Additional Guidance for Step 6

How do you know if a Disaster Assistance Center is needed?

A Disaster Assistance Center should be activated if the survivors’ and businesses’ recovery requirements exceed the abilities of recovery organizations to address them. This will differ by community and event. The recovery manager and/or recovery organization will determine whether or not a Disaster Assistance Center is needed. Considerations for this decision include:

• Number of people affected by the disaster;
• Estimates of uninsured losses;
• Reports from governmental and non-governmental organizations regarding the number of people seeking assistance; and,
• Determination of the ability of governmental and non-governmental organizations to meet the needs of people seeking assistance.

Who are the stakeholders commonly involved in a DAC or DRC?

• Colorado Division of Homeland Security and Emergency Management
• The local housing department or authority
• The Colorado Division of Housing (within DOLA)
• The local or regional Council of Governments (COG)
• Mental health professionals
• Colorado Department of Human Services
• The local human services agency
• Colorado Division of Insurance, private insurance carriers, and the Rocky Mountain Insurance Information Association
• Colorado Department of Agriculture
• The County extension agent
• Local and/or State public health officials and community health centers
• Local building department
• Veteran Services
• Local Small Business Development Center
• American Red Cross, United Way, and other non-profit/non-governmental agencies
• Utility agencies
• Family Resource Centers
• Colorado Department of Labor and Employment
• Federal partners such as FEMA, Small Business Administration, and USDA

How does a community value donated time and resources for FEMA Local Match Eligibility?

FEMA allows recipients and sub-recipients to apply the value of donated resources used during eligible emergency and permanent work toward the non-Federal cost share of their projects. Recipients and sub-recipients must meet certain conditions to apply the offset to specific work. Communities that are seeking to account for these resources can refer to the “Donated Resources'' section of FEMA’s Public Assistance Program and Policy Guide for more information.

What kind of information should communities track to support reimbursement for State or Federal Grant Programs?

• Before and after photographs of each repair, labeled by location (with map, as needed) and date;
• Relevant correspondence and press releases;
• Insurance policies for the types of coverage, policy limits, and exclusions;
• Precise information on materials and equipment used (e.g., number of bricks v. square footage);
• Any emergency powers granted by the governing body (e.g., if the city manager is given the authority to enter into contracts without the board’s approval);
• Volunteer hours and donated items, with documentation of value (applicable to local share, even if not reimbursable); and
• Local equipment usage (by hours, operators, and purposes for which used).

What is the FEMA Individual Assistance (IA) Program?

If a Federal Presidential Major Disaster Declaration has been issued for the event, the FEMA IA Program, also known as the Individuals and Households Program, is a program available under some Presidential Major Disaster Declarations that fall under the Stafford Act. The State, through DHSEM and the Governor’s office, are responsible for requesting IA from FEMA as part of the State’s request for a Presidential major disaster declaration. If the declaration is approved by the President, then individuals impacted by the disaster apply directly to FEMA for assistance. The IA program provides financial help or direct services to those who have expenses and other serious needs that they are unable to meet through other means. Up to $33,000 (adjusted annually) in financial help is available per applicant, although some forms of IA assistance have limits.

Local government has a limited role in the Individuals and Households Program through FEMA., and the local government often does not have access to those who have applied or who have been granted funding. This can cause some confusion post-disaster, as community members will often turn to their local government officials with questions. Because of this, local recovery organizations must have a strong relationship with local agencies that provide case management and other assistance to individuals, including VOAD organizations. Additionally, having a clear line of communication from the individuals seeking assistance to those who can assist is critical.

What are some examples of legal considerations associated with recovery operations?

Communities should understand and monitor legal considerations associated with recovery operations, which might include:

• The legal basis of, and community adherence to, moratoria and other emergency restrictions.
• The impact of the disaster on nonconforming facilities.
• The ability to conduct emergency demolitions, notably in light of historic preservation, environmental concerns, and other factors that are typically addressed at length during non-disaster times.
• Expedited environmental reviews, including the ‘Federalization’ of reviews that are conducted by non-Federal agencies.
• Protection, renovation, and repair of historic or cultural sites, including the costs incurred and resources, dedicated.
• Property acquisitions and relocations, especially in light of the impact on values of unaffected properties in high-risk areas.
• Infringement on and the expropriation of private property for public use.
• Fast-tracking of permits and/or tax incentives for development prioritization.

What are the most important aspects of an accountability system?

Accountability systems should be developed in conjunction with the implementation approach, and address three separate but interrelated strategies: Timelines, Spatial Strategies, and Systematic Strategies. See the Additional Guidance section below for more information.

• Timelines. Although recovery may seem chaotic, there is an overarching logic to the order and timeline of specific recovery processes, programs, and projects. This order is similar, even if compressed, to what is seen during normal periods of development. For instance, reconstruction of a damaged road will not likely commence until debris has been cleared, engineering studies are made, funding is secured, and preparations for reconstruction are completed. By monitoring timelines, many challenges can be identified and addressed before they become an obstacle to recovery success.
• Spatial Strategies. Recovery should follow a logical geographical progression. Spatial priorities are often determined by the nature of the disaster. Communities may need to implement moratoria on repairs and reconstruction in the most heavily damaged areas to ensure that spatial prioritization can help to account for resource constraints. Funding delays and limitations in construction labor and materials may make it difficult to allow simultaneous reconstruction of all damaged areas. Monitoring efforts must be cognizant of how expedited permitting or incentivization in higher-priority areas might be negatively impacting recovery goals and influencing recovery equity.
• Systematic Strategies. Disasters often require agencies or stakeholders to address impacts to multiple similar components of a larger system of infrastructure, facilities, or other community assets. School districts or public housing are examples. Recovery progress within the system should emphasize the dedication of resources to repairing those assets with less damage or in areas with easier access, while more detailed planning, project design, and execution is addressing those system components that require more comprehensive reconstruction. Systematic approaches to recovery might be applied across entire sectors, such as with housing recovery where planners work to ensure there is coordination across all housing recovery projects in light of state or Federal grant funding; the siting and design of temporary housing; and the pace of wraparound services like infrastructure. By ensuring recovery follows a systematic strategy, planners can help to ensure sectoral dependencies are addressed; for instance, the housing recovery is coordinated with the reopening of schools, resumption of jobs, and access to businesses like grocery stores.

What do recovery cost accounting activities include?

Recover cost accounting includes:

• Establishing formal policies and procedures for record retention and the documentation of disaster-related costs, and providing training and education for all leadership and staff.
• Ensuring that all disaster-related documentation is routed to a member of the finance department who reviews and approves all costs submitted by program staff before those costs are assigned to a recovery-specific account and submitted as part of any disaster relief grant reimbursement package.
• Documenting the use of mutual aid and volunteer recovery resources. These costs factor into the state and Federal disaster declaration processes and offset local match requirements.
• Identifying leads for each project that can oversee reimbursement submissions and who can respond to eligibility and other cost-specific questions from grant providers.
• Engage legal counsel for contracts and procurement compliance to advise and consult on non-emergent contractual and fiscal functions and to ensure compliance for future fiscal reimbursements.
• Use accounting to manage positive cash flow by ensuring expenses do not exceed reserves and receivables. Additionally, jurisdictions should understand the movement of fiscal resources for obligation and commitment that can be received and expended within a short accounting cycle, typically 30 days.
• Identifying methods for monitoring the performance of contractors to ensure that work conforms to project design and scope of work, quality controls are being met, and potential delays or cost overruns are identified.
• Maintaining sufficiently detailed procurement records that document procurement history inclusive of the rationale for the procurement method, the contract type, contractor selection (or rejection), contract price basis, the contract document, and any contract modifications with the signatures of all parties. Documentation should also include:
  • Purchase request, acquisition planning information, and other pre-solicitation documents
  • List of sources solicited
  • Independent cost estimate
  • Statement of work/scope of services
  • Copies of published notices of proposed contract action
  • Copy of the solicitation, all addenda, and all amendments
  • An abstract of each offer and/or quote
  • Determination of contractor’s responsiveness and responsibility
  • Cost or pricing data
  • A determination that price is fair and reasonable, including an analysis of the cost and price data
  • Notice of award
  • Notice to unsuccessful bidders or offerors and record of any debriefing
  • Record of any protest
  • Bid, performance, payment, or other bond documents
  • Notice to proceed

What tips do you have regarding accounting for costs?

• Follow Guidelines where Necessary: Communities can activate emergency procurements and contracts as needed to control costs, but any pre-existing contracts must follow Federal procurement rules (2 CFR §§ 200.317-.326) and all applicable state, local, or tribal requirements if supported by a grant or other assistance program funding.
• Procurement Thresholds: Communities can use cost accounting to determine if contracting and procurement thresholds need adjustment in light of recovery expenditures. If the community’s legal authority is exceeded, fiscal reimbursement or grant funding can be impacted. Consult with the appropriate funding authorities to make sure any changes in procurement or other policies are consistent with legal requirements.
• Start Early: Many financial management activities must commence and/or be completed during early recovery, even though several activities do not occur until later in the process.
• Think Long Term: Longer-term recovery funding programs can extend for years, and accounting systems need to accommodate that timeframe. By incorporating longer-term post-disaster activities into the regular rhythm of disaster financial management, disaster financial management risk is reduced.
• Follow Procedures: Procedures should be implemented to enable funds to be returned to grantors when necessary (e.g., duplicate reimbursement, disallowed expenditures, or unanticipated insurance reimbursements).
• Develop Contracts: Establish contractual relationships with volunteer and other NGO recovery partners to ensure that tracked cost equivalents (of assistance) are eligible for reimbursement under federal disaster programs.
• Provide Detail: Ensure that cost tracking is detailed enough to support recovery claims.
• Provide Easy Access: Retain disaster-related documents for as long as Federal guidelines require (which may be longer than state or local requirements) in a centralized (preferably web-accessible) location to enable ready access when required.
• Develop Controls: Use accounting controls to avoid the likelihood of ‘double dipping’, wherein the same expenditure is covered by a different state, Federal, or other financial assistance programs.

What kinds of contracts can a community use to address payment obligations?

There are three common types of contract payment obligations:

• Fixed Price Contracts: Fixed price contracts provide for a firm price or, in appropriate cases, an adjustable price. The risk of performing the required work, at the fixed price, is borne by the contractor. Firm-fixed price contracts are generally appropriate where the requirement (such as the scope of work) is well defined and of a commercial nature. Construction contracts, for example, are often firm-fixed-price contracts.
• Cost-Reimbursement Contracts: Cost-reimbursement types of contracts provide for payment of certain incurred costs to the extent provided in the contract. They normally provide for the reimbursement of the contractor for reasonable, allocable, actual, and allowable costs, with an agreed-upon fee. There is a limit to the costs that a contractor may incur at the time of contract award, and the contractor may not exceed those costs without the jurisdiction’s approval or at the contractor’s own risk. In a cost-reimbursement contract, the jurisdiction bears more risk than in a firm-fixed-price contract. A cost-reimbursement contract is appropriate when the details of the required scope of work are not well-defined. There are many varieties of cost-reimbursement contracts, such as cost-plus-fixed-fee, cost-plus-incentive-fee, and cost-plus-award-fee contracts. It is important to note that FEMA does not reimburse costs incurred under a cost plus a percentage of cost contract or a contract with a percentage of construction cost method.
• Time and Materials Contracts: This contract type typically provides for the acquisition of supplies or services based on 1) direct labor hours at specified fixed hourly rates that include wages, overhead, general and administrative expenses, and profit; and 2) actual costs for materials. A Time and Materials (T&M) contract is generally used when it is not possible at the time of awarding the contract to accurately estimate the extent or duration of the work or to anticipate costs with any reasonable degree of confidence. A labor-rate contract is a type of T&M contract. The regulation provides that a subgrantee may use a T&M contract only after a determination that no other contract is suitable, and if the contract includes a ceiling price that the contractor exceeds at its own risk. While FEMA allows these types of contracts in certain circumstances, it is difficult to get approval for their use, and therefore it is recommended that T&M Contracts are used as little as possible.

Well done! 

You have taken the steps to help your community recover and prepare for the next disaster. Share your lessons learned with the CRO.