Digital Accountability and Transparency Act
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| Digital Accountability and Transparency Act | |
|---|---|
| Name | Digital Accountability and Transparency Act |
| Enacted | 2014 |
| Abbreviations | DATA Act |
| Signed by | Barack Obama |
| Related legislation | Federal Funding Accountability and Transparency Act of 2006, American Recovery and Reinvestment Act of 2009, Chief Financial Officers Act of 1990 |
| Status | enacted |
Digital Accountability and Transparency Act
The Digital Accountability and Transparency Act provides a standardized, searchable public data structure for federal spending to increase access, oversight, and fiscal accountability. It mandates machine-readable reporting, standardized data elements, and enhanced oversight across federal agencies to improve transparency of appropriations, contracts, grants, and payments. The law alters reporting regimes created by statutes such as the Federal Funding Accountability and Transparency Act of 2006 and interacts with entities such as the Office of Management and Budget, the Department of the Treasury, and the Government Accountability Office.
Background and Purpose
Congress enacted the statute to address fragmented reporting and inconsistent data quality evident in hearings before the House Committee on Oversight and Government Reform and the Senate Committee on Homeland Security and Governmental Affairs. Policymakers cited oversight failures revealed during the Hurricane Katrina response and the financial disclosures scrutinized after the Great Recession. Supporters included members from the House of Representatives and the United States Senate, and advocates from the Sunlight Foundation and Project on Government Oversight emphasized linkage to open data movements exemplified by Data.gov and standards promoted by the National Institute of Standards and Technology.
Key Provisions and Requirements
The act requires standardized data elements for federal awards, linking obligations, outlays, vendors, and recipients as part of the Treasury Integrated Award Environment and reporting into a redesigned USAspending.gov. It specifies roles for the Office of Management and Budget and the Department of the Treasury to develop common data schemas and uses identifiers from systems like the System for Award Management and the Central Contractor Registration. The statute mandates agency submission of award-level data for grants, loans, contracts, and other financial assistance and directs collaboration with the Government Accountability Office for audit and validation standards. It also aligns with financial management concepts in the Chief Financial Officers Act of 1990 while enhancing public access consistent with Freedom of Information Act practices.
Implementation and Agency Responsibilities
Agencies such as the Department of Defense, the Department of Health and Human Services, the Department of Education, the National Aeronautics and Space Administration, and the Department of Homeland Security must modify systems to map legacy financial records to the common data model. Chief financial officers and chief information officers across the Department of Agriculture, the Department of Commerce, and the Environmental Protection Agency coordinate with the Treasury Department and the Office of Management and Budget to comply with guidance. Implementation required integration with enterprise systems like the Federal Procurement Data System and coordination with inspectors general from agencies including the Social Security Administration and the Department of Veterans Affairs to ensure data accuracy.
Impact on Federal Spending Transparency
The act reshaped public access to transactional spending information, enhancing tools similar to USAspending.gov and informing oversight by bodies like the Government Accountability Office and congressional committees. Journalists at outlets such as the New York Times and the Washington Post, watchdogs like the Sunlight Foundation, researchers at the Brookings Institution, and data scientists at MIT used the datasets to analyze trends in contracts with firms like Boeing, Lockheed Martin, and General Dynamics. Nonprofit organizations including Center for Responsive Politics and ProPublica leveraged the standardized disclosures to investigate procurement, while academic centers at Harvard University, Stanford University, and University of California, Berkeley studied impacts on fiscal policy and procurement efficiency.
Compliance, Reporting, and Enforcement
Compliance mechanisms involve agency financial statement audits overseen by inspectors general and the Government Accountability Office, with enforcement tied to existing appropriation controls under the Antideficiency Act. The Office of Management and Budget issues guidance and compliance deadlines, and the Department of the Treasury enforces data submission protocols. Stakeholders including the American Institute of Certified Public Accountants and the Association of Government Accountants provided professional standards input, while oversight hearings before the House Committee on Oversight and Government Reform and the Senate Committee on Homeland Security and Governmental Affairs monitored progress and corrective actions.
Legislative History and Amendments
Introduced and reported out of committee following bipartisan support, the statute was signed into law by Barack Obama after passage in the 113th United States Congress. It amended reporting requirements established under the Federal Funding Accountability and Transparency Act of 2006 and was informed by reforms following the American Recovery and Reinvestment Act of 2009. Subsequent administrative guidance and technical updates were driven by policy changes at the Office of Management and Budget, audits by the Government Accountability Office, and recommendations from advisory groups including representatives from the Sunlight Foundation and the Project on Government Oversight.