1. Quality and the FEMA Disaster Recovery Program FEMA Public Assistance Grants Margery Cox April 25, 2016

2. Federal Disaster Recovery Congressional Act of 1803 – response to a devastating fire in a New Hampshire town Defense Production Act of 1950 – established a national civil defense system Executive Order 10427, 1952 – federal assistance is to supplement, not supplant, state and local assistance Executive Order 12127, 1979 – established the Federal Emergency Management Agency (FEMA) 2

3. The Stafford Act The Robert T. Stafford Disaster Relief and Emergency Assistance Act of 1953 (Public Law 100-707), and as occasionally updated by Congress Assistance limited to: o Natural catastrophes o Any fire, flood or explosion, regardless of cause Types of Assistance: o Individual Assistance o Public Assistance o Hazard Mitigation Assistance 3

4. FEMA Public Assistance Grant Program State of Emergency is Declared by State or Tribal Government Preliminary Disaster Assessment (PDA) conducted Governor/Tribal Leader requests federal disaster recovery assistance President issues a Disaster Declaration FEMA outlines the types of disaster assistance that will be available (emergency, permanent work) and where (states/counties/tribal reservations) 4

5. FEMA Public Assistance Grant Program FEMA Public Assistance is available to Public Agencies: o State governments o Local governments (counties, communities) o Tribal governments (federally recognized tribes) o Private non-profit organizations that provide government- type services (educational, medical, custodial care, museums, libraries, others) that are open to the general public Not available to for-profit businesses 5

6. FEMA’s Not Doing It Alone U. S Department of Transportation o Federal Highway Administration (FHWA) – federal highways o Federal Transit Administration (FTA) – buses, subways, light rain, commuter rail, trolleys and ferries U. S. Department for Housing and Urban Development (HUD), Community Development Block Grants – Disaster Recovery (CDBG-DR) – housing, economic development, infrastructure, and prevention of further damage to affected areas 6

7. FEMA’s Not Doing It Alone U. S. Army Corp of Engineers – dams, levees, other water structures U. S. Department of Commerce, National Oceanic and Atmospheric Administration (NOAA) – coastal and marine ecosystems and resources U. S. Department of Health and Human Services – Head Start programs And more … 7

8. FEMA’s Not Doing It Alone State Agencies Community Agencies Private Non-Profit Organizations Volunteers Question – Why do we care which organization does what is needed, as long as disaster assistance is made available and provides recovery resources? Answer – $$,$$$,$$$.$$ 8

9. How Much Money for FEMA Public Assistance (PA)? FEMA PA – Katrina in Mississippi $3,213,237,651.89 FEMA PA – Katrina in Louisiana$11,863,301,818.42 FEMA PA – Sandy in New Jersey $1,845,001,040.31 FEMA PA – Sandy in New York $12,620,233,491.83 (as of April 10, 2016) 9

10. How Much Money in Virginia? FEMA PA – Sandy $10,411,175.58 FEMA PA – Earthquake $41,919,989.79 FEMA PA – Irene $57,550,734.55 FEMA PA – Isabel $204,913,750.38 (as of April 10, 2016) 10

11. What’s the Catch? The Cost Share: FEMA PA covers 75% and State/Applicant covers 25% FEMA PA covers 90% and State/Applicant covers 10% FEMA PA covers 100% and State/Applicant needn’t cover any of the costs 11

12. What Makes It Difficult? Each federal program has its own: o Legal responsibility for recovery assistance o Established operational structure o Disaster assistance eligibility requirements o Funding levels for disaster recovery An applicant requesting disaster assistance must fit its recovery projects into the different federal program eligibility requirements in order to request (and keep) that program’s provided funds FEMA Public Assistance provides the ‘last’ funds to be fit into the mix of programs and dollars 12

13. FEMA Public Assistance Based upon Title 44 Code of Federal Regulations (44 CFR) – Emergency Management and Assistance (which includes the Stafford Act) in place at the time the Disaster Declaration was issued Reimbursement for actual costs o No duplication of benefits o Work and costs must be eligible and substantiated A grant package is prepared that describes: o What work and costs are eligible for reimbursement o Why other work and costs requested by the public agency are not eligible 13

14. FEMA Public Assistance Emergency work eliminates or reduces immediate threats: o To save lives o Protect public health and safety o Prevent damage to improved public and private property Permanent work restores a damaged facility, through repair or restoration to its pre-disaster design, function and capacity 14

15. FEMA Public Assistance Hazard Mitigation work reduces or eliminates long term risk to people and property from natural hazards. Only applies to Permanent Work that repairs or replaces disaster damaged facilities A few examples: o Buy out activities in areas that repeatedly flood o Elevation of equipment or buildings o Safe rooms 15

16. FEMA Public Assistance Emergency work includes providing services for o Debris removal o Emergency protective measures Permanent work includes repair or replacement of o Roads and bridges o Water control facilities o Buildings and equipment o Utilities o Parks, recreational facilities, and other facilities 16

17. Emergency Work Grant formulation o Damage description – what the disaster caused  Detailed  Measured o Scope of work – what the public agency did and still plans to do  Activity  Costs Example – Office of Emergency Management activities before, during, and after the disaster event 17

18. Permanent Work Grant formulation o Damage description – what the disaster caused  Detailed  Measured o Scope of work – what the public agency did and still plans to do  Activity  Costs Example – Public Works activities after the disaster event 18

19. Quality Reviews During grant formulation: FEMA PA Project Specialist desk review FEMA PA Coordinator approver review Quality Assistance/Quality Control review Applicant review Floodplain review Insurance review 19

20. Quality Reviews During grant formulation(continued): Environmental review Historic Preservation review State/Tribal review Applicant final review FEMA PA final review … and the FEMA PA grant is approved for funding. 20

21. Quality Reviews During the project work that is the scope of the grant: Applicant review Floodplain review Environmental review Historic Preservation review State/Tribal review FEMA PA review … checking project compliance with all regulations. 21

22. Quality Reviews After the project work has been finished: Completed work is reviewed against the grant’s approved scope of work Eligible completed work’s actual costs are reviewed against the original grant’s approved costs Insurance actual proceeds review A grant adjustment may be made, if appropriate 22

23. How Could Anything Go Wrong? When the grant has all those reviews? When the project has all that scrutiny? 23

24. What Could Go Wrong During Grant Formulation? Damage description o Description for eligible damage is not complete o Description includes damage that is not eligible o Damage measurements are not accurate Scope of work o Work description needed is left out o Work description not needed is included o Measurements for work needed is not accurate o Costs for the work are not accurate 24

25. That Means – The grant doesn’t accurately describe the work or costs for the project that is the focus of the grant 25

26. What Could Go Wrong During Project Work? Scope of work accomplished includes more work or less work than what was described in the grant Actual project costs include more cost or less cost than was described in the grant Scope of work accomplished isn’t documented clearly or with enough detail to compare easily to the grant scope of work Actual cost for work accomplished isn’t linked clearly or with enough detail to the work descriptions 26

27. That Means – The project actual work and costs aren’t the same work and costs that were the basis of the grant No one can separate what work is eligible for grant funding from what is not eligible Since FEMA PA will reimburse the Applicant for actual eligible costs, that separation is important 27

28. Why Did It Go Wrong? For all involved staff: o FEMA PA o State/Tribal o Applicant For essentially the same reasons: o Lack of resources o Lack of training o Lack of experience o Lack of time 28

29. How Do We Fix It? Before and During Project Work: Applicant, State/Tribal and FEMA PA o Discuss the discrepancies o Determine a mutually agreeable resolution, if possible o Prepare a grant amendment  Adjust the scope of work  Adjust the costs The Amendment receives the same reviews as the original grant, taking the new information into account Repeat – as often as necessary 29

30. How Do We Fix It? Before and during the project work, the Applicant: Structures its Requests for Proposal with: o detailed line items that link to the grant’s scope of work o separate line items that aren’t part of the grant Tasks its Construction Manager to document work completed line items or percentages Evaluates Change Orders eligibility when they occur Requests an Improved Project if the eligible and ineligible scope cannot be clearly separated o before construction begins o caps the project’s reimbursable amount to the grant’s eligible cost 30

31. How Do We Fix It? After all the project work has been completed: Applicant reviews project work and costs to determine, as best as possible, that: o All eligible work was completed in accordance with the grant requirements o All eligible costs associated with the eligible work have been documented o Any remaining payment for eligible cost is requested during this final review State/Tribal prepares a Final Inspection Report (FIR) FEMA PA prepares a Final Reconciliation Review (FRR) 31

32. The End Result? The FEMA PA grant amount is adjusted, when appropriate, to reflect the project’s actual eligible costs The project’s eligible costs are reimbursed to the Applicant at the established federal share for the disaster event 32

33. FEMA PA Grants School bus replacement – Katrina in Mississippi Municipal library – Katrina in Mississippi Roof repairs – Derecho in Illinois Police response – Tornadoes in Kansas River debris – Flooding in Colorado Beach dunes – Sandy in New Jersey 33

34. Want More Information? www.fema.gov 34