Louisiana Government Recovering From Disaster

1. Louisiana Government Recovering From Disaster

2. Catastrophic Events • Hurricane Katrina (Landfall 8/29/05 Buras, Louisiana 6:10 AM CDT) 140 MPH Winds • 2.5 million people applied for FEMA Individual Assistance • 288,621 left homeless • 71,000 businesses in Louisiana impacted • 400,000 job losses in Louisiana • $34.4 billion damages/ $22 billion in Louisiana • Hurricane Rita (Landfall 9/24/05 Texas-Louisiana border 2:38 AM CDT) 100 MPH Winds • 460,000 people applied for FEMA Individual Assistance • 76,449 left homeless • 10,000 businesses in Louisiana impacted • 45,000 job losses in Louisiana • $4.7 billion damages/ $2.4 billion in Louisiana

3. More Louisiana Stats • 1,080 lives lost • 786,372 people displaced • 217,245 housing units destroyed • 835 K-12 schools damaged • 40 K-12 schools destroyed • 18,752 businesses destroyed • 10 hospitals destroyed • 47 million cubic yards of debris • 157,000 increase in applications for unemployment benefits

4. Plan your flight and fly your plan

5. Plan your flight and fly your plan • LOHSEP • 24/7 (32/7 for some) • LLA took on new role • JLW & Associates • Local gov’t improvised

6. Save that which is lost

7. Save that which is lost • Every church gym filled to capacity • Everyone with a chain saw helping in their neighborhoods • Blue roofs became “in-style” • Supplies came from all over the country

8. Auditor Perspective • Our government changed significantly in a 30 day period • State Government revenue forecasts (as of October 28, 2005) • Total Revenue decrease in fiscal year 2006 - $970.6 million • Total Revenue decrease in fiscal year 2007 - $786.1 million • State Government revenue forecasts (as of February 17, 2006) • Total revenue decrease in fiscal year 2006 - $370 million • Total revenue decrease in fiscal year 2007 - $290 million • State Government expenditures • Significant cuts to balance our budget based on official revenue projections • Local government • Impact still not fully known • Some units of local government are devastated • Focus of many state agencies changed to disaster related issues (Response and Recovery) • Influx of federal dollars to state • Presence of FEMA & other federal agencies • Financial, Performance, and Fraud Issues

9. Auditor Perspective • Initial Response

10. Auditor Perspective • Initial Response • Information (consume and regurgitate)

11. Auditor Perspective • Initial Response • Information (consume and regurgitate) • Documentation

12. Auditor Perspective • Initial Response • Information (consume and regurgitate) • Documentation • Assist with 1st round of $$ release

13. Auditor Perspective • Intermediate Response • Continued assistance to applicants • Grant Management Assistance • Systems/Controls advice

14. Auditor Perspective • Long Term Response • Continuous Audit • Fraud Detection/Investigation

15. Assistance to State & Local Government • Unknown territory • FEMA personnel • Louisiana government personnel • Immediate Reactions • FEMA Regulations • Changing Rules • Misunderstandings

16. Post-Disaster Louisiana • Week One • Data Recovery Issues • Accounting for Employees • Assessment of Damage • Week Two • Emergency Operations • Understanding FEMA Assistance • Brainstorming • Continuous Audit/CEA • Assisting Local Government • Enhanced Communication • Networking with Administration, Legislature, and Courts • Joint Field Operations

17. More Louisiana Stats Katrina • $ obligated for PA : $2.89 Billion • $ Estimate for PA Projects: $5.34 Billion • PWs written to date: 12,229 (9,205 obligated) Rita • $ obligated for PA Projects: $321 Million • $ Estimate for PA Projects: $605 Million • PWs written to date: 3,814 (3,499 obligated)

18. Post-Disaster Louisiana • Week Three • Contacting GAO, OIG, Other Auditors • Addressing Independence • Partner with State IG • Assignment of Staff from Legal, Investigative, Performance • Training Staff • Imbedding Staff in Process • Identifying Lost Revenues • Draws from FEMA, Cash Management, and Payment Process • Establishing Communication • Local, State, and Nonprofit Assistance • Financial Information • Public Information and Website

19. Post-Disaster Louisiana • Week Four • Project Worksheets • Review of Documentation • Tracking Receipts and Payments • Enhancing Communication with Weekly Meetings • Second Disaster Hits on 9/24/05 • Beyond Week Four to Present • Lost Revenues • Budget Cuts • Louisiana Recovery Authority • Community Disaster Loans • Community Development Block Grants • FEMA Disaster Projection Report

20. Post-Disaster Louisiana • Beyond Week Four to Present • Displaced Population • Out of State • In State • K-12 Students • University Students • Rebuilding Towns and Cities • Repairing the Levee System • Right-sizing State and Local Government • Rebuilding State Facilities • Accountability

21. FEMA Public Assistance • Continuous Audit • FEMA Rules & Regulations • State Rules & Regulations • Grantee system of internal controls • Subgrantee internal controls • Subgrantee monitoring • Forms • Documentation (Summary & Detail)

22. FEMA Individual Assistance • FEMA administers in Louisiana • FEMA bills state for cost share • FEMA estimates spending over $2 billion for other needs assistance to individuals in Louisiana • States share is 25% > $500 million • Were all payments made by FEMA appropriate and properly documented?

23. FEMA Hazard Mitigation • Continuous Audit • Plans, Policies, Procedures • FEMA estimates $1.75 billion for both Hurricanes Katrina & Rita • States Share = 25% - $420 million

24. Where do we go from here? • Will Business Return? • Will Population Return? • Can Homes be Rebuilt? • Will Leadership Emerge?