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Agenda 09/11/2012 Item #11HEXECUTIVE SUMMARY Recommendation to direct the County Manager to pursue the recovery of de- obligated Federal Emergency Management Agency (FEMA) payments from Hurricanes Katrina and Wilma and authorize expenditures up to $100,000 for technical, legal and professional resources to support the recovery effort. OBJECTIVE: Request that the Board of County Commissioners direct the County Manager to pursue the recovery of de- obligated FEMA payments from Hurricanes Katrina and Wilma and provide up to $100,000 in initial funding for technical, legal and professional resources to support the recovery effort. CONSIDERATIONS: On November 16, 2011, the Federal Emergency Management Agency (FEMA) instituted a "Disallowed Cost Initiative" program aimed at recouping reimbursements made by the Agency to grantees from previous funded disasters. On June 26, 2012, the FEMA Region IV Office located in Atlanta de- obligated $11,11 6.689.17 from the Florida Department of Emergency Management (FDEM) as a result of reevaluating previously approved and paid -reimbursements from Hurricanes Katrina and Wilma. Also associated with this de- obligation were administrative fees of $55,583.45 bringing the total de- obligated amount to $11,172,272.62. Subsequently, on July 23, 2012 FDEM invoiced Collier County the amount of $11,172,272.62 for the reimbursement of these de- obligated funds. Mr. Craig Fugate was the Director of FDEM and ultimately approved/authorized Collier County- reimbursement payments for these federally declared disasters. Mr. Fugate is now the FEMA Directo- anc responsible fo_- the implementation of the program that de- obligated Collier CountN funding. Collier County is not alone in this situation. Based on recent correspondence, it appears that FEMA has de- obligated at least $87,000,000 from 11 municipalities and /or state organizations. A partial lists of these organizations include the City of Ft. Lauderdale, Hillsborough County, the City of Deerfield Beach, the City of Vero Beach, the Department of Juvenile Justice, South Florida Water Management District, the City of Miramar, the City of Coral Springs and the City of Hollywood. This is a national FEMA issue affecting localities throughout the country. Collier County took all direction and guidance directly from FDEM relative to the submission of reimbursement requests. The due diligence by the FDEM and FEMA was extensive. Both the State and FEMA spent over a month reviewing Collier County's funding requests. In all cases, the work and payments were approved by FDEM at the Lake Mary- Florida Recovery Office and FDEM - Tallahassee. FEMA officially approved our work and payments three times; once in the Florida Recovery Office in Lake Mary; once at region Headquarters in Atlanta and once at FEMA Headquarters in Washington, DC. All approvals by both FDEM and FEMA were performed by authorized individuals with clearance to make these funding decisions. Relative to Collier County, the Lead Deputy Public Assistance Officer from FDEM states in a August 23, 2012 email, "The bottom line to all of what has occurred is that neither the State or Packet Page -1646- Y Collier have made any mistakes in the application of 44 Code of Federal Regulations (CFR) programmatic issues. Also, the cost numbers, which are all substantiated with historical cost documentation, were included in the Project Worksheet package provided electronically to FEMA. All of the damages documented were eligible per the Public Assistance Regulations in 44CFR according to FEMA Management. At the risk of being redundant, the cost numbers were complete and accurate and the PA Program regulations were correctly applied at the time of entry into the National Emergency Management Information System (NEMIS)." These expenditures represent work that was required to maintain the integrity of our beaches. Collier County would have been required to perform this work regardless if reimbursement was received from FEMA. FISCAL IMPACT: The immediate objective is to obtain authorization for the expenditure of $100,000 to support the recovery effort. Funds will be provided from TDC Category A — Fund (195) reserves. Fund (195) reserves total $25,438,178. A budget amendment will be required. GROWTH MANAGEMENT IMPACT: There are no Growth Management Impacts from this action. LEGAL CONSIDERATIONS: This item has been reviewed by the County Attorney's Office, requires majority vote, and is legally sufficient for Board action. — CMG RECOMMENDATION: That the Board of County Commissioners authorize the County Manager to take the following actions: 1. Retain the services of James Lee Witt, a nationally recognized firm specializing in FEMA related issues to consul: and iobbv on the Board's behah. 2. Continue to retain the services Mr. Bruce French of the York Corporation to provide technical consulting on FEMA and FDEP rules, policies and regulations. 3. Develop and implement a federal representative lobbying plan through the Ferguson Group supporting our recovery efforts. 4. Draft a letter to the governor for the Chairman's signature asking for his support and FDEM's assistance in our recovery efforts. 5. Work with the County Attorney's Office to review legal remedies. 6. Expend up to $100,000 for professional support services to accomplish the above recommendations and approve required budget amendments. Prepared by: Gary McAlpin, Growth Management Division — Department of Natural Resources Packet Page -1647- COLLIER COUNTY Board of County Commissioners Item Number: 11.H. Item Summary: This item to be heard at 11:30 a.m. Recommendation to direct the County Manager to pursue the recovery of de- obligated Federal Emergency Management Agency (FEMA) payments from Hurricanes Katrina and Wilma and authorize expenditures up to $100,000 for technical, legal and professional resources to support the recovery effort. (Nick Casalanguida, Administrator, Growth Management Division) Meeting Date: 9/11/2012 Prepared By Name: McAlpinGary Title: Director Coastal Management Programs,Coastal Zon 8/31/2012 1:56:25 PM Approved B Name: PuiRJudv Title: Operations Analyst, GMD P &R Date: 8!31/2012 2:22:47 PM Name: LorenzWilliam Title: Director - CDES Engineering Services,Comprehensive Date: 9/1/2012 5:23:59 PM Name: MarcellaJeanne Title: Executive Secretary,Transportation Planning Date: 9/4/2012 1:10:32 PM Name: MuckelCynthia Title: Applications Analyst,lnformation Technology Date: 9/4/2012 1:32:23 PM Name: FirmEd Title: Senior Budget Analyst, OMB Date: 9/4/2012 4:04:18 PM Name: FinnEd Packet Page -1648- Title: Senior Budget Anaiyst, OMB Date: 9/4/2012 4:26:04 PM Name: MuckelCynthia Title: Applications Analyst,lnfonnation Technology Date: 9/5/2012 4:29:41 PM Name: OchsLeo Title: County Manager Date: 9/5/2012 4:54:01 PM Packet Page -1649- 91, 7r.: 6le' -'" , L MEMORANDUM FOR: MUM: SUBJECT: 9 " t ,'2n ` Iter- ' 1:1". b" M01041 fff jiofl1ox;x d 6"Ur*,. YIi.N : yf ' �r FEMA SQb�g1. �. ,,..._..� Regional Administrator Norman Yong 3<rluel' Financial t5fiicer 1 FEUTA Disallowed Cost initiative ' As discussed, in the Regional Administrator's meeting in Austin, TX, October 4, Z0? 1, the Office of the Chief F"nmanciai Officer (OCFO) is belonning to pursue opeit audit findings associated with disallowed costs and will need assistance from your office. The attached spreadshcet includes all open recommendations for your Cgion fhat tie to the "Aging DIG Finding" report that was presented at. the meeting. Because the regions are continually working 01G findings, OCFO wants to enstat that we are working from the latest status on the listed audits, Below outlines the process that OCFO will follow; 1) to the attached spreadsheet in the tap left area, please provide the name of a R4onal primary KX', and tkir contact information, along with an alter=c(s) POC, if you have ore:. The P'OC designmed will need to have the authority to coordinate the OCFO Audit R.esolutiryn deliverable;: for all grants including Crrants Program Directorate, Recovery; Response, National PreparrAness Directorate and Mitigation Grants. 2) To validate the status of tine audit: a) Review the information for each audit and in the currem status column (0) ofth spreadsheet indicate if you con=.. non - concur or if finding has beat closed. Below are the definitions of these :status' to assist you, i) Cori w — Yow of a agrees with tI•te disallowed cost ii) Con- Concur — Your ol•tioe has mceive d additional information that would muse your once; trr reconsider the disallowed cost iii) Closed — Your office hu worizned this herding and subsequently closed it 3) Documentation to tae provided to OCFO as finding reviews are completed: :z) For the Concur items, your Office needs to prmride copies of any OIG correspondence, grant paperwork that applies to cite audit, and any additional information and doewncntation that supports resolving the findings. b) For the Non- Concur in additioc to the above noted documents and also provide an explamation of why you are now-non- concturing with the recommendation. 4) if the Audit finding is closed, please provide the actual esrtount recouped in the recouped amount column (P) of the spreadsheet. Enter the date it was closed in the date of closure colunm (Q) and how it was recouped Me-obligation, repay=ment, allowable, etc.) in the method of recoupment colunnn (R), Documentation must ire. provided in order to send evidence: to the 01G and to bane them officially close as well, Packet Page -1650- 01'.'.i?%L "._ IL�r' , i Please complete the reviews by 11-10=03 I and forward the completed spreadsheet and MY docm wntation to Kathy Hill, OCFQ /Risk +13,atnagernem and Compliance at }:atlr� .hi li_it�fd;ma.c!lis.l~a� . You may submiit the spreadsheet as you complete the reviews. As concur responses are received, OCrO *rill be mailing a notification letteT, (an ex=plc is attached) to the grantee providing thorn 30 days to send any additional information pertaining to the disallowed cost If grantees do not proyid c any additional information, OCFO will complete the necessary paperwork for debt collection (this is the reason we are asking for Copies of documents) and forward to the FEMA Finance Center. If additional paperwork is received, OCFO mill contact the POC for your region and work collaboratively with the grantee to adjudicate the disallowed cost within 7 days of receiving the, documents. if determined any of the disallowed cost remains unsuppo tees, OCFO will forward the paperwork to FEMA Finance Center for hifling, If it is determined that this additional documentation justifies any of the disallowed cost. OCFO will pr(nide necessary memo and documentation to the FFMA CIIG /GAO 3i:aison office requesting closure from tlac 01G. In order to provide backt xoxwd and clarification to your POCs, attac-li: d is a GAMIC Open Recoi=endatioc.AaWysis that was completed January 2010, which identified what the common causes are for the disallowod casts and a copy of the briefing deck from the Regional Administrators rnc�tiitg, OCFO is also respmtsible for ens'urizg timely xesporises to FEMA's A -133 finding. OCFO will begin to provide montlily status reports at the leadership meeting on each regions :status, OCFO will start sharing evith you ttw stains reprort the 'd and 0 .Friday of each mouth to provide you the ixpFx►rttttuty to ensure titsx your region is in compliance with the Management Decision Letter, timeline- of 161) Clays from the bate it is entered into Federal Audit Clearing House (FAC) system. Reporting on process and resporis~es wvili begin Tuesday, Decs:rn,1eer 06, 201 i, at bit Senior Leadership meeting. Any questions plome .feel to contact Kathy Hill., Director Risk. Management & Compliance, or 202- 645 -7057 or at 7 t N =� ±1- ' s cc: Administrator Deputy Adinirt strator Deputy Administrator for Protection and rational Preparedness Associate Adtniztistrato* Acting U. S. Fire Administrator Chief of Staff Assistant Administrators Acting Assistant Admi --n strators Chief Counsel Office Direct*ts Attachmentfsi: Regional audit sprcadsltc d t 0101CrA0 Rec:onzYSterJat%ons Analysas, January 2010 OCFO briefing presentation Cm0tee notification letter A -131 status report as of I a,31/201 I Page 2 of 2 Packet Page -1651- 11'F TO w �Qrn tT Q fN Ofin � c► 'e. W is's k Q if 0 hi Gt �^ Ll _ w O O +- E m v Mi tri g N N t?3 a[ fH I as L H r{ N N ' 'C' N R Z LrI 1.G Lt yr v, a,, edt H h C C5 r rti N N .-1 . .Lf: a all M M � C � Ln w• N n V1 J JSl V W �J ^f t� Vl �oi iG ? Ch C' Ul � w oi �� v . W L`D v N N W N to pip CL CL a is "" 1i • N O Q) h• r G O t�4 � u ,n N K a cn n Yf. tJY O O U Q Q • q •C m m 4 a v a d' 4 8i qi . .G d 41 - -VL LV t to O RY M Q7 . WW+ O i^ Uri V) p tom} Q � m fft W r rri a 4 �i r� 1L t• �9D' i+ R e• v. . cli a V) flJ Ui EL •iA S• r, r; vi of M m < A• t-i W N M r+. afl b w •f y t� 9� Ol t C tD Vi v 4J1 • S L1 fit bC L! h R e4 N O vt aD Vi T W > ilY .`•+ 1 M p M 40 vs d sJl � Lis Q pp C� N Qp ��55 O V F C. ©' pp F5 r ~ p S _ m m v). N Lis Lis e LA O i n rr c rr P v a w M • M tD 07 {fL M ti N h 4L Vl " -e-1 C Q » is's k Q if 0 hi Gt �^ Ll _ w O O +- E m v Mi tri g N N t?3 a[ fH 4 I as d W H H r{ N N ' 'C' N R Z LrI 1.G W X. NN A.. H H h C C5 r rti N N .-1 . .Lf: a all M M Ln w• N n V1 J JSl V oo "0 C4 +p �J ^f t� Vl �oi iG ? Ch C' Ul � w oi �� v . W L`D v N N W N to pip C tfi "" 1i • N O Q) h• G O t�4 � ,n N K a V/ n Yf. tJY O O U Q Q • q •C m m 4 as d W H H r{ N N ' 'C' N R Z N r 1.G W X. NN A.. H H h C C5 r rti N N .-1 . .Lf: a all M M Ln w• N n V1 J JSl V � w w AILS V VY � � O O O U Q Q • •C m m d' 4 8i qi . .G d 41 - -VL LV t Packet Page -1652- 9111/201 Item - 's gg �f 3 STATE OF FLORIDA DIVISION OF EMERGENCY MANAGEMENT RICK SCOTT BRYAN W. KOON Governor Director July 25, 2012 Ms. Cheryl Pryor Collier County 3301 Tamiami Trail, Admin. Bldg. Naplesr FL 34112 Re: Overpayment Dear Ms. Pryor: The attached invoice is in reference to an overpayment for Hurricane Wilma: FEMA- DR- 1609 -FL. (see attachment) Please remit to the State of Florida: $ 11,172,272.62 at: Division of Emergency Management 5900 Lake Ellenor Drive Orlando, FL 32809 -4634 Attention: Renee Singh, Depute State Public Assistance Office- of Finance Please contact Renee Singh via e -mail, Renee. Singhaem.myflorida.com or by phone 407 - 858 -2761 should you have any questions or need any additional information. Respectfully, C&L�" Charles Shinkle Deputy-Bureau Chief - Division of Emergency Management Attachment: CS /tca FLORIDA RECOVERY OFFICE - DIVISION HEADQUARTERS • STATE LOGISTICS RESPONSE CENTER 5900 Lake Ellenor Drive 2656 Shumard Oak Boulevard 2702 Directors Row Orlando, FL 32809 -4834 Tallahassee, FL 32399 -2100 Orlando, FL 32809 -6831 407 -868 -2781 Tel: 850- 413- 9969•Fax: 860 -488 -1016 www.FloridaDisa3ler.org Packet Page -1653- 9'r 1 ;'2 '''- Iterr, INVOICE STATE OF FLORIDA Division of Emergency Management Date: Jul 23, 2012 Invoice #: 122 To: Collier County (FIPS: 021- 99021 -00) 3301 Tamiaml Trail, Admin Bldg Naples, FL 34112 Disaster PW # Federal Share Admin State Share Line Item Total 1609 2700 $11,095,283.52 $55,476.42 $0.00 $11,150,759.94 1609 2704 ($16,816.80) ($84.08) $0.00 ($16,900.88) 1609 6733 $38,222.45 $191.11 $0.00 $38,413.56 SubTotal Make checks payable 'to State of Florida for total amount of: $11,172,272.62 $11,172,272.62 State o` Florida Public Assistance, 5900 Lake EIleno- Drive, Orlando, F- 32809 -463y Phone (407) 858 -2761 Fax (407) 858 -4429 renee.singh @em.myflodda.com Packet Page -1654- 9 "' 2 2- Iterr 27 1 t- 160 -D:,_ 02',- 99c2, -0; r��mert� �` "2: raiew °.� 0 EM ?ayment #122: Project 2700 (L - Cat G) Collier County Eligible Federal Admin State Obligated & Approved Version 0 (Large) - Initial Obligation $3,381,940.54. $2,536,455.41 $16,909.70 nla System Administrator - Apr f 1, 2006 Nick Behrman - Jul 26, 2006 RFR #', - Expense Approva $255,883.1' Version 1 (Large) - Federal Share Change $0,00 $507,291.08 $0.00 n/a System Administrator- Jan 16, 2007 RFR #2 - Expense Approval' $9,775,103.49 Katherine (l.anie) Hulett - Sep 3, 2010 $31,985.39 Version 2 (Large) - Federal Share Change $0.00 $338,194.05 $0.00 n/a System Administrator -Jun 19, 2007 $0.00 ($171,708.04) Orlando Rodriguez - Mar 12, 2007 Version 3 (Large) - Eligible Amount Change $9,486,535.40 $9,486,535.40 $47,432.68 n/a Renee Singh -Aug 30, 2010 Yen Cal - Jul 27, 2007 Version 4 (Large) - Version Modification $0.00 $0.00 $0.00 n/a Renee Singh - Oct 19, 2010 Payment #119 $9,775,103.49 Version 5 (Large) - Version Modification $0.00 $0,00 $0.00 We Renee Singh - Jan 6, 2011 .yment #117 $0.00 ($0.01) $0.00 Version 6 (Large) - Eligible Amount Change ($11,095,283.52) ($11,095,283.52) ($55,476.42) nla Renee Singh - Jul 16, 2012 $1,773,192.42 $1,773,192.42 $8,865.96 $0.00 Justified by RFRs (100.0% RFR #1 - Expense Approva' $761,256.08 -)hn Schmid,- May 16, 2006 $95,157.01 .FR #1 - Expense Approval $1,272,301.32 Nick Behrman - Jul 26, 2006 RFR #', - Expense Approva $255,883.1' Melissa Vallejo -Aug 2, 2006 $159,037.67 RFR #'i - Expense Approve: $803,931.9'1 Darryl Cox - Jun 27, 2007 RFR #2 - Expense Approval' $9,775,103.49 Katherine (l.anie) Hulett - Sep 3, 2010 $31,985.39 Reversal of Overrun - $11.095.283.52 $1,773,192,42 $1,773,192.42 $8,866.96 $0.00 Previous Payments Payment #54 $570,942.06 $3,806.28 $95,157.01 Orlando Rodriguez - May 16, 2006 Payment #77 $954,225.99 $6,361.51 $159,037.67 Nick Behrman - Jul 28, 2006 Payment #79 $191,912.36 $1,279.42 $31,985.39 Orlando Rodriguez -Aug 2, 2006 Payment #91 $343,416.08 $0.00 ($171,708.04) Orlando Rodriguez - Mar 12, 2007 Payment #107 $723,538.72 $4,019.66 $0.00 Yen Cal - Jul 27, 2007 Payment #108 $309,337.24 $0.00 ($114,472.03) Yen Cat - Oct 31, 2007 Payment #119 $9,775,103.49 $48,875.52 $0.00 mie Booth - Jan 8, 2008 .yment #117 $0.00 ($0.01) $0.00 Jamie Booth - Jan 8, 2009 Packet Page -1655- AdJUstment5 This Payment This payment leaves a balance of $0.00. Payment calculations as al Jul 19, 2012. Printed from FloddaMorg on Jul 20, 2012 at 12:54 PM. Packet Page -1656- 9 "i 1,2012 Item ` 1.�-:. — $12,868,475,9 - $64,342.3E — $LAC $0.0C $0.0(. $0.0: ($11,095,283.52) ($55,476.42) $0.00 r-aYmem. #12. r roiec'. 673: EMA. 1605 -CR -F_ Payment #122: Project 6733 (L - Cat G) Collier County Eligible Federal Admin Obligated & Approved Version 0 (Large) - Initial Obligation $625,964.16 $469,473.12 $3,129.82 System Administrator- May 22, 2005 ($375.71) — $550,822.45 — $2,754.11 — Version 1 (Large) - Federal Share Change $0.00 $93,894.62 $0.00 System Administrator -Jan 18, 2007 Version 2 (Large) - Federal Share Change $0.00 $62,596.42 $0.00 System Administrator- Jun 20, 2007 Version 3 (Large) - Eligible Amount Change ($107,135.18) ($107,135.18) ($535.67) System Administrator - Jan 30, 2006 Version 4 (Large) - Eligible Amount Change $31,993.47 $31,993.47 $159.96 Renee Singh -Aug 17, 2010 Version 5 (Large) - Eligible Amount Change ($38,222.45) ($38,222.45) ($191.11) Renee Singh - Jul 18, 2012 $512,600.00 $512,600.00 '$2,563.00 Justified by RFRs (100.0% RFR #1 - Expense Approval $625,964.16 Aaron Harden - Jun 11, 2007 Reversal of Overrun - $113,364.16 $512,600.00 $512,600.00 $2,563.00 Previous Pavmentc Payment #10E yen Cal - Jun 12, 2007 Payment #110 yen Cei - Oct 31, 2007 Payment #119 Jamie Booth - Jan 8, 2009 Adjustments This Payment This payment leaves a betance of $0.00. °ayment calculations as at Jul is, 2012. Tinted from Mo4daPA.orp on Jul 20, 2012 at 12.56 PM. Packet Page -1657- 02,E -9902' -0( $563,367.74 $3,129,82• $62,596.42 $0.00 ($75,141.71) ($375.71) — $550,822.45 — $2,754.11 — + $0.00 + $0.00 + ($38,222.45) ($191,11) State n/a n/a n/a n/a n/a n/a . $0.00 $0.00 $0.00 $0.00 $0.00 .$0.00 $0.00 $0.00 -_-_r-- '-'— ' Packet Page -1658- id LL UJ Packet Page -1658- id fi r' 11 'KC _' Item P,n,orChen, =rom: McAlpinGary Sent: Thursday, August 23, 2012 1:18 PM To: LorenzWilliam; CasalanguidaNick; IsacksonMark; FinnEd; PryorCheryl; SummersDan Subject: FW: Collier Beach Data Request August 21, 2012 Attachments: Region IV Audit Follow -up DD- 11- 23.pdf; Collier County PW -566 -3 Gabrielle.pdf; Collier County PW -568 -2 Gabrielle.pdf; Collier County PW -575 -2 Gabrielle.pdf; Collier County PW -673 -3 Gabrielle.pdf; Disallowed Cost Initiative - FEMA Letter.pdf; Region IV Audit Follow - up DD -11 -23 (2).pdf Importance: High All, Attached is a response that I requested from FDEM relative to the FEMA de- obligation of funds, our appeal and the "Disallowed Cost Initiative Program" recently instituted by FEMA. Bob Seibert is the Lead Deputy Public Assistance Officer from the State who we received all our direction from. Bob is clear and direct in his statements and has indicated the effect of the Disallowed Cost Initiative in the State as Nick has requested. In addition to the 11 organizations mentioned, I know of 3 Cities in Broward County where reversals have occurred. If you have any questions, Please give me a call. I have not forwarded this to Leo and am suggesting that you do. Gary From: Seibert, Rohe,. [ mai Ito: Roder.Seibert@pern.myfiorida.com1 Sent: Thursday, August 2., 2012 10:41 AM To: McAlpinGan Cc: French, Bruce Subject: Collier Beach Data Request August 21, 2012 Gary, This is in response to our previous conversations on the Collier Beach FEMA Region IV issues. • Attached are the latest PW versions of the Gabrielle DR1393 PWs that are a request in Bruce's email. • PW566 V3, PW568 V2, PW575 V 2, PW673 V3. • All of the other PWs requested are available in FloridaPA.org. • The laws and regulations in effect in 1988 and 2000 are available at FEMA.gov.. • The Policy Guide 322 is also available at FEMA.gov. The 1999 version may not be available on line because FEMA normally keeps the current versions available to avoid confusion. • The point of reference for the laws in effect during the requested time lines would be in the applicable yearly version of 44CFR, which is available on line. • The other items listed in your request are available on line at the FEMA.gov site, and or Floridapa.org. • A search of the FEMA.gov site should be able to bring up copies of the other items that are requested. • The latest versions of the four Gabrielle PWs would have all of the notes applicable to each PW in the General Comments section of the PW. Packet Page -1659- 9" `!20"2 It err, '' ac no: See the neec i0- al- o. the aQditiona mior n2nor. tna. ?sru�-e ?s requeSttnb. nu: It I: avaiiable irorr. the FENI ol: line site provides above. Establishing a position w counte- the de- obligation o-1 the funding within DF1604 — PV'--70C, is premature at this time because we do not yet have a FEMA deterrcunation specific to the First Appeal. 1 would caution bringing up all 10 PWs that are involved in the Collier nourishment because to date only DR2700 has been de- obligated. It would be in your best interest to review the status of all 10 PWs in FloridaPA.org prior to adding a list of more PWs to FEMA Region IV. Regarding the position that FEMA is in an austerity position, attached are two documents that outline and or discuss the "Disallowed Cost Initiative" that began in 2011 whereby FEMA is in the recovery of cash mode. This brings the timing of the recent de- obligation of Collier's beach projects into play. While the de- obligation of PW2700 funds are not associated with an OIG Audit, the $11M dollars shows a recovery of funds by Region IV, which also adds to the Disallowed Cost Initiative total of recovered dollars. • The DRS Disallowed Cost Initiative Memorandum to FEMA management outlines the methods that the FEMA Regional Managers are to employ in order to recoup Federal funding that is determined to be questionable in OIG audits. • The attached Region VI memorandum is an OIG audit conducted to identify areas where that Region was deficient in following the recoupment of FEMA funding. This is provided to establish in one's mind's eye that there is a concerted effort to recoup funds. • In addition to this memorandum, the results of the OIG audit of Region IV in Atlanta provides a vanilla view of findings, which continue to show up in the memoranda to the OIG that Region IV concurs with the OIG findings. This includes concurrence on items where Region IV's findings agree with the OIG even when the findings in question disagree with the FEMA Closeout work product of their own Region IV employee's who were working out of the FRO in Orlando. This action also casts aspersion on each Management level that signed and approved these apparent incorrect documents. The Region IV DHS OIG audit follow up report is attached. Gary, Regarding the extent of the affect of OIG audits within the State of Florida, the following summary indicates the DHS Disallowed Cost Initiative is having a significant effect of the Government organizations in the State. • There are 11 State organizations that have borne the brunt of OIG questioned items. • The total dollars that were de- obligated in the 11 audits are $86.9 Million. • This makes the average OIG audit items questioned per audit at $7.9 Million. • These audits all occurred in calendar years 2011 and 2012. • The Collier de- obligation dollars are included in the numbers above. There are a number of issues with the Region IV position on the Collier DR1393 items challenged in the audit report. The eligibility of the Collier PWs for Gabrielle were upheld in a FEMA SECOND APPEAL and it is my understanding that once a second appeal is ruled upon the items included in the appeal are NOT subject to change. FEMA would have to contradict their own guidelines to make any changes to the Gabrielle PWs. The issues with the DR1609 de- obligation of the $11 Million are basically that the FEMA position relative to annual maintenance authorized by the pre -2001 permit from DEP was ignored along with the $1.9 Million in the cost associated with the 50,000 cubic yards of sand placed to offset annual dune erosion. The other significant issue with the DR1609 FEMA action is that the appeal findings in the DR1393 document state that the ineligible costs in the (DR1609 — PW2700) PW should be evaluated further, not acted upon. FEMA took action on the DR1609 PWs without this subsequent evaluation of the facts. Another factor in this relative to the FEMA ruling is that Collier County provided copies of all of the invoices for the replenishment of the sand, whereas FEMA has made these costs ineligible without a substantiating historical basis. Also, please note that this is now under a first appeal status that FEMA will have to provide a basis for their de- obligation action. This response to the first appeal will be developed by Region IV staff. The bottom line to all of what has occurred is that neither the State nor Collier have made any mistakes in the application of 44 CFR programmatic issues. Also, the cost numbers, which are all substantiated with historical cost documentation were part of the PW package provided electronically to FEMA. All of the damages documented were eligible per the Public Assistance Regulations in 44CFR according to FEMA Management. At the risk of being redundant, the cost Packet Page -1660- t c :u av an :n, W�"' ^:1IT1Ui° _ an- a� t'rog-al'. i�Rll1Z:l0:_. -ei: ..C--i"t^ ar)r)IIeC tti: :11?]: C. °ni liit. -n: What is being used to make PW2700 ineligible is opinion regarding storms that were not named as disaster events. These storms that were not declared by FEMA are not documented by date in their appeal determination statements, which means the issues cannot be challenged with specific data. This is futile as trying to punch holes in smoke. It is my opinion that the first appeal rebuttal case should not be developed further until the first appeal response is received from FEMA. That is, there is no position to challenge until the FEMA first appeal position on DR 1609 — PW2700 is in hand. What is under a first appeal for PW2700 is the de- obligation of the $11 Million and this has not been done properly according to the determination letter in the DR1393. Gary, Please give me a call when you receive this email. LO Robert M. (Bob) Seibert Lead Deputy Public Assistance Officer Florida Division of Emergency Management Phone: 407- 858 -2803 Blackberry: 850 - 528 -5096 Fax: 407 -858 -4429 email: robert.seibertZem.myflorida.com r; i t . +. auar c:as..i i , .ess;o -Is:: le a pub' re,ords re: ;a si; do rlct srnc iliib C ltf r f; i v i.... 1.n! t, lee. h_ Packet Page -1661-