Finding Text
2024-007 SPECIAL TESTS - DISASTER GRANT PROJECTS
Federal Agency: U.S. Department of Homeland Security/FEMA
Federal Program Title & Assistance Listing Number:
Disaster Grants - Public Assistance (Presidentially Declared Disasters) - 97.036
Award Period: 2023
Type of Finding: Significant Deficiency in Internal Control over Compliance
Other Non-compliance
Questioned Costs: Unknown
Condition
We noted the Department was not in compliance with requirements related to accounting to FEMA of
eligible costs for large, completed projects:
ALN 97.036
We reviewed cost documentation support for 13 completed projects with $11,269,633 in
total expenditures, and noted $4,340 in costs that were unsupported.
Criteria
For large projects, the subrecipient must make an accounting to the recipient. In submitting the
accounting, the entity is required to certify that reported costs were incurred in performance of eligible
work, that the approved work was completed, that the project was in compliance with the provisions of
FEMA-State agreement, all grant conditions were met, and that payments were made in accordance with
the applicable payment provisions.
Effect
The Department was not in compliance with the requirement to account for total costs as allowable.
Cause
The Department did not have adequate controls in place to monitor this compliance requirement.