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Audit Report No. E-28-98

Appeal Brief Appeal Letter

Appeal Brief

DisasterFEMA-0967-DR
ApplicantMississippi University For Women
Appeal TypeSecond
PA ID#000-92012
PW ID#09259,09790
Date Signed1999-08-17T04:00:00
Citation: FEMA-0967-DR-MS, P.A. 000-92012, Mississippi University for Women, DSRs 09259 and 09790, Audit Report No. E-28-98,

Cross-reference: Duplication of Benefits

Summary: Severe storms in October 1992 damaged buildings and grounds at the Mississippi University for Women (MUW). As a result, Damage Survey Reports (DSRs) were written for debris removal, emergency protective measures, and restoration projects. Public assistance funds awarded to MUW were audited and the results reported in Audit Report No. E-28-98. Finding A of this report stated that with regard to DSRs 09259 and 09790, MUW was not entitled to receive FEMA funding as it would result in a duplication of benefits. These projects were funded through the university's plant fund and the Mississippi Bureau of Building, Grounds and Real Property Management (Bureau), which received proceeds from the sale of State bonds. FEMA deobligated $562,440 (the amount paid by the Bureau), stating that FEMA reimbursement would result in a duplication of benefits. MUW received time extensions to file an appeal, which was submitted March 15, 1999. MUW argued that there was no duplication of benefits and "MUW used its own funds for all storm related repairs," as monies used by the Bureau to pay for the two projects in question were authorized by the Mississippi Legislature for use at MUW.

Issues: Was financial assistance from another program or another source used to fund DSRs 09259 and 09790, thereby constituting a duplication of benefits if FEMA were to fund these projects?

Findings: No.

Rationale: Stafford Act Sec. 312(a)

Appeal Letter

August 17, 1999

James E. Maher
Governor's Authorized Representative
Mississippi Emergency Management Agency
1410 Riverside Drive
Jackson, MS 39296-0450

Re: Mississippi University for Women, Audit Report No. E-28-98, FEMA-0967-DR-MS, DSRs 09259 and 09790

Dear Mr. Maher:

This is in response to referenced appeal forwarded by your office on March 16, 1999. As a result of severe storms in October 1992, public assistance funds were awarded to the Mississippi University for Women (MUW). FEMA's Office of the Inspector General conducted an audit of these funds and reported its results in Audit Report No. E-28-98. Finding A of this report questioned Damage Survey Reports (DSRs) 09259 and 09790, which were prepared for repairs to the Callaway clock tower and building and the Orr building.

The audit report indicated that FEMA funding would result in a duplication of benefits with regard to these DSRs. Accounting and tracking system records showed that the Mississippi Bureau of Buildings, Grounds and Real Property Management (Bureau) paid $564,825 for repairs to the Callaway and Orr buildings following the disaster. The Bureau used monies from the sale of State bonds, which were issued by the Mississippi Legislature to finance repairs. The audit finding questioned MUW's claim for two reasons: 1) another State entity, the Bureau, incurred the repair costs, and 2) the funds came from another source, the bonds. As a result of the audit report, FEMA deobligated $562,440.

According to MUW, the Mississippi Legislature annually issues bonds to the State of Mississippi for "construction, repairs and renovations" at eight institutions of higher learning. Proceeds from the sale of State bonds are designated for these individual institutions and are expended through the Bureau. The Bureau is authorized to "erect buildings, make repairs, additions or improvements."

MUW submitted an appeal on March 15, 1999, which claimed that there was no duplication of funding. MUW explained its relationship with the State Institutions of Higher Learning (IHL) and the Bureau. As described, the Bureau receives funds from the Mississippi Legislature, which are to be expended at the eight institutions of higher learning governed by IHL, including MUW. With regard to DSRs 09259 and 09790, MUW paid for a portion of these projects through its plant fund and the remaining $564,825 came from "bond proceeds specifically designated for MUW."

MUW explained the difference between Senate Bill (SB) No. 3057 and House Bill (HB) No. 1613. As evidenced, appropriations from SB 3057 (issued prior to the disaster) were used to fund DSRs 09259 and 09790. Following the disaster, HB 1613 designated monies for storm damage repairs. HB 1613 was used to finance repairs unrelated to the Callaway clock tower and building and the Orr building. In earlier correspondence there appeared to be confusion regarding which bill actually funded repairs. However, whether funds came from SB 3057 or HB 1613 is inconsequential, as explained below.

Section 312 of the Stafford Act states that an entity is not entitled to FEMA assistance when it has received financial assistance for the same loss from any other program or source. According to 44 CFR 206.222(a), State governments are eligible applicants for public assistance funding. Even though various agencies within a State government are treated independently for administrative purposes, the State government itself is the single eligible applicant. In this case, MUW and the Bureau are each agencies of the State of Mississippi. The bond funds are the State's own funds, and did not come from another program or source. The State government did incur costs for repairs detailed on DSRs 09259 and 09790.

In this case, there was no duplication of benefits. Therefore, the appeal is granted. Please inform the applicant of my determination. By copy of this letter I am asking the Regional Director to prepare and approve a DSR for $562,440. In accordance with 44 CFR 206.206, my determination constitutes the final decision on this matter. The current procedure was published as a final rule in the Federal Register on April 8, 1998, and governs appeal decisions made on or after May 8, 1998.

Sincerely,

/S/

Lacy E. Suiter
Executive Associate Director
Response and Recovery Directorate

cc: John B. Copenhaver
Regional Director
FEMA Region IV