Oregon Military Department Office of Emergency Management

Transcription

1 Oregon Military Department Office of Emergency Management The Mission of the Office of Emergency Management (OEM) is to execute the Governor s responsibilities to maintain an Emergency Services System as defined in ORS 401, by planning, preparing, and providing for the prevention, mitigation and/or management of emergencies or disasters that present a threat to the lives and property of the citizens of, and visitors to, the State of Oregon.

2 Form-Ulating a successful FEMA Project Understanding the benefits to proper project documentation and FEMA forms. 2

3 Here are the walkaways. (Don t walk away without knowing the answers to these questions) When to begin cost tracking When to let your accountants in on the secrets How can I keep my boss out of jail, he hates the food there? What if I enjoy a good poke in the eye? Get the facts or the facts will get you. Some parts of a FEMA form are edible. 3

4 Here are the walkaways. (Don t walk away without knowing the answers to these questions) When to begin cost tracking When to let your accountants in on the secrets How can I keep my boss out of jail, he hates the food there? What if I enjoy a good poke in the eye? Get the facts or the facts will get you. Some parts of a FEMA form are edible. 4

5 OMD/OEM PA Training Overview of FEMA OMD/OEM Role Role of Finance Department in FEMA related activities. Tracking Costs, Processing paperwork etc.

6 FEMA s Mission Statement 2013 FEMA s mission is to support our citizens and first responders to ensure that as a nation we work together to build, sustain, and improve our capability to prepare for, protect against, respond to, recover from, and mitigate all hazards. February 2013

7 Oregon Military Department Office of Emergency Management The Mission of the Office of Emergency Management (OEM) is to execute the Governor s responsibilities to maintain an Emergency Services System as defined in ORS 401, by planning, preparing, and providing for the prevention, mitigation and/or management of emergencies or disasters that present a threat to the lives and property of the citizens of, and visitors to, the State of Oregon.

8 Objectives of this training: You should be able to recognize important provisions of the Stafford Act Understand FEMA s primary legal authority for providing disaster assistance Understand the role and function of OEM Understand the importance of the role of The Finance Department in FEMA related Activities

9 FEMA defines their efforts to consist of two complimentary objectives: 1. Reduce loss of life and property 2. Protect the nation from all hazards

10 How is FEMA funded, where does FEMA get money? 1. Congress appropriates money to a special account called the Disaster Relief Fund (or DRF) 2. Funds drawn from the DRF cannot duplicate assistance provided by other means

11 FEMA s authority is derived from: The Stafford Act The Robert T. Stafford Disaster Relief and Emergency Assistance Act Federal Statute signed into law in 1988 The Stafford Act is based on two guiding principles: First, Federal assistance supplements State and local relief and recovery efforts Second, Stafford Act assistance (in most cases) is triggered only by a Governor s request for assistance and then a presidential declaration. (i)

12 Stafford is there to supplement not THE MOSTthe POWERFUL supplant state! (ii)oragnization IN THE UNITED STATES!! The Federal government is in support, not in the lead Governor s have to ask the President for Stafford Act declarations in most cases. (iii)

13 Not my experience! I have been working with FEMA for about three years now and my experience is contrary to all the conspiracy theories I have heard. FEMA employees are normal people who are serving the needs of our citizens and the governing agencies in the states.

14 OEM s function Execute the Governor s responsibilities (iv) Make rules that are necessary and proper for the administration of ORS 401 Coordinate the activities of all public and private organizations specifically related to providing emergency services within this state Maintain a cooperative liaison with emergency management agencies and organization of local governments, other states, and the Federal Government

15 Oregon s open disasters under FEMA $107,671, FEMA just awarded 4.3 million dollars (75%) for Oregon Solutions (OEM administers other Federal Grant programs not listed here. IA, Seismic, etc.)

16 Kinds of Declarations under the Stafford Act Major disaster declarations Emergency declarations Fire management assistance grants (FMAG) Each of these declarations essentially "turns on" some combination of Federal assistance programs provided for in the Stafford Act and its implementing regulations. (44 CFR-) Turning on these programs can result in the distribution of a wide range of Federal aid to individuals and families, certain non-profit organizations, and public agencies.

17 The Stafford Act and its implementing regulations in Title 44 of the Code of Federal Regulations describe the universe of eligible applicants - Who applicants are, how they are assisted, what they can expect from FEMA and the state, and what their respective responsibilities are. Eligible applicants can be States, Tribal or local governments, owners of certain private non-profit facilities, individuals, or families, depending on the particular program.

18 Who is affected by a declaration? The President specifies in each declaration The type of incident covered The time period covered, The types of disaster assistance available, The units of local government (generally counties, parishes, and independent cities) included in the declaration, and The name of the Federal Coordinating Officer FCO that s the FEMA official who coordinates Federal assistance and initiates action immediately to assure that Federal assistance is available ASAP!

19 The Stafford Act provides for discretionary assistance It is not an entitlement program like Social Security or Medicare. FEMA typically provides aid only to those persons or entities determined to need the assistance. For example: FEMA might not consider a family with adequate insurance and alternative housing options eligible to receive financial aid. A county or city that suffers only modest damages to some facilities might not receive funds to rebuild infrastructure if the extent of those damages don t meet the standards for assistance established by FEMA s regulations and policies C.F.R (a).

20 More about the Stafford Act The Stafford Act contains seven titles with eighty-one separate provisions or sections. Title I contains Congressional findings, declarations, and definitions. Title II addresses issues of preparedness and mitigation. Title III contains a number of important administrative provisions. Titles IV and V contain the real "meat" of the Stafford Act these titles identify the types of assistance that FEMA and other Federal agencies may provide, and, in some circumstances, the limitations on that aid. Title IV describes the aid available in major disasters and for fire management, and title V describes the aid available in an emergency. Title VI contains what used to be the Civil Defense Act of 1950 and provides several important legal authorities for preparedness. Finally, Title VII contains several miscellaneous provisions, including broad gift acceptance authority and the authority to issue rules and regulations implementing the Stafford Act that s how we get to many of FEMA s rules in the title 44 of the Code of Federal Regulations (or 44 C.F.R.).

21 Primary Disaster Assistance Programs First, there s Individual Assistance (or IA), which includes disaster housing for displaced individuals, financial assistance grants for needs not covered by insurance, crisis counseling, and disaster-related unemployment assistance. Second, there s Public Assistance (or PA), which helps communities absorb the costs of emergency measures such as removing debris and repairing or replacing structures such as public buildings, roads, bridges, and utilities. Third, Hazard Mitigation, which is when FEMA funds mitigation measures to prevent or lessen the effects of a future disaster through the Hazard Mitigation Grant Program (or HMGP).

22 Public Assistance (PA) PA is FEMA s largest funded program. See Public Assistance Guide, FEMA 322 (June 2007) Public assistance is available to assist States, Tribal and local governments, and certain private non-profits.

23 Public Assistance (PA) cont. FEMA s Public Assistance Guide breaks PA into categories with letter designations, including: Debris removal (Category A) Emergency protective measures (Category B) Permanent work (such as to repair roads and bridges, water control facilities, buildings and equipment, utilities, and parks and recreational facilities, all of which are (Categories C through G)

24 The main differences between a Major Disaster and an Emergency The Stafford Act defines a Major Disaster as "any natural catastrophe or regardless of cause, any fire, flood, or explosion, in any part of the United States, which in the determination of the President causes damage of sufficient severity and magnitude to warrant major disaster assistance to supplement the efforts and available resources of States, local governments, and disaster relief organizations in alleviating the damage, loss, hardship, or suffering caused thereby." The definition of Emergency" is broad, authorizing the President to declare an emergency for "any occasion or instance for which Federal assistance is needed to supplement State and local efforts and capabilities: To save lives,to protect property and public health and safety, or to lessen or avert the threat of a catastrophe in any part of the United States."

25 Major disaster vs. Emergency A Major Disaster is a natural catastrophe or any fire, flood, or explosion regardless of cause while An Emergency is any instance where the President determines that there is a need to supplement State and local efforts to protect life, property and public health, or lessen or avert the threat of a catastrophe? For the President to declare a Major Disaster there must be a qualifying event that causes actual damage; in contrast, The President can declare an Emergency before any damage occurs. We often do that in the context of hurricanes before they reach landfall to help States and localities cover the costs of preparedness and evacuation.

26 Funding Differences For a Major Disaster, all of the assistance under the Stafford Act to include: -all individual assistance, all categories of public assistance, and hazard mitigation may be available if the President authorizes it in his declaration. For an Emergency declaration, Federal assistance is limited to: -immediate and short-term assistance, essential to save lives, to protect property and public health and safety, or to lessen or avert the threat of a catastrophe. Total assistance for a single emergency cannot exceed $5,000,000 unless the FEMA Administrator determines: (1) Continued emergency relief is immediately required; (2) There is a continuing and immediate risk to lives, property, public health, or safety; and (3) Necessary assistance will not otherwise be provided on a timely basis.

27 Federal Share The Stafford Act stipulates that the minimum Federal assistance for certain eligible activities "shall be not less than 75% of the eligible cost of such assistance." Other provisions specify ceilings, rather than floors, for federal aid. Housing assistance, for example, is 100% federally funded with no State or local cost share. The Federal share for disaster assistance is at least 75% of eligible costs and it comes from the "Disaster Relief Fund" or "DRF." The State and local governments have to pay for the remaining costs.. As part of the Governor s request for a major disaster declaration, the Governor must certify that State and local government obligations and expenditures for the disaster will comply with all applicable cost-sharing requirements of the Stafford Act.

28 Can the President just declare a Major Disaster or Emergency unilaterally? The Stafford Act does provide for limited circumstances when the President can declare an emergency unilaterally without a Governor s request. The President may declare an emergency when he determines that an "emergency exists for which the primary responsibility for response rests with the United States because the emergency involves a subject area for which, under the Constitution or laws of the United States, the United States exercises exclusive or preeminent responsibility and authority." In making that determination, the President shall, if practicable, consult with the affected State s Governor. This provision has only been invoked three times: 1. In April 1995 in response to the bombing of the Alfred P. Murrah Federal Building in Oklahoma City, Oklahoma 2. In 2001 in response to the 9/11 attack on the Pentagon 3. For the Space Shuttle Columbia disaster in 2003 all incidents in which there was an explosion involving a Federal building or property U.S.C. 5191(b). 23 Id.

29 Other Required Components of the Governor s Request The Governor s request for a major disaster declaration must include: (1) Confirmation that the State emergency plan was executed; (2) An estimate of the amount and severity of damages and losses stating the impact of the disaster on the public and private sector; (3) Information describing the nature and amount of State and local resources that have been or will be committed to alleviate the results of the disaster; and (4) Preliminary estimates of the types and amount of supplementary Federal disaster assistance needed under the Stafford Act. See 44 C.F.R

30 Process of the IDA Local & State Governments conduct Initial Damage Assessment (IDA) County Summarizes data and submits to state State assess initial data and determines event exceeds local/state capabilities Governor requests joint PDA or other assessment

31 The Overall Process

32 83 Slides available explaining this process! [ ] Yes [ ] No [ ] Maybe Later [x] Some other time

33 The role of The Finance Department in FEMA related activities. Protect the State s best interests regarding grant funds, Protect Emergency Management s reputation as a passthrough agency and To make sure the following does not happen to you-

34 The role of The Finance Department in FEMA related activities. Cont. Understand how to plan in advance to be prepared for an audit Become aware of documents governing the program Know what an auditor is looking for in support documentation Understand the importance of guarding and preserving your documents Know the tools to use when gathering supporting documents (Special thanks to the state of Texas for developing much of the content contained in this section. Thank you William Clark Recovery Supervisor Texas Department of Emergency Management)

35 Our Guidance In accordance with: 44 CFR 13 se/title44/44cfr13_main_02.tpl 44 CFR OMB Circulars A-87, A-110, A-122 and A FEMA Public Assistance Policy Manual (Very important subject specific policies issued by FEMA ) FEMA Public Assistance Policy Digest 321 FEMA Public Assistance Guide 322 FEMA Public Assistance Applicant Handbook 323 FEMA Public Assistance Debris Management Guide 325

36 Our Guidance In accordance with: 44 CFR 13 se/title44/44cfr13_main_02.tpl 44 CFR OMB Circulars A-87, A-110, A-122 and A FEMA Public Assistance Policy Manual (Very important subject specific policies issued by FEMA ) FEMA Public Assistance Policy Digest 321 FEMA Public Assistance Guide 322 FEMA Public Assistance Applicant Handbook 323 FEMA Public Assistance Debris Management Guide 325

37 Public Assistance Projects Large PA projects are those with estimated costs exceeding $67, FEMA Reimburses for actual costs Small PA projects have estimated costs less than $67, FEMA awards federal share based on estimate In Oregon if you are under the estimated federal share. SCORE! And breathe easier.

38 Begin by preparing for an Audit Before this happens!

39 How Do I Prepare? Document, Segregate, File, Document, Segregate, File, Document...! Force Account Labor Force Account Equipment Force Account Material Direct Administrative Cost Categories To Prepare For: Rentals Contracts Debris Removal Insurance DOCUMENT EVERYTHING YOU SPEND TIME & MONEY ON

40 OIG Audit Report/Results (A) The City of Atlantis did not account for FEMA funds on a projectby-project basis consistent with federal regulations for large projects. Questioned costs totaling $1,999,503 that resulted from charges that were ineligible and non-disaster related, excessive, covered by insurance, unsupported, and duplicative. A. Project Accounting. Federal regulations 44 CFR and require subgrantees to maintain a system that accounts for FEMA funds on a project-by-project basis and provides accurate, current, and complete disclosure of financial results of FEMA-funded activities. The city comingled project expenditures with nondisaster expenditures in the general ledger accounts for various departments (i.e., public works, police, etc.). As a result, total costs claimed under individual projects could not be readily identified.

41 Results of OIG Audit HHS Office Of The Inspector General We (the OIG) recommends that the Regional Administrator, FEMA Region IV, in coordination with FEMA: RECOMMENDATIONS Inform the city that it must comply with federal regulations and FEMA guidelines when accounting for federal funds. Disallow $299,725 of unsupported costs.

42 Segregate The Disaster Related Projects WTP Project #2 (B) WTP Project #1 (A) Force Operator Force Materials WTP Project #3 (C) WTP Project #4 (D) The Water Treatment Plant

43 Stay in contact and get acquainted with your new best friends - your State Public Assistance Team! Julie Slevin State Public Assistance Officer Darrell D. Neet Project Specialist Acting Deputy State Public Assistance Officer DR 4055

44 Essential Reminders Stay in contact with the PA Specialist (FEMA and State) (overruns, scope changes, etc) Auditors goal is to protect the State, Emergency Mgt. and you! (OIG typically does a 100% inspection) Preparing today by developing a plan to: collect Document segregate and file Substantiate your claim by having the correct documentation Break projects up and assign tracking codes or project codes Do not co-mingle funds, everything must be traceable to a specific PW Segregate projects!!

45 Force Account Labor Eligible Payroll Costs (for budgeted and nonbudgeted employees) These are your people that are on your payroll. Regular Time Overtime Comp Time Fringe

46 Force Account Labor

47 Required Documents At Time of Audit Proof of employment (HR start date) Proof of hourly or pay period rate (HR) Fringe rate calculation for each employee group Timesheets allocating time to a specific project ( i.e., A or B signed by employee and supervisor) Proof of payment (payroll logs, checks front and back, or checks and bank statement applies to all payments) Overtime and Comp time policy at time of PW Exempt employee OT & comp time policy

48 Utilizing the FEMA forms conforms you to FEMA s criteria for eligible costs Applicant Benefits or FRINGE Rate Calculations

49 OIG Audit Report/Results (B) B. Project Charges. The city s claim included ineligible and non-disaster charges of $204,797, as follows: Regular-time Salaries. Under Project 159, the city's claim for debris removal work included $33,376 of regular-time salaries for permanent employees. According to FEMA policy (Labor Costs Emergency Work), only overtime labor is eligible for debris removal and emergency protective measures work. Therefore, we question $33,376 of regular-time salary costs claimed under the project. Ineligible Labor Costs. The city claimed $77,684 of labor costs under Project 100 for fire department mechanics who delivered and serviced generators distributed to private individuals during the disaster period. Prior to our audit, FEMA reviewed and disallowed the cost claimed for the purchase and delivery of the generators. Therefore, any labor costs associated with such activity is also ineligible. Hence, we question the $77,684.

50 OIG Audit Report/Results (B) Cont. Non-disaster Related Charges. Federal regulation 44 CFR states that an item of work must be required as a direct result of a major disaster event to be eligible for FEMA public assistance. The city s claim under several projects for emergency protective measures included $93,737 of non-disaster related charges, as follows: Under Projects 66, 69, 71, 72, and 74, the city s police department claimed $82,470 of labor and fringe benefits for routine police activities such as issuing traffic citations, responding to traffic accidents, alarms, disturbances, automobile thefts and robberies, and administrative work. According to FEMA s Public Assistance Guide (FEMA 322, October 1999, pages 47-48), emergency protective measures include activities that are necessary to eliminate or reduce immediate threat to life, public health, or safety, and include such activities as search and rescue, security, barricading in disaster areas, removal of health and safety hazards, etc. Therefore, we question $82,470. Under Projects 66, 69, 71, 72, and 74, the city s police department claimed $81,822 of vehicle usage, which included costs for non-disaster activities. A differentiation of costs could not be readily made from the records maintained by the city that would tie the equipment usage to disaster-specific activities. For these same projects, we questioned labor costs associated with non-disaster activities, which ranged from 8% to 30% of total labor cost claimed. Using these same percentages, we calculated that the city s claim under the projects contained $11,267 of vehicle costs related to nondisaster activities. Therefore, we question the $11,267.

51 Force Account Equipment This is the equipment used that you own Eligible Equipment Costs Actual in-use working hours CR 305 (A) (standby and idle time are not eligible) Intermittent use time if used more than half normal scheduled working hours (claim whole day) Force Equipment Force Operator Note: If Force Account Labor is not claimed add, Proof of equipment operator employment (HR start date) Timesheets allocating time to a specific project (A or B) signed by employee and supervisor Proof of payment (payroll logs and bank statement)

52 Required Documents At Time of Audit Equipment logs identifying operator and signed by operator & supervisor Operator timesheets Proof of equipment ownership (title, registration, etc) Equipment rate calculations (local, state or FEMA rate) (whichever is less) Inventory Logs

53 OIG Audit Report/Results (C) C. Equipment Charges. FEMA s Public Assistance Guide (FEMA 322, October 1999, page 37) states that stand-by time for applicant-owned equipment is not eligible and, if an applicant uses equipment intermittently for the majority of the day, use for the entire day may be claimed if adequate documentation is submitted. The city claimed equipment costs totaling $1,103,391 under several projects. A majority of the costs claimed was for pickup trucks used by certain employees to travel to specific work sites. The city did not record the mileage for each piece of equipment but instead accounted for its use on an hourly basis based on the total labor hours worked by each equipment operator each day. The city could not provide supporting documentation, such as equipment activity logs or comparable records that would have enabled us to determine the actual hours the equipment was in use. Therefore, we question the $1,103,391 of equipment costs claimed under the projects as shown in the table below. Project Number Department Equipment 141 Public Works $873, Parks & Recreation $122, Public Works (Sewer) $61, Engineering $45,110 Total $1,103,391

54 Force Account Materials The materials and supplies used that grantee/sub-grantee owned prior to the disaster or purchased as a result of the disaster. WTP Project #1 (A) Eligible Materials Costs Materials and supplies taken from existing stock and identified to the PW/sub-project (i.e., lift station, road) Materials and supplies purchased and identified to the PW/sub-project (i.e., lift station, road) Note: If actual cost data is not available from invoices, develop costs from historical data or contact area vendors for estimates.

55 FORCE ACCOUNT MATERIALS Insert invoice number here

56 Required Documents At Time of Audit Purchasing procedure policy Costing method/documents for existing stock List of materials used with pricing Invoices & Purchase Orders Proof of payment (cancelled checks, bank statements, etc)

57 Direct Administrative Costs (DACs) Costs incurred by the Grantee and Subgrantee that can be identified separately and assigned to a specific project. Such costs can include staff's time to conduct and initial inspection, prepare and submit a Project Worksheet (PW), and make interim and final inspection of the project. Documented administrative activities & materials used in direct support of this specific PW

58 Direct Administrative Costs- Direct Administrative Costs- are costs incurred by the grantee and subgrantee that can be identified separately and assigned to a specific project. Must be of sufficient detail See Cedar Rapids 2 nd appeal Such costs can include staff's time to conduct an initial inspection, prepare and submit a Project Worksheet (PW) and make interim and final inspections of the project. See FEMA s Guide 9525_9

59 How much can a piece of paper be worth? For Cedar Rapids a simple piece of paper tying DAC costs to DAC tasks by PW, by date, by employee, by time and effort etc. $8,006.00

60 A simple DAC Daily Log Excel SS This daily log is offered as an example of one way to track DAC by tasks on a Daily Bais Click Here to view Log template.

61

62 Required Documents At Time of Audit Logs identifying specific PW: Employee name Date and activity performed Duration and supplies used See Force Account Labor Management Team documented activities: (Subgrantee Monitors) Management Team invoices Purchase Orders Proof of payment (cancelled checks, bank statements, etc)

63 Rentals / Leases You pay to use someone else s property/equipment For a specified amount of time. Eligible Costs Required as a result of the event Reasonable costs (Cannot exceed a purchase price)

64 Required Documents At Time of Audit Attach: Have on hand: Rental/Lease agreement Invoices Purchase Orders Checks & Statements (proof of payment) Equipment use logs Rental/Lease policy New equipment cost documents Rental/leasing cost must be reasonable and total costs cannot exceed purchase cost.

65 Required Documents At Time of Audit Attach: Rental/Lease agreement Invoices Purchase Orders Checks & Statements (proof of payment) Equipment use logs Have on hand: Rental/Lease policy New equipment cost documents Rental/leasing cost must be reasonable and total costs cannot exceed purchase cost.

66 Contracts Contracts must be of reasonable cost, generally must be competitively bid, and must comply with Federal, State, and local procurement standards. Eligible Costs Lump Sum contracts (defined scope and price) Unit Price contracts (work done item by item with defined cost per item) Cost Plus Fixed Fee contracts (lump sum or unit price with fixed contractor fee added) Time and Materials contracts (immediate need, unclear scope and for no more than 70 hours) Cost Plus A Percentage of Costs are not allowed.

67

68 Contracts Cont.

69 Required Documents At Time of Audit Contract procurement policy (Competitive & Non-Competitive) Request for bids, bids received & bid acceptance Justification for other than lowest bid acceptance SAMS debarment check Contracts Invoices and Purchase Orders Proof of payment Cost or price analysis for non-competitive proposals

70 Required Documents At Time of Audit Contract procurement policy (Competitive & Non-Competitive) Request for bids, bids received & bid acceptance Justification for other than lowest bid acceptance SAMS debarment check Contracts Invoices and Purchase Orders Proof of payment Cost or price analysis for non-competitive proposals

71 Suspension and Debarment Check

72 Other Support Documents Debris Removal a. Signed load tickets with origin and unload location b. Truck certification lists c. Debris salvage value Insurance (includes anticipated insurance) a. Statement explaining why no insurance was in place b. Insurance policy c. Insurance claim d. Insurance company approval/denial document e. Insurance proceeds proof of payment (FEMA Recent Change) Donated Resources a. Volunteer labor (hours worked, site, work description, wage rate for similar employee work) b. Donated equipment (FEMA rate, hours used) c. Donated materials (Current commercial rate)

73 Donated Resources/Volunteer Donated Resources/Volunteer Work: Donated resources may include; volunteer labor, donated equipment and donated materials. Eligibility: Donated resources are eligible to offset the cost of the non-federal share of eligible emergency work (Category A and B) costs if they meet the following criteria: 1. Documented by a local public official or a person designated by a local public official: must include a record of hours worked, the work location and a description of the work for each volunteer as well as equivalent information for equipment and materials. 2. Donated resources must apply to emergency work that is eligible under the Public Assistance Program. Examples include the following:. Removing eligible debris, filling and placing sandbags, donating equipment to raise or reinforce a levee, donating materials, such as rock or sand, search and rescue when part of an organized search and rescue operation, professional safety inspections, mass food and shelter for victims, when not the mission of the organization. Donated resources must be documented on the PW. Value of Resources: Based on 44CFR 13.24: 1. Volunteer Labor: The hourly rate placed on volunteer labor should be the same hourly pay rate (plus reasonable fringe benefits) ordinarily paid for similar work within the applicant s organization. If the applicant does not have employees performing similar work, the rate used should be consistent with those performing the work in the same labor market. To determine the value of volunteer labor, the labor rate should be multiplied by the total number of volunteer labor hours. 2. Donated Equipment: The value of the donated equipment is calculated by multiplying the applicable applicant rate for the piece of equipment (or FEMA s equipment rate) by the total number of hours that equipment piece was used. 3. Donated Materials: Only materials donated by third party entities are eligible for credit. To determine the value of donated materials, use the current commercial rate for such material based on previous purchases or information available from vendors. Materials donated from other federal agencies are not considered donated for this purpose.

74 Other Support Documents PW 10% or more cost overrun/underrun justification approval letter PW Scope of Work or Funding change request approval letter Other Funds/Duplication of Benefits letter (yes = explanation letter, no = certification letter) Memorandums of Agreement or Understanding (Proof of tax exempt status) Purchased equipment inventory documents a. Maintenance Policy b. Method of disposal and value Travel Costs a. Per diem, mileage, etc. (Claim form with receipts) b. Proof of payment

75 OIG Audit Report/Results (D) D. Insurance Proceeds: According to federal regulation 44 CFR (c), anticipated and actual insurance recoveries shall be deducted from otherwise eligible project costs. The city s claim under Project 159 included $262,829 for debris removal by force account labor for the city s parks. In addition, the city s claim under Project 155 included $30,522 for debris removal by a contractor for the city s zoo. The city received insurance proceeds to cover the losses. Therefore, we question the $293,351.

76 OIG Audit Report/Results (E) E. Supporting Documentation. According to 44 CFR 13.20(b)(6), expenditures under a federal award must be supported by adequate source documentation such as cancelled checks, paid bills, payrolls, time and attendance records, contract award documents, etc. Office of Management and Budget Circular A- 87 (Cost Principles for State, Local, and Indian Tribal Governments), Attachment A, Paragraph C.1, also requires that costs be adequately documented to be allowable under a federal award. The city s claim included $299,725 of costs that were not supported by adequate documentation, as follows: The city claimed $100,478 of labor and fringe benefits and $9,615 of equipment costs under Project 73 for work performed by the police department s south precinct. The city did not have any documentation such as detailed time and attendance records, police activity logs, etc., to support that the claimed costs were for disaster activities. City officials said that they had documentation when the project was closed, but had discarded the information. According to 44 CFR 13.42(b)(c), FEMA applicants must retain financial and programmatic records for three years from the starting date that their last expenditure report is filed with the grantee. In this particular case, the city submitted its last expenditure report to the grantee on February 26, 2007 and should have maintained all records until at least February 26, Therefore, we question the unsupported equipment costs of $110,093.

77 OIG Audit Report/Results The city s claim under Projects 66, 69, 71, 72, and 74 for emergency protective measures performed by the city s police department included labor costs of $64,537 for lieutenants and captains. The city did not maintain activity logs to support disaster-related activities performed by such individuals. City officials said that the lieutenants and captains supervised the police officers and that they did not record the activities in the department logs as it did for the police units. However, without such documentation the eligibility of the costs could not be determined. Therefore, we question the $64,537. The city claimed $358,781 of labor and equipment costs under Project 100 for emergency protective measures undertaken by its fire department during the period July 22, 2003 through August 6, The fire department lacked documentation to show that the individuals and equipment were used in performing disaster-related activities. During our review of the fire department s logs, also known as run records, we noted that the descriptions of activities claimed for such individuals were identical to activities performed by the individuals prior to the disaster. As a result, a differentiation could not be made to determine whether the fire department was responding to disaster-related events.

78 Why Documentation Is So Important? Because, undocumented eligible expenses will NOT be reimbursed!!

79 Build Your Audit Files 1. Completed Project Worksheet with P.4 & OEM s Summary of Documentation a. Scope of work or funding change request/approval documentation (Your PA Specialist will help put this package together.) 2. Force Account Labor a. HR employee verification list b. HR payroll list c. Overtime, comp time, exempt time payroll policy prior to disaster d. FEMA Form or equivalent filled out and signed (fringe calculations) e. FEMA Form or equivalent filled out and signed (claimed time) f. Signed employee time sheets with specific hours dedicated to PW g. Proof of payment payroll documents 3. Force Account Equipment a. Proof of equipment ownership b. Copy of inventory at time of disaster c. Equipment rate source documents d. FEMA Form or equivalent filled out and signed e. Signed equipment use logs with operator name f. Operator Force Account Labor support documents

80 Build Your Audit Files 4. Force Account Materials a. Procurement policy b. FEMA Form or equivalent filled out and signed c. Invoices and proof of payment for purchases d. Proof of cost of on-hand/in warehouse materials used 5. Direct Administrative Costs a. Documented and detailed administrative activities specific to PW b. Documented administrative materials used for this PW (No printers if not in scope of work) c. Administrative person s Force Account Labor support documents 6. Rentals & Leases a. Rental/Lease procurement policy b. FEMA Form or equivalent filled out and signed c. Justification of need d. Rental/lease agreement e. Use logs as applicable f. Invoices and purchase orders g. Proof of payment

81 Build Your Audit Files 7. Contracts a. Contract procurement policy b. Request for bids c. Bids received d. Bid acceptance document (Meeting minutes, PO acceptance policy, etc) e. Justification for other than lowest bid f. EPLS debarment check g. Signed contract h. FEMA Form or equivalent filled out and signed i. Invoices and purchase orders j. Proof of payment Note: If subcontractors are involved, if the prime contractor s invoice does not sufficiently detail the subcontractor s expenses, then an audit of the subcontractor is required also. You must gather their support material just as on a prime contractor.

82 Build Your Audit Files 8. Debris Removal a. Signed load tickets with origin and unload location b. Truck certification forms c. Debris salvage value d. Tower/monitor logs Note: See FEMA Public Assistance Debris Management Guide 325 for instructions & forms 9. Insurance a. No insurance applicable statement b. Insurance policy c. Insurance claim d. Insurance claim results e. Insurance proceeds proof of payment f. Anticipated insurance statement

83 And That is How You Prepare Plan in advance how to capture documentation/evidence to support a claim Become best friends with your Public Assistance Specialist Start gathering support documents on day one Break a disaster down into bite size pieces assign project codes Document, Segregate, File, document, segregate, file, Keep detailed track of PW administrative tasks Guard all documentation!! Keep it for six years after your last PW is closed out. Ask for help!!

84 Audit Support Documentation Checklists The following checklists are guides to determine what documentation is needed to have to support your claim. Note: The documentation requested may vary. Printed copies provided Slide

85

86

87

88

89

90 Audit Testing and Procedures Checklists The following procedures are guides to determine how PW reimbursement claims are tested. Note: Each PW is different so the procedures can vary.

91

92

93

94

95

96

97

98

99

100

101

102

103 Your Guide to Financial Management

104 Additional Resources

105 FEMA 9500 Series Policy Publications (Finance Related) 9525 Allowable Costs Post Disaster Property Tax Assessment (12/12/07), (PDF 535KB) Donated Resources (4/9/07), (PDF 314KB) Duplication of Benefits - Non-Government Funds (7/24/07), (PDF 989KB) Emergency Medical Care and Medical Evacuations (7/16/08), (PDF 1.53MB) Americans with Disabilities Act (ADA) Access Requirements (10/26/00) Project Supervision and Management Costs of Subgrantees (4/22/01) Labor Costs - Emergency Work (11/16/06), (PDF 1.1MB) Damage to Applicant Owned Equipment (12/17/08), (PDF 892KB) Section 324 Management Costs and Direct Administrative Costs (3/12/08), (PDF 2.6MB) Reasonable Costs Memo (PDF 76KB, TXT 7KB) Public Assistance Program Indirect and Direct Administrative Activity List (PDF 30KB, TXT 9KB) Payment of Contractors for Grant Management Tasks (4/22/01) Disposition of Equipment, Supplies and Salvageable Materials (7/14/08), (PDF 1.13MB) Alternate Projects (8/22/08), (PDF 1.90MB) Public Assistance Grantee Administrative Costs (11/7/06), (PDF 101KB) Telecommunications Support Lines for States (7/11/00) Research-related Equipment and Furnishings (5/9/11), (PDF 2MB) Sandy Recovery Improvement Act of 2013 and FEMA s Recovery Directorate Rescission of

106 FEMA S FAQ PAGE

107 Public Assistance Officer Julie Slevin

108

109

110

111 Ignore the following slides that are just endnotes that will not be made available.

112 (i) (except in very unique circumstances involving exclusive or preeminent Federal jurisdiction,) Stafford Act assistance is triggered only by a Governor s request for assistance and then a presidential declaration. 1 Robert T. Stafford Disaster Relief and Emergency Assistance Act, Pub. L. No (1974) (codified as amended at 42 U.S.C ) [hereinafter Stafford Act]. FEMA Law Talk Podcast (ii) Stafford is there to supplement, not supplant, the State, and, the State usually has to ask for assistance before the President can provide it, The ordinary constitutional scheme in our Federal system, divides sovereignty between the Federal and State governments. The Tenth Amendment to the U.S. Constitution provides the Federal government may govern only through the powers enumerated in the Constitution the Constitution reserves all other powers to the States or to the people. As a result, States have the "police powers" to protect the health, safety, and welfare of their citizens, and these police powers provide the States with the foremost and dominant authorities to respond to emergencies. FEMA Law Talk Podcast U.S. CONST. amend. X (iii) Sections 401 and 501 of the Stafford Act provide that the Governor of an affected State can request that the President declare either a major disaster or an emergency only when "the disaster is of such severity and magnitude that effective response is beyond the capabilities of the State and the affected local governments and that Federal assistance is necessary." 42 U.S.C. 5170, 5191.

113 (iv) The purpose of the Office of Emergency Management is to execute the Governor's responsibilities to maintain an emergency services system as prescribed in ORS 401 by planning, preparing and providing for the prevention, mitigation and management of emergencies or disasters that present a threat to the lives and property of citizens of and visitors to the State of Oregon. The agency is responsible for coordinating and facilitating emergency planning, preparedness, response and recovery activities with the state and local emergency services agencies and organizations, and shall; Make rules that are necessary and proper for the administration of ORS 401; Coordinate the activities of all public and private organizations specifically related to providing emergency services within this state; Maintain a cooperative liaison with emergency management agencies and organization of local governments, other states, and the Federal Government; Have such additional authority, duties and responsibilities authorized by ORS to , to and to or as may be directed by the Governor; Administer grants relating to emergency program management and emergency services for the state; Provide for and staff a State Emergency Operations (Coordination) Center to aid the Governor and the office in the performance of duties; Serve as the Governor's authorized representative for coordination of certain response activities and managing the recovery process; Establish training and professional standards for local emergency program management personnel; Establish task forces and advisory groups to assist the office in achieving mandated responsibilities; and Enforce compliance requirements of federal and state agencies for receiving funds and conducting designated emergency functions. -OEM website

114 (v) Congress appropriates money to a special account called the Disaster Relief Fund (or DRF) for disaster assistance authorized by the Stafford Act. Unlike most appropriations, which are available for one fiscal year, funds appropriated to the DRF are what we call "no-year money," which means the funds remain available until expended that s important because the disaster recovery process sometimes takes years, so we need an account and funds that can be used across fiscal years to support recovery. It s also important because the DRF pays for FEMA s phone centers, finance centers, and housing inspectors so that these response and recovery elements are already in place when the President issues a declaration. In most cases, assistance provided through funds drawn from the DRF cannot duplicate assistance provided by other means. Also, Congress appropriates disaster funds to other accounts administered by other Federal agencies pursuant to Federal statutes that authorize specific types of disaster relief. Host: So, Brad, let s drill down on the Stafford Act. Where do we find it and how is it organized? Brad: Find and read the Stafford Act by going to FEMA s public website or by looking at title 42 of the United States Code starting at section FEMA LAW TALK Podcast