Federal Audit Executive Council FY2021 Data Act Working Group Overview
The Federal Audit Executive Council's Data Act Working Group assists Inspector Generals in meeting oversight requirements. Established in 2015, it includes a Common Methodology Team and a Governance Team to ensure compliance. The teams work on soliciting feedback, developing audit guides, conducting trainings, and maintaining FAQs. The Governance Team represents the group with CIGIE, OMB, and CFO community to review and approve the work of the Common Methodology Team.
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FEDERAL AUDIT EXECUTIVE COUNCIL FY2021 DATA ACT WORKING GROUP METHODOLOGY UPDATES CIGIE/GAO FINANCIAL STATEMENTS AUDIT CONFERENCE PAULETTA BATTLE, DEPUTY AIGA, TREASURY OIG MAY 17, 2020
OVERVIEW Digital Accountability and Transparency Act of 2014 (DATA Act) Requires Federal agencies to report financial and award data in accordance with the established Government-wide financial data standards. Requires IGs to: Review a statistically valid sample of the spending data submitted by its Federal agency Submit to Congress and make publically available a report assessing completeness, timeliness, quality, and accuracy of the data sampled; and implementation and use of Data Standards by the Federal agency Final of the three required DATA Act reviews 2
OVERVIEW Federal Audit Executive Council (FAEC) DATA Act Working Group Assist the IG Community in understanding and meeting its DATA Act oversight requirements Established January 2015 and has over 250 members from over 50 IGs Published: DATA Act Readiness Review Guide (December 2015) FY 2017 Inspectors General Guide to Compliance Under the DATA Act (February 2017) FY 2019 Inspectors General Guide to Compliance Under the DATA Act (February 2019) FY 2021 Inspectors General Guide to Compliance Under the DATA Act (December 2020) Includes a Common Methodology Team and a Governance Team 3
THE WAY WE WORK Common Methodology Team solicits input/feedback from stakeholders and discuss lessons learned from prior audits/reviews Identifies, reviews, & researches criteria, common issues, and anomalies that may have government-wide impact Writes decision memos (as needed) outline options and chosen method Provides decision memos to Governance for concurrence/approval Coordinates with GAO on decision memos Communicates decision memos to IG community Writes the audit guide Develop and conduct trainings Maintain and publish Frequently Asked Questions (FAQs) 4
THE WAY WE WORK Governance Team represents the working group with CIGIE, OMB, and CFO community Governance Team reviews/approves the work of the Common Methodology Team Decision memos Guide and attachments Training materials 5
ABOUT THE GUIDE Incorporates Lessons Learned and Feedback from Stakeholders Provides Consistent Baseline Methodology for IG Audits May be Modified Document Deviations May be Updated Per IG Community Not All-Inclusive 6
ABOUT THE GUIDE This guide does not replace or include all requirements of GAGAS. Audit teams are responsible for ensuring compliance with GAGAS. Audit teams are responsible for ensuring compliance with other applicable standards and internal IG policies. 7
MAJOR CHANGES Guide Layout Audit Scope COVID-19 and OMB M-20-21 Assessing Quality Comparative Results Crosswalks 8
GUIDE LAYOUT Sections ordering changed and added sections (i.e. non- statistical COVID sample) More detailed steps internal controls, Federal Shared Service Providers (FSSP), data elements testing More robust reporting section examples of verbiage for IGs to use in creating their reports Appendices and attachments 9
SCOPE Must fall within the range of fiscal year 2020 third quarter through fiscal year 2021 second quarter. IGs must select a formal fiscal year quarter that: Is representative of agency spending; Includes COVID-related spending transactions, if applicable; and Allows sufficient time to meet the mandatory audit deadline. 10
IGs DATA Act Audit Scope by Quarter FY21 - 2nd Quarter 2% To Be Determined 9% FY20 - 3rd Quarter 16% FY21 1st Quarter 41% FY20 4th Quarter 32% 11
COVID-19 & OMB M-20-21 In April 2020, OMB issued M-20-21, Implementation Guidance for Supplemental Funding Provided in Response to the Coronavirus Disease 2019 (COVID-19), which made changes to DATA Act reporting. Agencies that received COVID-19 supplemental relief funding must submit DATA Act Files A, B, and C on a monthly basis starting with the June 2020 reporting period. Monthly submissions must also include a running total of outlays for each award in File C funded with COVID-19 supplemental relief funds. Expanded use of the Disaster Emergency Fund Code (DEFC) for tracking COVID-19 supplemental funding. Added National Interest Action (NIA) code to FPDS-NG to help identify procurement actions related to the COVID-19 response. Now 59 applicable data elements to be tested under DATA Act. 12
COVID-19 OUTLAYS NON-STATISTICAL SAMPLE AGENCIES WITH COVID-19 FUNDING Non-statistical sample of COVID-19 Outlays from File C Sample size can be determined based on amount of data Number of records should be sufficient to provide examples within each category of the criteria (i.e., dollar amount) used to design the sample Include results of outlay testing in IG s report and factor into the quality determination. 13
ASSESSING QUALITY Data that is complete, accurate, and timely, and includes statistical and non-statistical testing results. Developed the Quality Scorecard Provides government-wide consistency in the measure of quality Assigns quantifiable values to non-statistical testing Applies various weights to steps in the guide Revised the Quality Levels 14
Enter Agency's Name Maximum Points Possible QUALITY SCORECARD TAB Mirrors sections in the Guide FY 2021 DATA Act Quality Scorecard Without Outlays (No COVID-19 Funding) With Outlays (COVID-19 Funding) Criteria Score Incorporates non-statistical testing scores for COVID-19- funded agencies Timeliness of Agency Submission Completeness of Summary Level Data (Files A & B) Suitability of File C for Sample Selection Input Required 5.0 5.0 Non-Statistical Input Required 13.0 10.0 Input Required 13.0 10.0 Scores are automatically populated as auditors complete input tabs Record-Level Linkages (Files C & D1/D2) Input Required 9.0 7.0 COVID-19 Outlay Testing Non-Statistical Sample Input Required 0.0 8.0 Input Required 15.0 15.0 Completeness Statistical Maximum score is 100 points Input Required 30.0 30.0 Accuracy Input Required 15.0 15.0 Timeliness Quality Score Input Required Input Required 100.0 100.0 15
QUALITY LEVELS Enter Agency's Name Quality Level FY 2021 DATA Act Quality Scorecard Range Level Criteria Score Timeliness of Agency Submission Completeness of Summary Level Data (Files A & B) Suitability of File C for Sample Selection 5.0 0.0 69.9 Lower Non-Statistical 10.0 0.0 Record-Level Linkages (Files C & D1/D2) 7.0 70.0 84.9 Moderate COVID-19 Outlay Testing Non-Statistical Sample 7.4 85.0 94.9 Higher 13.8 Completeness Statistical 26.7 Accuracy 95.0 100 Excellent 14.7 Timeliness Quality Score Moderate 84.64 16
CROSSWALKS FILES D1/D2 Updated the File D1 Crosswalk (Procurement) to reflect changes in guidance and/or definitions Issued the File D2 Crosswalk (Financial Assistance) 18
WHATS HAPPENING Most IGs have started their audits Working Group meetings Coordination meetings with GAO Common Methodology meetings Updates to FAQs, guide, and attachments, as needed Coordination and engagement with with CIGIE, OMB, and CFO Council 19
WHATS NEXT Some IGs will continue performing DATA Act audits, depending on resources and audit priorities Other IGs will not be performing DATA Act audits absent a mandate Continue to coordinate with OMB and CFO Council on data transparency matters 20
CONTACT INFORMATION DATA Act Mailbox DataAct@oig.treas.gov Pauletta Battle Deputy AIGA/DATA Act WG Chair battlep@oig.treas.gov 21
