PRASA

Williams-Adley determined that the Federal Emergency Management Agency (FEMA) did not always ensure that Department of Transportation and Public Works (DTOP) established and implemented policies, procedures, and practices to account for and expend PA grant funds according to Federal regulations and FEMA guidance.  Specifically, DTOP did not have (1) an effective grants management process; (2) sufficient internal controls in the procurement process; and (3) sufficient controls over its processes for claiming Force Account Labor costs.  This occurred because FEMA and Central Office of Recovery, Reconstruction and Resiliency (COR3) did not adequately oversee DTOP’s grant management activities.  We made three recommendations to improve COR3’s and DTOP’s management of FEMA Public Assistance funds, ensuring they are expended according to Federal regulations and FEMA guidance.  FEMA concurred with the recommendations.

Williams-Adley determined that the Federal Emergency Management Agency (FEMA) did not ensure the Puerto Rico Central Office of Recovery, Reconstruction, and Resiliency (COR3) and the Puerto Rico Aqueduct and Sewer Authority (PRASA) establish and implement policies, procedures, and practices to account for and expend Public Assistance (PA) grant funds according to Federal regulations and FEMA guidance.  Specifically, PRASA did not follow established policies and procedures for: (1) recording the capacity size and rate of its force account equipment; and (2) ensuring each vendor had a certificate of eligibility before receiving a contract award.  We made two recommendations to improve PRASA’s management of FEMA PA funds, ensuring they are expended according to Federal regulations and FEMA guidance.