FEMA Should Recover $2.2 Million of Public Assistance Grant Funds Awarded to Memphis Light, Gas and Water Division - Severe Weather, June 2009

Our audit objective was to determine whether the Utility accounted for and expended Federal Emergency Management Agency (FEMA) grant funds according to Federal regulations and FEMA guidelines. AS of January 4, 2012, the Utility received a PA award of $7.9 million from Tennessee Emergency Management Agency (State) a FEMA grantee, for damages resulting from severe storms, tornadoes, straight-line winds, and flooding that occurred in June 2009. The award provided 75 percent FEMA funding for debris removal, emergency protective measures, and permanent electrical repair work. The award included three large projects.