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Home > GAO Issues Report on States' and Localities' Uses of Recovery Act Funds While Facing Fiscal Stresses

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GAO Issues Report on States' and Localities' Uses of Recovery Act Funds While Facing Fiscal Stresses

Wednesday, July 8, 2009

For this second bimonthly report, GAO focused on nine federal programs that are expected to account for approximately 87 percent of Recovery Act funding to states and localities in Fiscal Year 2009. GAO looked at selected states' and localities' current and planned use of these Recovery funds, along with their approaches for ensuring accountability of the funds received, and evaluating the impact of the funds. The report recommended several ways to improve the monitoring of Recovery Act programs at the state level, such as:

  • The Office of Management and Budget (OMB) should leverage Single Audits as an oversight tool for evaluating Recovery Act programs. The Single Audit Act requires state and local governments and nonprofit organizations receiving more than $500,000 in federal awards in a year to obtain an audit.
  • Congress should consider a mechanism to help fund the additional costs and efforts for auditing Recovery Act programs.

Click here to view the summary of the GAO findings or here for the full report.

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