The Sarbanes-Oxley Law was rushed through Congress in the wake of an enormous corporate accounting scandal that shook Wall Street and investors across the country. CEO’s and officers at several large companies were found to have “cooked the books”; i.e. knowingly falsified earnings statements to maintain stock prices or propel them higher. The practice came to be known as, Enron-Style Accounting.

The new law had many provisions, but one of its more sweeping was the requirement that corporate officers and executives assume personal responsibility for the accuracy and completeness of financial reports. In some cases, corporate officers could face civil or even criminal penalties if the numbers they reported to the public turned out to be inaccurate.

If only the law applied to politicians.

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Recovery.gov has a vast and challenging mandate: “to allow taxpayers to see precisely what entities receive [stimulus] money in addition to how and where the money is spent.” To its credit, Recovery.gov offers a fascinating look into how government goes about spending $787 billion.

However, the website is troubled with inaccuracies, and these problems are undermining its credibility. Wisconsin Democrat Rep. Dave Obey agrees: “The inaccuracies on recovery.gov that have come to light are outrageous and the Administration owes itself, the Congress, and every American a commitment to work night and day to correct the ludicrous mistakes.”

Given that stimulus award recipients are responsible for providing much of the information you see on Recovery.gov, it’s reasonable to expect some errors in the reporting process. Alas, some of the information seems to come out of thin air.

Phantom Congressional Districts.

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