Item H2
BOARD OF COUNTY COMMISSIONERS
AGENDA ITEM SUMMARY
Meeting Date:
7/14/2004
Division Management Services
Bulk Item: Yes
No~
Department: OMB
AGENDA ITEM WORDING:
Request for approval to refund de-obligated costs of $58,682.50 from disaster -1259 (Tropical Storm
Mitch) to The Florida Department of Community Affairs as per Audit Report E-06-03 Office of The
Inspector General. (See Attached)
ITEM BACKGROUND: ** The Office ofthe inspector General audited public assistance funds
awarded to Monroe County, The audit was performed in order to determine whether the County
accounted for and expended funds according to Federal regulations and FEMA guidelines, The County
received $2.6 million from The Florida Department of Community Affairs, a FEMA grantee, to
remove debris and provide emergency protective measures as a result of Tropical Storm Mitch, Result
of the audit questioned costs of$66,308 (FEMA share = 75% or 49,731) + (DCA share = 12,5% or
$8,288,50) resulting from excessive debris removal charges and a mathematical error,
PREVIOUS RELEVANT BOCC ACTION:
None
CONTRACT/AGREEMENT CHANGES:
None
STAFF RECOMMENDATIONS: Staff recommends approval for payment of de-obligated funds as
a result of Audit findings,
TOTAL COST
$58,682,50
BUDGETED: Yes
No X
COST TO COUNTY:
$58,682,50
SOURCE OF FUNDS:
REVENUE PRODUCING: Yes
No
AMOUNTPERMONTH_ Year
DIVISION DIRECTOR APPROVAL:
OMB/Purchasing _ Risk Management _
~kert?~
(TYPE NAME HERE)
APPROVED BY: County Atty _
To Follow_
Not Required_
DOCUMENTATION:
Included X
DISPOSITION:
AGENDA ITEM #j\'d-
Federal Emergency Management Agency
Office ofInspector General
Eastern District
3003 Chamblee-Tucker Rd
Atlanta, GA30341
November 14,2002
-v t''''-''\
C C':::-'
tr, c.;:';: ::'i:;
r '-'-.'
c;. ,~? :n
;u;"j
~3~, '.') r...
.. ,
u.' -_J en
u- --
--' :r;'" .lIe.:.:
">. --.-~
r ....::,. rn
-;.~: 9
c", 0
rr.
c:: 0)
_C'" ('.J
--
:::i
MEMORANDUM FOR:
Kenneth 0, Burris, Jr.
~OnaIDirect~~_
d~ -
Eastern District Audit Manager
FROM:
SUBJECT:
Monroe County, Florida
FEMA Disaster 1259-DR-FL
Audit Report No. E-06-03
The Office of Inspector General audited public assistance funds awarded to Monroe
County, Florida. The objective of the audit was to determine whether the County
accounted for and expended FEMA funds according to Federal regulations and FEMA
guidelines.
The County received an award of $2.6 million from the Florida_ Department of
Community Affairs, a FEMA grantee, to remove debris and provide emergency
protective measures as a result of Tropical Storm Mitch in November 1998. The awarded
provided 75 percent FEMA funding for 1 large project and 2 small projects! We limited
our review to the $2,603,676 -awarded and claimed under the l.large project (No. 00111).
The audit covered the period November 1998 to May 2001. During this period, the
County received $1,965,965 ofFEMA funds under the large project.
We performed the audit under the authority of the Inspector General Act of 1978, as
amended, and according to generally accepted government auditing standards: The audit
included tests of the County's accounting records, a judgmental sample of expenditures,
and other auditing procedures we considered necessary under the circumstances.
RESULTS OF AUDIT
The County's claim included questioned costs of $66,308 (FEMA share $49,731)
resulting from excessive debris removal charges and a math error.
1 According to FEMA regulations, a large project costs $47,100 or more and a small project costs less than
$47,100.
A. Excessive Debris Removal Charges. The County's claim included $57,308 of
excessive debris removal charges, as follows:
. The contractor billed the County for 47 cubic yards of debris per load for Truck
No. 82 when the maximum capacity for the truck, according to the Trailer
Capacity Measurements List, was 43 cubic yards. As a result, the County paid the
contractor and charged the FEMA project with excess debris removal costs of
$48,433 (712.25 loads x 4 cubic yards x $17 per cubic yard). Accordingly, we
question these- charges.
. The County's claim of$86,010 for disposal of 1,389 tons of debris was overstated
by $8,875. The claim was based on a rate of $61.93 per ton, a contract rate
provided for processing the County's non-disaster related debris, The contract
rate for disaster~related debris, however, was $55.54 per ton, or $6.39 per ton less.
Accordingly, we question the excess charges of $8,875 (1,389 tons x $6.39 per -
ton).
B. Mathematical Error, The County received an overpayment of $9,000 due to an error
made by the FEMA inspector during fmal inspection of the project. The math error
resulted in the County being reimbursed for costs of $2,603,676 when actual costs
totaled $2,594,676, or $9,000 less. Accordingly, we question the $9,000
overpayment.
RECOMMENDATION
We recommend that the Regional Director, in coordination with the grantee, disallow the
$66,308 of questioned costs.
DISCUSSION WITH MANAGEMENT AND AUDIT FOLLOW-UP
We discussed the results of our audit with FEMA officials on August 14, 2002, and with .
County and grantee officials on August 16. 2002. County officials concurred with our -
findings.
Pursuant to FEMA, Instruction 1270.1, please advise the Eastern District Audit Branch
by January 14, 2003, of actions taken to implement our recommendation. Should you
have any questions concerning this report, please contact me or David Kimble at
(770) 220-5242.
2
- ~-:.--'.~~_-r~
0>
c
:g
::J
o
()
()
<(
06
Q)
u
c
ro
c
u::
E
o
L0-
LL
...I
~
C
W
W
"'"
~
C?
a:l
:;:)
In
~
,..
~
:J:
g
::E
~
I()
(II
'I'"
"--~.:JJ~~~~~ ".~~~~~~~:F:~~~~~~~~~~~~~~-i.~?i~~~~:.;:: -.....---_-_~..-.
8
~
co
o
'III
ci
=<
Do
~
9
S!~
r-.....
0>.....
~$~
8~.....
m~*
u.OSCl
!'III:a.
_tsU
.. ~ c
o UI
"0
C 0
~u
~
..,.
o
!
W
~ 00
~~~g
~Zn::M
ti>::lW-I
caoClLl.
:JO~",:
IIlW-IeIl
>OOW
>a::O~
Zo>-
oow
:E1O~
w
o
~~
:nIX!
gggg88888
~~~~~~~gg
..,.-qo..,.-qotOCOCOCOCO
0> a>ooo> 0> a> COCO
COCOO>OlCOCDCDNN
NNNMM
88gggggggggggggggg:
, , . . , . , . . . . . , . . . , , ':
~o~~~~~~~~~~~~~~~~E
.q ~~~~~~~~~~~~~~~~:
co CO CO comcoco comcoCDCO CO CD CD CD coi
(') ,., -, -T . , -T , I I I -. -, -rr I
888888888888888888: 8
~ ~ ROgO~~N<"i~dd dttctctcttt;:ililittctlililictttctl #,
ii2~t - ..... t:lj-qo~~Ol M(')C")C")C")(')(')C")(')(")(')l")(')M(')M: (')
w t N or) tgg:x5~ oggggg:jifggggggggg: g
o I m N. ~ N ..... NU;>' I I . , , . . "I I . . I , ': I
WIX! t
~ t
(1)1 i g
01 E d
Z t E
~ 1 t
w: ·
0::: i
i 88 i 8
1 ~~ . ~
I g~ I ~
Iwl N f M
~~E t
Z "'" E 1
W(I): 1
:e t 8 0 00 00 · 0
~ 1 d ~ ~:B ~~ 1 00,
..... : ..... Ol NCO 1010 i co
1 ~ i i ~ ~i ii i ~
ffii i N
o i E
~ t t
i~ 8 ~ 8 S .
:'d cO i~
::e ..,. ~ ~ co : r-
o i"". 0> N V' N .1:;
~ i m s! ~ of i ~-
~ W t 1 C")
~~! i
~ ~ I i
:;) t 8 8 8 ~ 8 : 8
o Eo co) ~ 10 li :
ffi..Ji~ ~..;:ci- ~ j ~
i aH ~ 5 ~ ~ i g
~i i
u. t 1
u. i
01
~l
0::;
We
tOE
0::.
f
.
.
. .
r...r....
pp
.
; ~
I ~
.
.
u..
o
t
t
u..
o
:
CO)
~ !8 ii8 ~~~8~
8 8 0;; ~8g8~
o>->t"f>>(')>>>>""
'It-'ltN'ltM""=lI:lOlOtO<D=lI:
a.=lI:a. 'Ita. =lI:'lIoa. 'It'llo'll:'It a.
a.>-a.>-a.>->-a.>->->->-a.
~~iiL~~~~~~~~~~
.
t
E
: ^
I ~
j~
: 0
E l-
E
E
;
1
f
t
.
t
1~~0l0>0lCD81QOOOO(,,)
WE ,\ o~t%~:l.1:'t't~~~
~i ~~~<(~ii'~~o~~~~
Q: ..,j.N~<">~..t~~~Lbob.ocb
iON .., T"" ...... N ...... 0 'r'" ..... .... ""* N
t
.
.
E
1
e
.
I I j i
~:Ifi
~ff!f
glli~
g::::
.. .. ... ..
LI.. : : ; :
or:!:
oE:.:
ffi : f : :
! : E f
c : t "
tiE :
o
If}
<0
a)
N
a?
Ul
o
ZW
~~
ent?
i w
.O..J
i 5ffi
;- ~ Q
! en ~
I (I)
i ~
E W
1 c
.
: W
! ~
i ~
i I
: I
I ~
;..j:IE
i ~ ~
f w q.
. 0 I
. LLI I
E u. I
E
:
1
.
:w
i !;;: I
: "'" I
10m
: 0
i ~
I en
. :IE
i~B
: ffiz
Ifill
1 u. I
:
:
E
i
:
1
:
I
:
:
.
.
:
.
.
.
.
i
E
i
.
DATE: 05/18/2004
TIME: 03: 12PM
PAGE: 1
FEDERAL EMERGENCY MANAGEMENT AGENCY
P.2 - PROJECT APPLICATION SUMMARY
DISASTER #: 1259
P,A. ID: 087-00000 APPLICANT: MONROE COUNTY
SUPPLEMENT NO.: 4
PROJECT
DSR # CAT COMPL DATE
APPROVED
DSR AMOUNT
PROJECT DESCRIPTION
37569
G
02/05/2003
$-66,308.00
PROJECT TITLE:
DAMAGE DESC:
DEOBLIGATION OF FUNDS
DEOBLIGATE FUNDS BASED ON RESULTS OF OIG AUDIT E-06-03_
CAT: G
1 DSRS)
$-66,308.00
$-49,731. 00
ELIGIBLE
75 % FEDERAL SHARE
GRAND TOTAL:
1 CATEGORIES
1 DSR (S)
DSRs:
SUBGRANTEE ADMIN:
TOTAL:
ELIGIBLE
$-66,308.00
$-663.00
$-66,971.00
75 % FEDERAL SHARE
$-49,731. 00
$-663,00
$-50,394.00
GRANTEE ADMIN:
$-504,00
ALL INSURANCE COMMITMENTS, WHERE APPLICABLE, HAVE BEEN SECURED AND ARE PART OF THE FILE
ALL PROJECTS ARE IN COMPLIANCE WITH SECTION 405 OF P,L, 93-288
RECOMMENDED BY:
PUBLIC ASSISTANCE OFFICER
DATE:
APPROVED BY:
DISASTER RECOVERY MANAGER
DATE:
DATE: 05/18/2004
TIME: 03:39PM
APPLICANT NAME -
MONROE COUNTY
PROJECT TITLE -
DAMAGED FACILITY -
DEOBLIGATION OF FUNDS
LOCATION -
DAMAGE DESCRIPTION AND SCOPE OF ELIGIBLE WORK:
FEDERAL EMERGENCY MANAGEMENT AGENCY
DAMAGE SURVEY REPORT
PART I - PROJECT DESCRIPTION
DEOBLIGATE FUNDS BASED ON RESULTS OF OIG AUDIT E-06-03,
AGENCY
RECOMMENDATION BY INSPECTOR
------------------------------------------
------------------------------------------
FEDERAL -
STATE -
LOCAL -
METCALF, CONEY B, JR,
ITEM
CODE
MATERIAL AND/OR DESCRIPTION
FEMA
PART II - ESTIMATED COST OF PROPOSED WORK
UNIT
1
9999
DEOBLIGATE FUNDS
============================================================
LS
COUNTY - MONROE
INSPECTION DATE:
DISASTER NO:
P.A,ID
CATEGORY
It COMPLETE
WORK ACCOM BY:
QTY
UNIT PRICE
1. 00
DSR NO:
SUPP TO DSR:
02/04/2003
1259
087-00000
G
o
FORCE ACCT CONT
COST
$-66,308.00
TOTAL:
AMOUNT ELIGIBLE:
75 It FEDERAL SHARE:
IN OR AFFECTS FLOOD-
PLAIN OR WETLAND:
PART III - FLOOD PLAIN MANAGEMENT/HAZARD MITIGATION REVIEW
FLOODPLAIN It DAMAGE DISASTER LAND USE
U - D
LOCATION:
AMOUNT
$-66,308
ELIGIBLE
Y
HISTORY:
PART IV - FOR FEMA USE ONLY
SPECIAL CONSIDERATIONS
M1S1F1
FLOODPLAIN REV, NO.
FPM RECOMMEN-
DATION:
WORKSITE
DSR NO: 37569
37569
$-66,308
$-66,308
$-66,308
$-49,731