Federal Reports

We reviewed two large projects totaling $198.9 million in expenditures that CalRecycle incurred for debris removal work. We recommended that the Regional Administrator, FEMA Region IX (1) disallow as ineligible $142.7 million ($107 million Federal share) CalRecycle has received in Federal funds for debris removal work, unless FEMA (a) grants an exception to this administrative requirement, or (b) determines that costs are fully documented and eligible; (2) direct California, as recipient, to continue providing CalRecycle with technical assistance and monitoring to ensure compliance with all applicable Federal regulations and FEMA guidelines, and avoid improperly funding any of the $87.3 million ($65.4 million Federal share) it expects to claim in costs overruns for the remaining debris removal work, for an approximate total of $230 million; and (3) direct California, as grantee, to ensure that all insurance recoveries are collected from private property owners, and accurately reports the amount of insurance proceeds to FEMA.

We determined that Richland County, North Dakota does not have legal responsibility for the disaster-related repairs on township roadway projects. Rather, the repairs are the legal responsibility of individual organized townships. In the four disasters we reviewed, funding for 283 projects totaling 6.2 million is ineligible because the County does not have the legal responsibility for repairs to township roadways. Legal responsibility is one of the cornerstones of overall Public Assistance funding eligibility. We recommended FEMA determine whether there is a legal basis for allowing the County to act as the subgrantee for townships; disallow the costs as ineligible unless a legal basis is determined; and if FEMA determines the County may enter an agreement with the townships, require the agreement be in writing for future disasters. We made three recommendations and FEMA Region VIII concurred with all three of our recommendations.

First Coast Service Options, Inc., claimed $33,619 of unallowable fiscal intermediary and carrier contract Medicare pension costs on its Final Administrative Cost Proposals for fiscal years 2008 and 2009.

First Coast Service Options, Inc., understated its Medicare segment pension assets as of December 31, 2010, by $1.0 million.

First Coast Service Options, Inc., understated the Medicare segment allocable pension costs by $147,268 and understated the Other segment allocable pension costs used to calculate its indirect cost rates by $1.2 million for calendar years 2008 through 2010.

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