Accountability & Transparency

Certifications

See Governor Lingle’s Assurance Certification letter to Peter Orszag, Director, Office of Management and Budget, required under Section 1607 of the Recovery Act for the use and application of ARRA funds.  Click here to view the certification.

Governor's Priorities

Governor Abercrombie has set the priorities for the use of ARRA funds.  Governor Abercrombie's priorities are to:

• Save or create jobs and promote economic recovery;
• Use ARRA funds to stabilize the State’s fiscal situation;
• Invest ARRA funds wisely;
• Use ARRA funds to improve Hawaii’s economic competitiveness;
• Secure the maximum amount of ARRA resources available to Hawaii;
• Apply federal accountability and transparency requirements;
• Fulfill federal reporting requirements.

Legislative Federal Economic Stimulus Program Oversight Commission

Act 150, SLH 2009 creates an oversight commission to ensure the transparency and accountability for programs, services, and benefits of funds allocated to the state by the ARRA of 2009.  In providing oversight of the distribution of any federal economic stimulus program funds and the implementation of program expenditures, the commission may:

(1) Evaluate the coordination of federal stimulus funded programs within the state;
(2) Determine if criteria developed for setting priorities are being followed;
(3) Determine the adequacy of public notice and opportunity for public comment and input;
(4) Evaluate the transparency of the bidding and the contracting process;
(5) Evaluate the integrity of the distribution and expenditure of federal stimulus funded programs;
(6) Determine the extent to which duplication and waste is prevented; and
(7) Undertake any other tasks or efforts to ensure the integrity and fairness of the distribution and expenditure of all funds and the implementation of all programs

Information on the Legislative Federal Economic Stimulus Program Oversight Commission can be found here. 

How We Are Managing ARRA Funds

The State of Hawaii is taking a ‘de-centralized’ approach to managing ARRA funds.  Under this approach, the heads of state agencies and their staff are making key decisions on how best to use ARRA funds. 

To the degree possible, ARRA funds are being managed like other federal funds that the State receives.  This means normal budgeting and procurement procedures are followed. 

Because of the enhanced reporting and transparency requirements that come with the acceptance of ARRA funds, the State has taken additional measures to properly manage ARRA funds.  These measures are part of an overall accountability system called the Hawaii ARRA Accountability System. 

Under the Hawaii ARRA Accountability System: 
• The head of State agencies are the ARRA Coordinators.
• ARRA Coordinators form an inter-agency ARRA Recovery Team made up of key program and fiscal and accounting personnel.
• ARRA Recovery Teams create State Agency Recovery Plans.  Recovery plans for each state entity are posted on the official State of Hawaii ARRA website at hawaii.gov/recovery.

ARRA Coordinators must:
• Avoid waste, fraud and abuse;
• Ensure that costs charged to the Recovery Act programs are allowable costs, in accordance with applicable laws, regulations,  agreements and contracts;
• Ensure that funds provided under the Recovery Act awards are separately accounted for, from receipt to obligation to expenditure;
• Ensure that effective cash management is employed for Recovery funds to minimize the time elapsing between (i) the transfer of funds  from the federal government, or from a pass-through entity, to (ii) disbursement.
• Ensure that the use of Recovery funds meet all federal requirements as described in individual ARRA grant awards and OMB circulars;
• Fulfill Recovery Act reporting requirements in a timely and accurate manner.

How We Will Communicate With the Public

Information on all federal resources made available to a State entity will be posted on the official State of Hawaii ARRA website;

Each quarter, we will summarize the progress each state entity is making in expending ARRA funds by updating reports on the Hawaii ARRA website.