THE FLORIDA DIVISION OF EMERGENCY MANAGEMENT

FLORIDA DEOBLIGATIONS AND

RECOUPMENTSBRYAN W. KOON

DIRECTOR

JUNE 17, 2014

THE FLORIDA DIVISION OF EMERGENCY MANAGEMENT

SCOPE OF PROBLEM 2010 – a $7 million issue was noted in the

Governor’s Transition Report

2014 – currently more than $100 million issue

Primarily driven by 2004-2005 hurricanes

THE FLORIDA DIVISION OF EMERGENCY MANAGEMENT

PRIMARY CAUSES Accounting (58.4%) Contracting (26.3%) Procurement (15.3%) Duplication of Benefits (14.0%) Closeouts (11.6%) Insurance (9.1%) Force Account Labor & Equipment (8.2%)

THE FLORIDA DIVISION OF EMERGENCY MANAGEMENT

Reimbursement model

Long-time frame for projects + 3 years

Large dollar value = big target

Increasing federal scrutiny

Personnel turnover

EXACERBATING FACTORS

THE FLORIDA DIVISION OF EMERGENCY MANAGEMENT

Increased funding for DHS OIG

Lack of permanent DHS OIG

Lack of coordination between DHS and

FEMA

Document retention

Length of appeals process

EXACERBATING FACTORS

THE FLORIDA DIVISION OF EMERGENCY MANAGEMENT

COMPLICATING FACTORS Deobligated funds must be recouped to

pay future claims

Money is withdrawn from Smartlink Account immediately

Appeals process can take years

THE FLORIDA DIVISION OF EMERGENCY MANAGEMENT

SOLUTIONS ENACTED

New DHS Secretary and IG New FEMA Recovery Chief SRIA Improvements Procurement Assistance Teams More Senior FEMA Leadership

Involvement

THE FLORIDA DIVISION OF EMERGENCY MANAGEMENT

FUTURE SOLUTIONS AND ISSUES

NEMA group FAC, FL League of Cities, others Court cases Legislative action for funding ICCOH model Appeals process correction Unknown – current debt issue