Audit

Appeal Brief Appeal Letter

Appeal Brief

DisasterFEMA-1066-DR
ApplicantCity of Oklahoma City
Appeal TypeSecond
PA ID#109-55000
PW ID#877, 886, 887, 899, 946
Date Signed2003-08-08T04:00:00
Citation: FEMA-1066-DR-OK; City of Oklahoma City; DSR 877, 886, 887, 899, 946

Cross-reference: Audit Findings

Summary: Due to a severe windstorm on July 24, 1995, Oklahoma City was awarded $2.39 million for debris removal, permanent restoration of roads and bridges, and repair or restoration of buildings, parks and recreational facilities. In late December 2001, the Office of Inspector General (OIG) conducted an audit of the City’s Public Assistance grant records to “determine whether the City expended and accounted for FEMA funds according to Federal regulations and FEMA guidelines.” The OIG finalized the report on January 31, 2002, with a finding of $365,247 in questionable costs. The City appealed the findings in a letter dated January 14, 2003. The Regional Director determined that the additional documentation supported $80,652 of the $365,247 was eligible, leaving $284,595 in ineligible costs. The City sent a second letter appealing $284,595, dated February 28, 2003. The City’s position is that the statute of limitation for audits and recovery of funds expired based on the three-year document retention requirement in 44 CFR §13.42 (b) and (c), and the Robert T. Stafford Act, Section 705.

Issues: Was the audit performed within three years after the date of transmission of the final expenditure report for the applicant?
Findings: No.
Rationale: Section 705 of the Robert T. Stafford Act Disaster and Emergency Relief Act, and 44 CFR §13.42 (b) and (c).

Appeal Letter

August 8, 2003


Mr. Albert Ashwood
Director
Oklahoma Department of Civil Emergency Management
P.O. Box 53365
Oklahoma City, OK, 73152-3365

Re: Second Appeal – City of Oklahoma City, PA ID 109-55000, Audit,
FEMA-1066-DR-OK, Disaster Survey Reports 877, 886, 887, 899, 946, and 947

Dear Mr. Ashwood:

This letter is in response to your February 20, 2003, letter forwarding the referenced second appeal on behalf of the City of Oklahoma City. The City disputes FEMA’s cost disallowance based on an audit of its grants conducted by the Office of Inspector General (OIG) in late 2001 and issued January 31, 2002. The amount in question is $284,595.

The City stated that the OIG conducted its audit more than three years after its grant application was closed. 44 CFR §13.42 (b) and (c) require grant recipients to maintain records for three years after its last expenditure report. In addition, FEMA is precluded from recovering funds more than three years after the final expenditure report, as set forth in Section 705 of the Robert T. Stafford Disaster Relief And Emergency Assistance Act (Stafford Act.) Therefore the City believes that FEMA should restore funding.

The City’s three–year record retention requirement ended in 2000. Based on this evidence, I conclude that the OIG audit performed in 2001 was outside of the retention period, and accordingly, the City is entitled to the remaining $284,595 of assistance. Therefore, I am approving the appeal. By copy of this letter, I am requesting the Regional Director to implement my decision.

Please inform the applicant of my decision. My determination constitutes the final decision on this matter pursuant to 44 CFR §206.206.

Sincerely,

/S/

Laurence W. Zensinger
Acting Director, Recovery Division
Emergency Preparedness and Response Directorate
Department of Homeland Security

Enclosure

cc: Gary Jones
Acting Regional Director
Region VI
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