Washington Society of CPAs’ Advocacy Aided Successful Legislative Effort

With a stroke of the pen, President Obama has paved the way for easier tracking of federal spending data by residents of Washington.

The Digital Accountability and Transparency Act (DATA Act) was signed into law by the president on May 9, 2014, after being given final congressional approval on April 28.

The new law calls for the disclosure of direct federal agency expenditures and will link federal contract, loan, and grant spending information to federal programs, thereby enabling taxpayers and policy makers to track federal spending more effectively. It requires the U.S. Department of the Treasury and the Office of Management and Budget to adopt a non-proprietary, platform-independent data standard, such as eXtensible Business Reporting Language (XBRL), for the reporting of federal budget and spending information. Use of a data standard like XBRL will provide consistent, reliable and searchable government-wide spending data that is displayed on USASpending.gov.

In a statement issued following the bill signing, AICPA President and CEO Barry C. Melancon, CPA, CGMA, thanked the DATA Act’s congressional sponsors, Senators Mark Warner (D-Va.) and Rob Portman (R-Ohio) and Representatives Darrell Issa (R-Calif.) and Elijah Cummings (D-Md.), for their leadership. He also noted that Senators Tom Carper (D-Del.) and Tom Coburn (R-Ok.) were instrumental in getting the bill passed. “They recognize that the ability to follow the flow of federal dollars is a cornerstone of good government,” Melancon remarked.

The Washington Society of CPAs joined the AICPA in commending the lawmakers for their role in guiding passage of the DATA Act. “The new law will make it possible for residents of Washington and throughout the nation to track federal spending through the use of a data standard like XBRL,” said Washington Society of CPAs Rich Jones, CPA, CGMA, WSCPA President & CEO. “XBRL allows for easier access to more transparent information, be it in business or government.”     

XBRL is a royalty-free, international information format designed specifically for business information. It was the brainchild of Charlie Hoffman, CPA, a WSCPA member.