Working with FEMA: an extension of what we do.

• Author: Genito, Michael
• Position: Management & Careers - Federal Emergency Management Agency

Whether you blame it on global warming, a large hole in the ozone layer above Antarctica, short-term meteorological weather patterns, or increasing sunspot activity, the fact remains that the last few years have brought some of the most extreme weather in history. The area where you live or work may be susceptible to one or more natural disasters such as hurricanes, tornados, floods, earthquakes, wildfires, snow and ice storms, and we are all vulnerable to man-made disasters such as chemical spills, terrorist attacks, and the like. The role of the government finance officer in dealing with disasters requires preparation before the event, support and direction during the event, and a strategy for maximizing the opportunities for recovery after the event. Thankfully, FEMA's Public Assistance Program offers a rich set of resources to assist government officials in preparing, addressing, and recovering from disasters. (1)

As this article shows, working with the Federal Emergency Management Agency is merely an extension of what we already do. And in addition to FEMA resources, we have the resources of the GFOA to get the job done.

UNDERSTANDING THE FEMA PUBLIC ASSISTANCE PROCESS

First and foremost, finance officers need a clear understanding of the FEMA reimbursement process, which involves several steps:

1. A disaster event occurs.

2. Local officials conduct a preliminary damage assessment.

3. The governor requests FEMA to conduct joint preliminary damage assessments.

4. The president issues a declaration of emergency.

5. FEMA representatives hold an applicants' briefing.

6. The local government (applicant) submits a request for public assistance.

7. FEMA representatives hold a kickoff meeting with applicants.

8. Applicants formulate their projects.

9. FEMA reviews the applicants' projects.

10. FEMA approves the applicants' projects.

11. The federal government funds approved projects.

12. Applicants receive funding as grantees.

Documentation is the key throughout the entire public assistance process--documenting what existed prior to the event, what was done during the event, and what served as the evidence of eligibility through to the end point of receiving funding from FEMA. All types of documentation, including letters, memos, invoices, receiving slips, property records, photographs, maps, plans, and audio recordings, help tell the jurisdiction's story and support its need and eligibility for reimbursement.

SIZING YOUR PROJECTS

The time and effort involved in obtaining funding may be minimized if you are able to classify the required work as a "small project," rather than a "large project" (and have FEMA approve that designation). Under the Stafford Act, FEMA must annually adjust the maximum grant amount for small projects made under section 422, Simplified Procedures, relating to the Public Assistance program, to reflect changes in the Consumer Price Index for All Urban Consumers published by the Department of Labor. The maximum grant amount allowed for a small project was recently nearly doubled to $120,000 as a result of the Sandy Recovery Improvement Act of 2013. (See Exhibit 1 for information defining small versus large projects.)

The key advantage to a small project is that the local government receives its funding for the estimated project amount when FEMA approves the project, whether the actual costs are below or above the initial estimate. If the actual costs are below the project estimate, the local government can keep the balance of funds to spend in any way it desires. Unfortunately, the opposite is also true: the local government must absorb costs that exceed the original project estimate.

If possible, governments might want to consider dividing...