What are the Benefits of Data Transparency?

We’ve been covering the progress of the DATA Act on this blog since the middle of last year. Throughout that process, we’ve been explaining some of the potential benefits that this legislation could bring. Over the next few weeks, we’ll be re-examining the idea of transparency in finance, and by extension, exploring what has come out of the DATA Act since it was signed in July of this year.

The Background

We first wrote about the DATA Act in October of 2011, wherein we explained how the Act was going to use XBRL to improve transparency across the nation’s industries.

By requiring the Secretary of the Department of Health and Human Services to consider XBRL, the federal government is getting the tools it needs to deliver better data -- which will help the Department better administer its child welfare programs and ultimately help states better serve children…We need to know who is and isn't receiving federal aid to more effectively help our children in greatest need. I think it's fitting that the first U.S. law mandating XBRL is helping our government better meet the needs of our most vulnerable children.

Then, in May of 2012, we started covering the senatorial debates standing between the Act and federal approval. The DATA Act was quickly approved by the House of Representatives, largely due to a high-profile scandal in which millions of dollars was wasted on an over-the-top Las Vegas conference. As it turned out, it moved through the senate just as quickly.

The DATA Act was a huge step in the fight for government financial transparency, and it was a wonderful moment to watch the Act pass uncontested.

Next week, we’ll update you with some of the research and results from this legislation, and we’ll follow that up by reporting on how this legislation could benefit your company.

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