Aug. 7, 2009

Oversight for Stimulus Cash Proves Flimsy

Federal Agencies Left To Monitor Their Own Spending, Possibly Putting Taxpayer Dollars At Greater Risk

  •  (CBS)

  • Play CBS Video Video Airports Land Stimulus Money

    If you are wondering where the government stimulus dollars are already having an impact, look in the sky. Hundreds of tiny airports have landed big money from the stimulus. Sharyl Attkisson reports.

  • Video Congress' Ties to Countrywide

    Several prominent members of Congress have been investigated after receiving special loans from the troubled lender Countrywide. CBS News investigative correspondent Sharyl Attkisson reports.

  • In-Depth Stimulus Spending

    A breakdown of how stimulus package funds will be dispersed.

  • In-Depth Q&A: Stimulating Ideas

    What's the best way to distribute funds of next economic stimulus package?

(CBS)  CBS News recently reported on $100 million in stimulus money being spent on tiny airports that cater to recreational flyers, corporate jets and remote communities as part of the Department of Transportation's "Airport Improvement Program." Now CBS News investigative correspondent Sharyl Attkisson reports on new problems with oversight of that program along with billions more of taxpayer dollars.


From airport improvements to highway construction, some of the federal programs getting the most stimulus money also represent the greatest possibility of waste and fraud.

In touting its stimulus package earlier this year, the Obama administration promised to watch spending like a hawk.

"If a federal agency proposes a project that will waste that money, I will put a stop to it," President Obama pledged back in February.

But in reality, federal agencies are largely left to monitor their own spending. And new findings show there's good reason to question how hard they're really trying to expose waste and abuse in their own agencies.

It started when the U.S. inspector general began digging to see how well the Department of Transportation was watching over four programs identified as its most likely trouble spots - the Federal-Aid Highway Program, Federal Transit Administration Formula Grants Program, FTA Capital Investment Grants Program, and the FAA Airport Improvement Program.

Together, those programs are receiving $37 billion dollars in stimulus fund.

But the inspector general found something shocking and issued an urgent advisory saying basically that the Transportation Department's effort to quantify improper payments was basically worthless.

The inspector general said when the department's contractor checked invoices for discrepancies, it chose sample sizes that were too small and not random, meaning the results were "not credible," "misleading" and "do not … represent the seriousness and extent of the problem."

For example, under the Airport Improvement Program, five million purchases were made worth $4.4 billion in taxpayer money. But the Transportation Department only examined 63 line items - just 0.3 percent of the total.

It's even worse for highway grants. The Transportation Department looked at just $20 million out of $32 billion that was actually spent on the Federal Aid Highway Program - just 0.06 percent.

The percent of transactions scrutinized by the Department of Transportation is dwarfed by other agencies. Auditors at the Agency for International Development, for example, examined a full 31 percent of cash spending.

"There's gonna be tens of billions of dollars flowing through some of these programs that are already vulnerable to waste and fraud. … They need to do a better job of tracking it and they aren't doing that," said Leslie Paige of Citizens Against Government Waste.

The Department of Transportation declined CBS News' requests for an interview, but defended the work as statistically, saying "we are confident that the controls we have in place defend against improper payments."

The department also said it will expand its next audit to examine more payments.

Congress promised unprecedented oversight of stimulus tax dollars. But the effectiveness of that oversight depends on how hard you really look.

© MMIX, CBS Interactive Inc. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed.
Share:
  • Share
  • Yahoo! Buzz
  • Mixx
Add a Comment See all 29 Comments
by whatisnextamerica August 9, 2009 1:42 PM EDT
No suprise. They did not read all the bill. wait until cap and trade comes back up. We need to just vote them all out.
Reply to this comment
by speakinup22 August 8, 2009 11:50 PM EDT
"Oversight for Stimulus Cash Proves Flimsy - Federal Agencies Left To Monitor Their Own Spending, Possibly Putting Taxpayer Dollars At Greater Risk - headline

Yawn - WHY am I not surprised ?

Democrats have control of the government.

Barry HAD to have the bill passed without reading it. It had to be passed RIGHT away. HA HA HA HA HA HA HA HA

How's that hope and change workin out for you all ?
Reply to this comment
by jakedog030 August 8, 2009 9:44 PM EDT
Oversight for the stimulus money is as flimsy as Obama's poll numbers. You can keep the change. This guy is a lop-eared creep.
Reply to this comment
by dontknowitall August 8, 2009 8:19 PM EDT
Cash for clunkers? The Senators had to approve funding. They have to much at stake in their portfolios to not approve. These cronies need the cash from their investments. G*d forbid if they had to learn to struggle on minimum wage or even worse....a layoff. ??LAYOFF?? now that has a good ring to it...Lets layoff everyone in Congress. Queen Michelle has an entourage large enough to fill the empty seats from the lay off. King Barack is doing the best he can with his vast knowledge from his lack of work in the private sector. Gee give the guy a break.
Reply to this comment
by jakedog030 August 8, 2009 9:46 PM EDT
Hang in there, bro.... 2010 is coming. We are in the Jimmy Carter phase of the next Ronald Reagan Revolution.
by speakinup22 August 8, 2009 11:52 PM EDT
So true jakedog030.

Obama will be building houses for humanity in 3 and a half years.

A mind is such a terrible thing to waste - but a country is even worse.
by Joe_NY_15 August 8, 2009 1:57 PM EDT
by Widget101 August 7, 2009 1:23 PM EDT
Aren't you overdue at a Town Hall disruption meeting?
________________________

Did you think that the American people were just going to lay down and allow you Marxists to take Government control over the whole heathcare system, ram a bill through without us knowing about how you will be raping the people ? NO

How about a disruption of your whole party in 2010 ? This is just the beginning, you haven't seen any revolt........ yet
Reply to this comment
by Sloughfoot August 8, 2009 12:47 PM EDT
Smoke and mirrors, the real losers will be the following generations who will have to "pay the piper" for all these "feel good" projects.
Reply to this comment
by Aldymac August 8, 2009 7:30 AM EDT
When the DNC gets what they want from Obama, they and the mmedia will bring back their favorites, the Clintons. They will no longer need Obama.
Reply to this comment
by witchrunner August 8, 2009 6:11 AM EDT
Flimsy oversight? And this is news? Of course the money is being wasted. The legislation was designed that way. There was no economic stimulus in the bill to begin with. It was just a matter of lining the pockets of the dems supporters. The money they then spend, that is the stimulus.
Reply to this comment
by raskal_2 August 8, 2009 1:17 AM EDT
Yesterday the senate approved more stimulus funding for the Cash-for-clunkers.
Now the Manufacturers don't have enough cars built to cover demand and because of this, car prices are sky rocketing.
The individual dealers according to the bill, face the burden of proof as to the viability that the clunker is in running condition, that it has been licensed and insured for at least a year, and the destruction of the engine and then the transfer of the clunker to a salvage auction or business who is allowed to salvage expensive repair parts and prove that the remainder is shredded or crushed. And in failing have been reported to asking for the new cars to be returned without offering a car to use.
The customer must enter into a loan that in many cases cannot afford or a five year lease that has severe financial penalties for overuse.

This program is only for a couple of months and the boon in new car sales will be over.With the resulting jobs gone again and more personal debt. The people who can't do the upgrade using this program are either stuck having a clunker to drive or forced to go to a salvage dealer to buy parts that were acquired for the price of a few hours of labor.

In health care there are many socialized benefits but the cost to middle America is prohibitive when taking into account that our national debt is greater than 85% of the Gross domestic product (or in simpler terms what we can muster to pay our national debt)The reforms will rocket us over 100%.
Frankly the American public is not willing to socialize anything in a free democracy no matter how it will benefit.

The world is still to be looking here to America for the power to lead and what do they see?

Frightened bilge rats of every sect and wealth besieged by immediate gratification and Self Serving Leaders bent on the giving of American wealth to special interests in support of feel-good temporary policies and short term profits? And then pompously scold American Citizens as 6 year olds in temper, when we shout out in difference based on guaranteed freedoms.

What the world and our leaders must see is Free Americans and freedom and what our enemies must see is the depth of our resolve and then they will know what we can do. By the sweat of our brows and the strength of our backs and the courage of our hearts...
Americans hoist our colors... because the wind is in our favor and that is all that we need.
For Gods sake, hoist the colors.
Reply to this comment
by brooke50 August 8, 2009 4:02 AM EDT
raskal_2 - HAND CLAP, HAND CLAP, HAND CLAP - Well spoken indeed!

I can not say if there are others like me who keep coming back to see other comments, or actually read all posts (yes, even the "baby" ones). But I hope America gets a chance to read your post!

I would tell you to send it as a Letter To The Editor, but we both know it would never be printed.

I do fear though, that our GREAT LADY, may not have the strength to "Hoist The Colors" - (with the current cancer that (has) and is forming in our Exec., Legis. and Judge. Branches), the very foundation she stands on,is crumbling as sand in a wind storm.
by brooke50 August 7, 2009 11:41 PM EDT
And just what did they expect? Wake up Obama - What happened to the Exec. Bonuses you were so shocked about -
Reply to this comment
by swin5 August 7, 2009 10:21 PM EDT
And you want that goof-nut in Washington to be in control of the country's health care system?
Reply to this comment
by hpriggs1 August 7, 2009 4:27 PM EDT
President Obama has promised -- both before and after his election -- to remove ineffective government departments. How many articles like this to we have to read? How many times do we have to read that several different bureaucracies are monitoring the same industries? With our deficit at record highs, why not streamline the Federal bureaucracy to make it more efficient? If so many of these departments are incompetent or corrupt, how about hiring some of the millions who are unemployed to replace the poor performers? We should be more concerned about this than we are about many of the issues our administration and Congress keep in the headlines. It's costing us billions!
Reply to this comment
by sjc_1 August 7, 2009 2:41 PM EDT
"Possibly Putting Taxpayer Dollars At Greater Risk"

This is not exactly complete investigative journalism, it is more like suggestion and inference. When this author can come up with some evidence, the article might have more validity.
Reply to this comment
by dwath August 7, 2009 3:13 PM EDT
SJC, by definition, the government is not efficient. I agree the report is lacking in detail. Do not expect any investigation by main stream media of any of the lacks of this administration. It just won't happen because they are so in bed with him and his goals. Very sad.

They have special constitutional protections because they are supposed to be a watchdog. They have abdicated that function for quite some time.
by sjc_1 August 7, 2009 7:10 PM EDT
dwath,

You uninformed so called opinion is meaningless, save your worthless breath.
by dwath August 7, 2009 2:00 PM EDT
Widget, The worst the right has said and done regarding Obama's policies and actions does not come up to the average, let alone the vitrolic levels common against Bush. Why are you guys so sensitive? As to the town hall meetings, I would prefer to see a more reasoned discussion than the current mayhem; however, this is the method the left has used for decades. I do not agree with you therefore I will not let you talk. Think any university appearance by a conservative. Think anti war demonstrations. IF you condemn this, surely you condemn all the left's use of the same tactics. I look forward to your condemnation of Daily Kos, Huffington Post, Code Pink, the withering silence of ABC, CBS, and NBC not to mention most major newspapers on their actions.
Reply to this comment
by underdogus09 August 7, 2009 1:43 PM EDT
UPDATE: Apparently we're in the Economy of the Beast, with 6.66 million lost jobs over 19 months of contraction....
Reply to this comment
by JammieWearingFool August 7, 2009 1:17 PM EDT
You are hereby being reported to the authorities for daring to question Dear Leader Obama.

http://jammiewearingfool.blogspot.com/2009/08/white-house-blog-seeking-snitches.html
Reply to this comment
by Widget101 August 7, 2009 1:23 PM EDT
Aren't you overdue at a Town Hall disruption meeting?
by xlib August 7, 2009 2:30 PM EDT
I found it much easier to turn yourself in the way I did on day one when the gestapo thugs set the email up. Figured I just may be #1 on the enemies list.
by xlib August 7, 2009 2:31 PM EDT
widget101-Doubt if he's a member of SEIU or ACORN.
by Widget101 August 7, 2009 1:12 PM EDT
Back when real reporting was done by real reporters - not political pundits and wire-services - there was a great generation of investigative reporters. They used to dig, and discover the scandals of the government. The new media just seems to repeat rumors, and make big deals out of sex scandals. They should be ashamed of themselves.
Reply to this comment
by Widget101 August 7, 2009 1:17 PM EDT
...I should have added, ...and celebrity funerals.
by Widget101 August 7, 2009 1:19 PM EDT
I should have added...and celebrity funerals.
by xlib August 7, 2009 2:32 PM EDT
Yea, it's much better to be in the dark where the koolaid freely flows.
by drputt45 August 7, 2009 1:08 PM EDT
Talking the talk, but not walking the walk. Talk is not cheap when it comes from DC. It costs all of us, no matter what party.
Reply to this comment
See all 29 Comments
  • MOST POPULAR
Latest News
News in Pictures
Scroll Left Scroll Right
Connect with CBS News

Stay connected with the CBS News using your favorite social networks and online news applications: