DENVER—The federal stimulus program is working by creating and retaining jobs, but it presents unprecedented challenges to state officials trying to keep track of the money, auditors from western states said Thursday.
Denver auditor Dennis Gallagher said most financial audits examine spending after the money has been spent. Colorado is one of 16 states under a microscope by the federal government and those states have to report before programs are completed, he said. They were chosen at random by the federal government to make sure proper spending controls are in place for the programs, which will continue next year.
An audit by Gallagher last year found that Denver International Airport failed to report two grants to the federal government totaling $11 million. Airport officials said they were unaware they were not following the law.
Gallagher also found that two grants to the Mayor’s Office of Education and Children claimed it created 14 jobs at no expense, and failed to report the mistake in time.
Participants in the meetings in Denver on Thursday and Friday included the states of Colorado, Montana, North Dakota, South Dakota, Utah and Wyoming.
Democratic U.S. Rep. Diana DeGette said the nation would now be in a depression were in not for the $862 billion program. Colorado was awarded $4.3 billion and received $1.6 billion, creating 17,757 jobs by June 30, providing additional funds for Medicaid, food stamps, teachers and police, according to the federal government.
“Something had to be done to prevent our nation from being brought to its knees,” DeGette said.
Emily Fossen, a senior accountant from Grand Forks, N.D., said the money given to her city helped fund street projects and hybrid buses. Nathaniel Pehl, an audit technician from Bozeman, Mont., for Gallatin County, said the federal stimulus provided $190,000 for replacing boilers in a rest home and energy efficiency projects.
Pehl said this election year has been contentious, with fights between Democrats and Republicans over whether the federal programs are working and how many jobs they provided.
“Transparency is the name of the game,” he said.
