This is an example of what the Federal government can audit in a local County program that received Federal funds. This illustrates why Lake County government leaders need to make sure proper controls are used in documenting state and Federal program spending. In the case described in the article below, the Federal Government auditors will audit a $10-million FEMA grant received by a local Missouri County in 2007 to
make repairs during an ice storm. It seems this may be a routine audit, since no information was provided of possible wrongdoing. Notice at the end they hired a "debri removal" firm that knew FEMA documentation rules, which was wise.
Hopefully, Lake County government managers are doing the same for Federally funded programs and grants. If they don't, and the documentation is not adequate, they would be forced to repay the funds.
vj
January 1, 2010
Federal agency to audit Greene County's ice storm funds
Wes Johnson
From the Springfield, Missouri News-Leader HERE
The U.S. Department of Homeland Security will conduct a weeklong audit of Greene County this month over $10.2 million in FEMA money the county received after the 2007 ice storm.
Although the City of Springfield and City Utilities received far more ice storm recovery money, they apparently aren't included in the Greene County audit.
The audit team will be at Greene County offices from Jan. 7-15, poring through records to make sure the county properly documented its expenses.
Commissioner Harold Bengsch said he met with staff of the Office of Inspector General in Washington D.C. to understand the scope of the audit.
"The Office of Inspector General interprets the rules -- they're judge and jury on this," Bengsch said. "We're at their mercy."
No one from the Department of Homeland Security could be reached for a comment about the audit late Thursday.
But in a letter to Greene County, Tonda L. Hadley, director of Homeland Security's Central Regional Office in Texas, outlined what auditors wanted to see.
The lengthy list included records of disaster-related costs the county incurred during and after the ice storm, reimbursement records, payroll registers and equipment usage logs, internal and external correspondence files related to the disaster, employee time and attendance reports, annual audit reports from 2006 and 2007, purchase orders, invoices and a complete list of payments to all contractors.
Auditors also want to see any special procedures the county may have implemented to account for disaster costs.
The county currently has two filing cabinets filled with records that document its ice storm recovery costs.
Among the records: Photographs and GPS coordinates of nearly every pile of ice storm tree debris removed by cleanup crews.
If the county can't document an expense for which it received FEMA money, the county potentially could have to pay it back.
"They sure could do it," Bengsch said.
Budget officer Jeff Reinold said the county went to great lengths to hire a debris-removal company that was experienced with FEMA documentation rules and procedures.
