Title
a. Approve staff’s recommendation to utilize Contingency Fund in the amount of $273,403 for repayment of FY2020 disallowed expenditures of the Homeland Security Grant Program; and
b. Authorize the Auditor-Controller to amend the FY 2025-26 Adopted Budget for the Department of Emergency Management 001-1040-DEM001-8588 by $273,473 financed by a decrease in appropriations in General Fund Contingencies, 001-1050-CAO020-8034 (4/5ths vote required)
Report
RECOMMENDATION:
It is recommended that the Board of Supervisors:
a. Approve staff’s recommendation to utilize Contingency Fund in the amount of $273,403 for repayment of FY2020 disallowed expenditures of the Homeland Security Grant Program; and
b. Authorize the Auditor-Controller to amend the FY 2025-26 Adopted Budget for the Department of Emergency Management 001-1040-DEM001-8588 by $273,473, financed by a decrease in appropriations in General Fund Contingencies, 001-1050-CAO020-8034 (4/5ths vote required)
SUMMARY:
The Homeland Security Grant Program (HSGP) is a federal grant that provides funding to local governments to enhance their ability to prevent, protect against, respond to, and recover from terrorist attacks, major disasters, and other emergencies.
Following an October 2022 compliance assessment, CalOES issued a June 2024 report disallowing $273,402.03 in HSGP FY 2020 costs due to procurement, expenditure, and record keeping deficiencies, and requested repayment of reimbursed funds.
DISCUSSION:
In October of 2022, CalOES conducted an on-site compliance assessment for HSGP FY 2020 to ensure compliance with federal regulations and program guidelines. CalOES identified specific findings related to inadequate internal controls, improper procurements, unsupported expenditures, noncompliant equipment records, and federal contracting requirements. On June 27, 2024, the County received the final compliance assessment report. Based on the findings, CalOES determined $273,402.03 to be disallowed costs, requested previous reimbursed funds to be returned to CalOES. The County Administrative Office has recommended the use of contingency funds to repay outstanding balance to CalOES.
OTHER AGENCY INVOLVEMENT/COMMITTEE ACTIONS:
County Administrative Office, Auditor-Controller’s Office, and County Counsel have reviewed and approved as to form.
FINANCING:
The County Administrative Office determined the use of Contingency Funds is appropriate source of repayment for disallowed expenditures. Staff is requesting an increase in appropriations to reimburse CalOES for invoice LA-6538 in the amount of $273,402. As of the date this report was written, the balance in Contingencies is $6,004,665. Approving use of Contingencies would reduce its balance to $5,731,263.
BOARD OF SUPERVISORS STRATEGIC PLAN GOALS:
Mark a check to the related Board of Supervisors Strategic Plan Goals:
____ Well-Being and Quality of Life
____ Sustainable Infrastructure for the Present and Future
____ Safe and Resilient Communities
____ Diverse and Thriving Economy
If does not fall under any of the above Board of Supervisors Strategic Plan Goals (Other):
__X__ Administrative Promote an organization committed to operational and fiscal responsibility, and responsive public service.
Link to the Strategic Plan:
<https://www.countyofmonterey.gov/home/showdocument?id=139569>
Prepared by: April Rodriguez, Management Analyst II, x1923
Approved by: Kelsey Scanlon, Director of Emergency Management, x1902
Approved by: Michael Beaton, Assistant County Administrative Officer, x3835
Attachments:
Attachment A: CalOES Notices of Outstanding Balance and Original Invoice
Attachment B: Resolution