Department of Homeland Security 2IÀFH RI ,QVSHFWRU *HQHUDO · 2016-05-12 · Department of...
12
Department of Homeland Security 2IÀFH RI ,QVSHFWRU *HQHUDO FEMA Should Recover $985,887 of Ineligible and Unneeded Public Assistance Grant Funds Awarded to Cobb County, Georgia, as a Result of Severe Storms and Flooding OIG-14-124-D August 2014
Transcript of Department of Homeland Security 2IÀFH RI ,QVSHFWRU *HQHUDO · 2016-05-12 · Department of...
Department of Homeland Security2IAgraveFHRIQVSHFWRUHQHUDO
FEMA Should Recover $985887 of Ineligible and
Unneeded Public Assistance Grant Funds Awarded to Cobb County Georgia as a Result of Severe
Storms and Flooding
OIG-14-124-D August 2014
OFFICE OF INSPECTOR GENERAL Department of Homeland Security
Washington DC 20528 wwwoigdhsgov
August 7 2014
MEMORANDUM FOR Andrew Velasquez III Acting Regional Administrator Region IV
Federal Emergency Management Agency
FROM John V Kelly Assistant Inspector General Office of Emergency Management Oversight SUBJECT FEMA Should Recover $985887 of Ineligible and Unneeded
Public Assistance Grant Funds Awarded to Cobb County Georgia as a Result of Severe Storms and Flooding
FEMA Disaster Number 1858-DR-GA Audit Report Number OIG-14-124-D We audited Public Assistance funds awarded to Cobb County Georgia (County) (FIPS Code 067-99067-00) Our audit objective was to determine whether the County accounted for and expended Federal Emergency Management Agency (FEMA) funds according to Federal regulations and FEMA guidelines
The County received a Public Assistance grant award of $77 million from the Georgia Emergency Management Agency (Georgia) a FEMA grantee for damages resulting from severe storms and flooding which occurred in September 2009 The award provided 75 percent FEMA funding for debris removal emergency protective measures and permanent repairs to buildings and facilities The award consisted of 32 large projects and 184 s mall projects1 We audited 12 large and 19 small projects with awards totaling $30 million (see Exhibit Schedule of Projects Audited and Questioned Costs) The audit covered the period September 18 2009 to June 21 2013 during which the County incurred $26 million in costs for the projects reviewed At the time of our audit the County had completed work on all large projects included in our scope but had not submitted a final claim to Georgia for all project expenditures Table 1 shows the gross and net award amounts before and after insurance reductions for all projects and for those in our audit scope
1 Federal regulations in effect at the time of disaster set the large project threshold at $64200
OFFICE OF INSPECTOR GENERAL
Department of Homeland Security
Table1GrossandNetAwardAmounts
GrossAward Insurance NetAward
Amount Reductions Amount AllProjects $10508786 ($2775426) $7733360 AuditScope $2999170 ($7813) $2991357
SourceFEMAProjectWorksheets
WeconductedthisperformanceauditbetweenJanuary2014andJune2014pursuantto theInspectorGeneralActof1978asamendedandaccordingtogenerallyaccepted governmentauditingstandardsThosestandardsrequirethatweplanandperformthe audittoobtainsufficientappropriateevidencetoprovideareasonablebasisforour findingsandconclusionsbaseduponourauditobjectiveWebelievethattheevidence obtainedprovidesareasonablebasisforourfindingsandconclusionsbaseduponour auditobjectiveToconductthisauditweappliedthestatutesregulationsandFEMA policiesandguidelinesineffectatthetimeofthedisaster WeinterviewedCountyGeorgiaandFEMApersonnelgainedanunderstandingofthe CountyrsquosmethodofaccountingfordisasterͲrelatedcostsanditsprocurementpolicies andproceduresjudgmentallyselectedandreviewed(generallybasedondollar amounts)projectcostsandprocurementtransactionsfortheprojectsincludedinour reviewreviewedapplicableFederalregulationsandFEMAguidelinesandperformed otherproceduresconsiderednecessarytoaccomplishourauditobjectiveAspartofour standardauditingprocedureswealsonotifiedtheRecoveryAccountabilityand TransparencyBoardofallcontractsthesubgranteeawardedunderthegrantto determinewhetherthecontractorsweredebarredorwhethertherewereany indicationsofotherissuesrelatedtothosecontractorsthatwouldindicatefraudwaste orabuseAsofthedateofthisreporttheRecoveryAccountabilityandTransparency BoardrsquosanalysisofcontractswasongoingWhenitiscompletewewillreviewthe resultsanddeterminewhetheradditionalactionisnecessaryWedidnotperforma detailedassessmentoftheCountyrsquosinternalcontrolsapplicabletoitsgrantactivities becauseitwasnotnecessarytoaccomplishourauditobjective
wwwoigdhsgov OIGͲ14Ͳ124ͲD 2
OFFICE OF INSPECTOR GENERAL
Department of Homeland Security
RESULTSOFAUDIT
FEMAshouldrecover$985887ofthe$77millioningrantfundsawardedtothe CountyAlthoughtheCountyaccountedforFEMAfundsonaprojectͲbyͲprojectbasis theCountyrsquosclaimincluded$557943ofprojectcoststhatinsurancecoveredWealso identified$427944ofunneededprojectfundingthatFEMAcandeobligateandputto betteruseFinallytheCountydidnotincludeallrequiredcontractprovisionsin contractsitawardedfordisasterworkanddidnotadheretotheSingleAuditAct requirements FindingACostsCoveredbyInsurance TheCountyclaimed$557943induplicatebenefitsforcoststhatitsinsurancecovered Section312oftheRobertTStaffordDisasterandEmergencyAssistanceActas amendedstatesthatnoentitywillreceiveassistanceforanylossforwhichithas receivedfinancialassistancefromanyotherprograminsuranceoranyothersource AtthetimeofourfieldworkFEMAhadnotconductedafinalreviewofinsurance proceedstheCountyreceivedfromitsinsurancecarrierAsaresultFEMAwasunsure oftheamountofinsuranceproceedsitshouldapplytoadjustobligatedproject amountsFederalagenciesmustincreaseordecreaseobligatedfundswhenprobable andmeasurableinformationbecomesknown2 WereviewedtheCountyrsquosinsurancepolicyscheduleofvaluesandsettlement statementthatidentifiedthelocationofdamagescontractorstheCountyusedinvoice amountsandamountsinsurancepaidBasedonouranalysisofthisinformationwe identified$557943ofinsurancecoveragethatFEMAhadnotappliedtoreduce approvedprojectcostsThereforewequestionthe$557943asshownintable2
2GovernmentAccountabilityOfficeͲPolicyandProceduresManualsect35DBͲ300480April92003and StatementofFederalFinancialAccountingStandards(SFFAS)Number5paragraphs192425and29
wwwoigdhsgov OIGͲ14Ͳ124ͲD 3
OFFICE OF INSPECTOR GENERAL
Department of Homeland Security
Table2ProjectCostsThatInsuranceProceedsCovered
Project Number
DescriptionofDamages
Amount Questioned
373 MariettaCityLibraryndashWaterExtraction $2008 374 SweetwaterTennisCenterndashSidingDrywall 1910 862 WindyHillSeniorCenterndashWaterExtraction 4323 883 MountainViewLibraryndashWaterExtraction 2435
1081 PowderSpringsParkConcessionBuilding 15394 1082 SweetwaterTennisCenterͲContents 4934 1354 NWPlantndashFenceandTree 1270 1355 NWPlantndashWastewaterControls 3879 1358 CountyLinePumpStationͲSubgrade 2002 1563 NWPlantndashGirtChambers 43910 1573 RLSuttonͲUVLightingSystemReplacement 234068 1580 RLSuttonndashScumSystem 26182 1622 SixFlagsPumpStationRepair 58119 1705 DebrisRemovalndashEastCobbPark 15644 1748 CobblestoneGolfCoursendashvariousrepairs 11600 2102 NoondayCreekParkSandRemoval 9455 2111 DebrisRemovalͲPowderSpringPark 5065 2114 FullersParkFootballFieldRepairs 1400 2165 PowderSpringsParkͲAthleticFieldRepairs 51625 2167 PowderSpringsSwimmingPoolRepairs 62720
Total $557943
SourceFEMAProjectWorksheetsCountyRecordsandOIGAnalysis AttheexitconferenceCountyofficialspartiallydisagreedwiththisfindingsayingthat theybelievetheamountwillbelesswhenGeorgiareviewstheCountyrsquosclaimand appliestheproceedsatprojectcloseoutHoweverourpositionremainsunchanged becausewebasedourfindingoninsurancedocumentationtheCountyprovidedtous FindingBFundsPutToBetterUse FEMAshoulddeobligate$427944ofprojectfundingandputthosefundstobetteruse becausetheCountynolongerneedsthefundingtocompleteprojectworkFederal appropriationslawsandtheStatementofFederalFinancialAccountingStandards (SFFAS)requireFederalagenciestorecordobligationsintheaccountingrecordsona
wwwoigdhsgov OIGͲ14Ͳ124ͲD 4
OFFICE OF INSPECTOR GENERAL
Department of Homeland Security
factualandconsistentbasisthroughoutthegovernment3Theoverrecordingand underrecordingofobligationsareequallyimproperasbothpracticesmakeitimpossible todeterminetheprecisestatusofFederalappropriationsWhenthepreciseamountis notknownatthetimethattheobligationisincurredagenciesappropriatelyrecordan obligationbasedonthebestestimateatthetimeAgencieshowevermustperiodically adjustthatobligationasmoreprecisedataontheliabilitybecomeavailableThatisthe agencymustincreaseordecreaseobligatedfundswhenprobableandmeasurable informationbecomesknownAgenciesmustdocumentboththeinitialrecordingsand theadjustmentstorecordedobligations UnderProject1573FEMAobligated$552051toreplacetheultravioletlightingsystem attheRLSuttonfacilityTheCountycompletedtheauthorizedworkundertheproject inFebruary2011for$234068or$317983lessthantheamountFEMAobligated SimilarlyunderProject1622FEMAobligated$168080forvariousrepairstotheSix FlagsPumpStationTheCountycompletedtheauthorizedworkinDecember2009for $58119or$109961lessthantheamountFEMAobligatedAtthetimeofouraudit the$427944($317983and$109961)ofexcessprojectfundingremainedobligated ThereforeFEMAshoulddeobligatethe$427944andputthosefundstobetteruse Countyofficialsagreedwiththisfinding FindingCContractingProcedures AlthoughtheCountyusedfullandopencompetitioninawardingcontractsfordisasterͲ relatedworkandtookaffirmativestepstosolicitsmallminorityandwomenͲowned firmstheCountydidnotincludeallcontractprovisionsthat44CodeofFederal Regulations(CFR)1336(i)requireFederalregulation44CFR1336(i)requires subgranteestoincludespecificprovisionsintheircontractssuchasEqualEmployment Opportunitycompliancecompliancewithlaborlawsandprohibitionofldquokickbacksrdquo Thesecontractprovisionsdocumenttherightsandresponsibilitiesofthepartiesand minimizetheriskofcontractmisinterpretationsanddisputesCountyofficialssaidthat theywereunawareoftherequiredprovisionsbutthattheywouldworkwiththe Countyrsquoslegalcounseltomodifythecontracts Countyofficialsagreedwiththisfinding
3GovernmentAccountabilityOfficePrinciplesofFederalAppropriationsLaw3rdEditionVolumeII February2006Chapter7SectionBCriteriaforRecordingObligations(31USCSection1501)
wwwoigdhsgov OIGͲ14Ͳ124ͲD 5
FindingDSingleAuditRequirements TheCountydidnotcomplywiththeSingleAuditActrsquosrequirementsforannualauditsof Federalawards4ThisActandOfficeofManagementandBudgetrsquosCircularAͲ133Audits ofStatesLocalGovernmentsandNonͲProfitOrganizationshelpensurethatgrant recipientsspendFederalfundsproperlyThecircularstatesthatnonͲFederalentities thatexpend$500000ormoreinayearinFederalawardsmustobtainasingleor programspecificauditforthatyearTheCountydidobtainannualsingleauditsbut theseauditsdidnotcovertheFederalfundstheCountyexpendedfortheFEMAaward (DisasterNumber1858)Countyofficialssaidthattheymistakenlyfailedtoprovidethe CountyrsquosauditingfirmwiththefinancialinformationrelatedtoFEMAawardTherefore FEMAandGeorgiaasthegranteedidnothaveanopportunitytoreviewSingleAudit reportresultsthatmighthavedetectedthesameconditionsourauditidentifiedAsa resulttheseconditionscontinuedlongerthannecessary Countyofficialsagreedwiththisfinding
RECOMMENDATIONS
WerecommendthattheRegionalAdministratorFEMARegionIV Recommendation1Disallow$557943(Federalshare$418457)ofprojectcoststhat theCountyrsquosinsurancecoveredunlesstheCountyprovidesevidencethatinsurancedid notcoverthecosts(findingA) Recommendation2Deobligateandputtobetteruse$427944(Federalshare $320958)ofunneededFederalfunding(findingB) Recommendation3InstructGeorgiatoremindtheCountytoincludecontract provisionsthat44CFR1336(i)requirewhenacquiringgoodsandservicesunderaFEMA award(findingC)
Recommendation4InstructGeorgiatoremindtheCountyofitsresponsibilityto complywiththerequirementsoftheSingleAuditAct(findingD)
4TheSingleAuditActof1984asamendedin1996
wwwoigdhsgov OIGͲ14Ͳ124ͲD 6
OFFICE OF INSPECTOR GENERAL
Department of Homeland Security
DISCUSSIONWITHMANAGEMENTANDAUDITFOLLOWUP
WediscussedtheresultsofourauditwithCountyGeorgiaandFEMAofficialsduring ourauditWealsoprovidedadraftreportinadvancetotheseofficialsanddiscussedit attheexitconferenceonJune252014CobbCountyofficialspartiallyagreedtothe findingsWeincludedtheircommentsasappropriateinthebodyofthisreport Within90daysofthedateofthismemorandumpleaseprovideourofficewitha writtenresponsethatincludesyour(1)agreementordisagreement(2)corrective actionplanand(3)targetcompletiondateforeachrecommendationAlsoplease includethecontactinformationforresponsiblepartiesandanyothersupporting documentationnecessarytoinformusaboutthecurrentstatusoftherecommendation Untilwereceiveandevaluateyourresponsewewillconsidertherecommendations openandunresolved ConsistentwithourresponsibilityundertheInspectorGeneralActwewillprovide copiesofourreporttoappropriatecongressionalcommitteeswithoversightand appropriationresponsibilityovertheDepartmentofHomelandSecurityWewillpost thereportonourwebsiteforpublicdissemination MajorcontributionstothisreportareDavidKimbleDirectorAdrianneBryantAudit ManagerJohnSchmidtAuditorͲinͲChargeandOmarRussellAuditor Pleasecallmewithanyquestionsat(202)254Ͳ4100oryourstaffmaycontact DavidKimbleDirectorEasternRegionalOfficeat(404)832Ͳ6702
wwwoigdhsgov OIGͲ14Ͳ124ͲD 7
OFFICE OF INSPECTOR GENERAL
Department of Homeland Security
OFFICE OF INSPECTOR GENERAL
Department of Homeland Security
EXHIBIT
ScheduleofProjectsAuditedandQuestionedCosts
Project Number
Category ofWork
ProjectScope
Net Amount Awarded
Amount Questioned
Funds Putto
BetterUse
Federal Share (75)
Finding
LargeProjects 593 A DebrisRemovalndashCountyWide $378177 $0 $0 $0
1563 F NWPlantndashGirtChambers 67769 43910 0 32933 A 1573 E RLSuttonͲUVLightingSystemReplacement 552051 234068 317983 414038 AB 1594 C RegentsParkLaneRoadRepair 167838 0 0 0 1622 E SixFlagsPumpStationRepair 168080 58119 109961 126060 AB 1914 C ArthurrsquosCourtNERoadRepairs 197647 0 0 0 1953 E FireTruckReplacement 165996 0 0 0 2143 C RunningFoxDriveRoadRepairs 165816 0 0 0 2165 G PowderSpringsParkͲAthleticFieldRepairs 141247 51625 0 38719 A 2167 G PowderSpringsSwimmingPoolRepairs 97391 62720 0 47040 A 2169 C NetherstoneDriveNERoadRepairs 276369 0 0 0 2315 A DemolitionofPrivateStructures 301949 0 0 0
Subtotal $2680330 $450442 $427944 $658790 SmallProjects
373 E MariettaCityLibraryndashWaterExtraction $2191 $2008 $0 $1506 A 374 E SweetwaterTennisCenterndashSidingDrywall 12721 1910 0 1432 A 862 E WindyHillSeniorCenterndashWaterExtraction 4431 4323 0 3242 A 883 E MountainViewLibraryndashWaterExtraction 2460 2435 0 1826 A 891 E ProctorCreekPumpRepairs 18903 0 0 0
1081 E PowderSpringsParkConcessionBuilding 23138 15394 0 11546 A
1082 E SweetwaterTennisCenterndashContents 5580 4934 0 3701 A 1354 G NWPlantndashFenceandTree 1331 1270 0 952 A 1355 F NWPlantndashWastewaterControls 8399 3879 0 2909 A 1358 F CountyLinePumpStationͲSubgrade 2288 2002 0 1502 A 1580 F RLSuttonndashScumSystem 26246 26182 0 19636 A 1661 E VehicleRepairReplacement 40648 0 0 0 1705 A DebrisRemovalndashEastCobbPark 17058 15644 0 11733 A 1748 G CobblestoneGolfCoursendashvariousrepairs 12974 11600 0 8700 A 1954 E VehicleRepairReplacement 11917 0 0 0 2102 G NoondayCreekParkSandRemoval 56303 9455 0 7091 A 2103 E PowderSpringsParkPressboxDugouts 11325 0 0 0 2111 A DebrisRemovalͲPowderSpringPark 11305 5065 0 3799 A 2114 G FullersParkFootballFieldRepairs 41809 1400 0 1050 A
Subtotal $ 311027 $107501 $0 $80625 Totals $2991357 $557943 $427944 $739415
wwwoigdhsgov OIGͲ14Ͳ124ͲD 8
OFFICE OF INSPECTOR GENERAL
Department of Homeland Security
Appendix
ReportDistribution DepartmentofHomelandSecurity Secretary ChiefofStaff ChiefFinancialOfficer UnderSecretaryforManagement ChiefofPrivacyOfficer AuditLiaisonDHS FederalEmergencyManagementAgency Administrator ChiefofStaff ChiefFinancialOfficer ChiefCounsel ChiefProcurementOfficer DirectorRiskManagementandCompliance AuditLiaisonFEMARegionIV AuditLiaisonFEMA(JobCodeGͲ14Ͳ016) OfficeofManagementandBudget ChiefHomelandSecurityBranch DHSOIGBudgetExaminer RecoveryAccountabilityandTransparencyBoard DirectorInvestigationsRecoveryAccountabilityandTransparencyBoard Georgia DirectorGeorgiaEmergencyManagementAgency StateAuditorGeorgia Subgrantee DivisionManagerofFinanceCobbCounty
wwwoigdhsgov OIGͲ14Ͳ124ͲD 9
Congress SenateCommitteeonAppropriationsSubcommitteeonHomelandSecurity SenateCommitteeonHomelandSecurityandGovernmentalAffairs HouseCommitteeonAppropriationsSubcommitteeonHomelandSecurity HouseCommitteeonHomelandSecurity HouseCommitteeonOversightandGovernmentReform HouseCommitteeonTransportationandInfrastructure
wwwoigdhsgov OIGͲ14Ͳ124ͲD 10
OFFICE OF INSPECTOR GENERAL
Department of Homeland Security
ADDITIONAL INFORMATION To view this and any of our other reports please visit our website at wwwoigdhsgov For further information or questions please contact Office of Inspector General (OIG) Office of Public Affairs at DHS-OIGOfficePublicAffairsoigdhsgov or follow us on Twitter at dhsoig OIG HOTLINE To expedite the reporting of alleged fraud waste abuse or mismanagement or any other kinds of criminal or noncriminal misconduct relative to Department of Homeland Security (DHS) programs and operations please visit our website at wwwoigdhsgov and click on the red tab titled Hotline to report You will be directed to complete and submit an automated DHS OIG Investigative Referral Submission Form Submission through our website ensures that your complaint will be promptly received and reviewed by DHS OIG Should you be unable to access our website you may submit your complaint in writing to
Department of Homeland Security Office of Inspector General Mail Stop 0305 Attention Office of Investigations Hotline 245 Murray Drive SW Washington DC 20528-0305
You may also call 1(800) 323-8603 or fax the complaint directly to us at (202) 254-4297 The OIG seeks to protect the identity of each writer and caller
OFFICE OF INSPECTOR GENERAL Department of Homeland Security
Washington DC 20528 wwwoigdhsgov
August 7 2014
MEMORANDUM FOR Andrew Velasquez III Acting Regional Administrator Region IV
Federal Emergency Management Agency
FROM John V Kelly Assistant Inspector General Office of Emergency Management Oversight SUBJECT FEMA Should Recover $985887 of Ineligible and Unneeded
Public Assistance Grant Funds Awarded to Cobb County Georgia as a Result of Severe Storms and Flooding
FEMA Disaster Number 1858-DR-GA Audit Report Number OIG-14-124-D We audited Public Assistance funds awarded to Cobb County Georgia (County) (FIPS Code 067-99067-00) Our audit objective was to determine whether the County accounted for and expended Federal Emergency Management Agency (FEMA) funds according to Federal regulations and FEMA guidelines
The County received a Public Assistance grant award of $77 million from the Georgia Emergency Management Agency (Georgia) a FEMA grantee for damages resulting from severe storms and flooding which occurred in September 2009 The award provided 75 percent FEMA funding for debris removal emergency protective measures and permanent repairs to buildings and facilities The award consisted of 32 large projects and 184 s mall projects1 We audited 12 large and 19 small projects with awards totaling $30 million (see Exhibit Schedule of Projects Audited and Questioned Costs) The audit covered the period September 18 2009 to June 21 2013 during which the County incurred $26 million in costs for the projects reviewed At the time of our audit the County had completed work on all large projects included in our scope but had not submitted a final claim to Georgia for all project expenditures Table 1 shows the gross and net award amounts before and after insurance reductions for all projects and for those in our audit scope
1 Federal regulations in effect at the time of disaster set the large project threshold at $64200
OFFICE OF INSPECTOR GENERAL
Department of Homeland Security
Table1GrossandNetAwardAmounts
GrossAward Insurance NetAward
Amount Reductions Amount AllProjects $10508786 ($2775426) $7733360 AuditScope $2999170 ($7813) $2991357
SourceFEMAProjectWorksheets
WeconductedthisperformanceauditbetweenJanuary2014andJune2014pursuantto theInspectorGeneralActof1978asamendedandaccordingtogenerallyaccepted governmentauditingstandardsThosestandardsrequirethatweplanandperformthe audittoobtainsufficientappropriateevidencetoprovideareasonablebasisforour findingsandconclusionsbaseduponourauditobjectiveWebelievethattheevidence obtainedprovidesareasonablebasisforourfindingsandconclusionsbaseduponour auditobjectiveToconductthisauditweappliedthestatutesregulationsandFEMA policiesandguidelinesineffectatthetimeofthedisaster WeinterviewedCountyGeorgiaandFEMApersonnelgainedanunderstandingofthe CountyrsquosmethodofaccountingfordisasterͲrelatedcostsanditsprocurementpolicies andproceduresjudgmentallyselectedandreviewed(generallybasedondollar amounts)projectcostsandprocurementtransactionsfortheprojectsincludedinour reviewreviewedapplicableFederalregulationsandFEMAguidelinesandperformed otherproceduresconsiderednecessarytoaccomplishourauditobjectiveAspartofour standardauditingprocedureswealsonotifiedtheRecoveryAccountabilityand TransparencyBoardofallcontractsthesubgranteeawardedunderthegrantto determinewhetherthecontractorsweredebarredorwhethertherewereany indicationsofotherissuesrelatedtothosecontractorsthatwouldindicatefraudwaste orabuseAsofthedateofthisreporttheRecoveryAccountabilityandTransparency BoardrsquosanalysisofcontractswasongoingWhenitiscompletewewillreviewthe resultsanddeterminewhetheradditionalactionisnecessaryWedidnotperforma detailedassessmentoftheCountyrsquosinternalcontrolsapplicabletoitsgrantactivities becauseitwasnotnecessarytoaccomplishourauditobjective
wwwoigdhsgov OIGͲ14Ͳ124ͲD 2
OFFICE OF INSPECTOR GENERAL
Department of Homeland Security
RESULTSOFAUDIT
FEMAshouldrecover$985887ofthe$77millioningrantfundsawardedtothe CountyAlthoughtheCountyaccountedforFEMAfundsonaprojectͲbyͲprojectbasis theCountyrsquosclaimincluded$557943ofprojectcoststhatinsurancecoveredWealso identified$427944ofunneededprojectfundingthatFEMAcandeobligateandputto betteruseFinallytheCountydidnotincludeallrequiredcontractprovisionsin contractsitawardedfordisasterworkanddidnotadheretotheSingleAuditAct requirements FindingACostsCoveredbyInsurance TheCountyclaimed$557943induplicatebenefitsforcoststhatitsinsurancecovered Section312oftheRobertTStaffordDisasterandEmergencyAssistanceActas amendedstatesthatnoentitywillreceiveassistanceforanylossforwhichithas receivedfinancialassistancefromanyotherprograminsuranceoranyothersource AtthetimeofourfieldworkFEMAhadnotconductedafinalreviewofinsurance proceedstheCountyreceivedfromitsinsurancecarrierAsaresultFEMAwasunsure oftheamountofinsuranceproceedsitshouldapplytoadjustobligatedproject amountsFederalagenciesmustincreaseordecreaseobligatedfundswhenprobable andmeasurableinformationbecomesknown2 WereviewedtheCountyrsquosinsurancepolicyscheduleofvaluesandsettlement statementthatidentifiedthelocationofdamagescontractorstheCountyusedinvoice amountsandamountsinsurancepaidBasedonouranalysisofthisinformationwe identified$557943ofinsurancecoveragethatFEMAhadnotappliedtoreduce approvedprojectcostsThereforewequestionthe$557943asshownintable2
2GovernmentAccountabilityOfficeͲPolicyandProceduresManualsect35DBͲ300480April92003and StatementofFederalFinancialAccountingStandards(SFFAS)Number5paragraphs192425and29
wwwoigdhsgov OIGͲ14Ͳ124ͲD 3
OFFICE OF INSPECTOR GENERAL
Department of Homeland Security
Table2ProjectCostsThatInsuranceProceedsCovered
Project Number
DescriptionofDamages
Amount Questioned
373 MariettaCityLibraryndashWaterExtraction $2008 374 SweetwaterTennisCenterndashSidingDrywall 1910 862 WindyHillSeniorCenterndashWaterExtraction 4323 883 MountainViewLibraryndashWaterExtraction 2435
1081 PowderSpringsParkConcessionBuilding 15394 1082 SweetwaterTennisCenterͲContents 4934 1354 NWPlantndashFenceandTree 1270 1355 NWPlantndashWastewaterControls 3879 1358 CountyLinePumpStationͲSubgrade 2002 1563 NWPlantndashGirtChambers 43910 1573 RLSuttonͲUVLightingSystemReplacement 234068 1580 RLSuttonndashScumSystem 26182 1622 SixFlagsPumpStationRepair 58119 1705 DebrisRemovalndashEastCobbPark 15644 1748 CobblestoneGolfCoursendashvariousrepairs 11600 2102 NoondayCreekParkSandRemoval 9455 2111 DebrisRemovalͲPowderSpringPark 5065 2114 FullersParkFootballFieldRepairs 1400 2165 PowderSpringsParkͲAthleticFieldRepairs 51625 2167 PowderSpringsSwimmingPoolRepairs 62720
Total $557943
SourceFEMAProjectWorksheetsCountyRecordsandOIGAnalysis AttheexitconferenceCountyofficialspartiallydisagreedwiththisfindingsayingthat theybelievetheamountwillbelesswhenGeorgiareviewstheCountyrsquosclaimand appliestheproceedsatprojectcloseoutHoweverourpositionremainsunchanged becausewebasedourfindingoninsurancedocumentationtheCountyprovidedtous FindingBFundsPutToBetterUse FEMAshoulddeobligate$427944ofprojectfundingandputthosefundstobetteruse becausetheCountynolongerneedsthefundingtocompleteprojectworkFederal appropriationslawsandtheStatementofFederalFinancialAccountingStandards (SFFAS)requireFederalagenciestorecordobligationsintheaccountingrecordsona
wwwoigdhsgov OIGͲ14Ͳ124ͲD 4
OFFICE OF INSPECTOR GENERAL
Department of Homeland Security
factualandconsistentbasisthroughoutthegovernment3Theoverrecordingand underrecordingofobligationsareequallyimproperasbothpracticesmakeitimpossible todeterminetheprecisestatusofFederalappropriationsWhenthepreciseamountis notknownatthetimethattheobligationisincurredagenciesappropriatelyrecordan obligationbasedonthebestestimateatthetimeAgencieshowevermustperiodically adjustthatobligationasmoreprecisedataontheliabilitybecomeavailableThatisthe agencymustincreaseordecreaseobligatedfundswhenprobableandmeasurable informationbecomesknownAgenciesmustdocumentboththeinitialrecordingsand theadjustmentstorecordedobligations UnderProject1573FEMAobligated$552051toreplacetheultravioletlightingsystem attheRLSuttonfacilityTheCountycompletedtheauthorizedworkundertheproject inFebruary2011for$234068or$317983lessthantheamountFEMAobligated SimilarlyunderProject1622FEMAobligated$168080forvariousrepairstotheSix FlagsPumpStationTheCountycompletedtheauthorizedworkinDecember2009for $58119or$109961lessthantheamountFEMAobligatedAtthetimeofouraudit the$427944($317983and$109961)ofexcessprojectfundingremainedobligated ThereforeFEMAshoulddeobligatethe$427944andputthosefundstobetteruse Countyofficialsagreedwiththisfinding FindingCContractingProcedures AlthoughtheCountyusedfullandopencompetitioninawardingcontractsfordisasterͲ relatedworkandtookaffirmativestepstosolicitsmallminorityandwomenͲowned firmstheCountydidnotincludeallcontractprovisionsthat44CodeofFederal Regulations(CFR)1336(i)requireFederalregulation44CFR1336(i)requires subgranteestoincludespecificprovisionsintheircontractssuchasEqualEmployment Opportunitycompliancecompliancewithlaborlawsandprohibitionofldquokickbacksrdquo Thesecontractprovisionsdocumenttherightsandresponsibilitiesofthepartiesand minimizetheriskofcontractmisinterpretationsanddisputesCountyofficialssaidthat theywereunawareoftherequiredprovisionsbutthattheywouldworkwiththe Countyrsquoslegalcounseltomodifythecontracts Countyofficialsagreedwiththisfinding
3GovernmentAccountabilityOfficePrinciplesofFederalAppropriationsLaw3rdEditionVolumeII February2006Chapter7SectionBCriteriaforRecordingObligations(31USCSection1501)
wwwoigdhsgov OIGͲ14Ͳ124ͲD 5
FindingDSingleAuditRequirements TheCountydidnotcomplywiththeSingleAuditActrsquosrequirementsforannualauditsof Federalawards4ThisActandOfficeofManagementandBudgetrsquosCircularAͲ133Audits ofStatesLocalGovernmentsandNonͲProfitOrganizationshelpensurethatgrant recipientsspendFederalfundsproperlyThecircularstatesthatnonͲFederalentities thatexpend$500000ormoreinayearinFederalawardsmustobtainasingleor programspecificauditforthatyearTheCountydidobtainannualsingleauditsbut theseauditsdidnotcovertheFederalfundstheCountyexpendedfortheFEMAaward (DisasterNumber1858)Countyofficialssaidthattheymistakenlyfailedtoprovidethe CountyrsquosauditingfirmwiththefinancialinformationrelatedtoFEMAawardTherefore FEMAandGeorgiaasthegranteedidnothaveanopportunitytoreviewSingleAudit reportresultsthatmighthavedetectedthesameconditionsourauditidentifiedAsa resulttheseconditionscontinuedlongerthannecessary Countyofficialsagreedwiththisfinding
RECOMMENDATIONS
WerecommendthattheRegionalAdministratorFEMARegionIV Recommendation1Disallow$557943(Federalshare$418457)ofprojectcoststhat theCountyrsquosinsurancecoveredunlesstheCountyprovidesevidencethatinsurancedid notcoverthecosts(findingA) Recommendation2Deobligateandputtobetteruse$427944(Federalshare $320958)ofunneededFederalfunding(findingB) Recommendation3InstructGeorgiatoremindtheCountytoincludecontract provisionsthat44CFR1336(i)requirewhenacquiringgoodsandservicesunderaFEMA award(findingC)
Recommendation4InstructGeorgiatoremindtheCountyofitsresponsibilityto complywiththerequirementsoftheSingleAuditAct(findingD)
4TheSingleAuditActof1984asamendedin1996
wwwoigdhsgov OIGͲ14Ͳ124ͲD 6
OFFICE OF INSPECTOR GENERAL
Department of Homeland Security
DISCUSSIONWITHMANAGEMENTANDAUDITFOLLOWUP
WediscussedtheresultsofourauditwithCountyGeorgiaandFEMAofficialsduring ourauditWealsoprovidedadraftreportinadvancetotheseofficialsanddiscussedit attheexitconferenceonJune252014CobbCountyofficialspartiallyagreedtothe findingsWeincludedtheircommentsasappropriateinthebodyofthisreport Within90daysofthedateofthismemorandumpleaseprovideourofficewitha writtenresponsethatincludesyour(1)agreementordisagreement(2)corrective actionplanand(3)targetcompletiondateforeachrecommendationAlsoplease includethecontactinformationforresponsiblepartiesandanyothersupporting documentationnecessarytoinformusaboutthecurrentstatusoftherecommendation Untilwereceiveandevaluateyourresponsewewillconsidertherecommendations openandunresolved ConsistentwithourresponsibilityundertheInspectorGeneralActwewillprovide copiesofourreporttoappropriatecongressionalcommitteeswithoversightand appropriationresponsibilityovertheDepartmentofHomelandSecurityWewillpost thereportonourwebsiteforpublicdissemination MajorcontributionstothisreportareDavidKimbleDirectorAdrianneBryantAudit ManagerJohnSchmidtAuditorͲinͲChargeandOmarRussellAuditor Pleasecallmewithanyquestionsat(202)254Ͳ4100oryourstaffmaycontact DavidKimbleDirectorEasternRegionalOfficeat(404)832Ͳ6702
wwwoigdhsgov OIGͲ14Ͳ124ͲD 7
OFFICE OF INSPECTOR GENERAL
Department of Homeland Security
OFFICE OF INSPECTOR GENERAL
Department of Homeland Security
EXHIBIT
ScheduleofProjectsAuditedandQuestionedCosts
Project Number
Category ofWork
ProjectScope
Net Amount Awarded
Amount Questioned
Funds Putto
BetterUse
Federal Share (75)
Finding
LargeProjects 593 A DebrisRemovalndashCountyWide $378177 $0 $0 $0
1563 F NWPlantndashGirtChambers 67769 43910 0 32933 A 1573 E RLSuttonͲUVLightingSystemReplacement 552051 234068 317983 414038 AB 1594 C RegentsParkLaneRoadRepair 167838 0 0 0 1622 E SixFlagsPumpStationRepair 168080 58119 109961 126060 AB 1914 C ArthurrsquosCourtNERoadRepairs 197647 0 0 0 1953 E FireTruckReplacement 165996 0 0 0 2143 C RunningFoxDriveRoadRepairs 165816 0 0 0 2165 G PowderSpringsParkͲAthleticFieldRepairs 141247 51625 0 38719 A 2167 G PowderSpringsSwimmingPoolRepairs 97391 62720 0 47040 A 2169 C NetherstoneDriveNERoadRepairs 276369 0 0 0 2315 A DemolitionofPrivateStructures 301949 0 0 0
Subtotal $2680330 $450442 $427944 $658790 SmallProjects
373 E MariettaCityLibraryndashWaterExtraction $2191 $2008 $0 $1506 A 374 E SweetwaterTennisCenterndashSidingDrywall 12721 1910 0 1432 A 862 E WindyHillSeniorCenterndashWaterExtraction 4431 4323 0 3242 A 883 E MountainViewLibraryndashWaterExtraction 2460 2435 0 1826 A 891 E ProctorCreekPumpRepairs 18903 0 0 0
1081 E PowderSpringsParkConcessionBuilding 23138 15394 0 11546 A
1082 E SweetwaterTennisCenterndashContents 5580 4934 0 3701 A 1354 G NWPlantndashFenceandTree 1331 1270 0 952 A 1355 F NWPlantndashWastewaterControls 8399 3879 0 2909 A 1358 F CountyLinePumpStationͲSubgrade 2288 2002 0 1502 A 1580 F RLSuttonndashScumSystem 26246 26182 0 19636 A 1661 E VehicleRepairReplacement 40648 0 0 0 1705 A DebrisRemovalndashEastCobbPark 17058 15644 0 11733 A 1748 G CobblestoneGolfCoursendashvariousrepairs 12974 11600 0 8700 A 1954 E VehicleRepairReplacement 11917 0 0 0 2102 G NoondayCreekParkSandRemoval 56303 9455 0 7091 A 2103 E PowderSpringsParkPressboxDugouts 11325 0 0 0 2111 A DebrisRemovalͲPowderSpringPark 11305 5065 0 3799 A 2114 G FullersParkFootballFieldRepairs 41809 1400 0 1050 A
Subtotal $ 311027 $107501 $0 $80625 Totals $2991357 $557943 $427944 $739415
wwwoigdhsgov OIGͲ14Ͳ124ͲD 8
OFFICE OF INSPECTOR GENERAL
Department of Homeland Security
Appendix
ReportDistribution DepartmentofHomelandSecurity Secretary ChiefofStaff ChiefFinancialOfficer UnderSecretaryforManagement ChiefofPrivacyOfficer AuditLiaisonDHS FederalEmergencyManagementAgency Administrator ChiefofStaff ChiefFinancialOfficer ChiefCounsel ChiefProcurementOfficer DirectorRiskManagementandCompliance AuditLiaisonFEMARegionIV AuditLiaisonFEMA(JobCodeGͲ14Ͳ016) OfficeofManagementandBudget ChiefHomelandSecurityBranch DHSOIGBudgetExaminer RecoveryAccountabilityandTransparencyBoard DirectorInvestigationsRecoveryAccountabilityandTransparencyBoard Georgia DirectorGeorgiaEmergencyManagementAgency StateAuditorGeorgia Subgrantee DivisionManagerofFinanceCobbCounty
wwwoigdhsgov OIGͲ14Ͳ124ͲD 9
Congress SenateCommitteeonAppropriationsSubcommitteeonHomelandSecurity SenateCommitteeonHomelandSecurityandGovernmentalAffairs HouseCommitteeonAppropriationsSubcommitteeonHomelandSecurity HouseCommitteeonHomelandSecurity HouseCommitteeonOversightandGovernmentReform HouseCommitteeonTransportationandInfrastructure
wwwoigdhsgov OIGͲ14Ͳ124ͲD 10
OFFICE OF INSPECTOR GENERAL
Department of Homeland Security
ADDITIONAL INFORMATION To view this and any of our other reports please visit our website at wwwoigdhsgov For further information or questions please contact Office of Inspector General (OIG) Office of Public Affairs at DHS-OIGOfficePublicAffairsoigdhsgov or follow us on Twitter at dhsoig OIG HOTLINE To expedite the reporting of alleged fraud waste abuse or mismanagement or any other kinds of criminal or noncriminal misconduct relative to Department of Homeland Security (DHS) programs and operations please visit our website at wwwoigdhsgov and click on the red tab titled Hotline to report You will be directed to complete and submit an automated DHS OIG Investigative Referral Submission Form Submission through our website ensures that your complaint will be promptly received and reviewed by DHS OIG Should you be unable to access our website you may submit your complaint in writing to
Department of Homeland Security Office of Inspector General Mail Stop 0305 Attention Office of Investigations Hotline 245 Murray Drive SW Washington DC 20528-0305
You may also call 1(800) 323-8603 or fax the complaint directly to us at (202) 254-4297 The OIG seeks to protect the identity of each writer and caller
OFFICE OF INSPECTOR GENERAL
Department of Homeland Security
Table1GrossandNetAwardAmounts
GrossAward Insurance NetAward
Amount Reductions Amount AllProjects $10508786 ($2775426) $7733360 AuditScope $2999170 ($7813) $2991357
SourceFEMAProjectWorksheets
WeconductedthisperformanceauditbetweenJanuary2014andJune2014pursuantto theInspectorGeneralActof1978asamendedandaccordingtogenerallyaccepted governmentauditingstandardsThosestandardsrequirethatweplanandperformthe audittoobtainsufficientappropriateevidencetoprovideareasonablebasisforour findingsandconclusionsbaseduponourauditobjectiveWebelievethattheevidence obtainedprovidesareasonablebasisforourfindingsandconclusionsbaseduponour auditobjectiveToconductthisauditweappliedthestatutesregulationsandFEMA policiesandguidelinesineffectatthetimeofthedisaster WeinterviewedCountyGeorgiaandFEMApersonnelgainedanunderstandingofthe CountyrsquosmethodofaccountingfordisasterͲrelatedcostsanditsprocurementpolicies andproceduresjudgmentallyselectedandreviewed(generallybasedondollar amounts)projectcostsandprocurementtransactionsfortheprojectsincludedinour reviewreviewedapplicableFederalregulationsandFEMAguidelinesandperformed otherproceduresconsiderednecessarytoaccomplishourauditobjectiveAspartofour standardauditingprocedureswealsonotifiedtheRecoveryAccountabilityand TransparencyBoardofallcontractsthesubgranteeawardedunderthegrantto determinewhetherthecontractorsweredebarredorwhethertherewereany indicationsofotherissuesrelatedtothosecontractorsthatwouldindicatefraudwaste orabuseAsofthedateofthisreporttheRecoveryAccountabilityandTransparency BoardrsquosanalysisofcontractswasongoingWhenitiscompletewewillreviewthe resultsanddeterminewhetheradditionalactionisnecessaryWedidnotperforma detailedassessmentoftheCountyrsquosinternalcontrolsapplicabletoitsgrantactivities becauseitwasnotnecessarytoaccomplishourauditobjective
wwwoigdhsgov OIGͲ14Ͳ124ͲD 2
OFFICE OF INSPECTOR GENERAL
Department of Homeland Security
RESULTSOFAUDIT
FEMAshouldrecover$985887ofthe$77millioningrantfundsawardedtothe CountyAlthoughtheCountyaccountedforFEMAfundsonaprojectͲbyͲprojectbasis theCountyrsquosclaimincluded$557943ofprojectcoststhatinsurancecoveredWealso identified$427944ofunneededprojectfundingthatFEMAcandeobligateandputto betteruseFinallytheCountydidnotincludeallrequiredcontractprovisionsin contractsitawardedfordisasterworkanddidnotadheretotheSingleAuditAct requirements FindingACostsCoveredbyInsurance TheCountyclaimed$557943induplicatebenefitsforcoststhatitsinsurancecovered Section312oftheRobertTStaffordDisasterandEmergencyAssistanceActas amendedstatesthatnoentitywillreceiveassistanceforanylossforwhichithas receivedfinancialassistancefromanyotherprograminsuranceoranyothersource AtthetimeofourfieldworkFEMAhadnotconductedafinalreviewofinsurance proceedstheCountyreceivedfromitsinsurancecarrierAsaresultFEMAwasunsure oftheamountofinsuranceproceedsitshouldapplytoadjustobligatedproject amountsFederalagenciesmustincreaseordecreaseobligatedfundswhenprobable andmeasurableinformationbecomesknown2 WereviewedtheCountyrsquosinsurancepolicyscheduleofvaluesandsettlement statementthatidentifiedthelocationofdamagescontractorstheCountyusedinvoice amountsandamountsinsurancepaidBasedonouranalysisofthisinformationwe identified$557943ofinsurancecoveragethatFEMAhadnotappliedtoreduce approvedprojectcostsThereforewequestionthe$557943asshownintable2
2GovernmentAccountabilityOfficeͲPolicyandProceduresManualsect35DBͲ300480April92003and StatementofFederalFinancialAccountingStandards(SFFAS)Number5paragraphs192425and29
wwwoigdhsgov OIGͲ14Ͳ124ͲD 3
OFFICE OF INSPECTOR GENERAL
Department of Homeland Security
Table2ProjectCostsThatInsuranceProceedsCovered
Project Number
DescriptionofDamages
Amount Questioned
373 MariettaCityLibraryndashWaterExtraction $2008 374 SweetwaterTennisCenterndashSidingDrywall 1910 862 WindyHillSeniorCenterndashWaterExtraction 4323 883 MountainViewLibraryndashWaterExtraction 2435
1081 PowderSpringsParkConcessionBuilding 15394 1082 SweetwaterTennisCenterͲContents 4934 1354 NWPlantndashFenceandTree 1270 1355 NWPlantndashWastewaterControls 3879 1358 CountyLinePumpStationͲSubgrade 2002 1563 NWPlantndashGirtChambers 43910 1573 RLSuttonͲUVLightingSystemReplacement 234068 1580 RLSuttonndashScumSystem 26182 1622 SixFlagsPumpStationRepair 58119 1705 DebrisRemovalndashEastCobbPark 15644 1748 CobblestoneGolfCoursendashvariousrepairs 11600 2102 NoondayCreekParkSandRemoval 9455 2111 DebrisRemovalͲPowderSpringPark 5065 2114 FullersParkFootballFieldRepairs 1400 2165 PowderSpringsParkͲAthleticFieldRepairs 51625 2167 PowderSpringsSwimmingPoolRepairs 62720
Total $557943
SourceFEMAProjectWorksheetsCountyRecordsandOIGAnalysis AttheexitconferenceCountyofficialspartiallydisagreedwiththisfindingsayingthat theybelievetheamountwillbelesswhenGeorgiareviewstheCountyrsquosclaimand appliestheproceedsatprojectcloseoutHoweverourpositionremainsunchanged becausewebasedourfindingoninsurancedocumentationtheCountyprovidedtous FindingBFundsPutToBetterUse FEMAshoulddeobligate$427944ofprojectfundingandputthosefundstobetteruse becausetheCountynolongerneedsthefundingtocompleteprojectworkFederal appropriationslawsandtheStatementofFederalFinancialAccountingStandards (SFFAS)requireFederalagenciestorecordobligationsintheaccountingrecordsona
wwwoigdhsgov OIGͲ14Ͳ124ͲD 4
OFFICE OF INSPECTOR GENERAL
Department of Homeland Security
factualandconsistentbasisthroughoutthegovernment3Theoverrecordingand underrecordingofobligationsareequallyimproperasbothpracticesmakeitimpossible todeterminetheprecisestatusofFederalappropriationsWhenthepreciseamountis notknownatthetimethattheobligationisincurredagenciesappropriatelyrecordan obligationbasedonthebestestimateatthetimeAgencieshowevermustperiodically adjustthatobligationasmoreprecisedataontheliabilitybecomeavailableThatisthe agencymustincreaseordecreaseobligatedfundswhenprobableandmeasurable informationbecomesknownAgenciesmustdocumentboththeinitialrecordingsand theadjustmentstorecordedobligations UnderProject1573FEMAobligated$552051toreplacetheultravioletlightingsystem attheRLSuttonfacilityTheCountycompletedtheauthorizedworkundertheproject inFebruary2011for$234068or$317983lessthantheamountFEMAobligated SimilarlyunderProject1622FEMAobligated$168080forvariousrepairstotheSix FlagsPumpStationTheCountycompletedtheauthorizedworkinDecember2009for $58119or$109961lessthantheamountFEMAobligatedAtthetimeofouraudit the$427944($317983and$109961)ofexcessprojectfundingremainedobligated ThereforeFEMAshoulddeobligatethe$427944andputthosefundstobetteruse Countyofficialsagreedwiththisfinding FindingCContractingProcedures AlthoughtheCountyusedfullandopencompetitioninawardingcontractsfordisasterͲ relatedworkandtookaffirmativestepstosolicitsmallminorityandwomenͲowned firmstheCountydidnotincludeallcontractprovisionsthat44CodeofFederal Regulations(CFR)1336(i)requireFederalregulation44CFR1336(i)requires subgranteestoincludespecificprovisionsintheircontractssuchasEqualEmployment Opportunitycompliancecompliancewithlaborlawsandprohibitionofldquokickbacksrdquo Thesecontractprovisionsdocumenttherightsandresponsibilitiesofthepartiesand minimizetheriskofcontractmisinterpretationsanddisputesCountyofficialssaidthat theywereunawareoftherequiredprovisionsbutthattheywouldworkwiththe Countyrsquoslegalcounseltomodifythecontracts Countyofficialsagreedwiththisfinding
3GovernmentAccountabilityOfficePrinciplesofFederalAppropriationsLaw3rdEditionVolumeII February2006Chapter7SectionBCriteriaforRecordingObligations(31USCSection1501)
wwwoigdhsgov OIGͲ14Ͳ124ͲD 5
FindingDSingleAuditRequirements TheCountydidnotcomplywiththeSingleAuditActrsquosrequirementsforannualauditsof Federalawards4ThisActandOfficeofManagementandBudgetrsquosCircularAͲ133Audits ofStatesLocalGovernmentsandNonͲProfitOrganizationshelpensurethatgrant recipientsspendFederalfundsproperlyThecircularstatesthatnonͲFederalentities thatexpend$500000ormoreinayearinFederalawardsmustobtainasingleor programspecificauditforthatyearTheCountydidobtainannualsingleauditsbut theseauditsdidnotcovertheFederalfundstheCountyexpendedfortheFEMAaward (DisasterNumber1858)Countyofficialssaidthattheymistakenlyfailedtoprovidethe CountyrsquosauditingfirmwiththefinancialinformationrelatedtoFEMAawardTherefore FEMAandGeorgiaasthegranteedidnothaveanopportunitytoreviewSingleAudit reportresultsthatmighthavedetectedthesameconditionsourauditidentifiedAsa resulttheseconditionscontinuedlongerthannecessary Countyofficialsagreedwiththisfinding
RECOMMENDATIONS
WerecommendthattheRegionalAdministratorFEMARegionIV Recommendation1Disallow$557943(Federalshare$418457)ofprojectcoststhat theCountyrsquosinsurancecoveredunlesstheCountyprovidesevidencethatinsurancedid notcoverthecosts(findingA) Recommendation2Deobligateandputtobetteruse$427944(Federalshare $320958)ofunneededFederalfunding(findingB) Recommendation3InstructGeorgiatoremindtheCountytoincludecontract provisionsthat44CFR1336(i)requirewhenacquiringgoodsandservicesunderaFEMA award(findingC)
Recommendation4InstructGeorgiatoremindtheCountyofitsresponsibilityto complywiththerequirementsoftheSingleAuditAct(findingD)
4TheSingleAuditActof1984asamendedin1996
wwwoigdhsgov OIGͲ14Ͳ124ͲD 6
OFFICE OF INSPECTOR GENERAL
Department of Homeland Security
DISCUSSIONWITHMANAGEMENTANDAUDITFOLLOWUP
WediscussedtheresultsofourauditwithCountyGeorgiaandFEMAofficialsduring ourauditWealsoprovidedadraftreportinadvancetotheseofficialsanddiscussedit attheexitconferenceonJune252014CobbCountyofficialspartiallyagreedtothe findingsWeincludedtheircommentsasappropriateinthebodyofthisreport Within90daysofthedateofthismemorandumpleaseprovideourofficewitha writtenresponsethatincludesyour(1)agreementordisagreement(2)corrective actionplanand(3)targetcompletiondateforeachrecommendationAlsoplease includethecontactinformationforresponsiblepartiesandanyothersupporting documentationnecessarytoinformusaboutthecurrentstatusoftherecommendation Untilwereceiveandevaluateyourresponsewewillconsidertherecommendations openandunresolved ConsistentwithourresponsibilityundertheInspectorGeneralActwewillprovide copiesofourreporttoappropriatecongressionalcommitteeswithoversightand appropriationresponsibilityovertheDepartmentofHomelandSecurityWewillpost thereportonourwebsiteforpublicdissemination MajorcontributionstothisreportareDavidKimbleDirectorAdrianneBryantAudit ManagerJohnSchmidtAuditorͲinͲChargeandOmarRussellAuditor Pleasecallmewithanyquestionsat(202)254Ͳ4100oryourstaffmaycontact DavidKimbleDirectorEasternRegionalOfficeat(404)832Ͳ6702
wwwoigdhsgov OIGͲ14Ͳ124ͲD 7
OFFICE OF INSPECTOR GENERAL
Department of Homeland Security
OFFICE OF INSPECTOR GENERAL
Department of Homeland Security
EXHIBIT
ScheduleofProjectsAuditedandQuestionedCosts
Project Number
Category ofWork
ProjectScope
Net Amount Awarded
Amount Questioned
Funds Putto
BetterUse
Federal Share (75)
Finding
LargeProjects 593 A DebrisRemovalndashCountyWide $378177 $0 $0 $0
1563 F NWPlantndashGirtChambers 67769 43910 0 32933 A 1573 E RLSuttonͲUVLightingSystemReplacement 552051 234068 317983 414038 AB 1594 C RegentsParkLaneRoadRepair 167838 0 0 0 1622 E SixFlagsPumpStationRepair 168080 58119 109961 126060 AB 1914 C ArthurrsquosCourtNERoadRepairs 197647 0 0 0 1953 E FireTruckReplacement 165996 0 0 0 2143 C RunningFoxDriveRoadRepairs 165816 0 0 0 2165 G PowderSpringsParkͲAthleticFieldRepairs 141247 51625 0 38719 A 2167 G PowderSpringsSwimmingPoolRepairs 97391 62720 0 47040 A 2169 C NetherstoneDriveNERoadRepairs 276369 0 0 0 2315 A DemolitionofPrivateStructures 301949 0 0 0
Subtotal $2680330 $450442 $427944 $658790 SmallProjects
373 E MariettaCityLibraryndashWaterExtraction $2191 $2008 $0 $1506 A 374 E SweetwaterTennisCenterndashSidingDrywall 12721 1910 0 1432 A 862 E WindyHillSeniorCenterndashWaterExtraction 4431 4323 0 3242 A 883 E MountainViewLibraryndashWaterExtraction 2460 2435 0 1826 A 891 E ProctorCreekPumpRepairs 18903 0 0 0
1081 E PowderSpringsParkConcessionBuilding 23138 15394 0 11546 A
1082 E SweetwaterTennisCenterndashContents 5580 4934 0 3701 A 1354 G NWPlantndashFenceandTree 1331 1270 0 952 A 1355 F NWPlantndashWastewaterControls 8399 3879 0 2909 A 1358 F CountyLinePumpStationͲSubgrade 2288 2002 0 1502 A 1580 F RLSuttonndashScumSystem 26246 26182 0 19636 A 1661 E VehicleRepairReplacement 40648 0 0 0 1705 A DebrisRemovalndashEastCobbPark 17058 15644 0 11733 A 1748 G CobblestoneGolfCoursendashvariousrepairs 12974 11600 0 8700 A 1954 E VehicleRepairReplacement 11917 0 0 0 2102 G NoondayCreekParkSandRemoval 56303 9455 0 7091 A 2103 E PowderSpringsParkPressboxDugouts 11325 0 0 0 2111 A DebrisRemovalͲPowderSpringPark 11305 5065 0 3799 A 2114 G FullersParkFootballFieldRepairs 41809 1400 0 1050 A
Subtotal $ 311027 $107501 $0 $80625 Totals $2991357 $557943 $427944 $739415
wwwoigdhsgov OIGͲ14Ͳ124ͲD 8
OFFICE OF INSPECTOR GENERAL
Department of Homeland Security
Appendix
ReportDistribution DepartmentofHomelandSecurity Secretary ChiefofStaff ChiefFinancialOfficer UnderSecretaryforManagement ChiefofPrivacyOfficer AuditLiaisonDHS FederalEmergencyManagementAgency Administrator ChiefofStaff ChiefFinancialOfficer ChiefCounsel ChiefProcurementOfficer DirectorRiskManagementandCompliance AuditLiaisonFEMARegionIV AuditLiaisonFEMA(JobCodeGͲ14Ͳ016) OfficeofManagementandBudget ChiefHomelandSecurityBranch DHSOIGBudgetExaminer RecoveryAccountabilityandTransparencyBoard DirectorInvestigationsRecoveryAccountabilityandTransparencyBoard Georgia DirectorGeorgiaEmergencyManagementAgency StateAuditorGeorgia Subgrantee DivisionManagerofFinanceCobbCounty
wwwoigdhsgov OIGͲ14Ͳ124ͲD 9
Congress SenateCommitteeonAppropriationsSubcommitteeonHomelandSecurity SenateCommitteeonHomelandSecurityandGovernmentalAffairs HouseCommitteeonAppropriationsSubcommitteeonHomelandSecurity HouseCommitteeonHomelandSecurity HouseCommitteeonOversightandGovernmentReform HouseCommitteeonTransportationandInfrastructure
wwwoigdhsgov OIGͲ14Ͳ124ͲD 10
OFFICE OF INSPECTOR GENERAL
Department of Homeland Security
ADDITIONAL INFORMATION To view this and any of our other reports please visit our website at wwwoigdhsgov For further information or questions please contact Office of Inspector General (OIG) Office of Public Affairs at DHS-OIGOfficePublicAffairsoigdhsgov or follow us on Twitter at dhsoig OIG HOTLINE To expedite the reporting of alleged fraud waste abuse or mismanagement or any other kinds of criminal or noncriminal misconduct relative to Department of Homeland Security (DHS) programs and operations please visit our website at wwwoigdhsgov and click on the red tab titled Hotline to report You will be directed to complete and submit an automated DHS OIG Investigative Referral Submission Form Submission through our website ensures that your complaint will be promptly received and reviewed by DHS OIG Should you be unable to access our website you may submit your complaint in writing to
Department of Homeland Security Office of Inspector General Mail Stop 0305 Attention Office of Investigations Hotline 245 Murray Drive SW Washington DC 20528-0305
You may also call 1(800) 323-8603 or fax the complaint directly to us at (202) 254-4297 The OIG seeks to protect the identity of each writer and caller
OFFICE OF INSPECTOR GENERAL
Department of Homeland Security
RESULTSOFAUDIT
FEMAshouldrecover$985887ofthe$77millioningrantfundsawardedtothe CountyAlthoughtheCountyaccountedforFEMAfundsonaprojectͲbyͲprojectbasis theCountyrsquosclaimincluded$557943ofprojectcoststhatinsurancecoveredWealso identified$427944ofunneededprojectfundingthatFEMAcandeobligateandputto betteruseFinallytheCountydidnotincludeallrequiredcontractprovisionsin contractsitawardedfordisasterworkanddidnotadheretotheSingleAuditAct requirements FindingACostsCoveredbyInsurance TheCountyclaimed$557943induplicatebenefitsforcoststhatitsinsurancecovered Section312oftheRobertTStaffordDisasterandEmergencyAssistanceActas amendedstatesthatnoentitywillreceiveassistanceforanylossforwhichithas receivedfinancialassistancefromanyotherprograminsuranceoranyothersource AtthetimeofourfieldworkFEMAhadnotconductedafinalreviewofinsurance proceedstheCountyreceivedfromitsinsurancecarrierAsaresultFEMAwasunsure oftheamountofinsuranceproceedsitshouldapplytoadjustobligatedproject amountsFederalagenciesmustincreaseordecreaseobligatedfundswhenprobable andmeasurableinformationbecomesknown2 WereviewedtheCountyrsquosinsurancepolicyscheduleofvaluesandsettlement statementthatidentifiedthelocationofdamagescontractorstheCountyusedinvoice amountsandamountsinsurancepaidBasedonouranalysisofthisinformationwe identified$557943ofinsurancecoveragethatFEMAhadnotappliedtoreduce approvedprojectcostsThereforewequestionthe$557943asshownintable2
2GovernmentAccountabilityOfficeͲPolicyandProceduresManualsect35DBͲ300480April92003and StatementofFederalFinancialAccountingStandards(SFFAS)Number5paragraphs192425and29
wwwoigdhsgov OIGͲ14Ͳ124ͲD 3
OFFICE OF INSPECTOR GENERAL
Department of Homeland Security
Table2ProjectCostsThatInsuranceProceedsCovered
Project Number
DescriptionofDamages
Amount Questioned
373 MariettaCityLibraryndashWaterExtraction $2008 374 SweetwaterTennisCenterndashSidingDrywall 1910 862 WindyHillSeniorCenterndashWaterExtraction 4323 883 MountainViewLibraryndashWaterExtraction 2435
1081 PowderSpringsParkConcessionBuilding 15394 1082 SweetwaterTennisCenterͲContents 4934 1354 NWPlantndashFenceandTree 1270 1355 NWPlantndashWastewaterControls 3879 1358 CountyLinePumpStationͲSubgrade 2002 1563 NWPlantndashGirtChambers 43910 1573 RLSuttonͲUVLightingSystemReplacement 234068 1580 RLSuttonndashScumSystem 26182 1622 SixFlagsPumpStationRepair 58119 1705 DebrisRemovalndashEastCobbPark 15644 1748 CobblestoneGolfCoursendashvariousrepairs 11600 2102 NoondayCreekParkSandRemoval 9455 2111 DebrisRemovalͲPowderSpringPark 5065 2114 FullersParkFootballFieldRepairs 1400 2165 PowderSpringsParkͲAthleticFieldRepairs 51625 2167 PowderSpringsSwimmingPoolRepairs 62720
Total $557943
SourceFEMAProjectWorksheetsCountyRecordsandOIGAnalysis AttheexitconferenceCountyofficialspartiallydisagreedwiththisfindingsayingthat theybelievetheamountwillbelesswhenGeorgiareviewstheCountyrsquosclaimand appliestheproceedsatprojectcloseoutHoweverourpositionremainsunchanged becausewebasedourfindingoninsurancedocumentationtheCountyprovidedtous FindingBFundsPutToBetterUse FEMAshoulddeobligate$427944ofprojectfundingandputthosefundstobetteruse becausetheCountynolongerneedsthefundingtocompleteprojectworkFederal appropriationslawsandtheStatementofFederalFinancialAccountingStandards (SFFAS)requireFederalagenciestorecordobligationsintheaccountingrecordsona
wwwoigdhsgov OIGͲ14Ͳ124ͲD 4
OFFICE OF INSPECTOR GENERAL
Department of Homeland Security
factualandconsistentbasisthroughoutthegovernment3Theoverrecordingand underrecordingofobligationsareequallyimproperasbothpracticesmakeitimpossible todeterminetheprecisestatusofFederalappropriationsWhenthepreciseamountis notknownatthetimethattheobligationisincurredagenciesappropriatelyrecordan obligationbasedonthebestestimateatthetimeAgencieshowevermustperiodically adjustthatobligationasmoreprecisedataontheliabilitybecomeavailableThatisthe agencymustincreaseordecreaseobligatedfundswhenprobableandmeasurable informationbecomesknownAgenciesmustdocumentboththeinitialrecordingsand theadjustmentstorecordedobligations UnderProject1573FEMAobligated$552051toreplacetheultravioletlightingsystem attheRLSuttonfacilityTheCountycompletedtheauthorizedworkundertheproject inFebruary2011for$234068or$317983lessthantheamountFEMAobligated SimilarlyunderProject1622FEMAobligated$168080forvariousrepairstotheSix FlagsPumpStationTheCountycompletedtheauthorizedworkinDecember2009for $58119or$109961lessthantheamountFEMAobligatedAtthetimeofouraudit the$427944($317983and$109961)ofexcessprojectfundingremainedobligated ThereforeFEMAshoulddeobligatethe$427944andputthosefundstobetteruse Countyofficialsagreedwiththisfinding FindingCContractingProcedures AlthoughtheCountyusedfullandopencompetitioninawardingcontractsfordisasterͲ relatedworkandtookaffirmativestepstosolicitsmallminorityandwomenͲowned firmstheCountydidnotincludeallcontractprovisionsthat44CodeofFederal Regulations(CFR)1336(i)requireFederalregulation44CFR1336(i)requires subgranteestoincludespecificprovisionsintheircontractssuchasEqualEmployment Opportunitycompliancecompliancewithlaborlawsandprohibitionofldquokickbacksrdquo Thesecontractprovisionsdocumenttherightsandresponsibilitiesofthepartiesand minimizetheriskofcontractmisinterpretationsanddisputesCountyofficialssaidthat theywereunawareoftherequiredprovisionsbutthattheywouldworkwiththe Countyrsquoslegalcounseltomodifythecontracts Countyofficialsagreedwiththisfinding
3GovernmentAccountabilityOfficePrinciplesofFederalAppropriationsLaw3rdEditionVolumeII February2006Chapter7SectionBCriteriaforRecordingObligations(31USCSection1501)
wwwoigdhsgov OIGͲ14Ͳ124ͲD 5
FindingDSingleAuditRequirements TheCountydidnotcomplywiththeSingleAuditActrsquosrequirementsforannualauditsof Federalawards4ThisActandOfficeofManagementandBudgetrsquosCircularAͲ133Audits ofStatesLocalGovernmentsandNonͲProfitOrganizationshelpensurethatgrant recipientsspendFederalfundsproperlyThecircularstatesthatnonͲFederalentities thatexpend$500000ormoreinayearinFederalawardsmustobtainasingleor programspecificauditforthatyearTheCountydidobtainannualsingleauditsbut theseauditsdidnotcovertheFederalfundstheCountyexpendedfortheFEMAaward (DisasterNumber1858)Countyofficialssaidthattheymistakenlyfailedtoprovidethe CountyrsquosauditingfirmwiththefinancialinformationrelatedtoFEMAawardTherefore FEMAandGeorgiaasthegranteedidnothaveanopportunitytoreviewSingleAudit reportresultsthatmighthavedetectedthesameconditionsourauditidentifiedAsa resulttheseconditionscontinuedlongerthannecessary Countyofficialsagreedwiththisfinding
RECOMMENDATIONS
WerecommendthattheRegionalAdministratorFEMARegionIV Recommendation1Disallow$557943(Federalshare$418457)ofprojectcoststhat theCountyrsquosinsurancecoveredunlesstheCountyprovidesevidencethatinsurancedid notcoverthecosts(findingA) Recommendation2Deobligateandputtobetteruse$427944(Federalshare $320958)ofunneededFederalfunding(findingB) Recommendation3InstructGeorgiatoremindtheCountytoincludecontract provisionsthat44CFR1336(i)requirewhenacquiringgoodsandservicesunderaFEMA award(findingC)
Recommendation4InstructGeorgiatoremindtheCountyofitsresponsibilityto complywiththerequirementsoftheSingleAuditAct(findingD)
4TheSingleAuditActof1984asamendedin1996
wwwoigdhsgov OIGͲ14Ͳ124ͲD 6
OFFICE OF INSPECTOR GENERAL
Department of Homeland Security
DISCUSSIONWITHMANAGEMENTANDAUDITFOLLOWUP
WediscussedtheresultsofourauditwithCountyGeorgiaandFEMAofficialsduring ourauditWealsoprovidedadraftreportinadvancetotheseofficialsanddiscussedit attheexitconferenceonJune252014CobbCountyofficialspartiallyagreedtothe findingsWeincludedtheircommentsasappropriateinthebodyofthisreport Within90daysofthedateofthismemorandumpleaseprovideourofficewitha writtenresponsethatincludesyour(1)agreementordisagreement(2)corrective actionplanand(3)targetcompletiondateforeachrecommendationAlsoplease includethecontactinformationforresponsiblepartiesandanyothersupporting documentationnecessarytoinformusaboutthecurrentstatusoftherecommendation Untilwereceiveandevaluateyourresponsewewillconsidertherecommendations openandunresolved ConsistentwithourresponsibilityundertheInspectorGeneralActwewillprovide copiesofourreporttoappropriatecongressionalcommitteeswithoversightand appropriationresponsibilityovertheDepartmentofHomelandSecurityWewillpost thereportonourwebsiteforpublicdissemination MajorcontributionstothisreportareDavidKimbleDirectorAdrianneBryantAudit ManagerJohnSchmidtAuditorͲinͲChargeandOmarRussellAuditor Pleasecallmewithanyquestionsat(202)254Ͳ4100oryourstaffmaycontact DavidKimbleDirectorEasternRegionalOfficeat(404)832Ͳ6702
wwwoigdhsgov OIGͲ14Ͳ124ͲD 7
OFFICE OF INSPECTOR GENERAL
Department of Homeland Security
OFFICE OF INSPECTOR GENERAL
Department of Homeland Security
EXHIBIT
ScheduleofProjectsAuditedandQuestionedCosts
Project Number
Category ofWork
ProjectScope
Net Amount Awarded
Amount Questioned
Funds Putto
BetterUse
Federal Share (75)
Finding
LargeProjects 593 A DebrisRemovalndashCountyWide $378177 $0 $0 $0
1563 F NWPlantndashGirtChambers 67769 43910 0 32933 A 1573 E RLSuttonͲUVLightingSystemReplacement 552051 234068 317983 414038 AB 1594 C RegentsParkLaneRoadRepair 167838 0 0 0 1622 E SixFlagsPumpStationRepair 168080 58119 109961 126060 AB 1914 C ArthurrsquosCourtNERoadRepairs 197647 0 0 0 1953 E FireTruckReplacement 165996 0 0 0 2143 C RunningFoxDriveRoadRepairs 165816 0 0 0 2165 G PowderSpringsParkͲAthleticFieldRepairs 141247 51625 0 38719 A 2167 G PowderSpringsSwimmingPoolRepairs 97391 62720 0 47040 A 2169 C NetherstoneDriveNERoadRepairs 276369 0 0 0 2315 A DemolitionofPrivateStructures 301949 0 0 0
Subtotal $2680330 $450442 $427944 $658790 SmallProjects
373 E MariettaCityLibraryndashWaterExtraction $2191 $2008 $0 $1506 A 374 E SweetwaterTennisCenterndashSidingDrywall 12721 1910 0 1432 A 862 E WindyHillSeniorCenterndashWaterExtraction 4431 4323 0 3242 A 883 E MountainViewLibraryndashWaterExtraction 2460 2435 0 1826 A 891 E ProctorCreekPumpRepairs 18903 0 0 0
1081 E PowderSpringsParkConcessionBuilding 23138 15394 0 11546 A
1082 E SweetwaterTennisCenterndashContents 5580 4934 0 3701 A 1354 G NWPlantndashFenceandTree 1331 1270 0 952 A 1355 F NWPlantndashWastewaterControls 8399 3879 0 2909 A 1358 F CountyLinePumpStationͲSubgrade 2288 2002 0 1502 A 1580 F RLSuttonndashScumSystem 26246 26182 0 19636 A 1661 E VehicleRepairReplacement 40648 0 0 0 1705 A DebrisRemovalndashEastCobbPark 17058 15644 0 11733 A 1748 G CobblestoneGolfCoursendashvariousrepairs 12974 11600 0 8700 A 1954 E VehicleRepairReplacement 11917 0 0 0 2102 G NoondayCreekParkSandRemoval 56303 9455 0 7091 A 2103 E PowderSpringsParkPressboxDugouts 11325 0 0 0 2111 A DebrisRemovalͲPowderSpringPark 11305 5065 0 3799 A 2114 G FullersParkFootballFieldRepairs 41809 1400 0 1050 A
Subtotal $ 311027 $107501 $0 $80625 Totals $2991357 $557943 $427944 $739415
wwwoigdhsgov OIGͲ14Ͳ124ͲD 8
OFFICE OF INSPECTOR GENERAL
Department of Homeland Security
Appendix
ReportDistribution DepartmentofHomelandSecurity Secretary ChiefofStaff ChiefFinancialOfficer UnderSecretaryforManagement ChiefofPrivacyOfficer AuditLiaisonDHS FederalEmergencyManagementAgency Administrator ChiefofStaff ChiefFinancialOfficer ChiefCounsel ChiefProcurementOfficer DirectorRiskManagementandCompliance AuditLiaisonFEMARegionIV AuditLiaisonFEMA(JobCodeGͲ14Ͳ016) OfficeofManagementandBudget ChiefHomelandSecurityBranch DHSOIGBudgetExaminer RecoveryAccountabilityandTransparencyBoard DirectorInvestigationsRecoveryAccountabilityandTransparencyBoard Georgia DirectorGeorgiaEmergencyManagementAgency StateAuditorGeorgia Subgrantee DivisionManagerofFinanceCobbCounty
wwwoigdhsgov OIGͲ14Ͳ124ͲD 9
Congress SenateCommitteeonAppropriationsSubcommitteeonHomelandSecurity SenateCommitteeonHomelandSecurityandGovernmentalAffairs HouseCommitteeonAppropriationsSubcommitteeonHomelandSecurity HouseCommitteeonHomelandSecurity HouseCommitteeonOversightandGovernmentReform HouseCommitteeonTransportationandInfrastructure
wwwoigdhsgov OIGͲ14Ͳ124ͲD 10
OFFICE OF INSPECTOR GENERAL
Department of Homeland Security
ADDITIONAL INFORMATION To view this and any of our other reports please visit our website at wwwoigdhsgov For further information or questions please contact Office of Inspector General (OIG) Office of Public Affairs at DHS-OIGOfficePublicAffairsoigdhsgov or follow us on Twitter at dhsoig OIG HOTLINE To expedite the reporting of alleged fraud waste abuse or mismanagement or any other kinds of criminal or noncriminal misconduct relative to Department of Homeland Security (DHS) programs and operations please visit our website at wwwoigdhsgov and click on the red tab titled Hotline to report You will be directed to complete and submit an automated DHS OIG Investigative Referral Submission Form Submission through our website ensures that your complaint will be promptly received and reviewed by DHS OIG Should you be unable to access our website you may submit your complaint in writing to
Department of Homeland Security Office of Inspector General Mail Stop 0305 Attention Office of Investigations Hotline 245 Murray Drive SW Washington DC 20528-0305
You may also call 1(800) 323-8603 or fax the complaint directly to us at (202) 254-4297 The OIG seeks to protect the identity of each writer and caller
OFFICE OF INSPECTOR GENERAL
Department of Homeland Security
Table2ProjectCostsThatInsuranceProceedsCovered
Project Number
DescriptionofDamages
Amount Questioned
373 MariettaCityLibraryndashWaterExtraction $2008 374 SweetwaterTennisCenterndashSidingDrywall 1910 862 WindyHillSeniorCenterndashWaterExtraction 4323 883 MountainViewLibraryndashWaterExtraction 2435
1081 PowderSpringsParkConcessionBuilding 15394 1082 SweetwaterTennisCenterͲContents 4934 1354 NWPlantndashFenceandTree 1270 1355 NWPlantndashWastewaterControls 3879 1358 CountyLinePumpStationͲSubgrade 2002 1563 NWPlantndashGirtChambers 43910 1573 RLSuttonͲUVLightingSystemReplacement 234068 1580 RLSuttonndashScumSystem 26182 1622 SixFlagsPumpStationRepair 58119 1705 DebrisRemovalndashEastCobbPark 15644 1748 CobblestoneGolfCoursendashvariousrepairs 11600 2102 NoondayCreekParkSandRemoval 9455 2111 DebrisRemovalͲPowderSpringPark 5065 2114 FullersParkFootballFieldRepairs 1400 2165 PowderSpringsParkͲAthleticFieldRepairs 51625 2167 PowderSpringsSwimmingPoolRepairs 62720
Total $557943
SourceFEMAProjectWorksheetsCountyRecordsandOIGAnalysis AttheexitconferenceCountyofficialspartiallydisagreedwiththisfindingsayingthat theybelievetheamountwillbelesswhenGeorgiareviewstheCountyrsquosclaimand appliestheproceedsatprojectcloseoutHoweverourpositionremainsunchanged becausewebasedourfindingoninsurancedocumentationtheCountyprovidedtous FindingBFundsPutToBetterUse FEMAshoulddeobligate$427944ofprojectfundingandputthosefundstobetteruse becausetheCountynolongerneedsthefundingtocompleteprojectworkFederal appropriationslawsandtheStatementofFederalFinancialAccountingStandards (SFFAS)requireFederalagenciestorecordobligationsintheaccountingrecordsona
wwwoigdhsgov OIGͲ14Ͳ124ͲD 4
OFFICE OF INSPECTOR GENERAL
Department of Homeland Security
factualandconsistentbasisthroughoutthegovernment3Theoverrecordingand underrecordingofobligationsareequallyimproperasbothpracticesmakeitimpossible todeterminetheprecisestatusofFederalappropriationsWhenthepreciseamountis notknownatthetimethattheobligationisincurredagenciesappropriatelyrecordan obligationbasedonthebestestimateatthetimeAgencieshowevermustperiodically adjustthatobligationasmoreprecisedataontheliabilitybecomeavailableThatisthe agencymustincreaseordecreaseobligatedfundswhenprobableandmeasurable informationbecomesknownAgenciesmustdocumentboththeinitialrecordingsand theadjustmentstorecordedobligations UnderProject1573FEMAobligated$552051toreplacetheultravioletlightingsystem attheRLSuttonfacilityTheCountycompletedtheauthorizedworkundertheproject inFebruary2011for$234068or$317983lessthantheamountFEMAobligated SimilarlyunderProject1622FEMAobligated$168080forvariousrepairstotheSix FlagsPumpStationTheCountycompletedtheauthorizedworkinDecember2009for $58119or$109961lessthantheamountFEMAobligatedAtthetimeofouraudit the$427944($317983and$109961)ofexcessprojectfundingremainedobligated ThereforeFEMAshoulddeobligatethe$427944andputthosefundstobetteruse Countyofficialsagreedwiththisfinding FindingCContractingProcedures AlthoughtheCountyusedfullandopencompetitioninawardingcontractsfordisasterͲ relatedworkandtookaffirmativestepstosolicitsmallminorityandwomenͲowned firmstheCountydidnotincludeallcontractprovisionsthat44CodeofFederal Regulations(CFR)1336(i)requireFederalregulation44CFR1336(i)requires subgranteestoincludespecificprovisionsintheircontractssuchasEqualEmployment Opportunitycompliancecompliancewithlaborlawsandprohibitionofldquokickbacksrdquo Thesecontractprovisionsdocumenttherightsandresponsibilitiesofthepartiesand minimizetheriskofcontractmisinterpretationsanddisputesCountyofficialssaidthat theywereunawareoftherequiredprovisionsbutthattheywouldworkwiththe Countyrsquoslegalcounseltomodifythecontracts Countyofficialsagreedwiththisfinding
3GovernmentAccountabilityOfficePrinciplesofFederalAppropriationsLaw3rdEditionVolumeII February2006Chapter7SectionBCriteriaforRecordingObligations(31USCSection1501)
wwwoigdhsgov OIGͲ14Ͳ124ͲD 5
FindingDSingleAuditRequirements TheCountydidnotcomplywiththeSingleAuditActrsquosrequirementsforannualauditsof Federalawards4ThisActandOfficeofManagementandBudgetrsquosCircularAͲ133Audits ofStatesLocalGovernmentsandNonͲProfitOrganizationshelpensurethatgrant recipientsspendFederalfundsproperlyThecircularstatesthatnonͲFederalentities thatexpend$500000ormoreinayearinFederalawardsmustobtainasingleor programspecificauditforthatyearTheCountydidobtainannualsingleauditsbut theseauditsdidnotcovertheFederalfundstheCountyexpendedfortheFEMAaward (DisasterNumber1858)Countyofficialssaidthattheymistakenlyfailedtoprovidethe CountyrsquosauditingfirmwiththefinancialinformationrelatedtoFEMAawardTherefore FEMAandGeorgiaasthegranteedidnothaveanopportunitytoreviewSingleAudit reportresultsthatmighthavedetectedthesameconditionsourauditidentifiedAsa resulttheseconditionscontinuedlongerthannecessary Countyofficialsagreedwiththisfinding
RECOMMENDATIONS
WerecommendthattheRegionalAdministratorFEMARegionIV Recommendation1Disallow$557943(Federalshare$418457)ofprojectcoststhat theCountyrsquosinsurancecoveredunlesstheCountyprovidesevidencethatinsurancedid notcoverthecosts(findingA) Recommendation2Deobligateandputtobetteruse$427944(Federalshare $320958)ofunneededFederalfunding(findingB) Recommendation3InstructGeorgiatoremindtheCountytoincludecontract provisionsthat44CFR1336(i)requirewhenacquiringgoodsandservicesunderaFEMA award(findingC)
Recommendation4InstructGeorgiatoremindtheCountyofitsresponsibilityto complywiththerequirementsoftheSingleAuditAct(findingD)
4TheSingleAuditActof1984asamendedin1996
wwwoigdhsgov OIGͲ14Ͳ124ͲD 6
OFFICE OF INSPECTOR GENERAL
Department of Homeland Security
DISCUSSIONWITHMANAGEMENTANDAUDITFOLLOWUP
WediscussedtheresultsofourauditwithCountyGeorgiaandFEMAofficialsduring ourauditWealsoprovidedadraftreportinadvancetotheseofficialsanddiscussedit attheexitconferenceonJune252014CobbCountyofficialspartiallyagreedtothe findingsWeincludedtheircommentsasappropriateinthebodyofthisreport Within90daysofthedateofthismemorandumpleaseprovideourofficewitha writtenresponsethatincludesyour(1)agreementordisagreement(2)corrective actionplanand(3)targetcompletiondateforeachrecommendationAlsoplease includethecontactinformationforresponsiblepartiesandanyothersupporting documentationnecessarytoinformusaboutthecurrentstatusoftherecommendation Untilwereceiveandevaluateyourresponsewewillconsidertherecommendations openandunresolved ConsistentwithourresponsibilityundertheInspectorGeneralActwewillprovide copiesofourreporttoappropriatecongressionalcommitteeswithoversightand appropriationresponsibilityovertheDepartmentofHomelandSecurityWewillpost thereportonourwebsiteforpublicdissemination MajorcontributionstothisreportareDavidKimbleDirectorAdrianneBryantAudit ManagerJohnSchmidtAuditorͲinͲChargeandOmarRussellAuditor Pleasecallmewithanyquestionsat(202)254Ͳ4100oryourstaffmaycontact DavidKimbleDirectorEasternRegionalOfficeat(404)832Ͳ6702
wwwoigdhsgov OIGͲ14Ͳ124ͲD 7
OFFICE OF INSPECTOR GENERAL
Department of Homeland Security
OFFICE OF INSPECTOR GENERAL
Department of Homeland Security
EXHIBIT
ScheduleofProjectsAuditedandQuestionedCosts
Project Number
Category ofWork
ProjectScope
Net Amount Awarded
Amount Questioned
Funds Putto
BetterUse
Federal Share (75)
Finding
LargeProjects 593 A DebrisRemovalndashCountyWide $378177 $0 $0 $0
1563 F NWPlantndashGirtChambers 67769 43910 0 32933 A 1573 E RLSuttonͲUVLightingSystemReplacement 552051 234068 317983 414038 AB 1594 C RegentsParkLaneRoadRepair 167838 0 0 0 1622 E SixFlagsPumpStationRepair 168080 58119 109961 126060 AB 1914 C ArthurrsquosCourtNERoadRepairs 197647 0 0 0 1953 E FireTruckReplacement 165996 0 0 0 2143 C RunningFoxDriveRoadRepairs 165816 0 0 0 2165 G PowderSpringsParkͲAthleticFieldRepairs 141247 51625 0 38719 A 2167 G PowderSpringsSwimmingPoolRepairs 97391 62720 0 47040 A 2169 C NetherstoneDriveNERoadRepairs 276369 0 0 0 2315 A DemolitionofPrivateStructures 301949 0 0 0
Subtotal $2680330 $450442 $427944 $658790 SmallProjects
373 E MariettaCityLibraryndashWaterExtraction $2191 $2008 $0 $1506 A 374 E SweetwaterTennisCenterndashSidingDrywall 12721 1910 0 1432 A 862 E WindyHillSeniorCenterndashWaterExtraction 4431 4323 0 3242 A 883 E MountainViewLibraryndashWaterExtraction 2460 2435 0 1826 A 891 E ProctorCreekPumpRepairs 18903 0 0 0
1081 E PowderSpringsParkConcessionBuilding 23138 15394 0 11546 A
1082 E SweetwaterTennisCenterndashContents 5580 4934 0 3701 A 1354 G NWPlantndashFenceandTree 1331 1270 0 952 A 1355 F NWPlantndashWastewaterControls 8399 3879 0 2909 A 1358 F CountyLinePumpStationͲSubgrade 2288 2002 0 1502 A 1580 F RLSuttonndashScumSystem 26246 26182 0 19636 A 1661 E VehicleRepairReplacement 40648 0 0 0 1705 A DebrisRemovalndashEastCobbPark 17058 15644 0 11733 A 1748 G CobblestoneGolfCoursendashvariousrepairs 12974 11600 0 8700 A 1954 E VehicleRepairReplacement 11917 0 0 0 2102 G NoondayCreekParkSandRemoval 56303 9455 0 7091 A 2103 E PowderSpringsParkPressboxDugouts 11325 0 0 0 2111 A DebrisRemovalͲPowderSpringPark 11305 5065 0 3799 A 2114 G FullersParkFootballFieldRepairs 41809 1400 0 1050 A
Subtotal $ 311027 $107501 $0 $80625 Totals $2991357 $557943 $427944 $739415
wwwoigdhsgov OIGͲ14Ͳ124ͲD 8
OFFICE OF INSPECTOR GENERAL
Department of Homeland Security
Appendix
ReportDistribution DepartmentofHomelandSecurity Secretary ChiefofStaff ChiefFinancialOfficer UnderSecretaryforManagement ChiefofPrivacyOfficer AuditLiaisonDHS FederalEmergencyManagementAgency Administrator ChiefofStaff ChiefFinancialOfficer ChiefCounsel ChiefProcurementOfficer DirectorRiskManagementandCompliance AuditLiaisonFEMARegionIV AuditLiaisonFEMA(JobCodeGͲ14Ͳ016) OfficeofManagementandBudget ChiefHomelandSecurityBranch DHSOIGBudgetExaminer RecoveryAccountabilityandTransparencyBoard DirectorInvestigationsRecoveryAccountabilityandTransparencyBoard Georgia DirectorGeorgiaEmergencyManagementAgency StateAuditorGeorgia Subgrantee DivisionManagerofFinanceCobbCounty
wwwoigdhsgov OIGͲ14Ͳ124ͲD 9
Congress SenateCommitteeonAppropriationsSubcommitteeonHomelandSecurity SenateCommitteeonHomelandSecurityandGovernmentalAffairs HouseCommitteeonAppropriationsSubcommitteeonHomelandSecurity HouseCommitteeonHomelandSecurity HouseCommitteeonOversightandGovernmentReform HouseCommitteeonTransportationandInfrastructure
wwwoigdhsgov OIGͲ14Ͳ124ͲD 10
OFFICE OF INSPECTOR GENERAL
Department of Homeland Security
ADDITIONAL INFORMATION To view this and any of our other reports please visit our website at wwwoigdhsgov For further information or questions please contact Office of Inspector General (OIG) Office of Public Affairs at DHS-OIGOfficePublicAffairsoigdhsgov or follow us on Twitter at dhsoig OIG HOTLINE To expedite the reporting of alleged fraud waste abuse or mismanagement or any other kinds of criminal or noncriminal misconduct relative to Department of Homeland Security (DHS) programs and operations please visit our website at wwwoigdhsgov and click on the red tab titled Hotline to report You will be directed to complete and submit an automated DHS OIG Investigative Referral Submission Form Submission through our website ensures that your complaint will be promptly received and reviewed by DHS OIG Should you be unable to access our website you may submit your complaint in writing to
Department of Homeland Security Office of Inspector General Mail Stop 0305 Attention Office of Investigations Hotline 245 Murray Drive SW Washington DC 20528-0305
You may also call 1(800) 323-8603 or fax the complaint directly to us at (202) 254-4297 The OIG seeks to protect the identity of each writer and caller
OFFICE OF INSPECTOR GENERAL
Department of Homeland Security
factualandconsistentbasisthroughoutthegovernment3Theoverrecordingand underrecordingofobligationsareequallyimproperasbothpracticesmakeitimpossible todeterminetheprecisestatusofFederalappropriationsWhenthepreciseamountis notknownatthetimethattheobligationisincurredagenciesappropriatelyrecordan obligationbasedonthebestestimateatthetimeAgencieshowevermustperiodically adjustthatobligationasmoreprecisedataontheliabilitybecomeavailableThatisthe agencymustincreaseordecreaseobligatedfundswhenprobableandmeasurable informationbecomesknownAgenciesmustdocumentboththeinitialrecordingsand theadjustmentstorecordedobligations UnderProject1573FEMAobligated$552051toreplacetheultravioletlightingsystem attheRLSuttonfacilityTheCountycompletedtheauthorizedworkundertheproject inFebruary2011for$234068or$317983lessthantheamountFEMAobligated SimilarlyunderProject1622FEMAobligated$168080forvariousrepairstotheSix FlagsPumpStationTheCountycompletedtheauthorizedworkinDecember2009for $58119or$109961lessthantheamountFEMAobligatedAtthetimeofouraudit the$427944($317983and$109961)ofexcessprojectfundingremainedobligated ThereforeFEMAshoulddeobligatethe$427944andputthosefundstobetteruse Countyofficialsagreedwiththisfinding FindingCContractingProcedures AlthoughtheCountyusedfullandopencompetitioninawardingcontractsfordisasterͲ relatedworkandtookaffirmativestepstosolicitsmallminorityandwomenͲowned firmstheCountydidnotincludeallcontractprovisionsthat44CodeofFederal Regulations(CFR)1336(i)requireFederalregulation44CFR1336(i)requires subgranteestoincludespecificprovisionsintheircontractssuchasEqualEmployment Opportunitycompliancecompliancewithlaborlawsandprohibitionofldquokickbacksrdquo Thesecontractprovisionsdocumenttherightsandresponsibilitiesofthepartiesand minimizetheriskofcontractmisinterpretationsanddisputesCountyofficialssaidthat theywereunawareoftherequiredprovisionsbutthattheywouldworkwiththe Countyrsquoslegalcounseltomodifythecontracts Countyofficialsagreedwiththisfinding
3GovernmentAccountabilityOfficePrinciplesofFederalAppropriationsLaw3rdEditionVolumeII February2006Chapter7SectionBCriteriaforRecordingObligations(31USCSection1501)
wwwoigdhsgov OIGͲ14Ͳ124ͲD 5
FindingDSingleAuditRequirements TheCountydidnotcomplywiththeSingleAuditActrsquosrequirementsforannualauditsof Federalawards4ThisActandOfficeofManagementandBudgetrsquosCircularAͲ133Audits ofStatesLocalGovernmentsandNonͲProfitOrganizationshelpensurethatgrant recipientsspendFederalfundsproperlyThecircularstatesthatnonͲFederalentities thatexpend$500000ormoreinayearinFederalawardsmustobtainasingleor programspecificauditforthatyearTheCountydidobtainannualsingleauditsbut theseauditsdidnotcovertheFederalfundstheCountyexpendedfortheFEMAaward (DisasterNumber1858)Countyofficialssaidthattheymistakenlyfailedtoprovidethe CountyrsquosauditingfirmwiththefinancialinformationrelatedtoFEMAawardTherefore FEMAandGeorgiaasthegranteedidnothaveanopportunitytoreviewSingleAudit reportresultsthatmighthavedetectedthesameconditionsourauditidentifiedAsa resulttheseconditionscontinuedlongerthannecessary Countyofficialsagreedwiththisfinding
RECOMMENDATIONS
WerecommendthattheRegionalAdministratorFEMARegionIV Recommendation1Disallow$557943(Federalshare$418457)ofprojectcoststhat theCountyrsquosinsurancecoveredunlesstheCountyprovidesevidencethatinsurancedid notcoverthecosts(findingA) Recommendation2Deobligateandputtobetteruse$427944(Federalshare $320958)ofunneededFederalfunding(findingB) Recommendation3InstructGeorgiatoremindtheCountytoincludecontract provisionsthat44CFR1336(i)requirewhenacquiringgoodsandservicesunderaFEMA award(findingC)
Recommendation4InstructGeorgiatoremindtheCountyofitsresponsibilityto complywiththerequirementsoftheSingleAuditAct(findingD)
4TheSingleAuditActof1984asamendedin1996
wwwoigdhsgov OIGͲ14Ͳ124ͲD 6
OFFICE OF INSPECTOR GENERAL
Department of Homeland Security
DISCUSSIONWITHMANAGEMENTANDAUDITFOLLOWUP
WediscussedtheresultsofourauditwithCountyGeorgiaandFEMAofficialsduring ourauditWealsoprovidedadraftreportinadvancetotheseofficialsanddiscussedit attheexitconferenceonJune252014CobbCountyofficialspartiallyagreedtothe findingsWeincludedtheircommentsasappropriateinthebodyofthisreport Within90daysofthedateofthismemorandumpleaseprovideourofficewitha writtenresponsethatincludesyour(1)agreementordisagreement(2)corrective actionplanand(3)targetcompletiondateforeachrecommendationAlsoplease includethecontactinformationforresponsiblepartiesandanyothersupporting documentationnecessarytoinformusaboutthecurrentstatusoftherecommendation Untilwereceiveandevaluateyourresponsewewillconsidertherecommendations openandunresolved ConsistentwithourresponsibilityundertheInspectorGeneralActwewillprovide copiesofourreporttoappropriatecongressionalcommitteeswithoversightand appropriationresponsibilityovertheDepartmentofHomelandSecurityWewillpost thereportonourwebsiteforpublicdissemination MajorcontributionstothisreportareDavidKimbleDirectorAdrianneBryantAudit ManagerJohnSchmidtAuditorͲinͲChargeandOmarRussellAuditor Pleasecallmewithanyquestionsat(202)254Ͳ4100oryourstaffmaycontact DavidKimbleDirectorEasternRegionalOfficeat(404)832Ͳ6702
wwwoigdhsgov OIGͲ14Ͳ124ͲD 7
OFFICE OF INSPECTOR GENERAL
Department of Homeland Security
OFFICE OF INSPECTOR GENERAL
Department of Homeland Security
EXHIBIT
ScheduleofProjectsAuditedandQuestionedCosts
Project Number
Category ofWork
ProjectScope
Net Amount Awarded
Amount Questioned
Funds Putto
BetterUse
Federal Share (75)
Finding
LargeProjects 593 A DebrisRemovalndashCountyWide $378177 $0 $0 $0
1563 F NWPlantndashGirtChambers 67769 43910 0 32933 A 1573 E RLSuttonͲUVLightingSystemReplacement 552051 234068 317983 414038 AB 1594 C RegentsParkLaneRoadRepair 167838 0 0 0 1622 E SixFlagsPumpStationRepair 168080 58119 109961 126060 AB 1914 C ArthurrsquosCourtNERoadRepairs 197647 0 0 0 1953 E FireTruckReplacement 165996 0 0 0 2143 C RunningFoxDriveRoadRepairs 165816 0 0 0 2165 G PowderSpringsParkͲAthleticFieldRepairs 141247 51625 0 38719 A 2167 G PowderSpringsSwimmingPoolRepairs 97391 62720 0 47040 A 2169 C NetherstoneDriveNERoadRepairs 276369 0 0 0 2315 A DemolitionofPrivateStructures 301949 0 0 0
Subtotal $2680330 $450442 $427944 $658790 SmallProjects
373 E MariettaCityLibraryndashWaterExtraction $2191 $2008 $0 $1506 A 374 E SweetwaterTennisCenterndashSidingDrywall 12721 1910 0 1432 A 862 E WindyHillSeniorCenterndashWaterExtraction 4431 4323 0 3242 A 883 E MountainViewLibraryndashWaterExtraction 2460 2435 0 1826 A 891 E ProctorCreekPumpRepairs 18903 0 0 0
1081 E PowderSpringsParkConcessionBuilding 23138 15394 0 11546 A
1082 E SweetwaterTennisCenterndashContents 5580 4934 0 3701 A 1354 G NWPlantndashFenceandTree 1331 1270 0 952 A 1355 F NWPlantndashWastewaterControls 8399 3879 0 2909 A 1358 F CountyLinePumpStationͲSubgrade 2288 2002 0 1502 A 1580 F RLSuttonndashScumSystem 26246 26182 0 19636 A 1661 E VehicleRepairReplacement 40648 0 0 0 1705 A DebrisRemovalndashEastCobbPark 17058 15644 0 11733 A 1748 G CobblestoneGolfCoursendashvariousrepairs 12974 11600 0 8700 A 1954 E VehicleRepairReplacement 11917 0 0 0 2102 G NoondayCreekParkSandRemoval 56303 9455 0 7091 A 2103 E PowderSpringsParkPressboxDugouts 11325 0 0 0 2111 A DebrisRemovalͲPowderSpringPark 11305 5065 0 3799 A 2114 G FullersParkFootballFieldRepairs 41809 1400 0 1050 A
Subtotal $ 311027 $107501 $0 $80625 Totals $2991357 $557943 $427944 $739415
wwwoigdhsgov OIGͲ14Ͳ124ͲD 8
OFFICE OF INSPECTOR GENERAL
Department of Homeland Security
Appendix
ReportDistribution DepartmentofHomelandSecurity Secretary ChiefofStaff ChiefFinancialOfficer UnderSecretaryforManagement ChiefofPrivacyOfficer AuditLiaisonDHS FederalEmergencyManagementAgency Administrator ChiefofStaff ChiefFinancialOfficer ChiefCounsel ChiefProcurementOfficer DirectorRiskManagementandCompliance AuditLiaisonFEMARegionIV AuditLiaisonFEMA(JobCodeGͲ14Ͳ016) OfficeofManagementandBudget ChiefHomelandSecurityBranch DHSOIGBudgetExaminer RecoveryAccountabilityandTransparencyBoard DirectorInvestigationsRecoveryAccountabilityandTransparencyBoard Georgia DirectorGeorgiaEmergencyManagementAgency StateAuditorGeorgia Subgrantee DivisionManagerofFinanceCobbCounty
wwwoigdhsgov OIGͲ14Ͳ124ͲD 9
Congress SenateCommitteeonAppropriationsSubcommitteeonHomelandSecurity SenateCommitteeonHomelandSecurityandGovernmentalAffairs HouseCommitteeonAppropriationsSubcommitteeonHomelandSecurity HouseCommitteeonHomelandSecurity HouseCommitteeonOversightandGovernmentReform HouseCommitteeonTransportationandInfrastructure
wwwoigdhsgov OIGͲ14Ͳ124ͲD 10
OFFICE OF INSPECTOR GENERAL
Department of Homeland Security
ADDITIONAL INFORMATION To view this and any of our other reports please visit our website at wwwoigdhsgov For further information or questions please contact Office of Inspector General (OIG) Office of Public Affairs at DHS-OIGOfficePublicAffairsoigdhsgov or follow us on Twitter at dhsoig OIG HOTLINE To expedite the reporting of alleged fraud waste abuse or mismanagement or any other kinds of criminal or noncriminal misconduct relative to Department of Homeland Security (DHS) programs and operations please visit our website at wwwoigdhsgov and click on the red tab titled Hotline to report You will be directed to complete and submit an automated DHS OIG Investigative Referral Submission Form Submission through our website ensures that your complaint will be promptly received and reviewed by DHS OIG Should you be unable to access our website you may submit your complaint in writing to
Department of Homeland Security Office of Inspector General Mail Stop 0305 Attention Office of Investigations Hotline 245 Murray Drive SW Washington DC 20528-0305
You may also call 1(800) 323-8603 or fax the complaint directly to us at (202) 254-4297 The OIG seeks to protect the identity of each writer and caller
FindingDSingleAuditRequirements TheCountydidnotcomplywiththeSingleAuditActrsquosrequirementsforannualauditsof Federalawards4ThisActandOfficeofManagementandBudgetrsquosCircularAͲ133Audits ofStatesLocalGovernmentsandNonͲProfitOrganizationshelpensurethatgrant recipientsspendFederalfundsproperlyThecircularstatesthatnonͲFederalentities thatexpend$500000ormoreinayearinFederalawardsmustobtainasingleor programspecificauditforthatyearTheCountydidobtainannualsingleauditsbut theseauditsdidnotcovertheFederalfundstheCountyexpendedfortheFEMAaward (DisasterNumber1858)Countyofficialssaidthattheymistakenlyfailedtoprovidethe CountyrsquosauditingfirmwiththefinancialinformationrelatedtoFEMAawardTherefore FEMAandGeorgiaasthegranteedidnothaveanopportunitytoreviewSingleAudit reportresultsthatmighthavedetectedthesameconditionsourauditidentifiedAsa resulttheseconditionscontinuedlongerthannecessary Countyofficialsagreedwiththisfinding
RECOMMENDATIONS
WerecommendthattheRegionalAdministratorFEMARegionIV Recommendation1Disallow$557943(Federalshare$418457)ofprojectcoststhat theCountyrsquosinsurancecoveredunlesstheCountyprovidesevidencethatinsurancedid notcoverthecosts(findingA) Recommendation2Deobligateandputtobetteruse$427944(Federalshare $320958)ofunneededFederalfunding(findingB) Recommendation3InstructGeorgiatoremindtheCountytoincludecontract provisionsthat44CFR1336(i)requirewhenacquiringgoodsandservicesunderaFEMA award(findingC)
Recommendation4InstructGeorgiatoremindtheCountyofitsresponsibilityto complywiththerequirementsoftheSingleAuditAct(findingD)
4TheSingleAuditActof1984asamendedin1996
wwwoigdhsgov OIGͲ14Ͳ124ͲD 6
OFFICE OF INSPECTOR GENERAL
Department of Homeland Security
DISCUSSIONWITHMANAGEMENTANDAUDITFOLLOWUP
WediscussedtheresultsofourauditwithCountyGeorgiaandFEMAofficialsduring ourauditWealsoprovidedadraftreportinadvancetotheseofficialsanddiscussedit attheexitconferenceonJune252014CobbCountyofficialspartiallyagreedtothe findingsWeincludedtheircommentsasappropriateinthebodyofthisreport Within90daysofthedateofthismemorandumpleaseprovideourofficewitha writtenresponsethatincludesyour(1)agreementordisagreement(2)corrective actionplanand(3)targetcompletiondateforeachrecommendationAlsoplease includethecontactinformationforresponsiblepartiesandanyothersupporting documentationnecessarytoinformusaboutthecurrentstatusoftherecommendation Untilwereceiveandevaluateyourresponsewewillconsidertherecommendations openandunresolved ConsistentwithourresponsibilityundertheInspectorGeneralActwewillprovide copiesofourreporttoappropriatecongressionalcommitteeswithoversightand appropriationresponsibilityovertheDepartmentofHomelandSecurityWewillpost thereportonourwebsiteforpublicdissemination MajorcontributionstothisreportareDavidKimbleDirectorAdrianneBryantAudit ManagerJohnSchmidtAuditorͲinͲChargeandOmarRussellAuditor Pleasecallmewithanyquestionsat(202)254Ͳ4100oryourstaffmaycontact DavidKimbleDirectorEasternRegionalOfficeat(404)832Ͳ6702
wwwoigdhsgov OIGͲ14Ͳ124ͲD 7
OFFICE OF INSPECTOR GENERAL
Department of Homeland Security
OFFICE OF INSPECTOR GENERAL
Department of Homeland Security
EXHIBIT
ScheduleofProjectsAuditedandQuestionedCosts
Project Number
Category ofWork
ProjectScope
Net Amount Awarded
Amount Questioned
Funds Putto
BetterUse
Federal Share (75)
Finding
LargeProjects 593 A DebrisRemovalndashCountyWide $378177 $0 $0 $0
1563 F NWPlantndashGirtChambers 67769 43910 0 32933 A 1573 E RLSuttonͲUVLightingSystemReplacement 552051 234068 317983 414038 AB 1594 C RegentsParkLaneRoadRepair 167838 0 0 0 1622 E SixFlagsPumpStationRepair 168080 58119 109961 126060 AB 1914 C ArthurrsquosCourtNERoadRepairs 197647 0 0 0 1953 E FireTruckReplacement 165996 0 0 0 2143 C RunningFoxDriveRoadRepairs 165816 0 0 0 2165 G PowderSpringsParkͲAthleticFieldRepairs 141247 51625 0 38719 A 2167 G PowderSpringsSwimmingPoolRepairs 97391 62720 0 47040 A 2169 C NetherstoneDriveNERoadRepairs 276369 0 0 0 2315 A DemolitionofPrivateStructures 301949 0 0 0
Subtotal $2680330 $450442 $427944 $658790 SmallProjects
373 E MariettaCityLibraryndashWaterExtraction $2191 $2008 $0 $1506 A 374 E SweetwaterTennisCenterndashSidingDrywall 12721 1910 0 1432 A 862 E WindyHillSeniorCenterndashWaterExtraction 4431 4323 0 3242 A 883 E MountainViewLibraryndashWaterExtraction 2460 2435 0 1826 A 891 E ProctorCreekPumpRepairs 18903 0 0 0
1081 E PowderSpringsParkConcessionBuilding 23138 15394 0 11546 A
1082 E SweetwaterTennisCenterndashContents 5580 4934 0 3701 A 1354 G NWPlantndashFenceandTree 1331 1270 0 952 A 1355 F NWPlantndashWastewaterControls 8399 3879 0 2909 A 1358 F CountyLinePumpStationͲSubgrade 2288 2002 0 1502 A 1580 F RLSuttonndashScumSystem 26246 26182 0 19636 A 1661 E VehicleRepairReplacement 40648 0 0 0 1705 A DebrisRemovalndashEastCobbPark 17058 15644 0 11733 A 1748 G CobblestoneGolfCoursendashvariousrepairs 12974 11600 0 8700 A 1954 E VehicleRepairReplacement 11917 0 0 0 2102 G NoondayCreekParkSandRemoval 56303 9455 0 7091 A 2103 E PowderSpringsParkPressboxDugouts 11325 0 0 0 2111 A DebrisRemovalͲPowderSpringPark 11305 5065 0 3799 A 2114 G FullersParkFootballFieldRepairs 41809 1400 0 1050 A
Subtotal $ 311027 $107501 $0 $80625 Totals $2991357 $557943 $427944 $739415
wwwoigdhsgov OIGͲ14Ͳ124ͲD 8
OFFICE OF INSPECTOR GENERAL
Department of Homeland Security
Appendix
ReportDistribution DepartmentofHomelandSecurity Secretary ChiefofStaff ChiefFinancialOfficer UnderSecretaryforManagement ChiefofPrivacyOfficer AuditLiaisonDHS FederalEmergencyManagementAgency Administrator ChiefofStaff ChiefFinancialOfficer ChiefCounsel ChiefProcurementOfficer DirectorRiskManagementandCompliance AuditLiaisonFEMARegionIV AuditLiaisonFEMA(JobCodeGͲ14Ͳ016) OfficeofManagementandBudget ChiefHomelandSecurityBranch DHSOIGBudgetExaminer RecoveryAccountabilityandTransparencyBoard DirectorInvestigationsRecoveryAccountabilityandTransparencyBoard Georgia DirectorGeorgiaEmergencyManagementAgency StateAuditorGeorgia Subgrantee DivisionManagerofFinanceCobbCounty
wwwoigdhsgov OIGͲ14Ͳ124ͲD 9
Congress SenateCommitteeonAppropriationsSubcommitteeonHomelandSecurity SenateCommitteeonHomelandSecurityandGovernmentalAffairs HouseCommitteeonAppropriationsSubcommitteeonHomelandSecurity HouseCommitteeonHomelandSecurity HouseCommitteeonOversightandGovernmentReform HouseCommitteeonTransportationandInfrastructure
wwwoigdhsgov OIGͲ14Ͳ124ͲD 10
OFFICE OF INSPECTOR GENERAL
Department of Homeland Security
ADDITIONAL INFORMATION To view this and any of our other reports please visit our website at wwwoigdhsgov For further information or questions please contact Office of Inspector General (OIG) Office of Public Affairs at DHS-OIGOfficePublicAffairsoigdhsgov or follow us on Twitter at dhsoig OIG HOTLINE To expedite the reporting of alleged fraud waste abuse or mismanagement or any other kinds of criminal or noncriminal misconduct relative to Department of Homeland Security (DHS) programs and operations please visit our website at wwwoigdhsgov and click on the red tab titled Hotline to report You will be directed to complete and submit an automated DHS OIG Investigative Referral Submission Form Submission through our website ensures that your complaint will be promptly received and reviewed by DHS OIG Should you be unable to access our website you may submit your complaint in writing to
Department of Homeland Security Office of Inspector General Mail Stop 0305 Attention Office of Investigations Hotline 245 Murray Drive SW Washington DC 20528-0305
You may also call 1(800) 323-8603 or fax the complaint directly to us at (202) 254-4297 The OIG seeks to protect the identity of each writer and caller
DISCUSSIONWITHMANAGEMENTANDAUDITFOLLOWUP
WediscussedtheresultsofourauditwithCountyGeorgiaandFEMAofficialsduring ourauditWealsoprovidedadraftreportinadvancetotheseofficialsanddiscussedit attheexitconferenceonJune252014CobbCountyofficialspartiallyagreedtothe findingsWeincludedtheircommentsasappropriateinthebodyofthisreport Within90daysofthedateofthismemorandumpleaseprovideourofficewitha writtenresponsethatincludesyour(1)agreementordisagreement(2)corrective actionplanand(3)targetcompletiondateforeachrecommendationAlsoplease includethecontactinformationforresponsiblepartiesandanyothersupporting documentationnecessarytoinformusaboutthecurrentstatusoftherecommendation Untilwereceiveandevaluateyourresponsewewillconsidertherecommendations openandunresolved ConsistentwithourresponsibilityundertheInspectorGeneralActwewillprovide copiesofourreporttoappropriatecongressionalcommitteeswithoversightand appropriationresponsibilityovertheDepartmentofHomelandSecurityWewillpost thereportonourwebsiteforpublicdissemination MajorcontributionstothisreportareDavidKimbleDirectorAdrianneBryantAudit ManagerJohnSchmidtAuditorͲinͲChargeandOmarRussellAuditor Pleasecallmewithanyquestionsat(202)254Ͳ4100oryourstaffmaycontact DavidKimbleDirectorEasternRegionalOfficeat(404)832Ͳ6702
wwwoigdhsgov OIGͲ14Ͳ124ͲD 7
OFFICE OF INSPECTOR GENERAL
Department of Homeland Security
OFFICE OF INSPECTOR GENERAL
Department of Homeland Security
EXHIBIT
ScheduleofProjectsAuditedandQuestionedCosts
Project Number
Category ofWork
ProjectScope
Net Amount Awarded
Amount Questioned
Funds Putto
BetterUse
Federal Share (75)
Finding
LargeProjects 593 A DebrisRemovalndashCountyWide $378177 $0 $0 $0
1563 F NWPlantndashGirtChambers 67769 43910 0 32933 A 1573 E RLSuttonͲUVLightingSystemReplacement 552051 234068 317983 414038 AB 1594 C RegentsParkLaneRoadRepair 167838 0 0 0 1622 E SixFlagsPumpStationRepair 168080 58119 109961 126060 AB 1914 C ArthurrsquosCourtNERoadRepairs 197647 0 0 0 1953 E FireTruckReplacement 165996 0 0 0 2143 C RunningFoxDriveRoadRepairs 165816 0 0 0 2165 G PowderSpringsParkͲAthleticFieldRepairs 141247 51625 0 38719 A 2167 G PowderSpringsSwimmingPoolRepairs 97391 62720 0 47040 A 2169 C NetherstoneDriveNERoadRepairs 276369 0 0 0 2315 A DemolitionofPrivateStructures 301949 0 0 0
Subtotal $2680330 $450442 $427944 $658790 SmallProjects
373 E MariettaCityLibraryndashWaterExtraction $2191 $2008 $0 $1506 A 374 E SweetwaterTennisCenterndashSidingDrywall 12721 1910 0 1432 A 862 E WindyHillSeniorCenterndashWaterExtraction 4431 4323 0 3242 A 883 E MountainViewLibraryndashWaterExtraction 2460 2435 0 1826 A 891 E ProctorCreekPumpRepairs 18903 0 0 0
1081 E PowderSpringsParkConcessionBuilding 23138 15394 0 11546 A
1082 E SweetwaterTennisCenterndashContents 5580 4934 0 3701 A 1354 G NWPlantndashFenceandTree 1331 1270 0 952 A 1355 F NWPlantndashWastewaterControls 8399 3879 0 2909 A 1358 F CountyLinePumpStationͲSubgrade 2288 2002 0 1502 A 1580 F RLSuttonndashScumSystem 26246 26182 0 19636 A 1661 E VehicleRepairReplacement 40648 0 0 0 1705 A DebrisRemovalndashEastCobbPark 17058 15644 0 11733 A 1748 G CobblestoneGolfCoursendashvariousrepairs 12974 11600 0 8700 A 1954 E VehicleRepairReplacement 11917 0 0 0 2102 G NoondayCreekParkSandRemoval 56303 9455 0 7091 A 2103 E PowderSpringsParkPressboxDugouts 11325 0 0 0 2111 A DebrisRemovalͲPowderSpringPark 11305 5065 0 3799 A 2114 G FullersParkFootballFieldRepairs 41809 1400 0 1050 A
Subtotal $ 311027 $107501 $0 $80625 Totals $2991357 $557943 $427944 $739415
wwwoigdhsgov OIGͲ14Ͳ124ͲD 8
OFFICE OF INSPECTOR GENERAL
Department of Homeland Security
Appendix
ReportDistribution DepartmentofHomelandSecurity Secretary ChiefofStaff ChiefFinancialOfficer UnderSecretaryforManagement ChiefofPrivacyOfficer AuditLiaisonDHS FederalEmergencyManagementAgency Administrator ChiefofStaff ChiefFinancialOfficer ChiefCounsel ChiefProcurementOfficer DirectorRiskManagementandCompliance AuditLiaisonFEMARegionIV AuditLiaisonFEMA(JobCodeGͲ14Ͳ016) OfficeofManagementandBudget ChiefHomelandSecurityBranch DHSOIGBudgetExaminer RecoveryAccountabilityandTransparencyBoard DirectorInvestigationsRecoveryAccountabilityandTransparencyBoard Georgia DirectorGeorgiaEmergencyManagementAgency StateAuditorGeorgia Subgrantee DivisionManagerofFinanceCobbCounty
wwwoigdhsgov OIGͲ14Ͳ124ͲD 9
Congress SenateCommitteeonAppropriationsSubcommitteeonHomelandSecurity SenateCommitteeonHomelandSecurityandGovernmentalAffairs HouseCommitteeonAppropriationsSubcommitteeonHomelandSecurity HouseCommitteeonHomelandSecurity HouseCommitteeonOversightandGovernmentReform HouseCommitteeonTransportationandInfrastructure
wwwoigdhsgov OIGͲ14Ͳ124ͲD 10
OFFICE OF INSPECTOR GENERAL
Department of Homeland Security
ADDITIONAL INFORMATION To view this and any of our other reports please visit our website at wwwoigdhsgov For further information or questions please contact Office of Inspector General (OIG) Office of Public Affairs at DHS-OIGOfficePublicAffairsoigdhsgov or follow us on Twitter at dhsoig OIG HOTLINE To expedite the reporting of alleged fraud waste abuse or mismanagement or any other kinds of criminal or noncriminal misconduct relative to Department of Homeland Security (DHS) programs and operations please visit our website at wwwoigdhsgov and click on the red tab titled Hotline to report You will be directed to complete and submit an automated DHS OIG Investigative Referral Submission Form Submission through our website ensures that your complaint will be promptly received and reviewed by DHS OIG Should you be unable to access our website you may submit your complaint in writing to
Department of Homeland Security Office of Inspector General Mail Stop 0305 Attention Office of Investigations Hotline 245 Murray Drive SW Washington DC 20528-0305
You may also call 1(800) 323-8603 or fax the complaint directly to us at (202) 254-4297 The OIG seeks to protect the identity of each writer and caller
OFFICE OF INSPECTOR GENERAL
Department of Homeland Security
EXHIBIT
ScheduleofProjectsAuditedandQuestionedCosts
Project Number
Category ofWork
ProjectScope
Net Amount Awarded
Amount Questioned
Funds Putto
BetterUse
Federal Share (75)
Finding
LargeProjects 593 A DebrisRemovalndashCountyWide $378177 $0 $0 $0
1563 F NWPlantndashGirtChambers 67769 43910 0 32933 A 1573 E RLSuttonͲUVLightingSystemReplacement 552051 234068 317983 414038 AB 1594 C RegentsParkLaneRoadRepair 167838 0 0 0 1622 E SixFlagsPumpStationRepair 168080 58119 109961 126060 AB 1914 C ArthurrsquosCourtNERoadRepairs 197647 0 0 0 1953 E FireTruckReplacement 165996 0 0 0 2143 C RunningFoxDriveRoadRepairs 165816 0 0 0 2165 G PowderSpringsParkͲAthleticFieldRepairs 141247 51625 0 38719 A 2167 G PowderSpringsSwimmingPoolRepairs 97391 62720 0 47040 A 2169 C NetherstoneDriveNERoadRepairs 276369 0 0 0 2315 A DemolitionofPrivateStructures 301949 0 0 0
Subtotal $2680330 $450442 $427944 $658790 SmallProjects
373 E MariettaCityLibraryndashWaterExtraction $2191 $2008 $0 $1506 A 374 E SweetwaterTennisCenterndashSidingDrywall 12721 1910 0 1432 A 862 E WindyHillSeniorCenterndashWaterExtraction 4431 4323 0 3242 A 883 E MountainViewLibraryndashWaterExtraction 2460 2435 0 1826 A 891 E ProctorCreekPumpRepairs 18903 0 0 0
1081 E PowderSpringsParkConcessionBuilding 23138 15394 0 11546 A
1082 E SweetwaterTennisCenterndashContents 5580 4934 0 3701 A 1354 G NWPlantndashFenceandTree 1331 1270 0 952 A 1355 F NWPlantndashWastewaterControls 8399 3879 0 2909 A 1358 F CountyLinePumpStationͲSubgrade 2288 2002 0 1502 A 1580 F RLSuttonndashScumSystem 26246 26182 0 19636 A 1661 E VehicleRepairReplacement 40648 0 0 0 1705 A DebrisRemovalndashEastCobbPark 17058 15644 0 11733 A 1748 G CobblestoneGolfCoursendashvariousrepairs 12974 11600 0 8700 A 1954 E VehicleRepairReplacement 11917 0 0 0 2102 G NoondayCreekParkSandRemoval 56303 9455 0 7091 A 2103 E PowderSpringsParkPressboxDugouts 11325 0 0 0 2111 A DebrisRemovalͲPowderSpringPark 11305 5065 0 3799 A 2114 G FullersParkFootballFieldRepairs 41809 1400 0 1050 A
Subtotal $ 311027 $107501 $0 $80625 Totals $2991357 $557943 $427944 $739415
wwwoigdhsgov OIGͲ14Ͳ124ͲD 8
OFFICE OF INSPECTOR GENERAL
Department of Homeland Security
Appendix
ReportDistribution DepartmentofHomelandSecurity Secretary ChiefofStaff ChiefFinancialOfficer UnderSecretaryforManagement ChiefofPrivacyOfficer AuditLiaisonDHS FederalEmergencyManagementAgency Administrator ChiefofStaff ChiefFinancialOfficer ChiefCounsel ChiefProcurementOfficer DirectorRiskManagementandCompliance AuditLiaisonFEMARegionIV AuditLiaisonFEMA(JobCodeGͲ14Ͳ016) OfficeofManagementandBudget ChiefHomelandSecurityBranch DHSOIGBudgetExaminer RecoveryAccountabilityandTransparencyBoard DirectorInvestigationsRecoveryAccountabilityandTransparencyBoard Georgia DirectorGeorgiaEmergencyManagementAgency StateAuditorGeorgia Subgrantee DivisionManagerofFinanceCobbCounty
wwwoigdhsgov OIGͲ14Ͳ124ͲD 9
Congress SenateCommitteeonAppropriationsSubcommitteeonHomelandSecurity SenateCommitteeonHomelandSecurityandGovernmentalAffairs HouseCommitteeonAppropriationsSubcommitteeonHomelandSecurity HouseCommitteeonHomelandSecurity HouseCommitteeonOversightandGovernmentReform HouseCommitteeonTransportationandInfrastructure
wwwoigdhsgov OIGͲ14Ͳ124ͲD 10
OFFICE OF INSPECTOR GENERAL
Department of Homeland Security
ADDITIONAL INFORMATION To view this and any of our other reports please visit our website at wwwoigdhsgov For further information or questions please contact Office of Inspector General (OIG) Office of Public Affairs at DHS-OIGOfficePublicAffairsoigdhsgov or follow us on Twitter at dhsoig OIG HOTLINE To expedite the reporting of alleged fraud waste abuse or mismanagement or any other kinds of criminal or noncriminal misconduct relative to Department of Homeland Security (DHS) programs and operations please visit our website at wwwoigdhsgov and click on the red tab titled Hotline to report You will be directed to complete and submit an automated DHS OIG Investigative Referral Submission Form Submission through our website ensures that your complaint will be promptly received and reviewed by DHS OIG Should you be unable to access our website you may submit your complaint in writing to
Department of Homeland Security Office of Inspector General Mail Stop 0305 Attention Office of Investigations Hotline 245 Murray Drive SW Washington DC 20528-0305
You may also call 1(800) 323-8603 or fax the complaint directly to us at (202) 254-4297 The OIG seeks to protect the identity of each writer and caller
OFFICE OF INSPECTOR GENERAL
Department of Homeland Security
Appendix
ReportDistribution DepartmentofHomelandSecurity Secretary ChiefofStaff ChiefFinancialOfficer UnderSecretaryforManagement ChiefofPrivacyOfficer AuditLiaisonDHS FederalEmergencyManagementAgency Administrator ChiefofStaff ChiefFinancialOfficer ChiefCounsel ChiefProcurementOfficer DirectorRiskManagementandCompliance AuditLiaisonFEMARegionIV AuditLiaisonFEMA(JobCodeGͲ14Ͳ016) OfficeofManagementandBudget ChiefHomelandSecurityBranch DHSOIGBudgetExaminer RecoveryAccountabilityandTransparencyBoard DirectorInvestigationsRecoveryAccountabilityandTransparencyBoard Georgia DirectorGeorgiaEmergencyManagementAgency StateAuditorGeorgia Subgrantee DivisionManagerofFinanceCobbCounty
wwwoigdhsgov OIGͲ14Ͳ124ͲD 9
Congress SenateCommitteeonAppropriationsSubcommitteeonHomelandSecurity SenateCommitteeonHomelandSecurityandGovernmentalAffairs HouseCommitteeonAppropriationsSubcommitteeonHomelandSecurity HouseCommitteeonHomelandSecurity HouseCommitteeonOversightandGovernmentReform HouseCommitteeonTransportationandInfrastructure
wwwoigdhsgov OIGͲ14Ͳ124ͲD 10
OFFICE OF INSPECTOR GENERAL
Department of Homeland Security
ADDITIONAL INFORMATION To view this and any of our other reports please visit our website at wwwoigdhsgov For further information or questions please contact Office of Inspector General (OIG) Office of Public Affairs at DHS-OIGOfficePublicAffairsoigdhsgov or follow us on Twitter at dhsoig OIG HOTLINE To expedite the reporting of alleged fraud waste abuse or mismanagement or any other kinds of criminal or noncriminal misconduct relative to Department of Homeland Security (DHS) programs and operations please visit our website at wwwoigdhsgov and click on the red tab titled Hotline to report You will be directed to complete and submit an automated DHS OIG Investigative Referral Submission Form Submission through our website ensures that your complaint will be promptly received and reviewed by DHS OIG Should you be unable to access our website you may submit your complaint in writing to
Department of Homeland Security Office of Inspector General Mail Stop 0305 Attention Office of Investigations Hotline 245 Murray Drive SW Washington DC 20528-0305
You may also call 1(800) 323-8603 or fax the complaint directly to us at (202) 254-4297 The OIG seeks to protect the identity of each writer and caller
Congress SenateCommitteeonAppropriationsSubcommitteeonHomelandSecurity SenateCommitteeonHomelandSecurityandGovernmentalAffairs HouseCommitteeonAppropriationsSubcommitteeonHomelandSecurity HouseCommitteeonHomelandSecurity HouseCommitteeonOversightandGovernmentReform HouseCommitteeonTransportationandInfrastructure
wwwoigdhsgov OIGͲ14Ͳ124ͲD 10
OFFICE OF INSPECTOR GENERAL
Department of Homeland Security
ADDITIONAL INFORMATION To view this and any of our other reports please visit our website at wwwoigdhsgov For further information or questions please contact Office of Inspector General (OIG) Office of Public Affairs at DHS-OIGOfficePublicAffairsoigdhsgov or follow us on Twitter at dhsoig OIG HOTLINE To expedite the reporting of alleged fraud waste abuse or mismanagement or any other kinds of criminal or noncriminal misconduct relative to Department of Homeland Security (DHS) programs and operations please visit our website at wwwoigdhsgov and click on the red tab titled Hotline to report You will be directed to complete and submit an automated DHS OIG Investigative Referral Submission Form Submission through our website ensures that your complaint will be promptly received and reviewed by DHS OIG Should you be unable to access our website you may submit your complaint in writing to
Department of Homeland Security Office of Inspector General Mail Stop 0305 Attention Office of Investigations Hotline 245 Murray Drive SW Washington DC 20528-0305
You may also call 1(800) 323-8603 or fax the complaint directly to us at (202) 254-4297 The OIG seeks to protect the identity of each writer and caller
ADDITIONAL INFORMATION To view this and any of our other reports please visit our website at wwwoigdhsgov For further information or questions please contact Office of Inspector General (OIG) Office of Public Affairs at DHS-OIGOfficePublicAffairsoigdhsgov or follow us on Twitter at dhsoig OIG HOTLINE To expedite the reporting of alleged fraud waste abuse or mismanagement or any other kinds of criminal or noncriminal misconduct relative to Department of Homeland Security (DHS) programs and operations please visit our website at wwwoigdhsgov and click on the red tab titled Hotline to report You will be directed to complete and submit an automated DHS OIG Investigative Referral Submission Form Submission through our website ensures that your complaint will be promptly received and reviewed by DHS OIG Should you be unable to access our website you may submit your complaint in writing to
Department of Homeland Security Office of Inspector General Mail Stop 0305 Attention Office of Investigations Hotline 245 Murray Drive SW Washington DC 20528-0305
You may also call 1(800) 323-8603 or fax the complaint directly to us at (202) 254-4297 The OIG seeks to protect the identity of each writer and caller
