The Hazard Mitigation Grant Program in Management of the FEMA Grant Section 4: Monitoring and Tracking Project Progress

The Hazard Mitigation Grant Program in Management of the FEMA Grant

Section 4: Monitoring and Tracking Project Progress

Identify information needed on reports

Prepare or review required progress reports

Review and interpret required financial reports

Identify the need for follow-up action

Required Reports

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Subgrantee State FEMA

States must submit Quarterly Financial and Progress Reports to FEMA for all HMGP projects, by project

A.State will require local governments to provide the following information:

1. Progress report on quarterly milestones

2. Status of each HMGP project (e.g. tasks accomplished, percentage of work complete, issues encountered, projected completion date)

3. Description and amount of project expenditures

B.Some States require locals to submit their reports to the State on certain dates

Quarterly Reporting

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Amount of funds obligated/date obligated

Federal funds paid to date

Specific activities achieved during the quarter

Comparison of actual accomplishments to planned objectives established in application

Reason(s) for slippage, if objectives not met

Quarterly Reporting:Key Information Required

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Analysis and explanation of possible cost overruns/underruns, scope changes or extensions

For acquisition, elevation or relocation project, include addresses and/or structures mitigated

Problems/Delays Encountered and Reasons Why

Percent of work completed

Quarterly Reporting:Key Information Required

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Deobligation. Almost all unliquidated obligations remain in FEMA disaster grant accounts

Challenge for SHMOs/Program Managers: Identify unneeded funds Recommend deobligation

Unliquidated Obligations

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Full records of all work, expenses, and

contracts must be kept at least three

years, unless a longer retention is required by other Federal or

State laws

Record Keeping

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1. Name 3 items on quarterly reports.

2. Is the statement below an adequate financial report? Why or Why not?

“We have spent $6,000,000.00. Please send $3,000,000.00 more.”

Section 4 Review

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1. Name 3 items on quarterly reports.

Answer: 1. The date and amount of funds obligated;

2. The federal funds paid to date;

3. The specific activities achieved during the quarter, accomplishments as they compare to the original schedule (and an explanation when objectives are not met on time);

4. An analysis and explanation of possible cost overruns or underruns;

5. Time extension requirements;

6. Changes in the scope of work;

7. Problems or delays encountered along with an explanation; and

8. An estimated percentage of the work completed.

Section 4 Review: Answers

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2. Is the statement below an adequate financial report? Why or Why not?

“We have spent $6,000,000.00. Please send $3,000,000.00 more.”

Answer: This statement is inadequate. There is, for example, not enough details, no itemized costs, no milestones, no mention of the total budget, no listing of expenditures to date, etc.


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Section 5: Potential Project Problems

Is this a high cost project?

Is specialized technical expertise needed?

Does the project affect many people

or businesses?

Deciding What To Monitor

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Is a wetland or watershed involved?

Is the project controversial?

Deciding What To Monitor

13http://www.co.kenosha.wi.us/plandev/conservation/wetland.html

Danger Signals: Sources

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Reports

Phone calls/letters to:Headquarters/State (FEMA

program managers)Residents/local officials

(SHMOs and POCs)

Site visits

Newspaper story or newscast

Troubleshooting

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Know the symptoms of trouble, anticipate issues and respond

Meet technical assistance needs early

Be ready with strategies to handle problems

Coordinate with your counterparts at the State or Federal levels

All projects: Changes requiring more funding (cost overruns)

Non-construction projects: Cumulative fund transfers

above 10% Transfer of training funds

Mixed construction/non-construction projects: Fund transfers between categories

Reference 44 CFR 13.30 for additional information

Budget Reallocation: When is Prior Approval

Needed?

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A. Cost overrun is an unanticipated increase in the cost of performing the specified objectives of the project/grant (e.g., increase in the cost of concrete)

B. Cost underrun is an unanticipated decrease in the cost of the performing the specified objectives of the project/grant

Cost Overruns/Underruns

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C. Cost overruns and underruns must be included in the quarterly reports

D. A procedure must be included in the State Administrative Plan to request additional funds for overruns, submission of documentation to support the additional cost, and State review and approval of requests for additional funds by the Sub Grantee


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E. All cost overruns must be identified and submitted to the State with justification for approval; in turn, the State must submit them with justification to FEMA for approval, funds permitting

F. Cost underruns should be reported timely

G. Some cost overruns may be due to a change in the scope of work which raises additional issues (see following slides)


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Changes in project scope (discussed in following slides)

Extension of period of performance

Project Changes Which Need Prior Approval

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A. Out of scope changes [are generally not allowed after project submittal deadline]

1. Change in the subgrantee2. Change in the geographic area3. Change in the type of project

B. In-Scope Changes [may be allowed, with approval]

1. Change in materials2. Changes within geographic footprint3. Inclusion of approved substitute properties

(acquisition or elevation)

Scope of Work Changes

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C. Examples of Scope of Work changes for an approved project:

1. Increasing or decreasing the number of houses in an elevation/acquisition project

2. Changing the size of replacement culvert

3. Expanding or reducing project area


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D. With acquisition and elevation, the important issue is identifying the appropriate structures in the initial application – list ones that are ‘substitutes’ for any that drop out.

E. For construction projects, the grantee must “obtain prior written approval for any budget revision which would result in a need for additional funds” (44 CFR 13 (c))


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F. The subapplicant must notify the State and FEMA as soon as significant development become known that could affect the project cost or schedule

G. A change in the scope of work must be approved by the State and FEMA in advance regardless of the budget implications


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Buying a house with HMGP funds not included in the approved SOW and without prior approval of the State and FEMA

Don’t change an elevation of a house to an acquisition without notifying the State and FEMA and receiving approval to take this action

Results of Unauthorized Scope of Work changes

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Any proposed changes to the scope, budget and work schedule (POP) must be

submitted in writing to State, and approval must be received in writing from

the State/FEMA

Remember…….

1. Provide 3 or more reasons or issues for a project to receive extraordinary (beyond normal) monitoring.

2. Suggest at least 3 sources of “danger signals” for potential project problems.

Section 5 Review

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1. Provide 3 or more reasons or issues for a project to receive extraordinary (beyond normal) monitoring.

Answer: When deciding what to monitor, and to what degree, you should consider the cost of the project; if specialized expertise is needed; and whether or not the project affects large numbers of people or businesses. In addition, you might look at the location of the project and any adverse impacts it may have on the environment or community.


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2. Suggest at least 3 sources of “danger signals” for potential project problems.

Answer: Potential project problems can be identified in: reports, site visits, news articles, phone calls or letters to the State or FEMA headquarters.


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The End

Documents

The Hazard Mitigation Grant Program in Management of the FEMA Grant Section 4: Monitoring and Tracking Project Progress