Calendar Year 2020

The American Recovery and Reinvestment Act of 2009 (Recovery Act) was signed into law on February 17, 2009, as a way to jumpstart the U.S. economy, create or save millions of jobs, spur technological advances in science and health, and invest in the Nation's energy future. This national effort will require an unprecedented level of transparency and accountability to ensure that U.S. citizens know where their tax dollars are going and how they are being spent. As part of the Recovery Act, the Department of Energy will receive more than $38 billion to support a number of science, energy, and environmental initiatives. Additionally, the Department's authority to make or guarantee energy-related loans has increased to about $127 billion. The Department plans to disburse the vast majority of the funds it receives through grants, cooperative agreements, contracts, and other financial instruments.

Testimony. I appreciate the opportunity to testify today on accountability and transparency issues related to the American Recovery and Reinvestment Act of 2009 (Recovery Act). My testimony focuses on the efforts of my office to provide effective oversight of Recovery Act funds at the Department of Energy, which will receive approximately $40 billion for various science, energy, and environmental programs and initiatives. Furthermore, based on the Recovery Act and previously approved programs, the Department has been authorized to make or guarantee loans totaling up to $127 billion for innovative technologies as well as auto industry advancements.

The Federal Managers' Financial Integrity Act (FMFIA) of 1982 requires agency
heads to provide an annual assurance statement on whether internal control and
financial systems provide reasonable assurance that the integrity of Federal
programs and operations is protected. [n response. the Department of Energy
(Department) developed a program for evaluating the adequacy of its internal
controls and determining whether they conform to the principles and standards
established by the Office of Management and Budget and the Government
Accountability Office. The results of these evaluations and other information
provided by senior management are used to determine whether there are any
material weaknesses.

The Office of Management and Budget's (OMB) revised Circular No. A-123 (A-123) requires Federal agencies to assess, document and test their internnal controls over financial reporting and prepare an annual assurance statement on the operating effectiveness of the controls. In Fiscal Year 2006, the Department of Energy (Department) began a three year phased approach to implement A-123 and, in FY 2008 is completed its third and final phase of implementation.