E-government projects lack full funding

E-government initiatives that rely on funding from federal agencies were shorted $56.4 million in fiscal 2003 and 2004, according to congressional auditors.

Ten of the 25 Office of Management and Budget-sponsored e-gov initiatives have agreements with other agencies for monetary contributions, but a Government Accountability Office investigation found that six of those agencies failed to pay the agreed-upon amount in fiscal 2003 and nine agencies' contributions fell short of expectations in fiscal 2004.

The shortfalls cost the e-gov programs $31 million -- nearly 25 percent of their funding -- in 2003 and $25.4 million in 2004, according to the report (GAO-05-420).

The e-gov projects are part of the President's Management Agenda and were established in 2001 to eliminate redundant systems and allow citizens and businesses to access federal agencies through Web sites. The initiatives, which are sponsored by individual agencies, receive few congressional dollars and instead rely on a variety of funding methods, including receiving money from participating agencies and collecting fees for service.

Agencies that did not contribute the amount they had agreed upon cited OMB's failure to provide budget guidance, a lack of congressional approval for reprogramming funds for the e-gov projects and the reorganization of agencies into the Homeland Security Department. Some also substituted an exchange of resources, such as computer systems or personnel, for actual dollars.

In 2004, $10.2 million was held back from the e-gov programs because OMB failed to reflect the contributions in its budget guidance, partly due to an administrative error, auditors found.

An OMB mandate in 2004 requiring agencies to meet their funding obligations to the e-gov projects within 45 days of the enactment of their appropriations was rarely enforced, according to GAO.

The report, issued in response to inquiries from Reps. Tom Davis, R-Va., and Adam Putnam, R-Fla., recommended that OMB officials ensure that funding plans for e-gov initiatives be reflected in its agency budget guidances.

In its response to the report, OMB acknowledged that there have been problems in administering e-gov funding, but believed there has been progress in fiscal 2005. Memorandums of understanding establishing funding levels between the initiatives and the agencies will be issued as soon as possible, officials said.

OMB said about 80 percent of the funding commitments for fiscal 2005 were finalized by April 8, due to greater efficiency and experience among officials managing e-gov initiatives.