ASCIP
RISK ALERT!
Date: July 28, 2011
Attention: ASCIP Members
Subject: De-obligation of Disaster Grant
Funds
In view of the
recent media attention given to the incidents of misappropriation of funds by
public agencies, the Federal Emergency Management Agency’s (FEMA) Office of the
Chief Financial Officer (OCFO) has begun efforts to recover excess funds
related to Public Assistance Grants. In
2010, FEMA reached into States and local governments to recover more than $2.6
billion in funds that FEMA deemed no longer necessary. FEMA has a similar effort underway this year
to de-obligate funds.
FEMA has placed
the California Emergency Management Agency (CalEMA)
on notice of their effort, in turn, CalEMA’s management has begun issuing “Final Notices” to subgrantees. These
Final Notices mean that CalEMA has made at least two
previous attempts to establish contact and that subgrantees may now be in jeopardy of having their disaster
assistance funds de-obligated. If the
District’s funds are deemed de-obligated, the District will be responsible for
reimbursing FEMA those funds. De-olbigated funds are those funds which
are no longer necessary and are excess to the completion of the previously
approved projects.
ASCIP understands
that CalEMA and FEMA are targeting the following
disaster events:
1203 (1998) Winter
Storms 1498 (2003)
Wildfire
1577 (2005) Winter
Storm 1585 (2005) Winter
Storm
1628 (2005) Winter
Storm 1646 (2006) Winter
Storm
1731 (2007)
Wildfires
Members should
review its previous grants under the Public Assistance program to ensure that
all grants are in compliance as outlined in the grant to prevent a
de-obligation of those funds.
ASCIP
Staff is available to assist in answering concerns as they may arise.