Thousands of stimulus reports missing, resulting in potential undercount of jobs created

By Michael Grabell, ProPublica

Eagle Peak Rock and Paving created and saved 32 jobs thanks to an $8
million federal stimulus contract to repair Glacier Point Road in
Yosemite National Park.

But you won't find that on Recovery.gov, the government's Web site for tracking stimulus money. You
also won't find the eight employees hired by Owensboro-Daviess County
Regional Airport in Kentucky, or the 46 jobs claimed for some $65
million in grants awarded to the Louisiana Department of Social
Services. The three are among thousands of recipients who didn't
file the required reports detailing what they did with stimulus money
and how many people they hired or retained. With mounting criticism
over the accuracy of jobs numbers, the White House budget office is
scrambling to identify recipients who didn't report. Vice President Joe Biden said last week that the missing information is unacceptable. And the government's
stimulus watchdog, Earl Devaney, who oversees Recovery.gov, promised to
post a list of non-filers in an effort to embarrass them into complying. The
stimulus act provided no explicit consequences for those who didn't
report, though agencies can cut off recipients from future federal
funding. Devaney has called on Congress to add penalties, such as
fines. The missing reports stand to add
thousands of jobs to the current tally of 640,000 created or saved by
the stimulus. Tracking down the missing reports is also critical for
the Obama administration to meet its pledge of unprecedented
transparency with stimulus money. In an effort to show the
public how taxpayer dollars are spent, Congress required all recipients
of stimulus money -- including contractors, local governments and
nonprofits -- to file quarterly progress reports on a government Web
site. The reports must contain about 100 pieces of information,
including how the recipients have spent the money, how many jobs ≠-- and
what types -- they have created or saved, and how far along the project
is. The first report was due Oct. 20. After the deadline,
recipients are locked out of the system and can no longer file reports
or make changes until the next reporting period, in January. To
find out who didn't comply, we compared the reports on Recovery.gov
with all the contracts, grants and loans that federal agencies have
previously said were paid for with stimulus money. Even after
eliminating common mistakes, such as different names or amounts, more
than 2,500 recipients appear to have never sent in their required
reports, accounting for at least $2 billion in unreported stimulus
money. The White House budget office said the number of missing
reports could be even higher. It estimated that recipients have failed
to file up to 10 percent of the reports on Recovery.gov. Currently, the
site lists 131,000 reports and $159 billion in overall stimulus
spending. "If there are thousands of people who haven't filed
reports, that sheds some doubt on the total," said John Irons of the
Economic Policy Institute, a Washington think tank focused on labor
issues. "There are people who are trying to throw mud on the whole
thing. This would add fuel to that fire." Several stimulus
recipients -- including Eagle Peak, the Owensboro airport and Louisiana
social services -- said they tried to file but were beset by technical
glitches. They told similar stories about having trouble uploading the
report, trying to resolve the issues with government agencies and then
being locked out of the system when the deadline passed. "The
first time we submitted the report, there were some missing boxes and
it got sent back," said Kareen Duvall of Las Vegas Paving Corp. "When I
went back to make corrections and resubmit through the federal Web
site, it wouldn't let me submit. The time had expired." But the
government watchdog that runs Recovery.gov, officially named the
Recovery Accountability and Transparency Board, isn't sympathetic to
people who had technical problems. Spokesman Ed Pound said federal
agencies hosted numerous Web seminars leading up to the deadline. The
board extended the deadline by 10 days and had 60 people answering
technical questions by phone and Internet chat. "You have to
take the time and follow the instructions to do it," Pound said. "I
don't think that's asking too much of people when they're receiving
hundreds of thousands of dollars in money from the federal government."Devaney, the oversight board's chairman, told us he plans to use the
bully pulpit of the Recovery.gov Web site to shame non-filers.

"Every opportunity I have to embarrass somebody for not reporting, I'm going to take advantage of that,' he said. Recipients
who didn't report range from agencies as large as the Louisiana
Department of Social Services, with a $1.2 billion annual budget, to
tiny Blue Ridge, Ga., tucked into the Chattahoochee National Forest,
with just six employees at city hall. Trey Williams, spokesman
for Louisiana social services, said the agency realized it had a
problem with its contractor registration number back in August and
tried for months to resolve the issue with the Recovery Board help
desk, the White House and the IRS. "When we couldn't file the
report by the deadline, we went ahead and submitted the report via hard
copy, and were told it had to be submitted online and could not be
submitted again until it opened again for the next reporting period,"
in January, he said. Blue Ridge's city clerk, April Grizzell,
said she filed the city's report on $12.9 million in loans to increase
rural water service. But the computer system bounced it back while she
was out with swine flu, and by the time she returned, it was too late.
(Here are its reports, which the city sent us.) Recovery.gov
is also missing reports from the entire government of American Samoa,
which received a blanket waiver from the White House after a tsunami
struck the island two days before reporting started. Pat Galea'i,
American Samoa's stimulus czar, said the island has created or saved
hundreds of jobs. While recipients reached by ProPublica say
they didn't intentionally skip filing, the Recovery Board is on the
lookout for signs of people who may be hiding something. Bob
Whitmer, the director of the Owensboro airport, said he was very
concerned about missing the deadline because of the airport's previous
problems with the federal government. It has been cited for poor
administration of grant funds in 10 of the past 11 annual audits,
according to a report this summer
by the U.S. Department of Transportation's internal watchdog. But
Whitmer said he, too, had computer problems, and the help desk never
responded to an e-mail. "There was a lot of effort there," he said. "We were trying to make sure we did this right and got our information in on time." In
addition to technical problems, there also seems to be some confusion
about when the reporting requirement kicks in. Many contractors told
ProPublica that they didn't file the reports because they hadn't
received any money yet and work hadn't begun. For contractors, a
signed contract doesn't necessarily signify the start of the project,
said Mark Weisensee of the James W. Fowler Co., which is building a $16
million fish hatchery for an Indian tribe in Washington state. The
company still has to finalize plans and go back to the agency for
approval to actually begin work. And competing bidders
have a window to protest the contract and put the job on hold, which is
what happened with the fish hatchery. But the White House budget office said recipients are required to file as soon as the contract is signed. Still,
the federal government should do more to help contractors with the
reporting process, said Ken Worthan of Eagle Peak Rock and Paving, the
contractor on the Yosemite road project. He said he went online
to fill out his report but it kept bouncing back with errors. After
calling to resolve those problems, he filed the report and got a
confirmation that it had been accepted. But he then needed a code to
upload it. He said he requested one but never got it. "We're
trying to report the information they requested as best as we can,"
Worthan said. But "if they're not getting the information, it's not
going to be real accurate. They're not going to be able to sit in front
of everybody and say, 'Well, this is how many jobs we created.'" ProPublica's director of computer-assisted reporting, Jennifer LaFleur, contributed to this report.

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