As economic stimulus spending makes its way into federal agencies, as well as each state's various agencies, public authorities, municipalities and others accepting these funds will face another important challenge: new compliance requirements.
That’s because the American Recovery & Reinvestment Act (ARRA) of 2009, which has allocated nearly $800 billion in direct stimulus funds to the states, will require significant measures to ensure that local spending complies with evolving federal standards to foster integrity throughout the process. And, many of these standards have yet to be defined by Congress or the federal agencies overseeing funding for such “shovel-ready” projects as highways, bridges and tunnels, as well as investments in schools, health care and renewable energy.
CHALLENGES FACING STIMULUS RECIPIENTS
While not yet fully defined, the “strings” attached to the funding will be designed to provide a high level of transparency and prevent such activities as wasteful spending, improper allocations and perceived lack of integrity in the procurement process.
For any funding recipient, the stakes are high. The penalties for non-compliance could be severe, and may include forfeiture of future funds and even callback provisions with fines. All recipients of stimulus funding, including municipalities and regional authorities, could be subject to penalties and fines. This will add another layer of complexity to an already challenging procurement process.
UHY LLP CAN HELP
For more than 40 years, UHY LLP and its founding firms have been serving the needs of state and local governmental entities of all sizes. We have a dedicated Government Services practice that is well-versed in the latest standards including OMB A-133 Single Audit, the latest Governmental Accounting Standards Board pronouncements and all governmental auditing standards.
Our involvement helps ensure integrity and independence throughout the process through:
- Auditing and financial reporting
- Governance reform and consulting
- Governmental accounting requirements
- Integration with current compliance needs to streamline duplicative processes
- Linkage with your other professional services providers
- Risk management services
In addition, UHY LLP will collaborate with other service providers – such as legal and integrity risk management firms – to offer clients a seamless approach to meeting their compliance challenges.
- Financial Statement
- Government Auditing Standards (Yellow Book)
- OMB Circular A-133
- Other Audits (i.e., Economy & Efficiency, Program and Performance)
- Cost Management Services
- Financial Management Outsourcing
- Governance, Risk & Compliance Services
- Process Improvement
- Shared Services
SPECIAL COMPLIANCE NEEDS
- American Recovery & Reinvestment Act
- Design, Implementation & Testing of Internal Controls
- Financial Transparency Requirements
- Public Authorities Accountability Act
- Sarbanes-Oxley Education
OTHER STIMULUS-RELATED RESOURCES
- For more information about UHY LLP’s stimulus funding-related capabilities in New York State click here.
- For more information about the effects of the 2009 American Recovery & Investment Act on COBRA, click here.
- For more information about UHY LLP's Government Practice, click here.
The statements contained herein are provided for information purposes only, are not intended to constitute tax advice which may be relied upon to avoid penalties under any federal, state, local or other tax statutes, or regulations, and do not resolve any tax ssues in your favor. Furthermore, such statements are not presented or intended as, and should not be taken or assumed to constitute, legal advice of any nature, for which advice it is recommended that you consult your own legal counselors and professionals.