The DATA Act:It’s not just another unfunded mandate

www.pwc.com

Joe Kull

PwC

AGA Shenandoah Chapter

September, 2014

DATA ActDigital Accountability and Transparency Act

Requires the Department of the Treasury/OMB to:

– Create data standards – Direct agencies to use the data standards– All federal spending on the USAspending.govOutcomes:

– Spending data is standardized,machine readable– USAspending.gov will have detailed information– Available for export and analysis– Accessible and consumable to the public– Complete, accurate, searchable

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DATA Act timelineMay, ’15 - Issue data standards guidance

- Pilot program [standards, reporting, recipient compliance]

- Option to establish a data center

May ’16 - Pilot continues

May ‘17 - Pilot ends

- Financial information meets data standard

- OMB reports to Congress on data consolidation

- IGs report on agency’s compliance

May ’18 - GAO reports yo Congress

- USAspending conforms to data standards

- Standards apply to all contractor/grantee reporting

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Reporting EnvironmentArchitecting for unpredictability

4

THEN NOW

Focus Shareholder Stakeholder

Medium Paper Web

Format Standard Custom

Frequency Periodic [push] Real-time [pull]

Indicators Statements [processing] Metrics [analytics]

Data Emphasis

Historical Projected

Costing Historical Cost Value-based info

Validation Audit Accounts Assure Processes

Environment Consistent Dynamic

Compliance Standards Developed Standards Imposed

Global Capital Markets and the Global Economy• In a world of mass customization, standard financial statements have

less meaning and relevance• need to verify process by which info is collected, sorted and reported • Harmonize standards: data, GAAP, audit• Change [reporting] toward the public release of more non financial

info, customized to user, accessed far more frequently

Digital Government: Building a 21st Century Platform to Better Serve • Objectives

– Access to high quality digital info anywhere, anytime, any device– Manage and procure ‘stuff’ in smart, secure, affordable way– Unlock power of gov’t data

• Principles– Information centric-open data and content which can be tagged, secured, and

shared in useful way – Shared platform-shift infrastructure mindset – Customer centric-customers shape, share and consume data– Security and privacy

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Data Centric Shifts the focus/culture

Application & System Centric

• Dependent on system Integrators, developers, architects

• Expensive interfaces and patches

• Change is risky and expensive

Standards & Data Centric

• Business rules are tied to data source

• Semantic ‘consensus’

• Open standards enable interoperability

• Changes made to taxonomy

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So let’s ‘containerize’ data and transport it anywhere…..

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XBRL: standardizing data

• Structured data for quantitative or qualitative content

• ‘Structured’ data becomes interactive

- Electronic tags allow computer to retrieve data

• An XML dialect

• It’s a freely available, open data standard

• Define the information needed

Built on collaboration and consensus

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XBRL Regulatory Adoption – Publicly AnnouncedGovernment Agencies• Australian Tax Office• Committee of European Banking

Supervisors (CEBS)/COREP+ Chinese Securities Regulation

Commission (CSRC) {sponsoring Shenzen and Shanghai exchanges}

• Dutch Tax Authority• Dutch Water Authority• Spanish Stock Exchange Commission –

3000 companies• Statistics Dept of Ireland• Other

- Bank of Japan- Bundesbank- Eurostat- Financial Service Agency of Japan- The Irish Revenue

Commercial Financial Services & Others

+ Canadian Securities Regulators

+ KOSDAQ – Korea

+ Bank of Spain

+ National Bank of Belgium

+ National Tax Agency of Japan

+ New Zealand Exchange

+ U.S. Securities & Exchange Commission

+ Shanghai Stock Exchange

+ Shenzhen Exchange

+ Tokyo Stock Exchange

+ UK Companies House

+ UK Inland Revenue/HMRC

+ US Federal Financial InstitutionsExamination Council (includes FDIC)

Envision a Federal ‘Googlement’

Free and open access Federal financial and programmatic information.

Put that information out as fast as possible

Make it easy to search, use, and exchange

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PricewaterhouseCoopers LLP1800 Tysons Boulevard McLean, VA 22102-4261T: (703) 918-1320joseph.kull@us.pwc.com

Joseph KullDirector

July 2012