMB apportionment: $580; 
CFO allotment: $0; 
Program obligations: $0; 
Program expenditures: $0. 

Agency: Department of Commerce: NOAA; 
Recovery Act appropriation: $830; 
OMB apportionment: $830; 
CFO allotment: $0; 
Program obligations: $0; 
Program expenditures: $0. 

Agency: NSF; 
Recovery Act appropriation: $3,000; 
OMB apportionment: $3,000; 
CFO allotment: $0; 
Program obligations: $0; 
Program expenditures: $0. 

Agency: NASA; 
Recovery Act appropriation: $1,000; 
OMB apportionment: $50; 
CFO allotment: $0; 
Program obligations: $0; 
Program expenditures: $0. 

Total: 
Recovery Act appropriation: $21,740; 
OMB apportionment: $11,395; 
CFO allotment: $3,175; 
Program obligations: $342; 
Program expenditures: $0. 

Sources: Conference Report for the American Recovery and Reinvestment 
Act of 2009, House Report 111-16 (Washington, D.C.: Feb. 12, 2009) and 
GAO analysis of data and information provided by DOE, NIST, NOAA, NSF, 
and NASA. 

Note: Once Congress appropriates funds for an agency, OMB apportions 
these funds to the federal agencies. After an apportionment is 
received, federal agencies' Chief Financial Officers (CFO) allot them 
to the agency's programs on the basis of approved plans. After 
receiving their allotments, programs then obligate funds for approved 
activities performed by agency employees, contractors, or grantees. 
Funds can be expended for these activities. 

[A] The data reported for DOE's Office of Energy Efficiency and 
Renewable Energy represents the R&D-related portions of the overall 
Congressional appropriation, OMB apportionment, and CFO allotment. 

[B] According to DOE CFO officials, DOE's Office of Energy Efficiency 
and Renewable Energy has obligated approximately $341,000 in Recovery 
Act funds for program direction. These funds do not appear in the table 
above, due to rounding. 

[C] According to DOE officials, while OMB has fully apportioned ARPA- 
E's $400 million appropriation, $198 million of the apportionment is 
restricted until the fourth quarter of fiscal year 2009 or until after 
OMB approves additional documents. Until then, $198 million of the 
apportionment is not available for allotment. 

[D] NIST received $580 million in direct appropriations through the 
Recovery Act. The act directed that NIST receive an additional $30 
million in transfers from DOE and the Department of Health and Human 
Services. 

[End of table] 

As table 2 shows, the status of agencies' R&D-related funding varies. 
Officials from each agency told us about the controls in place to 
ensure that their program plans are approved before funds are either 
apportioned by OMB or allotted by their agencies' CFOs. For example, 
officials from each agency told us they are following OMB's April 3, 
2009, guidance for implementing the Recovery Act. OMB's guidance 
requires that agencies' submit program plans justifying Recovery Act 
expenditures that include a program's objectives, funding, activities, 
types of financial awards to be used, schedule, environmental review 
compliance, performance measures, description of plans to ensure 
accountability and transparency, and a plan for monitoring and 
evaluation. In addition, this guidance requires that agencies submit 
the program plans to OMB for approval by May 1, 2009, and states that 
OMB will approve these program plans by May 15, 2009. Officials from 
NIST, NOAA, and NSF told us that their agencies' CFOs will not allot 
funds for obligation until the House Appropriations Subcommittee on 
Commerce, Justice, and Science has reviewed their program plans. DOE 
CFO officials told us that the CFO will allot apportioned funds after 
an internal DOE approval process, even if OMB has not yet approved 
program plans; however, officials said DOE programs cannot obligate 
funds until OMB program plan approval is complete. As of April 28, 
2009, only DOE's Office of Science had obligated any funds for R&D 
project expenditures. These obligations, totaling $342 million will 
support various construction, facilities disposition, and general plant 
projects at national laboratories, as well as procurement and 
installation of experimental equipment and instrumentation. (See 
appendix II for additional details on each agency's planned uses of 
funds.) 

Related to the efforts of the four federal agencies to obligate the R&D 
funds, our April 29, 2009, report discussed our initial observations on 
improving grant submission policies that could help minimize 
disruptions to the grants application process during the Recovery Act's 
peak filing period.[Footnote 9] Our report was requested in response to 
two OMB memoranda to federal agencies stating that the existing 
Grants.gov infrastructure would not be able to handle the influx of 
applications expected as key Recovery Act deadlines approached. We 
found that at least 10 agencies will accept some or all applications 
outside of Grants.gov during the Recovery Act's peak filing period. For 
example, NSF and NASA are only accepting applications through their own 
existing electronic systems for some grants. We recommended that the 
Director of OMB take actions to increase the likelihood that applicants 
can successfully apply for grants during the Recovery Act's peak 
application filing period. Specifically, we recommended that OMB (1) 
ensure that an announcement discussing agency alternate submission 
methods similar to that recently posted on Grants.gov is posted in a 
prominent location on Recovery.gov and on all federal Web sites or in 
all documents where instructions for applying to Recovery Act grants 
are presented and (2) prominently post certain government policies for 
all grant applications submitted during the peak filing period for 
Recovery Act grants, notifying applicants that, among other things, if 
an application was deemed late they are notified of such an outcome and 
are provided an opportunity to provide supporting documentation 
demonstrating they attempted to submit the application on time. OMB 
generally concurred with these recommendations. 

In addition to direct expenditures, the Recovery Act also includes tax 
provisions that benefit individuals and businesses. The Internal 
Revenue Service (IRS) recently published a fact sheet on 12 different 
tax credits available under the Recovery Act for various energy 
efficiency measures taken by homeowners and businesses as well as for 
qualified renewable energy producers. Some of these credits are new, 
and others are modifications of existing tax credits previously 
included in the tax code. As I testified in March 2009, one particular 
area that needs additional early attention is identifying the data to 
be collected concerning the use and results of the Recovery Act's 
various tax provisions. Accountability and transparency are perhaps 
easier to envision for the outlay portions of the stimulus package 
because the billions of dollars in tax provisions in the Recovery Act 
are considerably different than outlay programs in their 
implementation, privacy protections, and oversight. Most tax benefits 
are entirely administered by the Internal Revenue Service (IRS), and 
all taxpayer information, including the identity of those using the 
benefits, is protected by law from disclosure. Further, unlike most 
outlay programs, IRS does not know who makes use of the tax benefit 
until after the fact, if then. While IRS previously collected 
information that may have been sufficient to evaluate the benefits of 
energy tax credits, IRS has not yet announced what information it will 
collect for the credits as revised or added by the Recovery Act. 

In closing, I want to underscore that we welcome the responsibility 
that the Congress has placed on us to assist in the oversight, 
accountability, and transparency of the Recovery Act. We will continue 
to coordinate closely with the rest of the accountability community and 
honor our ongoing commitment to promptly address information provided 
by whistleblowers. We are committed to completing our Recovery Act work 
on the timetable envisioned by the act and will keep the Congress fully 
informed as our plans evolve. 

Mr. Chairman, Representative Broun, and Members of the Subcommittee 
this concludes my statement. I would be pleased to respond to any 
questions you may have. 

Contact and Staff Acknowledgments: 

Contact points for our Office of Congressional Relations and Public 
Affairs may be found on the last page of this testimony. For further 
information about this testimony, please contact Patricia Dalton, 
Managing Director, Natural Resources and Environment (202) 512-3841 or 
daltonp@gao.gov. Key contributors to this testimony were Richard 
Cheston (Assistant Director), Divya Bali, Allison Bawden, Karen Keegan, 
Michelle Munn, and Barbara Timmerman. 

[End of section] 

Appendix I: Selected Federal Programs Receiving Recovery Act Funding 
and Administered by States and Localities: 

Dollars in millions: 

Program: Medicaid; 
Fiscal years 2009-2019 total budgetary authority: $80,065; 
Fiscal year 2009 outlays: $30,720. 

Program: State Fiscal Stabilization Fund; 
Fiscal years 2009-2019 total budgetary authority: $53,600; 
Fiscal year 2009 outlays: $6,540. 

Program: Highways; 
Fiscal years 2009-2019 total budgetary authority: $27,500; 
Fiscal year 2009 outlays: $2,750. 

Program: Special Education (Individuals with Disabilities Education 
Act); 
Fiscal years 2009-2019 total budgetary authority: $12,200; 
Fiscal year 2009 outlays: $732. 

Program: Child Care and Development Block Grant (CCDBG); 
Fiscal years 2009-2019 total budgetary authority: $2,000; 
Fiscal year 2009 outlays: $660. 

Program: Federal Transit Administration-Public Transit Investment 
Grants; 
Fiscal years 2009-2019 total budgetary authority: $6,900; 
Fiscal year 2009 outlays: $621. 

Program: Employment and Training; 
Fiscal years 2009-2019 total budgetary authority: $4,320; 
Fiscal year 2009 outlays: $613. 

Program: Elementary and Secondary Education Act Title I; 
Fiscal years 2009-2019 total budgetary authority: $13,000; 
Fiscal year 2009 outlays: $494. 

Program: Child Support Enforcement; 
Fiscal years 2009-2019 total budgetary authority: $1,000; 
Fiscal year 2009 outlays: $489. 

Program: Temporary Assistance for Needy Families (TANF); 
Fiscal years 2009-2019 total budgetary authority: $5,000; 
Fiscal year 2009 outlays: $441. 

Program: Byrne/Justice Assistance Grant Program/other State and Local; 
Fiscal years 2009-2019 total budgetary authority: $2,765; 
Fiscal year 2009 outlays: $415. 

Program: Census Bureau; 
Fiscal years 2009-2019 total budgetary authority: $1,000; 
Fiscal year 2009 outlays: $400. 

Program: Foster Care/Adoption Assistance (Title IV-E); 
Fiscal years 2009-2019 total budgetary authority: $843; 
Fiscal year 2009 outlays: $313. 

Program: Health Centers: operations; 
Fiscal years 2009-2019 total budgetary authority: $500; 
Fiscal year 2009 outlays: $265. 

Program: Health Centers: capital; 
Fiscal years 2009-2019 total budgetary authority: $1,500; 
Fiscal year 2009 outlays: $255. 

Program: Community Services Block Grant; 
Fiscal years 2009-2019 total budgetary authority: $1,000; 
Fiscal year 2009 outlays: $232. 

Program: Unemployment Insurance Modernization Incentive Payments; 
Fiscal years 2009-2019 total budgetary authority: $7,000; 
Fiscal year 2009 outlays: $191. 

Program: Head Start & Early Head Start; 
Fiscal years 2009-2019 total budgetary authority: $2,100; 
Fiscal year 2009 outlays: $172. 

Program: High-speed & Intercity Rail; 
Fiscal years 2009-2019 total budgetary authority: $8,000; 
Fiscal year 2009 outlays: $160. 

Program: Health and Wellness; 
Fiscal years 2009-2019 total budgetary authority: $650; 
Fiscal year 2009 outlays: $140. 

Program: Federal Transit Administration: Fixed Guideway/New Starts; 
Fiscal years 2009-2019 total budgetary authority: $1,500;
Fiscal year 2009 outlays: $136. 

Program: Weatherization Assistance Program; 
Fiscal years 2009-2019 total budgetary authority: $5,000; 
Fiscal year 2009 outlays: $132. 

Program: Clean Water State Revolving Fund; 
Fiscal years 2009-2019 total budgetary authority: $4,000; 
Fiscal year 2009 outlays: $120. 

Program: Neighborhood Stabilization; 
Fiscal years 2009-2019 total budgetary authority: $2,000; 
Fiscal year 2009 outlays: $120. 

Program: State Employment Services; 
Fiscal years 2009-2019 total budgetary authority: $400; 
Fiscal year 2009 outlays: $120. 

Program: Women, Infants and Children (WIC); 
Fiscal years 2009-2019 total budgetary authority: $500; 
Fiscal year 2009 outlays: $114. 

Program: Vocational Rehabilitation Services; 
Fiscal years 2009-2019 total budgetary authority: $680; 
Fiscal year 2009 outlays: $111. 

Program: Commodity Assistance Program; 
Fiscal years 2009-2019 total budgetary authority: $150; 
Fiscal year 2009 outlays: $105. 

Program: Community Oriented Policing Services; 
Fiscal years 2009-2019 total budgetary authority: v1,000; 
Fiscal year 2009 outlays: $100. 

Program: Federal Emergency Management Agency: Emergency Food and 
Shelter; 
Fiscal years 2009-2019 total budgetary authority: $100; 
Fiscal year 2009 outlays: $100. 

Program: Rural Housing Insurance Fund Program; 
Fiscal years 2009-2019 total budgetary authority: $200; 
Fiscal year 2009 outlays: $92. 

Program: Energy Efficiency & Conservation Block Grants; 
Fiscal years 2009-2019 total budgetary authority: $3,200; 
Fiscal year 2009 outlays: $85. 

Program: Broadband Technology Opportunities; 
Fiscal years 2009-2019 total budgetary authority: $4,700; 
Fiscal year 2009 outlays: $84. 

Program: State Energy Program; 
Fiscal years 2009-2019 total budgetary authority: $3,100; 
Fiscal year 2009 outlays: $82. 

Program: Public Housing Capital Fund; 
Fiscal years 2009-2019 total budgetary authority: $4,000; 
Fiscal year 2009 outlays: $80. 

Program: Centers for Disease Control and Prevention: Immunization; 
Fiscal years 2009-2019 total budgetary authority: $300; 
Fiscal year 2009 outlays: $65. 

Program: Distance Learning Telemedicine/Broadband; 
Fiscal years 2009-2019 total budgetary authority: $2,500; 
Fiscal year 2009 outlays: $63. 

Program: Drinking Water State Revolving Fund; 
Fiscal years 2009-2019 total budgetary authority: $2,000; 
Fiscal year 2009 outlays: $60. 

Program: Rural Water and Waste Disposal Program; 
Fiscal years 2009-2019 total budgetary authority: $1,380; 
Fiscal year 2009 outlays: $55. 

Program: Federal Aviation Administration: Discretionary Airport Grants; 
Fiscal years 2009-2019 total budgetary authority: $1,100; 
Fiscal year 2009 outlays: $55. 

Program: Violence Against Women; 
Fiscal years 2009-2019 total budgetary authority: $225; 
Fiscal year 2009 outlays: $50. 

Program: Child Nutrition: School Lunch Equipment; 
Fiscal years 2009-2019 total budgetary authority: $100; 
Fiscal year 2009 outlays: $50. 

Program: Section 202, 8 project based assistance and energy retrofit; 
Fiscal years 2009-2019 total budgetary authority: $2,250; 
Fiscal year 2009 outlays: $45. 

Program: Watershed & Flood Prevention Operations; 
Fiscal years 2009-2019 total budgetary authority: $290; 
Fiscal year 2009 outlays: $44. 

Program: Diesel Emission Grants; 
Fiscal years 2009-2019 total budgetary authority: $300; 
Fiscal year 2009 outlays: $39. 

Program: Leaking Underground Storage Tanks; 
Fiscal years 2009-2019 total budgetary authority: v200; 
Fiscal year 2009 outlays: $26. 

Program: Home Investment Partnerships Program; 
Fiscal years 2009-2019 total budgetary authority: $2,250; 
Fiscal year 2009 outlays: $23. 

Program: Aging Services-Senior Meals; 
Fiscal years 2009-2019 total budgetary authority: $100; 
Fiscal year 2009 outlays: $20. 

Program: Homelessness Prevention Fund; 
Fiscal years 2009-2019 total budgetary authority: $1,500; 
Fiscal year 2009 outlays: $15. 

Program: Educational Technology/Homeless Children; 
Fiscal years 2009-2019 total budgetary authority: $720; 
Fiscal year 2009 outlays: $14. 

Program: Unemployment Insurance State Administration Grants; 
Fiscal years 2009-2019 total budgetary authority: $500; 
Fiscal year 2009 outlays: $14. 

Program: Community Development Block Grant Program; 
Fiscal years 2009-2019 total budgetary authority: $1,000; 
Fiscal year 2009 outlays: $10. 

Program: Innovation & improvement; 
Fiscal years 2009-2019 total budgetary authority: $200; 
Fiscal year 2009 outlays: $10. 

Program: Impact Aid; 
Fiscal years 2009-2019 total budgetary authority: $100; 
Fiscal year 2009 outlays: $10. 

Program: Watershed Rehabilitation Program; 
Fiscal years 2009-2019 total budgetary authority: $50; 
Fiscal year 2009 outlays: $10. 

Program: Rural Business Program; 
Fiscal years 2009-2019 total budgetary authority: $150; 
Fiscal year 2009 outlays: $9. 

Program: Federal Emergency Management Agency: Firefighters; 
Fiscal years 2009-2019 total budgetary authority: $210; 
Fiscal year 2009 outlays: $8. 

Program: Economic Development Administration; 
Fiscal years 2009-2019 total budgetary authority: $150; 
Fiscal year 2009 outlays: $8. 

Program: Rural Community Facilities Program; 
Fiscal years 2009-2019 total budgetary authority: $130; 
Fiscal year 2009 outlays: $8. 

Program: Federal Emergency Management Agency: State and Local Programs; 
Fiscal years 2009-2019 total budgetary authority: $300; 
Fiscal year 2009 outlays: $6. 

Program: Higher Education Teacher Quality; 
Fiscal years 2009-2019 total budgetary authority: v100; 
Fiscal year 2009 outlays: $5. 

Program: National Endowment for the Arts; 
Fiscal years 2009-2019 total budgetary authority: $50; 
Fiscal year 2009 outlays: $5. 

Program: Brownfields Projects; 
Fiscal years 2009-2019 total budgetary authority: $100; 
Fiscal year 2009 outlays: $4. 

Program: Historic Preservation Fund; 
Fiscal years 2009-2019 total budgetary authority: $15; 
Fiscal year 2009 outlays: $2. 

Program: Lead Hazard Reduction; 
Fiscal years 2009-2019 total budgetary authority: $100; 
Fiscal year 2009 outlays: $1. 

Program: Surface Transportation Supplemental Grants; 
Fiscal years 2009-2019 total budgetary authority: $1,500; 
Fiscal year 2009 outlays: 0. 

Program: Temporary Assistance for Needy Families: Supplemental Grants; 
Fiscal years 2009-2019 total budgetary authority: $319; 
Fiscal year 2009 outlays: 0. 

Program: Veterans Affairs: State Extended Care Facilities; 
Fiscal years 2009-2019 total budgetary authority: $150; 
Fiscal year 2009 outlays: 0. 

Program: Total; 
Fiscal years 2009-2019 total budgetary authority: $281,812; 
Fiscal year 2009 outlays: $48,918. 

Source: GAO analysis. 

[End of table] 

[End of section] 

Appendix II: Updated Recovery Act Funding for R&D-Related Activities: 

To update information on Recovery Act funding for R&D-related 
activities, we met with and interviewed Department of Energy (DOE), 
National Institute of Standards and Technology (NIST), National 
Oceanographic and Atmospheric Administration (NOAA), National Science 
Foundation (NSF), and National Aeronautics and Space Administration 
(NASA) officials, and analyzed documentation they provided. We also 
reviewed publicly available information provided by the Office of 
Management and Budget (OMB), through the recovery.gov Web site, and 
agencies' own recovery Web sites. Finally, we coordinated with each 
agency's Inspector General (IG) to discuss the data we collected. We 
conducted this work in accordance with generally accepted government 
auditing standards. 

Department of Energy: 

DOE's program offices vary in the extent to which they have funds 
available to obligate for expenditure. A little more than 40 percent of 
DOE's R&D-related Recovery Act funding has been apportioned by OMB, and 
only DOE's Office of Science has obligated R&D project funds. OMB has 
not apportioned any funds to DOE's Office of Fossil Energy and has only 
apportioned minimal funds to its Loan Guarantee Program. 

Energy Efficiency and Renewable Energy (EERE). The Recovery Act 
appropriated $2.5 billion to EERE for R&D activities related to 
alternative and renewable energy sources, such as biomass and 
geothermal. An additional $2.4 billion was appropriated for advanced 
transportation research focused on next-generation plug-in hybrid 
electric vehicles, their advanced battery components, and 
transportation electrification. OMB has apportioned all of EERE's 
appropriation, and DOE's Office of the Chief Financial Officer (CFO) 
has generally allotted the funds to support the R&D activities 
associated with vehicle technologies and electrification. EERE has 
issued a solicitation for grants, which closes May 13, 2009, to 
establish development, demonstration, evaluation, and education 
projects to accelerate the market introduction and penetration of 
advanced electric drive vehicles. In addition, EERE has issued a 
solicitation for grant proposals supporting the construction of U.S.- 
based manufacturing plants to produce batteries and electric drive 
components, which closes May 19, 2009.[Footnote 10] 

Fossil Energy (FE). The Recovery Act appropriated $3.4 billion to FE 
for R&D-related activities, including funds to support a third round of 
competition under the Clean Coal Power Initiative; fossil energy R&D 
programs, such as fuel and power systems research or FutureGen; 
[Footnote 11] and competitive grants for carbon capture and energy 
efficiency improvement projects. As of April 28, 2009, OMB had not 
apportioned any of these funds to DOE, and thus no funds have been 
allotted, obligated, or expended. According to an FE official, OMB is 
unlikely to apportion funds to FE until after May 15, 2009, when its 
program plans are expected to be approved. 

Science. The Recovery Act included a $1.6 billion appropriation for 
DOE's Office of Science (Science). Nearly all $1.6 billion appropriated 
has been apportioned by OMB to DOE without restriction, and the 
Secretary of Energy has announced priorities for $1.2 billion of these 
funds, including: 

* $248 million for major construction, modernization, infrastructure 
improvements, and needed decommissioning of facilities at national 
laboratories; 

* $330 million for operations and equipment procurement and 
installation at major scientific user facilities; 

* $277 million for competitive research collaborations on 
transformational basic science needed to develop alternative energy 
sources; 

* $90 million for core scientific research grants to be awarded to 
graduate students, postdocs, and Ph.D. scientists across the nation for 
applications of nuclear science and technology, and for alternative 
isotope production techniques; and: 

* $215 million to accelerate construction of two experimental 
facilities. 

Science has obligated $342 million to support various approved 
construction, infrastructure improvement, and facility decommissioning 
projects at national laboratories, as well as procurement and 
installation of experimental equipment and instrumentation. Table 3 
describes Science's Recovery Act projects at its national laboratories, 
including those for which funding has already been obligated. 

Table 3: Science's Recovery Act Projects at Its National Laboratories: 

Dollars in millions: 

National laboratory: Ames Laboratory (Ames, Iowa); 
Description of use of funds: Funds will support general plant projects 
that improve energy efficiency; 
Recovery Act funds: $1.7. 

National laboratory: Argonne National Laboratory (Argonne, Illinois); 
Description of use of funds: Funds will support upgrades and 
replacements of major electrical switches and equipment as a first step 
toward rehabilitation of the laboratory's central campus; 
Recovery Act funds: $13.1. 

National laboratory: Brookhaven National Laboratory (Upton, New York); 
Description of use of funds: Funds will primarily support accelerated 
construction of the National Synchrotron Light Source II, a $912 
million project that, when built, will be the brightest x-ray source in 
the world. Remaining funds will go toward construction of an 
interdisciplinary science building, other infrastructure improvements 
in several facilities, and upgrades to experimental equipment; 
Recovery Act funds: $184.3. 

National laboratory: Fermi National Accelerator Laboratory (Batavia, 
Illinois); 
Description of use of funds: Funds will support construction and 
improvement projects, as well as the purchase of key high-tech 
components for experiments; 
Recovery Act funds: $34.9. 

National laboratory: Thomas Jefferson National Accelerator Facility 
(Newport News, Virginia); 
Description of use of funds: Funds will primarily support a project to 
upgrade the Continuous Electron Beam Accelerator Facility. Additional 
funds will go toward improving laboratory facilities; 
Recovery Act funds: $75.0. 

National laboratory: Lawrence Berkeley National Laboratory (Berkeley, 
California); 
Description of use of funds: Almost half of the funds will support a 
prototype data networking system. Remaining funds will go to support 
infrastructure improvements, accelerated construction of a laboratory 
facility, and the demolition of facility decommissioned over a decade 
ago; 
Recovery Act funds: $115.8. 

National laboratory: Oak Ridge National Laboratory (Oak Ridge, 
Tennessee); 
Description of use of funds: Most of the funds will be used to 
accelerate construction of a new chemical and material sciences 
research building designed to replace an aging facility built in 1952. 
Remaining funds will support infrastructure improvements and 
experimental facility upgrades; 
Recovery Act funds: $71.2. 

National laboratory: Pacific Northwest National Laboratory (Richland, 
Washington); 
Description of use of funds: Nearly all of the funds will support 
accelerated investment in the Environmental Molecular Sciences 
Laboratory, a national user facility, and capital upgrades to the 
Atmospheric Radiation Measurement Climate Research Facility, another 
national user facility. Remaining funds will support energy equipment 
upgrades and improvements in three other facilities; 
Recovery Act funds: $124.0. 

National laboratory: Stanford Linear Accelerator (Menlo Park, 
California); 
Description of use of funds: About half of the funds will support 
accelerated purchase and assembly of instrumentation for the Linac 
Coherent Light Source, the world's most intense x-ray laser. Remaining 
funds will support seismic upgrades to facilities, including the 
Stanford Synchrotron Radiation Light Source, and work on other 
experimental facilities; 
Recovery Act funds: $68.3. 

Total: 
Recovery Act funds: $688.3. 

Source: DOE and its national laboratories. 

[End of table] 

Advanced Research Projects Agency-Energy (ARPA-E). The Congress 
authorized the establishment of ARPA-E within DOE in August 2007. 
[Footnote 12] ARPA-E supports transformational energy technology 
research projects with the goal of enhancing the nation's economic and 
energy security. ARPA-E received its first appropriation of $400 
million in the Recovery Act, which was soon followed by an additional 
$15 million in the Omnibus Appropriations Act, 2009.[Footnote 13] 
According to a DOE official, the Secretary of Energy signed a 
memorandum formally creating the new office on April 22, 2009, and 
designated an Acting Deputy Director until a presidential appointee is 
confirmed by the Senate. As of April 28, 2009, DOE's CFO had allotted 
$2 million in program direction funds to ARPA-E to hire employees, set 
up office space, and support requirements necessary to implement the 
provisions of the Recovery Act. In addition, ARPA-E issued its first 
competitive solicitation on April 27, 2009, to fund up to $150 million 
of high-risk, high-potential projects focused on innovative energy 
technologies. Project proposals are due June 2, 2009, and awards are 
generally expected to range from $2 million to $5 million. According to 
a DOE official, ARPA-E anticipates issuing more targeted solicitations 
associated with the remaining Recovery Act funds; however, the official 
said these solicitations are not likely to be issued until a Senate 
confirmed appointee is in place to lead the organization. 

Loan Guarantee Program (LGP). The Recovery Act included appropriations 
totaling $6 billion to LGP, which could support $60 billion in new loan 
guarantees, depending on the credit subsidy rate. LGP officials told us 
the program plans that they submitted to OMB on May 1, 2009, support 
new loan guarantees for renewable energy systems, electric power 
transmission systems, and leading-edge biofuel projects performing at 
the pilot or demonstration stage and that the Secretary of Energy 
determines are likely to become commercial technologies.[Footnote 14] 
In addition, the Secretary of Energy has announced a number of 
restructuring initiatives for the program, which, as we reported in 
July 2008, faces a number of challenges.[Footnote 15] Officials have 
indicated that 6 of the 11 applicants who responded to DOE's August 
2006 solicitation for various types of innovative technology loan 
guarantees could be eligible for loan guarantees under Recovery Act 
terms.[Footnote 16] We are currently examining the status of LGP's 
efforts to solicit and review loan guarantee applications, including 
its efforts to use Recovery Act funds, and its progress in implementing 
the recommendations in our July 2008 report. 

Department of Commerce: 

As of April 28, 2009, OMB had apportioned all $1.41 billion directly 
appropriated to NIST and NOAA for Recovery Act R&D-related activities. 
According to agency officials, funds have not yet been made available 
for obligation pending OMB and Congressional approval of program plans. 

NIST. NIST plans to spend the $580 million it was directly appropriated 
to support, competitive research grants, fellowships, and procurement 
of advanced research and measurement equipment and supplies. These 
funds are also planned to support a construction grant program for 
research science buildings, construction of new NIST facilities, and 
the reduction of the backlog of deferred maintenance for existing NIST 
facilities. In addition, NIST will receive $10 million appropriated to 
DOE under the Recovery Act for work on the electricity grid and $20 
million appropriated to the Department of Health and Human Services to 
create and test standards related to health security. According to one 
official, NIST is working with OMB to prepare solicitations and other 
grant-related documents, so the agency can quickly issue Recovery Act 
grant solicitations once its program plans are approved. 

NOAA. The Recovery Act appropriated $830 million to NOAA for 
construction and procurement related to R&D-related activities, 
including support for research operations and facilities; construction 
and repair of facilities, ships and equipment; and research to address 
gaps in climate modeling and to establish climate data records for 
research into the cause, effects, and ways to mitigate climate change. 
NOAA has issued a competitive solicitation for up to $170 million in 
grants for shovel-ready projects to restore marine and coastal 
habitats. Applications were due on April 6, 2009. A NOAA official told 
us that NOAA is working with OMB to draft solicitations and other 
contract-related documents so the agency can quickly issue Recovery Act 
contract solicitations once its program plans are approved. 

NSF: 

The Recovery Act appropriated $3 billion to NSF for R&D-related 
activities, including competitive research grants; major research 
instrumentation and equipment procurement and facilities construction; 
academic research facilities modernization; and education and human 
resources. NSF officials believe their Recovery Act funds can be 
obligated quickly once program plans are approved because, for example, 
$2 billion of the $3 billion will fund proposals that NSF's independent 
expert review panels have already deemed of merit but that NSF was not 
previously able to fund. Specifically, NSF officials have stated that 
these grants will be awarded by September 30, 2009, and NSF expects its 
Recovery Act funds will allow the agency to support an additional 
50,000 investigators, post-doctoral fellows, graduate and undergraduate 
students, and teachers throughout the nation. 

NASA: 

The Recovery Act appropriated $1 billion to NASA for expenditures on 
space exploration; earth science and climate research missions; adding 
supercomputing capacity; aeronautics activities, including aviation 
safety research, environmental impact mitigation, and activities 
supporting the Next Generation Air Transportation System; and 
restoration of facilities at the Johnson Space Center in Houston, 
Texas, damaged during Hurricane Ike in 2008. $50 million to support 
restoration work at the Johnson Space Center has been apportioned by 
OMB, and NASA has begun to issue requests for proposals for this 
restoration work. According to a NASA official, OMB has agreed with 
NASA on the funding priorities for the remaining $950 million 
appropriated, and funds will apportioned once OMB approves NASA's 
program plans. 

[End of section] 

Footnotes: 

[1] Pub. L. No. 111-5 (Feb. 17, 2009). 

[2] GAO, American Recovery and Reinvestment Act: GAO's Role in Helping 
to Ensure Accountability and Transparency for Science Funding, 
[hyperlink, http://www.gao.gov/products/GAO-09-515T] (Washington, D.C.: 
Mar. 19, 2009). 

[3] GAO, Recovery Act: As Initial Implementation Unfolds in States and 
Localities, Continued Attention to Accountability Issues Is Essential, 
[hyperlink, http://www.gao.gov/products/GAO-09-580] (Washington, D.C.: 
Apr. 23, 2009). 

[4] GAO, American Recovery and Reinvestment Act: GAO's Role in Helping 
to Ensure Accountability and Transparency, [hyperlink, 
http://www.gao.gov/products/GAO-09-453T] (Washington, D.C.: Mar. 5, 
2009). 

[5] We will track the following 16 states: Arizona, California, 
Colorado, Florida, Georgia, Iowa, Illinois, Massachusetts, Michigan, 
Mississippi, New Jersey, New York, North Carolina, Ohio, Pennsylvania, 
and Texas. In addition, we will sample localities within these states 
to provide a perspective on the use of Recovery Act funds at a local 
level. 

[6] See appendix I of [hyperlink, 
http://www.gao.gov/products/GAO-09-453T] for a list of GAO's mandates 
under the Recovery Act. In addition to issuing our first bimonthly 
report, we have completed two other requirements under the act: First, 
on April 3, 2009, we announced the appointment of 13 members to the 
Health Information Technology Policy Committee, a new advisory body 
established by the Recovery Act. Second, on April 16, 2009, we reported 
on the actions of the Small Business Administration to, among other 
things, increase liquidity in the secondary markets for Small Business 
Administration loans (see GAO, Small Business Administration's 
Implementation of Administrative Provisions in the American Recovery 
and Reinvestment Act of 2009, [hyperlink, 
http://www.gao.gov/products/GAO-09-507R] (Washington, D.C.: Apr. 16, 
2009). 

[7] 31 U.S.C. § 716(a), (d). 

[8] Pub. L. No. 110-343 (Oct. 3, 2008), the Emergency Economic 
Stabilization Act of 2008, seeks to stabilize the nation's financial 
markets by, among other things, authorizing the Troubled Asset Relief 
Program. 

[9] See GAO, Recovery Act: Consistent Policies Needed to Ensure Equal 
Consideration of Grant Applications, [hyperlink, 
http://www.gao.gov/products/GAO-09-590R] (Washington, D.C.: April 29, 
2009). 

[10] We are currently examining the potential benefits and challenges 
associated with plug-in hybrid electric and other plug-in vehicles; the 
status of development, factors that could delay availability or 
encourage development of these vehicles; and challenges to 
incorporating plug-in hybrid electric vehicles and other plug-ins into 
the federal fleet. 

[11] See GAO, Clean Coal: DOE's Decision to Restructure FutureGen 
Should Be Based on a Comprehensive Analysis of Costs, Benefits, and 
Risks, [hyperlink, http://www.gao.gov/products/GAO-09-248] (Washington, 
D.C.: 

Feb. 13, 2009). 

[12] Pub. L. No 110-69 (Aug. 9, 2007). 

[13] Pub. L. No. 111-8 (March 11, 2009). 

[14] The Recovery Act appropriated $6 billion for the credit subsidy 
costs of approved projects--i.e., the estimated net present value of 
long-term costs to the government from defaults, delinquencies and 
interest subsidies for those projects. The original loan guarantee 
program did not receive an appropriation for such costs, which must 
therefore be paid by fees charged to borrowers. 

[15] See GAO, Department of Energy: New Loan Guarantee Program Should 
Complete Activities Necessary for Effective and Accountable Program 
Management, [hyperlink, http://www.gao.gov/products/GAO-08-750] 
(Washington, D.C.: July 7, 2008). 

[16] The August 2006 solicitation invited applications for loan 
guarantees under DOE's Innovative Technologies loan guarantee program. 
The Recovery Act added a new program that provides loan guarantees for 
a different set of project categories, some of which overlap with those 
eligible for loan guarantees under the original program. 

[End of section] 

GAO's Mission: 

The Government Accountability Office, the audit, evaluation and 
investigative arm of Congress, exists to support Congress in meeting 
its constitutional responsibilities and to help improve the performance 
and accountability of the federal government for the American people. 
GAO examines the use of public funds; evaluates federal programs and 
policies; and provides analyses, recommendations, and other assistance 
to help Congress make informed oversight, policy, and funding 
decisions. GAO's commitment to good government is reflected in its core 
values of accountability, integrity, and reliability. 

Obtaining Copies of GAO Reports and Testimony: 

The fastest and easiest way to obtain copies of GAO documents at no 
cost is through GAO's Web site [hyperlink, http://www.gao.gov]. Each 
weekday, GAO posts newly released reports, testimony, and 
correspondence on its Web site. To have GAO e-mail you a list of newly 
posted products every afternoon, go to [hyperlink, http://www.gao.gov] 
and select "E-mail Updates." 

Order by Phone: 

The price of each GAO publication reflects GAO’s actual cost of
production and distribution and depends on the number of pages in the
publication and whether the publication is printed in color or black and
white. Pricing and ordering information is posted on GAO’s Web site, 
[hyperlink, http://www.gao.gov/ordering.htm]. 

Place orders by calling (202) 512-6000, toll free (866) 801-7077, or
TDD (202) 512-2537. 

Orders may be paid for using American Express, Discover Card,
MasterCard, Visa, check, or money order. Call for additional 
information. 

To Report Fraud, Waste, and Abuse in Federal Programs: 

Contact: 

Web site: [hyperlink, http://www.gao.gov/fraudnet/fraudnet.htm]: 
E-mail: fraudnet@gao.gov: 
Automated answering system: (800) 424-5454 or (202) 512-7470: 

Congressional Relations: 

Ralph Dawn, Managing Director, dawnr@gao.gov: 
(202) 512-4400: 
U.S. Government Accountability Office: 
441 G Street NW, Room 7125: 
Washington, D.C. 20548: 

Public Affairs: 

Chuck Young, Managing Director, youngc1@gao.gov: 
(202) 512-4800: 
U.S. Government Accountability Office: 
441 G Street NW, Room 7149: 
Washington, D.C. 20548: