Statement of Principles on Oversight of Public Funds

Task Forces: Process and Procedures

Draft Disclaimer

Prior to task force meetings, ALEC posts these legislative member-submitted draft model policies to our website. The draft model policies are then discussed, debated, and voted on by ALEC task force members. Policies that receive final approval by legislators on the ALEC Board of Directors become official ALEC model policy. Draft model policies that fail to become official ALEC model policy are removed from the website.

Summary

Nongovernmental organizations receiving public funds should be held accountable for using those funds to fulfill clearly defined public purposes, advance their stated missions, and deliver promised services—not support partisan electioneering. Recipients should report spending and results and provide access to records for audits, while government agencies should monitor compliance and address misuse through corrective action, recovery of misspent funds, or suspension or termination of funding. These safeguards should protect taxpayers while respecting the lawful activities and rights of privately funded organizations. This statement of principles calls for accountability and oversight of nongovernmental organizations that receive public funds. Funding should serve clearly defined public purposes, support recipients’ stated missions, and deliver promised services and results—not subsidize partisan electioneering. Recipients should report spending and performance and provide access to records for audits and reviews. Government funding agencies should monitor compliance and address misuse through corrective action, recovery of misspent funds, or suspension or termination of funding. These safeguards should protect taxpayers while respecting the lawful activities and rights of privately funded organizations.

Policy Statement

(a) Public funds are a public trust. Nongovernmental organizations that receive public funds should be accountable to taxpayers for how those funds are spent and whether they achieve their intended public purposes.
(b) Public funding should be awarded for clearly defined public purposes, with clear expectations for the services to be provided, the allowable uses of funds, and the results to be achieved.
(c) Nongovernmental organizations that receive public funds should use those funds consistently with their stated missions and the specific purposes for which the funds were awarded. Public funding should support the actual delivery of promised services and benefits, rather than activities unrelated to those purposes.
(d) Public dollars should not be used, directly or indirectly, to support partisan electioneering or to subsidize partisan election activity presented as charitable or public-service work.
(e) Public funding should be subject to meaningful transparency and oversight, including expenditure and performance reporting, access to relevant records, and audits or other reviews to verify that funds are used as intended.
(f) Government entities that award public funds should monitor compliance, evaluate results, and take appropriate corrective action when recipients misuse funds or fail to fulfill funding requirements, including recovery of misspent funds and suspension or termination of funding.
(g) Oversight should protect taxpayers and ensure accountability for public funds while respecting the lawful activities and rights of privately funded organizations.