Transcript FEMA Grant Management Overview City of Little Rock Arkansas

The Integration of FEMA
Public Assistance and
Insurance
Jim Siciliano
Agenda
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Who’s Involved
The FEMA Process
Eligibility
Cost Documentation
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Integration of FEMA &
Insurance
How Do you Prepare?
Conclude
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You must be in a
position to be able to
DRIVE your own
recovery efforts
Your insurance claim and
FEMA reimbursement
represent the foundation
for your financial recovery
FEMA Public Assistance
•Program- Parameters
•Process
•People
President of the United States
Under Secretary,
Homeland Security
Governor
Regional Director
Federal Coordinating
Officer (FCO)
State &
Regional
Policy &
Management
State Coordinating Officer (SCO);
Governor’s Authorized Representative
(GAR)
State Public Assistance Officer
Public Assistance Officer
(PAO)
(SPAO)
Disaster Management
Disaster Administrative Officer (DAO)
Public Assistance
Coordinator (PAC)
Project Officers (PO) &
Specialists
Direct Services
To Applicants
Additional Stakeholders: Regional Managers
& Local Emergency Managers
Public Assistance Coordinator
(PAC)
Project Officers &
Specialists
1.
2.
Disaster strikes
3.
PDA
6.
Declaration
5.
4.
FEMA
Kickoff Meeting
RPA
Applicants’ Briefing
9.
8.
7.
Projects funded
Site Visit/Project Formulation
Project Worksheets
10.
Project
closeout
and
Audit
General Program Eligibility
Cost
Work
Facility
Applicant
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Cost
Work
Facility
Applicant
State government agencies or
departments
 Local governments & authorities
 Indian tribal governments and Alaskan
native villages
 Certain Private Non-Profit organizations
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Cost
Work
Facility
Applicant
What is a Facility?
•Buildings
•Roads
•Furniture & equipment
•Culverts
•Vehicles
•Dams
•Contents
•Library books
•Parks
•Sewer & water lines
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Cost
Work
Facility
Applicant
Eligibility Criteria
• Legal responsibility
• Other Federal Agencies (OFAs)
• Facility use
•Active use
•Alternate use
• Under construction
• Repair vs. Replacement
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Cost
Work
Facility
Applicant
Eligibility Criteria
Must be required as a direct result of
the declared event
 Must be within the designated disaster
area
 Must be the legal responsibility of an
eligible Applicant
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Cost
Work
Facility
Applicant
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Category A
Category B
Category
Category
Category
Category
Category
C
D
E
F
G
Categories of Work
Debris Removal
Emergency Protective
Measures
Road System Repairs
Water Control Facilities
Buildings and Equipment
Public Utility Systems
Parks, Recreation & Other
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Cost
Work
Facility
Applicant
Considerations
• Negligence – Failure to Act to Protect
• Maintenance – Lack Thereof
• Pre-existing Damage
• Hazard Mitigation
• Codes & Standards
• 50% Rule (Repair vs. Replacement)
• Relocation
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Cost
Work
Facility
Applicant
Cost Eligibility
• Reasonable and necessary to accomplish work
• Compliant with Federal, State and local
requirements for procurement
• Reduced by all applicable credits, such as
insurance proceeds and salvage values
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What’s Reasonable?
Reasonable costs. A cost is reasonable
if, in its nature and 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
cost.
– OMB Circular A-87
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Cost
Work
Facility
Applicant
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Summary of
Eligible Costs
Force account labor
Force account equipment
Force account materials
Purchase orders and contracts
 Rented equipment
 Purchased materials
 A&E consultants
 Contractors
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Cost
Work
Facility
Applicant
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Procurement
Contracts must be reasonable
FEMA finds 4 methods of contracting
acceptable:
1. Small purchase procedures. $100,000 or
below by obtaining price quotes from
several vendors
2. Sealed bids
3. Competitive proposals, which are based
more on unique qualifications
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Cost
Work
Facility
Applicant
4.
Procurement
Noncompetitive proposals
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Inadequate number of available contractors
and to the extent that exhaustive methods to
find competitors would be cost-prohibitive
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Cost
Work
Facility
Applicant
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Documentation
Create a filing system
Designate a specific person to coordinate the
accumulation of records
Separate disaster related activities from
normal activities – do not commingle
disasters
Summarize costs by category by PW by
department
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Cost
Work
Facility
Applicant
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Documentation
Audit trail tracking costs to the PW
Cost summaries to source documents
Reconciliation to
accounting system
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Cost Tracking Flow Diagram
DepartmentLevel
Summaries
Facilities
PW-Level
Summaries
Cost
Category
Summaries
PW No.
12345
Force Account
Labor
Overtime
Force Account
Equipment
Purchased
Materials
PW No
67890
Force Account
Materials
Purchases
and Contracts
Straight
Time
Rented
Equipment
A&E
Consultants
Contractors
Cost
Work
Facility
Applicant
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Audit Findings
Resulting in Loss of Funding
Failure to adequately describe work performed
Claiming indirect costs
Lack of documentation for fringe benefits
Leave time
Inability to reconcile equipment hours
Failure to provide clear audit trail
Failure to segregate ineligible work
Applicant fails to gain permission for Alternate
or Improved projects
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Questions?
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The Integration
of Insurance
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Stafford Act, Section 312
Disaster assistance will not be provided
for damages or losses covered by
insurance.
 Disaster assistance provided by FEMA is
intended to supplement financial
assistance from other sources.
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Insurance Considerations
No insurance
 Deductibles
 Self-Insured Retention (SIR)
 Mandatory reductions (NFIP/SFHA)
 Insurance apportionment
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Insurance Apportionment
Insured
FEMA-eligible
Insured
FEMA-ineligible
Uninsured
FEMA-eligible
Uninsured
FEMA-ineligible
Insurance Settlement
Documentation
Detailed
 By damaged facility
 By coverage
 Direct & indirect losses
 By agent of loss (peril)
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Flood Insurance
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In a Special Flood Hazard Area (SFHA),
amount of eligible funding for damages
caused by flood is reduced by the maximum
amount of coverage available under NFIP
“standard” flood insurance policy:
 $500,000 Building
 $500,000 Contents
 $5,000 deductible
Damaged facilities are valuated on an Actual
Cash Value (ACV) basis
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Stafford Act, Section 311
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…with respect to any property to be
replaced, restored, repaired, or
constructed with such assistance, such
types and extent of insurance will be
obtained and maintained as may be
reasonably available, adequate, and
necessary, to protect against future
loss to such property….
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Accounting & Audit
Requirements
Documentation from Day One
 Filing system
 Ability to reconcile/track all costs
associated with PWs
 Close-out vs. FEMA Office of the
Inspector General (OIG) audit
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How Do You Prepare?
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Providing a coordinated claim
management strategy that enables you
to maximize and expedite your financial
recovery through your insurance and
the FEMA Public Assistance Program
Who in your organization can navigate all
phases of both the FEMA program and
your insurance claim?
– Typically two people
• Finance/EM for FEMA
• Risk Management for Insurance
• Typically do not communicate
– Disaster Recovery Team Needed
• Disaster Recovery Manager
When Disaster Strikes
Buildings, Vehicles, and Infrastructure are
damaged or destroyed
 Communications and Information systems are
damaged or destroyed
 Your staff has been personally impacted by
this disaster
 You have NO cash flow
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The Insurance Company
 Adjusters
and Inspectors
 “Not covered”
 “Didn’t hit your deductible”
 “Here is our offer”
 An offer is made
 Is the settlement right?
 How do you know?
 Where are your experts?
FEMA
 FEMA
Project Officers
 “Not Eligible”
 “Not Reasonable”
 “This Contract is no good”
 “You have 60 days to write your projects”
 “This is what we are going to do…”
 “You HAVE to do it this way…”
 FEMA will give you “How Much”?
 Is it right?
 How do you know?
 Where are your experts?
Proactive or Reactive?
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You must be in a position to be able
to DRIVE your own recovery efforts
The only way to survive these
obstacles is to Proactively implement
a Recovery Strategy
Once implemented you are driving
your recovery
The Big Questions Are:
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How are we going to pay for this disaster?
How much can we reasonably expect from
our insurance company?
How much can we reasonably expect from
FEMA?
More Detailed Questions:
Do we have an Integrated Financial
Recovery Strategy or plan?
 Do we have the dedicated personnel to
implement a Plan?
 Do we have the resources to develop a
plan while we are trying to respond to this
disaster?
 Are we in control?
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How Does Your Team Anticipate
FEMA?
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Eligibility issues & interpreting differences of opinion
Gray areas and policy shift from disaster to disaster
and region to region
Rotating FEMA staff
Lack of depth in FEMA staff training and experience
Quota-driven approach
Multiple requests for duplicate information
What’s covered? Insurance vs. FEMA
How Does Your Insurance Team:
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Complete a thorough evaluation of losses
Coordinate claims
Secure advance payments
Support claim preparation & settlement to
expedite & maximize recovery
Disaster Recovery Process
1.
2.
3.
4.
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6.
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9.
Get Organized
Determine Losses
Categorize Losses
Determine Eligibility
Develop a Rebuilding Plan
Identify Funding Sources
Implement the Plan
Final Inspection and “Close-out”
Complete the Audit Requirements
QUESTIONS
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Adjusters International
www.adjustersinternational.com
800-382-2468
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