Historically, reporting processes for many government contractors working with federal agencies have been done manually. The process was time consuming and cumbersome.
In 2014, the Federal Government implemented the Digital Accountability and Transparency Act (DATA) in order to make federal spending information easily accessible to the public. And Section 5 of the DATA Act also requires government agencies to overhaul many of their reporting processes.
As of May 2017, the pilot is in the data collection and maintenance phase. As required by Section 5 of the DATA Act, the pilot must gather data from users of a centralized reporting tool over a period of 12 months. The data collected will inform Office of Management and Budget (OMB) guidance to government agencies in regards to how financial reporting can be made more efficient. The pilot is expected to substantially cut down the time required to complete the entire payroll reporting process and also standardize reporting, eliminate unnecessary duplication in reporting and reduce costs.