The inspector(s) also require access to documentation related to the actual expenditures and scope of work, including:
During the site inspection, the inspectors gather the information required to produce a Final Inspec- tion Report (FIR). The state then submits this report to FEMA. FEMA reviews the FIR and re- quests any additional information deemed necessary. When FEMA is satisfied that the stated objectives have been met, an approval letter is sent to the state. In turn, the let- ter is forwarded to the applicant. If any cost adjustments are required, FEMA prepares a supplemental PW or “version.”
This final PW version is then obligated, and applicant funds are credited or debited. The ap- plicant signs a final certification, the Governor’s Authorized Repre- sentative countersigns, and FEMA closes the grant.
Audits are the last hurdle of the Public Assistance process. Audit requirements, found under the Single Audit Act of 1984 (P.L. 98- 502), cover all federal assistance received by the state or local gov- ernment.
An audit is conducted by the state to ensure that all disaster costs are reconciled. A final audit is nor- mally initiated based on certain monetary thresholds, or if there are discrepancies in the source documentation that supports an applicant’s accounting of costs.
The audit process is a formal process with an entrance and exit conference. Auditors require access to cost summaries, original source documents, and other important financial records.
They complete an in-depth review of an applicant’s accounting func- tions to document and substantiate disaster-related costs. This com- pares to the random sampling of source documentation carried out during final inspection.
The results of the final audit are forwarded to the FEMAOffice of the Inspector General (OIG). A special purpose review or investi- gation is performed when unusual information about an applicant’s project is detected.
Although an audit is normally a state process, FEMAmay elect to conduct a program audit of cer- tain grants through the OIG. OIG...