THE FLORIDA DIVISION OF EMERGENCY MANAGEMENT FLORIDA DEOBLIGATIONS AND RECOUPMENTS BRYAN 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 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OF EMERGENCY MANAGEMENT COMPLICATING FACTORS  Deobligated funds must be recouped to pay future claims  Money is withdrawn from Smartlink Account immediately  Appeals process can take years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