The National Association of State Auditors, Comptrollers and Treasurers (NASACT) report included two articles on American Recovery Reinvestment Act (ARRA) implementation, and can be accessed by clicking here.

The first, entitled Second ARRA Reporting Period Concludes, Issues Remain, cites that “frustration remains for states over federal agency guidance that differs from the overarching guidance provided to recipients by the U.S. Office of Management and Budget. Fear over more discrepancies in the future is causing further concern among reporting entities.” The article goes on to present examples of confusing guidance.

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The General Services Administration (GSA) has just approved the Ubuntu and Landscape systems management tool for use by federal purchasers. As reported by PC World, this change further opens up access to the GSA.

Landscape will be offered as part of Autonomic’s cloud computing platform for government customers. The infrastructure-as-a-service platform provides government customers with simplified computing power, storage and supporting infrastructure that can be acquired and utilized on-demand all from FISMA certified data centers with standard multi-factor authentication access.

This is welcome news for many developers, as Ubuntu is the predominant operating system for the development of cloud-based applications.

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The Government Accountability Office (GAO), the Recovery Act watchdog agency, released a report this month examining various requirements and other factors affecting the Act’s implementation. The survey covers 27 federal agencies in 16 states and the District of Columbia, all accounting for two thirds of Recovery assistance. Of the $787 billion in spending and tax provisions, 63 percent has been obligated by the agencies. Several requirements are effecting both the selection and start of various projects.

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According to the North Carolina (NC) Department of Revenue Directive PD-10-1, effective January 1, 2010, a payer is required to withhold North Carolina income tax of four percent from non-wage compensation paid to either of the following:

• A nonresident individual or nonresident entity for personal services performed in North Carolina.
• An Individual Taxpayer Identification Number (ITIN) holder who is a contractor and not an employee for services performed in North Carolina.

The requirement to withhold applies to payers who, in the course of a trade or business, expect to pay more than $1,500 within a calendar year of non-wage compensation. That compensation must be paid to nonresident or ITIN contractors, with certain exceptions. Payers should file and pay withholding taxes on contractors with ITINs just like they would for regular employees.

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Virginia and North Carolina are two of thirty states to receive Recovery Act funding to improve high-speed rail corridors throughout the country. The national funds total approximately $8 billion and represent an initial investment in the Obama administration’s pledge to support high-speed rail. The current program received over $102 billion in funding applications, pointing to a growing desire for high-speed rail projects nationwide. 2010 projects are expected to save and create thousands of jobs in the southeast, bringing increased revenue to both private business and local government.

Virginia
The Commonwealth will receive $75 million in funding to remove one of the worst bottlenecks in the Southeast High Speed Rail Corridor. Specifically, projects will target 11 miles of track along I-95 between Washington, DC and Richmond. Future projects in Virginia include a proposed service to Hampton Roads, currently in the federal planning process.

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The current economic crisis has presented new and pressing challenges to local governments. Join Cherry, Bekaert & Holland and the Northern Virginia Group of the VGFOA for an all-day seminar on timely topics that include stimulus funding and accountability, the single audit for FY10, the results of a recent survey on facilities management, and other topics of significance to help you and your government deal with these challenging times. You will hear from a variety of experts on the most relevant financial and operational issues facing governments today.

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The American Banker’s Association (ABA) and the FBI recently issued a warning to local government organizations, small businesses, and nonprofits conducting their affairs online to be careful of targeted internet attacks. USA Today reports on why exactly the safest solution may be a dedicated PC used only for banking.

Cybergangs have inundated the Internet with “banking Trojans” — malicious programs that enable them to surreptitiously access and manipulate online accounts. A dedicated PC that’s never used for e-mail or Web browsing is much less likely to encounter a banking Trojan.

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As reported in The New York Times, the new year finds many states facing a bleak financial outlook.

On Wednesday, governors in California, Kentucky and New York kick off the season of addresses to state lawmakers as at least 36 states struggle to close budget shortfalls and also begin confronting the next fiscal year’s woes.

For many of the states, the new year spells the end to accounting maneuvers, one-off solutions, tax increases and service cuts that were as deep as lawmakers thought they could bear. And governors confront this situation in an election year in which dozens of their jobs are in play, and as many state legislators face their own election challenges.

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Here are the Top 10 most visited posts of 2009.

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1. OMB A-133 Compliance Supplement for 2009 Provides Additional ARRA Guidance
2. New Report Announces Methods for Measuring ARRA Job Creation Progress
3. OMB Releases New Reporting Guidance for ARRA Funding Recipients
4. NASC Conference Presentations Highlight Accountability and Transparency Best Practices
5. OMB Issues Guidelines to States Regarding Reimbursement of ARRA Administrative Costs
6. CB&H Publishes Report on Intergovernmental Financial Dependency and Related Risks
7. CB&H’s Ed Mazur to Speak at Association of Government Accountants Luncheon
8. GAO Stresses Accountability Issues in First Required Bimonthly Review of ARRA Funds

The Government Accountability Office (GAO) has released its November report on State and Locality usage of funding provided by the American Recovery and Reinvestment Act of 2009 (ARRA). As of November 27, 2009, one quarter of the approximately $280 billion allocated to state and local government had been paid out. Most states report using the funds to cover budget gaps and retain jobs.

The majority of this funding has been drawn down through Medicaid Federal Medical Assistance Percentage (FMAP) and the Department of Education’s State Fiscal Stabilization Fund (SFSF). States have used 97 percent ($27.3 billion), of the allocated 2009 FMAP Grants. Medicaid spending has been used primarily to maintain coverage levels and cover an increase in subscribers.

Most states report that they will use more than half of the available SFSF funds to retain jobs. Remaining funds will be used for nonrecurring equipment expense and various educational reforms.

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