Department of Homeland Security Inspector General-Federal Emergency Management Agency Subgrantee's Claim under the Stafford Act   [open pdf - 73KB]

"The Inspector General of the Department of Homeland Security (DHS) has requested a decision regarding the reimbursement in July 2000 of $3.8 million in Stafford Act grant funds provided by the Federal Emergency Management Agency (FEMA) to the state of Arizona for the Wellton-Mohawk Irrigation and Drainage District in Arizona. Letter from Richard L. Skinner, Inspector General, DHS, to Gary Kepplinger, General Counsel, GAO, Sept. 2, 2008 (Skinner Letter). A public assistance award was made to the irrigation and drainage district for emergency repairs and improvements to facilities damaged by floods.1 The award provided that the FEMA grant funds would cover 75 percent of the district's costs up to a maximum of $44,200,000, and the state would cover the remaining 25 percent. Id. After an audit of the district's costs, FEMA's Inspector General reported that the district used an incorrect valuation methodology to claim $5.1 million for the replacement value of rocks used from its own stock that had cost it under $20,000.2 Skinner Letter. Wellton-Mohawk had used a Bureau of Land Management (BLM) average royalty rate method to value its rocks. At issue here is FEMA's use of its appropriations to reimburse the district $3.8 million, FEMA's share of the $5.1 million claimed."

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