Update on FEMA grants from Lake Worth's CAFR

UPDATE ON FEMA from the newly released FY 2013 CAFR (Audit) that was prepared by the Lake Worth Financial Department and audited by WatsonRice, our external auditors.  These figures are somewhat different than the FEMA reports of November and December 2012 as previously mentioned and there is no mention of the original questionable amounts, $470,244 and $6,998,095 in this report.

C. FEMA Grants
The City worked with FEMA to finalize all of the claims filed by the City related to Hurricanes Jeanne, Francis and Wilma in 2004 and 2005. Amounts received or receivable from FEMA are subject to audit and adjustment. Any disallowed claims, including amounts already collected, may constitute a liability to the City. The City received initial determination letters for all large projects (those with a cost of more than $57,500) in late December of 2011. The net questioned costs for the three storms were approximately $2.8 million. The City has availed itself of the appeal opportunities afforded under 44 CFR, Sec 206.206 Federal Regulations which allows for two appeals. That appeal process will not likely be resolved until FY 2014. Resources for any ultimately disallowed costs are available from the City’s $5.2 million emergency reserve.

City of Lake Worth, Florida 81 The U.S. Department of Homeland Security, Office of Inspector General (DHSOIG) conducted an audit of FEMA Disaster Declarations Nos. 1545 (Hurricane Frances), 1561 (Hurricane Jeanne) and 1609 (Hurricane Wilma) between January and May 2012. The purpose of this was to review the findings of the FEMA/State of Florida closeout audits. DHSOIG issued reports to the FEMA Regional Director in November 2012 and December 2012. In July of 2013, the City was notified by the State that there were additional net questioned costs for the three storms which were approximately $1.2 million. The City has availed itself of the appeal opportunities afforded under 44 CFR, Sec. 206.206 Federal Regulations which allows for two appeals. That appeal process will not likely be resolved until FY 2014. Reserves for any ultimately disallowed costs are available from the City’s $5.2 million emergency reserve.