National UASI Homeland Security ConferenceMay 24, 2012 in Columbus, Ohio

Presented ByMeghan Dudley, NYS Federal Grant Program SpecialistEdward Donoso, NYC Federal and State Grants

MANAGING YOURDHS OIG AUDIT Best Practices and Lessons Learned fromNew York State and New York City

Topics

Inspector General Audit: The NYS and NYC Approach

Background on NYC Urban Area and Major Programs

Active Engagement

Develop Unified Message

Continued Advocacy

Questions and Answers

OIG Audit: The NYS and NYC Approach

CONTINUOUS ADVOCACY

ACTIVE ENGAGEMENT

UNIFIED MESSAGE

Proactive Approach

Prepare & Share Info

Involve the Right People

Scope Timeline Advocacy

OIG Audit: The NYS and NYC Experience

– HSGP FY06 to FY08

– $565 Million in Grant Funds

– Audit Begins: December 2009

– Final Report Issued: January 2011

– Recommendations: Being Addressed

– During the audit, NYC and NYS worked together to review audit opinions, to clarify issues and provide follow-up information to address them

– After the audit, we have continued to work together to resolve any issues

Background

NYC Top DHS Funded Programs

NYC PROGRAM

NYPD / Law Enforcement The Domain Awareness System

EOC: Joint Operations Center

Public Safety Operations

FDNY / Fire Service Core Competency Training, NIMS

Communications and Situational Awareness

OEM / Emergency Management Citizen Preparedness ProgrammingCatastrophic Planning

Public Safety Communications Voice, Data and Wireless Communications Systems

Public Health Outbreak Detection, Fatality Mgmt.

Active Engagement

NYC Urban Area Working Group

NYC Urban Area Web Portal

Joint Workshops

Single Voice on Communication

Nassau County, New York City, Suffolk County, Westchester County, Yonkers, PANYNJ and the MTA hold monthly meetings

Representatives from NYS, DHS and FEMA also attend.

Regional Workshops

State Preparedness Report Workshop

Target Capabilities Workshop

Grant Requirements

Authorized Equipment List

DHS Information Bulletins

Other Federal and State Links

FEMA Policies

Measurement Tools

Strategy and SPR

IG Audit

Who is Involved During an IG Audit AGENCY ROLE

NYS Department of Homeland Security and Emergency Services

– SAA of the Homeland Security Grant Programs (SHSP, UASI and LETPP) for the New York region

– Fiscal Monitoring Unit

NYC Office of Management and Budget, Criminal Justice Coordinator’s Office, and Audit Oversight agency (Operations)

– Coordinate OIG Audit preparation, visit and follow-up

– Clarify issues

– Coordinate responses with NYC agencies

– Work with NYC agencies to ensure corrective actions are taken

City Agencies – Meet with IG team, provide supporting documentation and clarify issues

– Audit, Legal and Grant staff prepare responses to audit questions

– Implement any corrective actions

Ensuring Compliance

– The City’s Homeland Security Grant Program (HSGP) is coordinated and managed centrally

– The central oversight team coordinates Quarterly Reporting processes, flags issues and reviews expenditures that are being claimed

– Detailed Project-based reports are submitted each quarter to NYS

– We developed and implemented an inventory system to ensure compliance with federal inventory management requirements

– We prepared and distributed a Grants Policies and Procedures guide outlining the grant requirements

Ensuring Compliance cont.

– We coordinate ongoing NYS site visits and work with our agencies to respond to each report

– We communicate information on the grants to our agencies through ongoing communications

– We use our Urban Area Web Portal and the Help Path on our Inventory System website to post grant requirements, DHS Info Bulletins, and the NYS contracts   

– We coordinate the Single Audit Sampling of Homeland Security grant program activity

NYS Fiscal Monitoring Unit

– Perform ongoing site visits, audit sampling and reviews

– Provide on-going fiscal oversight and fiscal monitoring of Homeland Security grants

– Help ensure that grantees are expending funds in accordance with State and Federal guidelines

– Inform grantees of fiscal compliance requirements

– Ensure grantee compliance with OMB Circular A-133

– Work with grantees to help detect and prevent fraud and abuse

– Provide technical advice and training to grantees

Grant Tracking System

Problem

Agencies were procuring a large number of assets under Department of Homeland Security grants and needed a consistent method to track them.

Program Management

A Mayoral project team was set up to oversee the process, define requirements, and ensure compliance with local, state and federal regulations.

Outcome

GTS allows users to Tag, Verify and Report on DHS Equipment

GTS Records the location of each asset and each person the asset is assigned to

10+ City agencies use GTS today

Over 5,000 assets have been entered into the system

Enhancements are being made to meet new needs and requirements

Federal Reporting Requirements

– Site fields and forms were mapped to the Federal Reporting Data Elements

– All Federal Grant Common Rule Requirements (Inventory Data Collection, Physical Inventory and Control System Requirements) are captured by GTS

Develop AUnified Message

Audit Findings

Recommendations covered the following areas:

– Strategy/Performance Measurement

– Sustainment Plans

– Grant Inventory Requirements

– Contracting Process

– Procurement

– Overtime Model

Generally, the State did an efficient and effective job of administering program requirements in accordance with grant guidance and recommendations

--OIG Auditors

“ “

Response to Draft Audit

Exit Conference (October 2010)

– NYS/NYC participated

– We worked together to prepare feedback in advance

– Review of each draft recommendation made by OIG

Revised Draft Report issued (November 2010)

– OIG made minor revisions to report after Exit Conference

Final Report Issued (January 2011)

– Final report included detailed written rebuttal from NYS/NYC

ContinuedAdvocacy

Best Practices

IMPLEMENT AN EFFECTIVE LONG-TERM PHILOSOPHY ON GRANTS– Transparency, Accountability and a Single Voice on Communications

will make “Audit Time” much easier!

PULL TOGETHER THE “RIGHT” TEAM OF EXPERTS– Engage your Executive Staff

PROACTIVELY PREPARE FOR YOUR AUDIT– Educate the Audit Team

PREPARE RESPONSE TO ALL AUDIT RECOMMENDATIONS– Draft a comprehensive response to the Audit and ensure that it is

included in the final Audit Report

USE AUDIT RECOMMENDATIONS TO DRIVE NEEDED CHANGE– Audit findings can be a catalyst for positive change (e.g. Focus on

particular issues and gaps)

Trends from Other OIG Audits

Review of 26 other States’ Audits found:

–Strategies lacked SMART Objectives (19 states)

–Reimbursement/Payment Issues (17 states)

–Issues with Grant “Basics” (16 states)

–Need for Sustainment Plans (11 states)

–Need for System to Measure Progress (9 states)

We are all dealing with many of the same issues!

Beyond the Audit: The Bigger Picture

Homeland Security Strategies

– DHS last released guidance on updating Strategies in 2005

– DHS and OIG not consistent in communication on strategies

How can we work together with FEMA to develop guidance for updating our Strategies, with the “SMART” principle in mind?

How can we work together with FEMA to showcase the accomplishments we’ve made with grant dollars?

Capability Assessments

– Congress, OIG, and others are looking to measure the impact of federal grant funds

– TCL has been replaced with the new Core Capabilities (and Presidential Policy Directive #8)

Nationwide, we are still struggling with issues identified in numerous OIG Audits

Biography

Edward Donoso works at the NYC Office of Management and Budget. At OMB, Ed’s team administers various Federal and State programs, including the Homeland Security Grants, the federal stimulus grants, and FEMA Public Assistance Programs. Prior to joining NYC OMB in 2005, Edward worked as an operations analyst for over 5 years at Credit Suisse, a global investment bank. Edward holds a B.A. in Business Administration, and a Masters in Public Administration from Metropolitan College of New York.

Edward DonosoFederal and State Revenue Unit Head NYC Office of Management and BudgetTelephone: 212.788.6673Email: donosoe@omb.nyc.gov

Biography Meghan Dudley is a Grants Specialist for the Office of Counter-Terrorism (OCT) within the New York State Division of Homeland Security and Emergency Services (DHSES).  Meghan has been with DHSES for approximately 6 years and her job responsibilities include coordinating the State’s SHSP Investment Justification submission, overseeing several specialty grants (e.g. HazMat, Bomb Squad) that DHSES supports, and serving as a programmatic liaison to the New York City UASI region. Prior to joining DHSES, Meghan received her Master’s Degree in Political Science from the SUNY Rockefeller School of Public Affairs and Policy.

Meghan Dudley Federal Grant AdministratorOffice of CounterterrorismNYS Division of Homeland Security and Emergency Services Telephone: 518.242.5105Email: MDudley@dhses.ny.gov