Office of Inspector General Audit Tips for FEMA Public Assistance - - PowerPoint PPT Presentation

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Office of Inspector General Audit Tips for FEMA Public Assistance - - PowerPoint PPT Presentation

Feb 25, 2024 136 likes •361 views

Office of Inspector General Audit Tips for FEMA Public Assistance Grant Recipients and Subrecipients National Hurricane Conference John E. McCoy II, Assistant Inspector General for Audit Office of Inspector General Overview DHS OIG

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Office of Inspector General Audit Tips for FEMA Public Assistance Grant Recipients and Subrecipients National Hurricane Conference

John E. McCoy II, Assistant Inspector General for Audit

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www.oig.dhs.gov

  • r follow us on Twitter @DHSOIG

Overview

  • DHS OIG Mission Statement
  • Office of Audits (OA) Mission
  • How We Select Grant Audits
  • Types of Grant Audits
  • Most Common Audit Findings
  • Audit Tips for Managing Disaster-Related Project Costs
  • Key Points to Remember

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Office of Inspector General

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www.oig.dhs.gov

  • r follow us on Twitter @DHSOIG

OIG Mission Statement

The OIG conducts and supervises independent audits, investigations, and inspections of the programs and

  • perations of DHS, and recommends ways for DHS to

carry out its responsibilities in the most effective, efficient, and economical manner possible. We also seek to deter, identify and address fraud, abuse, mismanagement, and waste of taxpayer funds invested in Homeland Security.

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www.oig.dhs.gov

  • r follow us on Twitter @DHSOIG

Office of Audits

Mission – The Inspector General examines, evaluates and, where necessary,

critiques operations and activities, recommending ways for the Department of Homeland Security to carry out its responsibilities in the most effective, efficient, and economical manner possible. As such, through independent audits and program analyses, the Office of Audits:

  • Protects the public interest by bringing about positive change in the performance,

accountability, and integrity of its programs and operations.

  • Seeks out best practices that will improve the effectiveness and efficiency of

component agencies; helps program managers achieve the desired results and

  • perate in accordance with laws and regulations

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www.oig.dhs.gov

  • r follow us on Twitter @DHSOIG

Office of Audits

HOW DO WE SELECT AUDITS?

  • The OIG considers several factors in determining which

activities to audit. These factors include:

  • the risk of fraud, waste, and abuse of Federal funds;
  • statutory and regulatory requirements;
  • current or potential dollar magnitude;
  • requests from congressional, FEMA, State and local officials; and
  • reports/allegations of impropriety or problems in implementing FEMA

programs.

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www.oig.dhs.gov

  • r follow us on Twitter @DHSOIG

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Office of Inspector General

  • Public and Individual Assistance Grants
  • Mitigation Grants
  • Proactive Approach
  • Emergency Management Oversight Teams (EMOT)
  • Management Alerts
  • Capacity Audits
  • Early Warning Audits
  • Traditional Audits
  • Capping Report
  • Types of Grant Audits
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www.oig.dhs.gov

  • r follow us on Twitter @DHSOIG

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Office of Inspector General

 Capacity Audits

  • Occur during the recovery phase
  • Shortly after subgrantees selections
  • Focus on subgrantee capacity to
  • Account for FEMA funds
  • Procure contracts properly
  • Comply with insurance requirements
  • Life Cycle Audit Approach

 Capacity Audit Recommendations

  • Provide subgrantee greater oversight
  • Seldom question costs
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www.oig.dhs.gov

  • r follow us on Twitter @DHSOIG

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Office of Inspector General

 Early Warning Audits

  • During the recovery phase
  • Focus on subgrantee
  • Initial compliance with CFRs
  • Early detection of non compliance should enable

subgrantees to get into compliance

  • Life Cycle Audit Approach (continued)

 Early Warning Audits Recommendations

  • Address deficiencies while they can be corrected
  • Provide subgrantee greater oversight
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www.oig.dhs.gov

  • r follow us on Twitter @DHSOIG

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Office of Inspector General

Traditional Disaster Grant Audits

  • Occur during the close out/completion phase
  • Gauge the effectiveness of grantee and subgrantee

compliance

  • Life Cycle Audit Approach (continued)

Traditional Audits Findings

  • Funds put to better use
  • Questioned costs and/or eligibility
  • Duplicate costs
  • Fraud
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www.oig.dhs.gov

  • r follow us on Twitter @DHSOIG

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Office of Inspector General

Management Alerts

  • Observations and Concerns with FEMA’s

Housing Assistance Program for Hurricane Harvey Efforts in Texas (OIG-17-121-MA)

  • FEMA Faces Significant Challenges Ensuring

Recipients Properly Manage Disaster Funds (OIG-18- 33)

  • Lessons Learned from Prior DHS-OIG Reports Related

to FEMA’s Response to Texas Disasters and Texas’ Management of FEMA Grant Funds (OIG-18-21)

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www.oig.dhs.gov

  • r follow us on Twitter @DHSOIG

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Office of Inspector General

Management Alerts

(OIG 18-29) Lessons Learned from Prior Reports on Disaster-related Procurement and Contracting

Traditional Audits

(OIG-18-39) Audit of FEMA Public Assistance Grant Funds Awarded to Volunteer Energy

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www.oig.dhs.gov

  • r follow us on Twitter @DHSOIG

Most Common Audit Findings

  • Grants Management Issues
  • Improper Contracting
  • Unsupported Costs
  • Poor Project Accounting

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www.oig.dhs.gov

  • r follow us on Twitter @DHSOIG

Most Common Audit Findings

  • Ineligible Costs
  • Direct Administrative Costs
  • Obtain and Maintain Insurance

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www.oig.dhs.gov

  • r follow us on Twitter @DHSOIG

Audit Tips for Managing Disaster-Related Project Costs

(OIG-17-120-D)

This report provides an overview of—

  • OIG responsibilities;
  • Federal statutes, regulations, and guidelines applicable to

disaster grants;

  • Frequent audit findings; and
  • Key points to remember when administering

FEMA grants.

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www.oig.dhs.gov

  • r follow us on Twitter @DHSOIG

Audit Tips for Managing Disaster-Related Project Costs

Using this report should assist disaster assistance applicants:

  • document and account for disaster-related costs;
  • minimize the loss of FEMA disaster assistance funds;
  • maximize financial recovery; and
  • prevent fraud, waste, and abuse of disaster funds.

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www.oig.dhs.gov

  • r follow us on Twitter @DHSOIG

Audit Tips for Managing Disaster-Related Project Costs

Applicable Federal Statutes and Regulations Include the Following:

  • Robert T. Stafford Disaster Relief and Emergency Assistance

Act

  • 44 Code of Federal Regulations (CFR)
  • 2 CFR Part 200: Uniform Administrative Requirements, Cost

Principles, and Audit Requirements for Federal Awards

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www.oig.dhs.gov

  • r follow us on Twitter @DHSOIG

Audit Tips for Managing Disaster-Related Project Costs

Applicable FEMA Guidelines Include:

  • Public Assistance Program and Policy Guide (FEMA First

Issued in January 2016 and Recently Updated)

  • FEMA 329, Debris Estimating Field Guide (September 2010),
  • Hazard Mitigation Assistance (HMA) Unified Guidance, and
  • Public Assistance Policy on Stafford Act Section 705 (FP-205-

081-2, March 31, 2016)

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www.oig.dhs.gov

  • r follow us on Twitter @DHSOIG

Key Points to Remember

1. Designate a person to coordinate the accumulation of records.

  • 2. Establish a separate and distinct account for recording revenue

and expenditures, and a separate identifier for each distinct FEMA project.

  • 3. Ensure that the final claim for each project is supported by

amounts recorded in the accounting system.

  • 4. Ensure that each expenditure is recorded in the accounting

books and is referenced to supporting source documentation (checks, invoices, etc.) that can be readily retrieved

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www.oig.dhs.gov

  • r follow us on Twitter @DHSOIG

Key Points to Remember

  • 5. Research insurance coverage and seek reimbursement for the

maximum amount. Credit the appropriate FEMA project with that amount.

  • 6. Check with your Federal Grant Program Coordinator to ensure

the final project claim does not include costs that another Federal agency funded or should have funded.

  • 7. Ensure that materials taken from existing inventories for use

under FEMA projects are documented by inventory withdrawal and usage records.

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www.oig.dhs.gov

  • r follow us on Twitter @DHSOIG

Key Points to Remember

  • 8. Ensure that expenditures claimed under the FEMA project are

reasonable and necessary, are authorized under the scope of work, and directly benefit the project.

  • 9. Ensure that costs claimed as Direct Administrative Costs do

not include indirect costs allocated across multiple projects.

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www.oig.dhs.gov

  • r follow us on Twitter @DHSOIG

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Questions