Stimulus Package, HR1 Warning
The National Alliance for Healthy Communities does not want to create fear or rain on the parade of funds that have and will becoming available for communities to do public works projects.
The reality is that the responsibilities, significant responsibilities or association with accepting any funds that are either Federal, State or Regional. The oversight this time around will be greater than ever before.
In the recent meetings we had in DC, it was made very clear to us that the federal government will be monitoring the investment of federal dollars by local government agencies. The federal government agencies that will monitor the dollars have been given a very strict structure and protocols for oversight. The rationale is fairly simple: restore public trust in the federal government and the funds become a true stimulus rather the a bailout.
Through the Stimulus package you and your city have great opportunities. At the same time you face extreme challenges in accountability. Most communities will be trying to do the right thing for the right reasons, but often times that is not enough. Much like the IRS at audit time, if you look hard enough and deep enough you will find a financial error, be it intentional or negligent. In the case of the federal dollars, whether it comes out of the 2009 budget or the Stimulus funds, one misstep could result in a loss of all your community’s federal funds. In addition, the budget for 2010 is now on the table and your community could face challenges in the upcoming budget.
The Alliance staff has spent decades working with government agencies on accountability issues and what we have learned to avoid errors. We all need to focus on what we do best. The projects in communities are significant and manageable. But, what studies have shown is that the key is to bring in project managers who know and understand the funds process, protocols and regulations. City staff can do an amazing job, but with the protocols the feds have, you need micro-management and the ability to fully understand the nature of the regulations and guidelines.
Through our research, we have found only a few firms that actually can manage the full spectrum of a public works project from the shovel to the auditing; and the always present politics. The Alliance has completed the auditing of these companies from a past performance perspective, and in a short time certified one or more of these firms.