1. National UASI Homeland Security Conference May 24, 2012 in Columbus, Ohio Presented By Meghan Dudley, NYS Federal Grant Program Specialist Edward Donoso, NYC Federal and State Grants MANAGING YOUR DHS OIG AUDIT Best Practices and Lessons Learned from New York State and New York City

2. Topics Inspector General Audit: The NYS and NYC Approach Background on NYC Urban Area and Major Programs Active Engagement Develop Unified Message Continued Advocacy Questions and Answers

3. OIG Audit: The NYS and NYC Approach CONTINUOUS ADVOCACY ACTIVE ENGAGEMENT UNIFIED MESSAGE Proactive Approach Prepare & Share Info Involve the Right People

4. ScopeTimelineAdvocacy OIG Audit: The NYS and NYC Experience –HSGP FY06 to FY08 –$565 Million in Grant Funds –Audit Begins: December 2009 –Final Report Issued: January 2011 –Recommendations: Being Addressed –During the audit, NYC and NYS worked together to review audit opinions, to clarify issues and provide follow-up information to address them –After the audit, we have continued to work together to resolve any issues

5. Background

7. NYC Top DHS Funded Programs NYCPROGRAM NYPD / Law EnforcementThe Domain Awareness System EOC: Joint Operations Center Public Safety Operations FDNY / Fire ServiceCore Competency Training, NIMS Communications and Situational Awareness OEM / Emergency ManagementCitizen Preparedness Programming Catastrophic Planning Public Safety CommunicationsVoice, Data and Wireless Communications Systems Public HealthOutbreak Detection, Fatality Mgmt.

8. Active Engagement

9. NYC Urban Area Working Group NYC Urban Area Web Portal Joint Workshops Single Voice on Communication Nassau County, New York City, Suffolk County, Westchester County, Yonkers, PANYNJ and the MTA hold monthly meetings Representatives from NYS, DHS and FEMA also attend. Regional Workshops State Preparedness Report Workshop Target Capabilities Workshop Grant Requirements Authorized Equipment List DHS Information Bulletins Other Federal and State Links FEMA Policies Measurement Tools Strategy and SPR IG Audit

10. Who is Involved During an IG Audit AGENCYROLE NYS Department of Homeland Security and Emergency Services –SAA of the Homeland Security Grant Programs (SHSP, UASI and LETPP) for the New York region –Fiscal Monitoring Unit NYC Office of Management and Budget, Criminal Justice Coordinator’s Office, and Audit Oversight agency (Operations) –Coordinate OIG Audit preparation, visit and follow-up –Clarify issues –Coordinate responses with NYC agencies –Work with NYC agencies to ensure corrective actions are taken City Agencies –Meet with IG team, provide supporting documentation and clarify issues –Audit, Legal and Grant staff prepare responses to audit questions –Implement any corrective actions

11. Ensuring Compliance –The City’s Homeland Security Grant Program (HSGP) is coordinated and managed centrally –The central oversight team coordinates Quarterly Reporting processes, flags issues and reviews expenditures that are being claimed –Detailed Project-based reports are submitted each quarter to NYS –We developed and implemented an inventory system to ensure compliance with federal inventory management requirements –We prepared and distributed a Grants Policies and Procedures guide outlining the grant requirements

12. Ensuring Compliance cont. –We coordinate ongoing NYS site visits and work with our agencies to respond to each report –We communicate information on the grants to our agencies through ongoing communications –We use our Urban Area Web Portal and the Help Path on our Inventory System website to post grant requirements, DHS Info Bulletins, and the NYS contracts –We coordinate the Single Audit Sampling of Homeland Security grant program activity

13. NYS Fiscal Monitoring Unit –Perform ongoing site visits, audit sampling and reviews –Provide on-going fiscal oversight and fiscal monitoring of Homeland Security grants –Help ensure that grantees are expending funds in accordance with State and Federal guidelines –Inform grantees of fiscal compliance requirements –Ensure grantee compliance with OMB Circular A-133 –Work with grantees to help detect and prevent fraud and abuse –Provide technical advice and training to grantees

14. Grant Tracking System Problem Agencies were procuring a large number of assets under Department of Homeland Security grants and needed a consistent method to track them. Program Management A Mayoral project team was set up to oversee the process, define requirements, and ensure compliance with local, state and federal regulations. Outcome GTS allows users to Tag, Verify and Report on DHS Equipment GTS Records the location of each asset and each person the asset is assigned to 10+ City agencies use GTS today Over 5,000 assets have been entered into the system Enhancements are being made to meet new needs and requirements

15. Federal Reporting Requirements –Site fields and forms were mapped to the Federal Reporting Data Elements –All Federal Grant Common Rule Requirements (Inventory Data Collection, Physical Inventory and Control System Requirements) are captured by GTS

16. Develop A Unified Message

17. Audit Findings Recommendations covered the following areas: – Strategy/Performance Measurement – Sustainment Plans – Grant Inventory Requirements – Contracting Process – Procurement – Overtime Model Generally, the State did an efficient and effective job of administering program requirements in accordance with grant guidance and recommendations --OIG Auditors “ “

18. Response to Draft Audit Exit Conference (October 2010) – NYS/NYC participated – We worked together to prepare feedback in advance – Review of each draft recommendation made by OIG Revised Draft Report issued (November 2010) – OIG made minor revisions to report after Exit Conference Final Report Issued (January 2011) – Final report included detailed written rebuttal from NYS/NYC

19. Continued Advocacy

20. Best Practices IMPLEMENT AN EFFECTIVE LONG-TERM PHILOSOPHY ON GRANTS – Transparency, Accountability and a Single Voice on Communications will make “Audit Time” much easier! PULL TOGETHER THE “RIGHT” TEAM OF EXPERTS – Engage your Executive Staff PROACTIVELY PREPARE FOR YOUR AUDIT – Educate the Audit Team PREPARE RESPONSE TO ALL AUDIT RECOMMENDATIONS – Draft a comprehensive response to the Audit and ensure that it is included in the final Audit Report USE AUDIT RECOMMENDATIONS TO DRIVE NEEDED CHANGE – Audit findings can be a catalyst for positive change (e.g. Focus on particular issues and gaps)

21. Trends from Other OIG Audits Review of 26 other States’ Audits found: – Strategies lacked SMART Objectives (19 states) – Reimbursement/Payment Issues (17 states) – Issues with Grant “Basics” (16 states) – Need for Sustainment Plans (11 states) – Need for System to Measure Progress (9 states) We are all dealing with many of the same issues!

22. Beyond the Audit: The Bigger Picture Homeland Security Strategies –DHS last released guidance on updating Strategies in 2005 –DHS and OIG not consistent in communication on strategies How can we work together with FEMA to develop guidance for updating our Strategies, with the “SMART” principle in mind? How can we work together with FEMA to showcase the accomplishments we’ve made with grant dollars? Capability Assessments –Congress, OIG, and others are looking to measure the impact of federal grant funds –TCL has been replaced with the new Core Capabilities (and Presidential Policy Directive #8) Nationwide, we are still struggling with issues identified in numerous OIG Audits

23. Biography Edward Donoso works at the NYC Office of Management and Budget. At OMB, Ed’s team administers various Federal and State programs, including the Homeland Security Grants, the federal stimulus grants, and FEMA Public Assistance Programs. Prior to joining NYC OMB in 2005, Edward worked as an operations analyst for over 5 years at Credit Suisse, a global investment bank. Edward holds a B.A. in Business Administration, and a Masters in Public Administration from Metropolitan College of New York. Edward Donoso Federal and State Revenue Unit Head NYC Office of Management and Budget Telephone: 212.788.6673 Email: donosoe@omb.nyc.govdonosoe@omb.nyc.gov

24. Biography Meghan Dudley is a Grants Specialist for the Office of Counter-Terrorism (OCT) within the New York State Division of Homeland Security and Emergency Services (DHSES). Meghan has been with DHSES for approximately 6 years and her job responsibilities include coordinating the State’s SHSP Investment Justification submission, overseeing several specialty grants (e.g. HazMat, Bomb Squad) that DHSES supports, and serving as a programmatic liaison to the New York City UASI region. Prior to joining DHSES, Meghan received her Master’s Degree in Political Science from the SUNY Rockefeller School of Public Affairs and Policy. Meghan Dudley Federal Grant Administrator Office of Counterterrorism NYS Division of Homeland Security and Emergency Services Telephone: 518.242.5105 Email: MDudley@dhses.ny.govMDudley@dhses.ny.gov