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Federal Agencies Spend Big But Report Little about Programs and Expenditures

$2.18 trillion spent by agencies with 'Below Satisfactory' reports.

The most-funded federal agencies are the least transparent, particularly when it comes to explaining how their work benefits the public, revealed a study released today by the Mercatus Center at George Mason University.

"Federal agencies seem to have a hard time explaining to the American people how their work improves the lives of ordinary citizens. With a federal budget that continues to be stretched thin, agencies should feel an obligation to justify their spending and programs to taxpayers," says report co-author Maurice McTigue, director of the Mercatus Center's Government Accountability Project.

For the eighth year in a row, the Mercatus Center examined the annual performance reports of 24 federal agencies. Mandated by the 1993 Government Performance and Results Act (GPRA), these performance reports should disclose to the public the agencies' financial data and achievements. Researchers used 12 criteria in three general categories (transparency of reporting, the extent to which public benefits are communicated, and leadership in using performance information to improve agency work) to evaluate the agencies' reports.

"Transparency is a powerful force than can encourage positive results, discourage abuse of power and facilitate public accountability," says GAO comptroller David M. Walker, a guest speaker at the public release of the report, "Mercatus's annual government transparency report card initiative serves to reward positive performance and spotlight areas of needed improvement by various executive branch agencies in connection with this important topic."

Similar to findings in previous years, Mercatus Center researchers found one area that needs improvement is the percentage of the budget spent by agencies with poor reports. Agencies that scored below satisfactory on their reporting efforts spent 87 percent of federal appropriations, $2.18 trillion. The four lowest-ranking agencies alone -- the Departments of Housing and Urban Development, Homeland Security, and Health and Human Services, as well as the Office of Personnel Management -- accounted for almost $800 billion in federal spending.

Some agencies however are more accountable to the public. The departments of Transportation, Labor, Veterans Affairs, and State earned the top four spots. Agencies that substantially improved their rankings include the General Services Administration and the Department of Education.

However, for the other agencies to improve, Congress needs to become involved, and the GPRA-mandated reports offer them the information necessary to do so. "Congress mandated these annual reports in 1993. It would be nice to see Congress use the information, instead of holding 'gotcha' hearings to embarrass agencies with anecdotes," recommends the report's co-author Jerry Ellig.

The report is available online at http://www.mercatus.org/scorecard.