Electric Power System
PA ID# 000-92043-00; Puerto Rico Electric and Power Authority
PW ID# Various Project Worksheets (PWs); Electric Power System
03/14/2014
Conclusion: The Regional Administrator correctly concluded that there was a duplication of benefits between DSRs 06827 and 15717. Applicant’s assertion the Governor’s Authorized Representative (GAR) de-obligated certain amounts twice is a matter that must be raised with the Grantee, not FEMA, to attain possible relief. As such, Applicant’s second appeal is denied.
Summary Paragraph
The OIG audited Public Assistance grant funds that FEMA awarded to the Applicant. The audit identified $16,800,558 of questionable costs resulting from duplicate charges; losses covered by insurance; unsupported, excessive, unrelated, and unauthorized charges; unapplied credit; and mathematical error. After meeting with OIG and the Applicant, the amount of questionable costs was reduced to $14,006,987 and FEMA de-obligated that amount. In its first appeal, the Applicant provided additional documentation to support its position that some of the funding should not be de-obligated because the costs in question were not duplicative. In light of this new information, the Regional Administrator partially approved the appeal, reducing the de-obligation to $8,821,402. In the second appeal, the Applicant requested $4,424,073 de-obligated by the Governor’s Authorized Representative (GAR), claiming that this was a double de-obligation. The Applicant also requested
$3,609,950 related to a de-obligation which FEMA imposed, asserting it was duplicative, and inquired about another potential discrepancy in FEMA’s accounting.
Authorities
- 44 CFR Section 206.206
- PA Guide, FEMA 322, at 108 (2007)
Headnotes
- The DSRs in question were for work completed and materials purchased during the same periods of time on the same facility, so there would be a duplication of funding if the Applicant received funding for both DSRs.
- PA Guide, FEMA 322, at 108 (2007)
- FEMA and the grantee share responsibility for making PA Program funds available to the Applicant. FEMA makes the federal share of the approved amount available to the grantee through a process known as obligation.
- Funds that FEMA has obligated are available to the grantee via electronic transfer, but reside in a Federal account until the grantee is ready to award grants to the appropriate applicant. The grantee is responsible for providing the grantee share of the eligible costs.
- The Applicant should raise the issue of any potential double de-obligation with the GAR.