To require State governments to submit fiscal accounting reports as a condition to the receipt of Federal financial assistance, and for other purposes.

Summary: National Activity Based Total Accountability Act of 2010 - Requires each state government that receives federal financial assistance in a federal fiscal year to submit a state fiscal accounting report for such fiscal year to the Director of the Office of Management and Budget (OMB) that includes: (1) a one-page summary listing the total funding and expenditures of each budget entity of the state government; and (2) a unit-cost summary for each such entity that includes a statement of funds available, a line-item listing for each agency activity that the entity began, attempted, continued, or completed, and a reconciliation of funds available with adjusted expenditures. Sets forth formulae for determining unit-cost and adjusted expenditures.

Requires the Director to: (1) publish each report on an OMB website; (2) ensure that such state reports use a standardized form that permits the comparison of information; (3) establish a uniform system for classifying programs and activities; (4) identify conduct for each agency activity that constitutes a completed instance of such activity; and (5) identify performance measures for each agency activity.

 Requires the Director to inform each federal agency if a state fails to file such report and requires the agency to withhold 10% of any federal financial assistance provided to such state for the next fiscal year.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``National Activity Based Total 
Accountability Act of 2010''.

SEC. 2. FINDINGS AND PURPOSE.

    (a) Findings.--The Congress finds as follows:
            (1) The Federal Government sends hundreds of billions of 
        dollars to the States each and every year.
            (2) In Fiscal Year 2008, among the money sent to the States 
        were $267 billion for health care, $53 billion for 
        transportation, $47 billion for housing and urban development, 
        $36 billion for education, and $27 billion for agriculture.
            (3) States receive money from the Federal Government 
        through grants, loans, loan guarantees, property, cooperative 
        agreements, interest subsidies, insurance, food commodities, 
        and direct appropriations, among others means.
            (4) Every State spends money for common activities such as 
        health care, transportation, housing, education, agriculture 
        and other issues, yet some States are more effective than 
        others when spending these Federal taxpayer dollars.
            (5) Taxpayers, legislators, and agencies should be able to 
        objectively and reliably share data comparing apples-to-apples 
        performance measurements that identify what government does and 
        what it really costs.
            (6) Activity-based total accountability will show which 
        States are the most effective with taxpayer dollars and lead to 
        competition among States.
            (7) States demonstrating that they are more efficient with 
        tax dollars by having lower activity costs will serve as models 
        for others to ensure that there is more accountability for how 
        tax dollars are spent and to ensure that the taxpayer is 
        getting the best value for their dollar.
    (b) Purpose.--The purpose of this Act is to improve the 
policymaking process and government accountability at the State level 
by requiring annual accountings from State governments in a format that 
uses total accountability measures, including unit-cost data.

SEC. 3. STATE FISCAL ACCOUNTING REPORTS.

    (a) In General.--Not later than 15 days before the end of a Federal 
fiscal year, each State government that receives Federal financial 
assistance in that Federal fiscal year shall submit a State fiscal 
accounting report for the Federal fiscal year to the Director of the 
Office of Management and Budget (hereinafter in this Act referred to as 
the ``Director'').
    (b) Contents of Report.--Each State fiscal accounting report shall 
include--
            (1) a one-page summary that lists the total funding and 
        expenditures of each budget entity of the State government; and
            (2) for each budget entity of the State government, a unit-
        cost summary for the Federal fiscal year.
    (c) Publication of Reports.--The Director shall publish each report 
received under this section on an Internet Web site of the Director not 
later than 30 days after receiving that report.

SEC. 4. STANDARDIZATION OF STATE FISCAL ACCOUNTING REPORTS.

    (a) Standardization of Reports.--The Director shall ensure that 
each State fiscal accounting report is in such standardized form as the 
Director may prescribe. Such form shall permit the comparison of the 
information contained in a State fiscal accounting report with the 
information contained in every other State fiscal accounting report.
    (b) Initial Reports.--Not later than 180 days after the date of 
enactment of this Act, each State government that is required to submit 
a report under section 3 shall submit to the Director a description of 
the programs and other activities carried out by each budget entity of 
that State government over that fiscal year, including such information 
on those programs or activities as the Director may require.
    (c) Classification System.--Based on the descriptions submitted 
under subsection (b) and on what the Director determines to be the most 
relevant data available (including data from the most recent census), 
the Director shall by rule do the following:
            (1) Establish a uniform system for classifying such 
        programs and activities within categories (hereinafter in this 
        Act referred to as ``agency activities'') identified by the 
        Director.
            (2) For each agency activity, identify conduct (hereinafter 
        in this Act referred to as an ``activity unit'') that, in the 
        determination of the Director, constitutes a completed instance 
        of such agency activity.
            (3) For each agency activity, identify, to the extent 
        practicable, performance measures for that agency activity, 
        and, in publishing a report under section 3(c), link 
        electronically such performance measures to that agency 
        activity.

SEC. 5. UNIT-COST SUMMARY.

    Each unit-cost summary for a budget entity of a State government 
shall be in such form as the Director may prescribe, be one page long, 
and include the following:
            (1) A statement of funds available, as described under 
        section 6.
            (2) For each agency activity that the budget entity began, 
        attempted, continued, or completed, a line-item listing as 
        described under section 7.
            (3) A reconciliation of funds available with adjusted 
        expenditures as described under section 8.

SEC. 6. STATEMENT OF FUNDS AVAILABLE.

    (a) In General.--A statement of funds available shall identify--
            (1) in accordance with subsection (b), each source of funds 
        available for expenditure or obligation by the budget entity 
        and the amount of such funds; and
            (2) the sum of all amounts identified under paragraph (1).
    (b) Identification of Sources.--In identifying the sources of funds 
available for expenditure or obligation by the budget entity, the 
budget entity shall include the following:
            (1) All funds made available by State appropriations laws.
            (2) Any Federal financial assistance provided by a Federal 
        department or agency.
            (3) Any other sources the Director determines appropriate.

SEC. 7. AGENCY ACTIVITY LINE ITEM LISTINGS.

    (a) In General.--A line item listing for an agency activity shall--
            (1) identify--
                    (A) the agency activity;
                    (B) in accordance with subsection (b), the total 
                amount of funds that the budget entity expended in 
                carrying out the agency activity;
                    (C) the number of activity units of the agency 
                activity the budget entity began, attempted, continued, 
                or completed; and
                    (D) the unit-cost of the agency activity, 
                determined in accordance with subsection (c); and
            (2) describe as many of the following as are relevant to 
        the agency activity:
                    (A) What conduct constitutes an activity unit.
                    (B) Each purpose for which the budget entity 
                engaged in that agency activity.
                    (C) Each person that is an intended beneficiary of 
                that agency activity.
    (b) Special Rules for Determination of Expenditures.--
            (1) Allocation of expenditures for certain agency 
        activities.--If the Director determines that there is an agency 
        activity for which no method of measuring the accomplishment of 
        the agency activity exists, an expenditure for that agency 
        activity must be consistently allocated to what is, in the 
        determination of the Director, a sufficiently similar agency 
        activity for which such a method exists.
            (2) Payments to contractors or subordinate entities 
        included.--An identification of the total amount of funds that 
        a budget entity expended shall include any amounts paid to a 
        contractor or subordinate entity.
    (c) Determination of Unit-Cost.--
            (1) In general.--The unit-cost of an agency activity shall 
        be determined in accordance with the following formula:


                                           m
UC =                                       --------------------------------------.
                                           q
 

            (2) Definition of terms in formula.--For purposes of the 
        formula in paragraph (1)--
                    (A) UC is the unit-cost of the agency activity;
                    (B) m is the amount described in subsection 
                (a)(1)(B); and
                    (C) q is the number described in subsection 
                (a)(1)(C).

SEC. 8. RECONCILIATION OF FUNDS AVAILABLE WITH ADJUSTED EXPENDITURES.

    (a) In General.--A reconciliation of funds available with adjusted 
expenditures shall--
            (1) identify the adjusted expenditures of the budget 
        entity; and
            (2) explain any difference between the adjusted 
        expenditures and the sum of all funds available for expenditure 
        or obligation by the budget entity (determined in accordance 
        with section 6).
    (b) Determination of Adjusted Expenditures.--
            (1) In general.--The adjusted expenditures of the budget 
        entity shall be determined in accordance with the following 
        formula:


 AE = EXP + PT + REV.
 

            (2) Definition of terms in formula.--For purposes of the 
        formula in paragraph (1)--
                    (A) AE is the adjusted expenditures;
                    (B) EXP is the sum of all expenditures by the 
                budget entity for agency activities;
                    (C) PT is the sum of all pass-throughs identified 
                by the budget entity under subsection (c); and
                    (D) REV is the sum of all reversions identified by 
                the budget entity under subsection (c).
    (c) Identification of Pass-Throughs and Reversions.--A budget 
entity may identify an amount as a pass-through or a reversion if the 
amount satisfies criteria established by the Director.

SEC. 9. NONCOMPLIANCE.

    If the Director determines that a State government has failed, with 
respect to a Federal fiscal year, to file a sufficient and timely State 
fiscal accounting report under this Act, the Director shall so inform 
the head of each Federal department or agency. Each such head shall 
withhold 10 percent of any Federal financial assistance provided to the 
State government for the next Federal fiscal year.

SEC. 10. RULES.

    The Director is authorized to make such rules as may be necessary 
to carry out this Act.

SEC. 11. DEFINITIONS.

    In this Act:
            (1) The term ``State government'' means the government of 
        each of the several States, the District of Columbia, and any 
        commonwealth, territory, or possession of the United States.
            (2) The term ``budget entity'' means a State agency or the 
        State judiciary.
            (3) The term ``agency activity'' means major operational 
        activities carried out by a budget entity.
            (4) The term ``Federal financial assistance'' has the 
        meaning given such term in section 7501 of title 31, United 
        States Code, and also includes any other amounts that the 
        Director determines appropriate.