FEMA Public Assistance Program

1. FEMA Public Assistance Program FEMA Region III – Philadelphia Will Blair Senior Emergency Management Program Specialist William.Blair@DHS.Gov (215) 931-5576

2. FEMA Public Assistance Grant Program Eligible Applicants: • State and Local governments • Certain Private Nonprofit entities Grant award program to provide supplemental assistance to reimburse reasonable costs associated with completing eligible work.

3. CATEGORIES OF WORK • Emergency – 6 Months • A - Debris Removal • B - Emergency Protective Measures • Permanent – 18 Months • C - Roads & Bridges • D - Water Control Facilities • E - Buildings & Contents • F - Utilities • G - Other (Parks, Recreation etc.) PA Guide Pages 66-87

4. COST Types of Direct Costs: • Force Account (your resources): • Labor • Equipment • Materials • Contract Costs (outside resources) PA Guide Page 40

5. CONTRACT ELIGIBILITY

6. COSTCONTRACTS Process key elements: • Reasonable for clearly defined ‘Scope of Work’ • Competitively Procured • Qualifications of proposers/bidders • Not contingent on FEMA funding • Comply w/Federal, State and Local procedures • Ex:VA Procurement Act • Cost Analysis

7. COSTCONTRACTS DOCUMENTATION! DOCUMENTATION! DOCUMENTATION! To include: • Procurement Process • Rationale – Selections/Decisions • Processes, inspections, payment, etc.

8. COSTCONTRACTS Full and Open Competition: • Requirement - Intended for all procurements • Stimulates better, lower prices • Pre-qualifying – non-emergency periods • Avoid restricting competition PA Guide page 51 - 53

9. COSTCONTRACTS Cost or price analysis • Required for ALL procurement actions • Including amendments/change orders • Tests REASONABLENESS • Independent estimates PA Guide page 51 - 53

10. COSTCONTRACTS Accepted Procurement Methods: • Small Purchase • Sealed Bid • Competitive proposals • Non-competitive proposals PA Guide page 51 - 53

11. COSTCONTRACTS Accepted Procurement Methods (cont’d): • Non-competitive proposals: • Item available only from a single source • Emergency requirement which will not permit a delay – Very Limited in duration • FEMA authorizes a noncompetitive proposal • Solicitations attempted - Competition is determined inadequate PA Guide page 23

12. COSTProcurement of Contracts 3Types of Contracts FEMA will reimburse: • Lump Sum - defined scope • Unit Price – itemized work • Cost plus fixed fee – lump sum or unit price WITH a fixed contractor fee PA Guide page 53

13. COSTProcurement of Contracts NOT ELIGIBLE • Cost plus a percentage of contracts • Piggyback Contracting – not competitive / price structure may vary • Contingency PA Guide page 52 - 53

14. COST Procurement of Contracts Time and Materials • SHOULD BE AVOIDED • Emergency Work ONLY • Typically not more than 70 hours -immediately following a disaster • Must be Reasonable • Must contact State for guidelines PA Guide page 53

15. COST Procurement of Contracts Time and Materials • Must: • Include a ‘Scope of Work’ Note: As good as can be developed at the time • Be DOCUMENTED • Be closely monitored • Include a Cost Ceiling – ‘Not to exceed’ clause must be included PA Guide page 53

16. PROCUREMENT REVIEW Ensure Procurement Process includes: • A clearly defined SCOPE OF WORK • Following of the VA Procurement Act & FEMA’S policy • Documenting of all processes for proposals or bids • All contracts include a maximum fixed cost (no open ended contracts) • Competitive bidding (continued)

17. PROCUREMENT REVIEW Ensure Procurement Process includes: (con’t) • “Emergency Procurement” typically limited to the first 70 hours • Use written bid request as needed (fax or email) • Contracts must include a termination for convenience clause • Contract amendments or modifications must be in writing

18. QUESTIONS? VDEM - FEMA

19. Financial Management Grants/Cooperative Agreements Grants Management Branch FEMA Region 3

20. Basics of Financial Management • Accounting system with detailed chart of accounts • Proper documentation of expenditures • Appropriate time and activity reporting • Procedures to ensure costs are allowable • Written cost allocation plan • Regular review of budget to actual expenses • Strong system of internal controls • Written policies and procedures • Risk-based monitoring • Effective program management

21. Your Guide to Financial Management • 44 Code of Federal Regulations Part 13 • A-21 Cost Principles for Educational Institutions • A-87 Cost Principles for State, Local, and Indian Tribal Governments • A-102 Grants and Cooperative Agreements with State and Local Governments • A-110 Uniform Administrative Requirements for Grants and Agreements with Institutions of Higher Education, Hospitals, and Other Non-Profit Organizations • A-122 Cost Principles for Non-Profit Organizations • A-133 Audits of State, Local, Governments, and Non-Profit Organizations

22. Financial Management Systems • Standards contained in 44 CFR 13.20 • State funding recipients must follow State laws and procedures • Allow for accurate, current, and complete disclosure of financial results • Maintain records that adequately identify source and application of funds • Maintain effective internal control and accountability • Adequately safeguard all property • Compare actual expenditures or outlays with budgeted amounts

23. Financial Management Systems • Federal Funding Recipients Must: • Ensure that applicable OMB cost principles and terms of award are followed • Maintain accounting records supported by source documentation • Implement procedures for minimizing time elapsing between transfer and disbursementof funds

24. Revised Grant Guidelines Notes: CFR = Code of Federal Regulations * = Organization is subject to A-133 if it expends more than $500,000 in Federal funds in its fiscal year

25. Cost Principles • Guidance for determining the allowable costs incurred by organizations • Federal awards bear their fair share of costs • Guidance about reimbursement requirements • Uniform standards of allowability and allocation • Consistency of treatment of costs

26. Allowable Costs • 44 CFR 13.22 specifies requirements for allowable costs • OMB Circular A-87 contains Federal principles for determining cost allowability • Standards of Allowability • Reasonable • Necessary • Allocable (Assignable) • Authorized and legal • Within cost limits • Treated consistently • Meets Cost Accounting Principles and Standards • Not double charged • Well documented

27. Reasonable A cost is reasonable if, in its nature or amount, it does not exceed that which would be incurred by a prudent person under the circumstances prevailing at the time the decision was made to incur the costs • Examples of costs described in OMB Circular A-87: • = Compensation / Materials / Equipment / Monitoring • Advertising and public relations costs • Memberships, subscriptions, and professional activity costs • Recruiting costs • Rental costs • Training and education costs • Travel costs

28. A-87 Highlights • Comingling of federal awards not permitted • Composition of Costs • No universal rule for classifying costs as direct/indirect under every accounting system • Indirect Costs • Common and joint purpose benefitting more than one cost objective - eg. goods, services, facilities • Cannot apply if assigned for any other purpose as direct • Interagency Services • May calculate actual indirect • Flat 10% standard for direct salary & wages

29. Payment Methods • May be made in advance or as reimbursement • For advance payments, Grant funding recipient must minimize time elapsing between transfer and expenditure of funds • Any interest earned on advances must be refunded to FEMA Two mechanisms for payments: 1. HHS Smartlink System 2. Direct Deposit/Electronic Funds Transfer (DD/EFT)

30. Non-Federal Audits • Must follow requirements of44 CFR 13.26 and revised OMB Circular A-133 • Audits must be by independent auditor • Audits must be in accordance with generally accepted government financial auditing standards • Auditor procurement must meet requirements of 44 CFR 13.36

31. Program Changes • 44 CFR 13.30 and OMB CircularA-87 specify conditions requiring prior FEMA approval • A recipient may rebudget within approved direct cost budget to meet unanticipated requirements and make limited changes

32. Program Changes • Federal funding recipients should obtain prior FEMA approval for: • Some transfers of funds between total direct cost categories • Revision resulting in need for additional funding • Transfer of funds allotted for training • Revision of scope/objective of project • Changes in key persons • Subcontracting • Transfer of funds to other agencies

33. Equipment and Supplies • Equipment: useful life of more than 1 year and an acquisition cost of $5,000 or more per unit • Supplies: all tangible property other than equipment • Use and disposition requirements contained in 44 CFR 13.32 (equipment) and 44 CFR 13.33 (supplies) • Must compensate FEMA for residual inventory of supplies exceeding $5,000 in total aggregate fair market value • In general, agreements will not be used to purchase equipment or supplies • Exceptions must be specified in Cooperative Agreement

34. Equipment and Supplies • States must use, manage, and dispose of equipment in accordance with State laws and procedures • Local and regional must: • Use equipment for intended project • Maintain property records and conduct biennial physical inventory • Maintain adequate maintenance procedures • Retain or sell when no longer needed

35. Procurement of Contractors • Requirements for procurement specified in 44 CFR 13.36 • State agencies must follow the same policies and procedures used for procurements from their non-Federal funds • Requirements for local andregional agencies at 44 CFR 13.36(b) through (i)

36. Monitoring and Reporting Program Performance • Requirements specified in44 CFR 13.40 • Performance reports due 30 daysafter end of each quarter • Final performance reports due 90 days after close of agreement • Significant events reported immediately

37. Financial Reporting • Reporting requirements specifiedat 44 CFR 13.41 • Must submit Financial Status Report to FEMA Regional Office within 30 days after end of each quarter • Final financial reports due 90 days after close of agreement • HHS Smartlink users should also submit PMS 272 report

38. Useful Links Grant Regulations http://www.cns.gov/for_organizations/manage/index.asp OMB Circulars http://www.whitehouse.gov/omb/circulars Federal Register (Code of Federal Regulations) http://www.gpoaccess.gov/fr/index.html Resource Center (My Improvement Plan) http://www.nationalserviceresources.org ECourses: Key Concepts of Financial Management & Budgeting (for each stream of service) http://nationalserviceresources.org/resources/courses/financial_management.php

39. QUESTIONS Joe Liciardello Grants Management Branch FEMA Region III 215-931-5574 Joseph.Liciardello@DHS.GOV