spot_imgspot_img

Auditors question $180M of nearly $1B in state program costs

(The Center Square) – The Louisiana auditor says more than $180 million is questionable costs from about $1 billion that flowed through the Governor’s Office of Homeland Security and Emergency Preparedness for the first half of 2023.

A September report from Legislative Auditor Mike Waguespack evaluated documentation submitted by sub-grantees and contractors for more than $962.7 million in reimbursements through the Public Assistance Program from Jan. 1 through June 30.

The total includes 3,232 reimbursement requests, with noted exceptions for about 19%.

“As a result of applying our procedures, we found exceptions, which exceeded $500 per reimbursement request, totaling $181,006,792 in 636 reimbursement requests,” auditors wrote.

The funds come from the Federal Emergency Management Agency Public Assistance Grant Program for state and local governments and certain nonprofits to respond to and recover from major disasters or emergencies.

The money covers things like debris removal, emergency protective measures, and permanent restoration of infrastructure, with the federal share of the spending typically exceeding 75% of eligible costs.

The Governor’s Office of Homeland Security and Emergency Preparedness coordinates the spending as the federal grantee, and local governments and nonprofits submit requests for reimbursement and supporting documentation to recover costs.

A breakdown of the exceptions by work type show 470, or about 17%, totaling $161.3 million stemmed from contract work. Other exceptions and questionable costs include:

• Materials, 71, about $11.5 million.

• Labor, 57, $5.1 million.

• Rented equipment, eight, $2.3 million.

• Equipment, 30, $734,318.

The report indicated what evidence did not square up. Those findings were:

• Lack of supporting documents, 433, $95 million.

• Procurement guidelines not followed, 116, $72.4 million.

• Out of scope or exceeded cost estimate, 38, $8.86 million.

• Ineligible costs, 95, $3.56 million.

• Requests duplicated, omitted or miscategorized, 26, $1 million.

Lynne Browning, assistant deputy director of public assistance for the Governor’s Office of Homeland Security and Emergency Preparedness, referred a request for comment from The Center Square to a communications person. At time of publication, that request was unsuccessful.

In a letter to Waguespack on Sept. 18, Browning concurred with exceptions identified in the report and explained the methods the department uses to address the questioned costs. Browning wrote the department leverages the report to improve training and education for staff, and “findings on contract costs have increased due to a recent process change requiring all Federal contract clauses for reimbursement of those costs.”

“We would also like to note that our review process necessitates that any exceptions identified within your report are required to be addressed before project closeout,” Browning wrote. “GOHSEP has made considerable progress in addressing all historical questioned costs, with 85% of all previously questioned costs being resolved life to date and $131 million resolved during this same reporting period.”

DON’T MISS OUT

Be the first to know about the latest news, giveaways, events, and updates from The Black Chronicle!

We don’t spam! Read our privacy policy for more info.

spot_imgspot_img
spot_img

Hot this week

African and Caribbean Nations Call for Reparations for Slave Trade, Propose Global Fund

Nations across Africa and the Caribbean, deeply impacted by...

Health care company agrees to pay $22.5 million to settle claims of over billing

A health care company agreed to pay nearly $22.5...

Sports betting expert offers advice on paying taxes for gambling winnings

(The Center Square) – Tax season is underway, and...

Entertainment district benefits don’t outweigh the cost, economists say

(The Center Square) — Weeks later, after more details...

Business association ‘disappointed’ by WA L&I’s proposed workers comp rate hike

(The Center Square) – The Association of Washington Business...

Newly-drawn 6th congressional district likely to flip Democrat

(The Center Square) — The race for Louisiana's new...

Brutinel officially retires, over a dozen vie for his spot on Arizona Supreme Court

(The Center Square) — The next Arizona Supreme Court...

Illinois voters being asked a variety of local ballot questions

(The Center Square) – In addition to the presidential...

Five-year waiver requested for CDL drivers

American Public Transportation Association has requested a five-year exemption...

Report: Milwaukee behind peers in venture capital, gross domestic product

(The Center Square) – Milwaukee’s economic attainment against 11...

Boeing machinists’ union approves new contract, ending costly strike

(The Center Square) – Striking Boeing machinists voted Monday...

Texas pushes back against DOJ on election integrity

( The Center Square) – Texas officials have rebuffed...

More like this
Related

Newly-drawn 6th congressional district likely to flip Democrat

(The Center Square) — The race for Louisiana's new...

Brutinel officially retires, over a dozen vie for his spot on Arizona Supreme Court

(The Center Square) — The next Arizona Supreme Court...

Illinois voters being asked a variety of local ballot questions

(The Center Square) – In addition to the presidential...