FEMA Region 4

The County received about $28.1 million in Public Assistance grant awards from Florida — a FEMA grantee — for damages from severe storms, tornadoes, straight-line winds, and flooding in April and May 2014. Jackson County was the first subgrantee in Florida to be approved for a grant award obligation under the Federal Emergency Management Agency’s (FEMA) Public Assistance Alternative Procedures (PAAP) pilot program. The Sandy Recovery Improvement Act of 20131 authorized PAAP and authorized FEMA to implement alternative procedures through the PAAP pilot program. Florida did not fulfill its grantee responsibility to ensure the County followed applicable Federal grant management requirements, and FEMA did not ensure the grantee carried out its responsibilities.

The Diamondhead Water and Sewer District (District), received a Federal Emergency Management Agency (FEMA) grant award of $49.3 million from the Mississippi Emergency Management Agency (Mississippi) for damage resulting from Hurricane Katrina in 2005. We had concerns because it took the District about 10 years to break ground on its new wastewater treatment plant. We also wanted to determine whether FEMA accurately applied its “50 Percent Rule.” we identified $1.5 million of improper procurement, unsupported costs, duplicate insurance benefits, and uncompleted project costs that FEMA should disallow to the District. These problems were largely the result of Mississippi not fulfilling its grantee responsibility to ensure the District properly managed FEMA funds. Mississippi is responsible for monitoring subgrant activities, and is compensated with Federal funds to support subgrant management and oversight. It is FEMA’s responsibility to hold Mississippi accountable for proper grant administration.