The Hazard Mitigation Grant Program in Management of the FEMA Grant Section 4: Monitoring and Tracking Project Progress

Identify information needed on reports Prepare or review required progress reports Review and interpret required financial reports Identify the need for follow-up action Required Reports 2

Subgrantee  State  FEMA States must submit Quarterly Financial and Progress Reports to FEMA for all HMGP projects, by project A.State will require local governments to provide the following information: 1. Progress report on quarterly milestones 2. Status of each HMGP project (e.g. tasks accomplished, percentage of work complete, issues encountered, projected completion date) 3. Description and amount of project expenditures B.Some States require locals to submit their reports to the State on certain dates Quarterly Reporting 3

 Amount of funds obligated/date obligated  Federal funds paid to date  Specific activities achieved during the quarter  Comparison of actual accomplishments to planned objectives established in application  Reason(s) for slippage, if objectives not met Quarterly Reporting: Key Information Required 4

 Analysis and explanation of possible cost overruns/underruns, scope changes or extensions  For acquisition, elevation or relocation project, include addresses and/or structures mitigated  Problems/Delays Encountered and Reasons Why  Percent of work completed Quarterly Reporting: Key Information Required 5

Deobligation. Almost all unliquidated obligations remain in FEMA disaster grant accounts Challenge for SHMOs/Program Managers:  Identify unneeded funds  Recommend deobligation Unliquidated Obligations 6

Full records of all work, expenses, and contracts must be kept at least three years, unless a longer retention is required by other Federal or State laws Record Keeping 7

1.Name 3 items on quarterly reports. 2.Is the statement below an adequate financial report? Why or Why not?  “We have spent $6,000, Please send $3,000, more.” Section 4 Review 8

1.Name 3 items on quarterly reports. Answer: 1. The date and amount of funds obligated; 2. The federal funds paid to date; 3. The specific activities achieved during the quarter, accomplishments as they compare to the original schedule (and an explanation when objectives are not met on time); 4. An analysis and explanation of possible cost overruns or underruns; 5. Time extension requirements; 6. Changes in the scope of work; 7. Problems or delays encountered along with an explanation; and 8. An estimated percentage of the work completed. Section 4 Review: Answers 9

2.Is the statement below an adequate financial report? Why or Why not?  “We have spent $6,000, Please send $3,000, more.” Answer: This statement is inadequate. There is, for example, not enough details, no itemized costs, no milestones, no mention of the total budget, no listing of expenditures to date, etc. Section 4 Review: Answers 10

The Hazard Mitigation Grant Program in Management of the FEMA Grant Section 5: Potential Project Problems

Is this a high cost project? Is specialized technical expertise needed? Does the project affect many people or businesses? Deciding What To Monitor 12

Is a wetland or watershed involved? Is the project controversial? Deciding What To Monitor 13

Danger Signals: Sources 14 Reports Phone calls/letters to:  Headquarters/State (FEMA program managers)  Residents/local officials (SHMOs and POCs) Site visits Newspaper story or newscast

Troubleshooting 15 Know the symptoms of trouble, anticipate issues and respond Meet technical assistance needs early Be ready with strategies to handle problems Coordinate with your counterparts at the State or Federal levels

All projects: Changes requiring more funding (cost overruns) Non-construction projects:  Cumulative fund transfers above 10%  Transfer of training funds Mixed construction/ non-construction projects: Fund transfers between categories Reference 44 CFR for additional information Budget Reallocation: When is Prior Approval Needed? 16

A.Cost overrun is an unanticipated increase in the cost of performing the specified objectives of the project/grant (e.g., increase in the cost of concrete) B.Cost underrun is an unanticipated decrease in the cost of the performing the specified objectives of the project/grant Cost Overruns/Underruns 17

C.Cost overruns and underruns must be included in the quarterly reports D.A procedure must be included in the State Administrative Plan to request additional funds for overruns, submission of documentation to support the additional cost, and State review and approval of requests for additional funds by the Sub Grantee Cost Overruns/Underruns 18

E.All cost overruns must be identified and submitted to the State with justification for approval; in turn, the State must submit them with justification to FEMA for approval, funds permitting F.Cost underruns should be reported timely G.Some cost overruns may be due to a change in the scope of work which raises additional issues (see following slides) Cost Overruns/Underruns 19

Changes in project scope (discussed in following slides) Extension of period of performance Project Changes Which Need Prior Approval 20

A.Out of scope changes [are generally not allowed after project submittal deadline] 1. Change in the subgrantee 2. Change in the geographic area 3. Change in the type of project B.In-Scope Changes [may be allowed, with approval] 1. Change in materials 2. Changes within geographic footprint 3. Inclusion of approved substitute properties (acquisition or elevation) Scope of Work Changes 21

C.Examples of Scope of Work changes for an approved project: 1. Increasing or decreasing the number of houses in an elevation/acquisition project 2. Changing the size of replacement culvert 3. Expanding or reducing project area Scope of Work Changes 22

D.With acquisition and elevation, the important issue is identifying the appropriate structures in the initial application – list ones that are ‘substitutes’ for any that drop out. E.For construction projects, the grantee must “obtain prior written approval for any budget revision which would result in a need for additional funds” (44 CFR 13 (c)) Scope of Work Changes 23

F.The subapplicant must notify the State and FEMA as soon as significant development become known that could affect the project cost or schedule G.A change in the scope of work must be approved by the State and FEMA in advance regardless of the budget implications Scope of Work Changes 24

 Buying a house with HMGP funds not included in the approved SOW and without prior approval of the State and FEMA  Don’t change an elevation of a house to an acquisition without notifying the State and FEMA and receiving approval to take this action Results of Unauthorized Scope of Work changes 25

Any proposed changes to the scope, budget and work schedule (POP) must be submitted in writing to State, and approval must be received in writing from the State/FEMA Remember…….

1.Provide 3 or more reasons or issues for a project to receive extraordinary (beyond normal) monitoring. 2.Suggest at least 3 sources of “danger signals” for potential project problems. Section 5 Review 27

1.Provide 3 or more reasons or issues for a project to receive extraordinary (beyond normal) monitoring. Answer: When deciding what to monitor, and to what degree, you should consider the cost of the project; if specialized expertise is needed; and whether or not the project affects large numbers of people or businesses. In addition, you might look at the location of the project and any adverse impacts it may have on the environment or community. Section 5 Review: Answers 28

2.Suggest at least 3 sources of “danger signals” for potential project problems. Answer: Potential project problems can be identified in: reports, site visits, news articles, phone calls or letters to the State or FEMA headquarters. Section 5 Review: Answers 29

The Hazard Mitigation Grant Program in Management of the FEMA Grant The End