Department of Health and Human Services

OFFICE OF

INSPECTOR GENERAL

SUPERSTORM SANDY BLOCK 

GRANTS: FUNDS BENEFITED 

STATES’ RECONSTRUCTION AND 

SOCIAL SERVICE EFFORTS,

THOUGH ACF’S GUIDANCE 

COULD BE IMPROVED

Suzanne Murrin

Deputy Inspector General for 

Evaluation and Inspections 

September 2016 

OEI-09-15-00200 
 

EXECUTIVE SUMMARY: SUPERSTORM SANDY BLOCK GRANTS: FUNDS 

BENEFITED STATES’ RECONSTRUCTION AND SOCIAL SERVICE EFFORTS, 

THOUGH ACF’S GUIDANCE COULD BE IMPROVED, OEI-09-15-00200 

WHY WE DID THIS STUDY 

Five States received almost $475 million in Social Services Block Grant funding to help cover 

social service and reconstruction expenses resulting directly from Superstorm Sandy. When 

Congress made funds available to States to help pay for their Superstorm Sandy-related 

expenses, it noted that such funds were “susceptible to significant improper payments.” 

Therefore, the Office of Management and Budget instructed Federal agencies to establish 

additional oversight of the funds. This evaluation examined States’ experiences using 

Superstorm Sandy Social Service Block Grant (Sandy SSBG) funds and Administration for 

Children and Families (ACF) oversight of these funds. 

HOW WE DID THIS STUDY 

We conducted interviews with, and reviewed documentation from ACF, the five States affected 

by Superstorm Sandy, and selected organizations that received Superstorm Sandy SSBG funds 

(sub-recipients). Our review covers States’ activities and ACF’s oversight from July 1, 2013, 

when almost all Sandy SSBG funds were disbursed to States, through September 30, 2015. 

WHAT WE FOUND 

Sandy SSBG funds assisted States’ recoveries by supporting reconstruction and social service 

activities. However, ACF’s guidance limited the effectiveness of State planning and use of the 

funds and, therefore, could be improved for future disasters. As with past natural disasters, 

supplemental disaster funding was important in helping States meet both immediate and longerterm needs. The five SSBG-recipient States spent most of the funds on housing services and 

health services; the repair, renovation, and rebuilding of health facilities; and counseling 

services. Despite some delays, generally the funds were available to States when needed. 

Further, the grants’ terms were flexible enough for States to use the funds for a variety of stormrelated activities and to modify their plans as needed. However, the initial deadline that ACF 

established did not allow States the time they needed to use the Sandy SSBG funds for 

reconstruction and other longer-term needs. Also, States reported wanting more direction from 

ACF on allowable Sandy SSBG activities and more clarity about the type of documentation that 

ACF would expect during program integrity reviews. Nonetheless, States indicated that ACF 

worked closely with them as they planned and implemented their recovery activities. In 

addition, ACF implemented required reviews to account for Sandy SSBG funds and identify 

improper payments. 

WHAT WE RECOMMEND 

We recommend that ACF (1) take additional steps to ensure, within the scope of the legislation, 

that States are given an appropriate amount of time to expend any future supplemental SSBG 

awards (2) conduct a post-grant review to identify lessons learned and best practices and 

(3) prepare guidance about supplemental SSBG documentation requirements. ACF concurred 

with all of our recommendations. 
TABLE OF CONTENTS

Objectives ....................................................................................................1

Background..................................................................................................1

Methodology................................................................................................5

Findings........................................................................................................7

Sandy SSBG funds assisted States’ immediate and longer-term 

recovery............................................................................................7

The initial deadline that ACF established for expending Sandy 

SSBG funds did not allow States the time they needed to use 

the funds...........................................................................................9

States reported wanting more direction from ACF on 

allowable Sandy SSBG activities and documentation 

requirements...................................................................................10

ACF implemented required reviews to account for Sandy 

SSBG funds and identify improper payments ...............................11

Conclusion and Recommendations............................................................15

Agency Comments and Office of Inspector General Response.....17

Appendix A: State-specific Sandy SSBG Expenditures by Service 

Category, Through September 2015..........................................................18

Appendix B: State Agencies that Participated in OIG Interviews............19

Appendix C: Agency Comments ..............................................................20

Acknowledgments......................................................................................23
 

Sandy SSBG: Funds Benefited States’ Efforts, Though ACF’s Guidance Could Be Improved (OEI-09-15-00200)

 

1

OBJECTIVES

To examine: 

(1) States’ experiences using Superstorm Sandy Supplemental Social 

Services Block Grant (SSBG) funds, and 

(2) The Administration for Children and Families’ (ACF) oversight of 

Superstorm Sandy Supplemental SSBG funds.

BACKGROUND

Supplemental SSBG funds have been important in helping States address 

their social service and reconstruction expenses following recent natural 

disasters.1 For example, in 2005, Congress authorized $550 million in 

supplemental SSBG funds to ACF for States’ expenses related to 

Hurricanes Katrina, Rita, and Wilma.2 In 2008, Congress authorized 

$600 million in supplemental SSBG funds to help States respond to 

hurricanes, floods, and other declared major disasters.3 

Superstorm Sandy made landfall on October 29, 2012, causing more than 

$50 billion in damages to coastal portions of the mid-Atlantic and 

northeastern United States.4 On January 29, 2013, the President signed 

into law the Disaster Relief Appropriations Act of 2013 (the Act), which 

provided the Department of Health and Human Services (HHS) with about 

$800 million in funding to aid individuals and communities affected by 

Superstorm Sandy.5

 Of the $800 million, $500 million was transferred to 

ACF as supplemental SSBG funding. Automatic spending cuts imposed 

by the Budget Control Act of 2011 reduced this amount to 

____________________________________________________________ 

1 This report focuses specifically on “supplemental” SSBG funds. More broadly, SSBG 

funds, authorized in 1981, are a flexible source of annual funding that States use to meet 

their social service needs. 42 U.S.C §§1397-1397f. 

2

 Department of Defense, Emergency Supplemental Appropriations to Address 

Hurricanes in the Gulf of Mexico, and Pandemic Influenza Act of 2006. P.L. 109-148. 

Dec. 30, 2005, Chapter 6. 

3

 Consolidated Security Disaster Assistance, and Continuing Appropriations Act if 2009. 

P. L. No. 110-329. Sept. 30, 2008, Chapter 7. 

4

 National Oceanic and Atmospheric Administration, Service Assessment: 

Hurricane/Post-Tropical Cyclone Sandy, October 22–29, 2012, pg. 1, May 2013. 

Accessed at http://www.nws.noaa.gov/os/assessments/pdfs/Sandy13.pdf on 

May 20, 2016. 

5

 P. L. No. 113-2, January 29, 2013. 
 

Sandy SSBG: Funds Benefited States’ Efforts, Though ACF’s Guidance Could Be Improved (OEI-09-15-00200)

 

2

$474.5 million.

6

 Because all Superstorm Sandy disaster assistance funds 

were designated as “susceptible to significant improper payments,” the 

Office of Management and Budget required Federal agencies to establish 

additional oversight of these funds.7 

Supplemental SSBG Funds for Superstorm Sandy

New York and New Jersey, the States most affected by Superstorm Sandy, 

together received about 97 percent of the Sandy SSBG funds. HHS 

allocated these funds based on States’ relative share of individuals 

registered for Federal Emergency Management Agency (FEMA) 

Individual Assistance as of March 18, 2013.8 Connecticut, Maryland, and 

Rhode Island also received Sandy SSBG funds. 

Table 1 illustrates the Sandy SSBG funds allocated to each of the five 

States. ACF, which administers and provides oversight of the SSBG 

program, disbursed almost all Sandy SSBG funds to States by 

July 22, 2013.9

Table 1: Sandy SSBG Funds Allocated to the Five States

State Award Amount State Share of Sandy 

SSBG Funds

New York $235,434,600 49.6%

New Jersey $226,794,105 47.8%

Connecticut $10,569,192 2.2%

Maryland $1,185,675 0.3%

Rhode Island $516,428 0.1%

Total $474,500,000 100%

Source: ACF, Supplemental Funds, Information Memorandum No. 01-2013, March 28, 2013. 

The Act authorized Sandy SSBG funds for States to address their 

necessary expenses resulting from Superstorm Sandy. States were 

allowed to use Sandy SSBG funds in 28 broad service categories, such as 

____________________________________________________________ 

6

 The Act provided about $50 billon in disaster assistance through 19 Federal agencies. 

P. L. No. 113-2, January 29, 2013. Government Accountability Office, Improved 

Guidance on Designing Internal Control Plans Could Enhance Oversight of Disaster 

Funding, November 2013, GAO-14-58, pg. 1 & 28-32.

7

 P. L. No. 113-2, Section 904(b). 

8

 ACF Information Memorandum, Transmittal No. 01-2013, Hurricane Sandy SSBG 

Supplemental Funds, March 28, 2013, pg. 2. 

9 ACF’s responses to questions submitted by the Office of Inspector General (OIG). 
 

Sandy SSBG: Funds Benefited States’ Efforts, Though ACF’s Guidance Could Be Improved (OEI-09-15-00200)

 

3

case management, employment services, and housing services.10, 11 See the 

table in Appendix A for a complete list of allowable service categories. 

Prior to awarding Sandy SSBG funds to States, ACF required the States to 

submit SSBG supplemental funds pre-expenditure reports (Intended Use 

Plans) that described how they proposed to use the funds and their 

timelines for completing proposed activities.12

 As shown in Figure 1, once 

ACF approved their Intended Use Plans, States could identify and approve 

grants to sub-recipients (e.g., individuals, families, or organizations). 

States then reimbursed approved sub-recipients for their Sandy-related 

expenses using Sandy SSBG funds.13

 

Figure 1: Sandy SSBG Funding Process

Planning Activities

ACF approves States' 

Intended Use Plans and 

disburses funding

Approving Grants

States approve grants 

to sub-recipients, such 

as individuals, families, 

and organizations 

Reimbursing Expenses

States reimburse 

sub-recipients, such as 

individuals, families, 

and organizations, for 

their expenses

Source: OIG summary based on interviews with and documents collected from ACF and State officials.

While Sandy SSBG funds could be used flexibly, they came with certain 

restrictions. Under the Act, States could not use Sandy SSBG funds for 

expenses that were reimbursed by other payers such as FEMA or private 

insurance.14

 Further, States could not use the Sandy SSBG funds “to

purchase supplies and/or equipment that will aid in future disasters,”

because the Sandy SSBG funds were intended to address necessary 

expenses resulting from Superstorm Sandy.15 Finally, States had a 

____________________________________________________________ 

10 ACF, Hurricane Sandy Expenditure Form, OMB NO. 0970-0234, Accessed at 

http://www.acf.hhs.gov/sites/default/files/ocs/hurricane_sandy_expenditure_form.pdf on 

January 22, 2016. 

11 States also could provide services that fell outside of the 28 defined categories and 

report these in “Other” categories such as health services, repair, renovation, and 

rebuilding of child care facilities, and repair, renovation, and rebuilding of health care 

facilities. 

12 ACF Information Memorandum, Transmittal No. 01-2013, Hurricane Sandy SSBG 

Supplemental Funds, March 28, 2013, p. 4. 

13 OIG interviews with officials from ACF and the five States affected by Sandy. 

14 P.L. No. 113-2, Title VI—Department of Health and Human Services, Jan. 29, 2013. 

15 SSBG Q&As Hurricane Sandy Supplemental FY 2013, III. Allowable Costs, 

April 13, 2013. Accessed at http://www.acf.hhs.gov/programs/ocs/resource/ssbg-qas2013-sandy-supplemental on January 22, 2016. 
 

Sandy SSBG: Funds Benefited States’ Efforts, Though ACF’s Guidance Could Be Improved (OEI-09-15-00200)

 

4

deadline for expending their funds.16 Initially, ACF instructed States to 

expend Sandy SSBG funds by September 30, 2015, but ACF later 

extended the deadline to September 30, 2017.17, 18 

The Office of Management and Budget (OMB) required Federal agencies, 

such as ACF, to ensure that all Superstorm Sandy disaster funds 

appropriated under the Act were used only for their intended purposes.19

 

The OMB memorandum instructed each Federal agency to supplement its 

existing internal control plan by considering elements including 

(1) implementing more expansive reviews and increased monitoring and 

oversight of grantees and (2) calculating an improper payment rate for the 

funds. In March 2013, ACF issued guidance that contained its oversight 

plans, as well as other information. These plans included pre-expenditure, 

post-expenditure, and progress reporting requirements for States and 

program integrity reviews by ACF.20

Related Work

This evaluation builds on OIG’s body of work related to Superstorm 

Sandy. Most relevant to this report, in July 2014, OIG found that HHS

(Department-wide) included elements specified by OMB when it designed 

its internal controls for overseeing Superstorm Sandy disaster funds.21 

OIG also has released a series of audits at the grantee level, examining 

how grantees and sub-recipients accounted for and expended the 

____________________________________________________________ 

16 P.L. No. 113-2, Jan. 29, 2013. Section 904(c). 

17 ACF Information Memorandum, Transmittal No. 01-2013, Hurricane Sandy SSBG 

Supplemental Funds, March 28, 2013, p. 6. 

18 ACF, Information Memorandum, Transmittal No. 1-2015, Revision of Project Period 

and Reporting of Hurricane Sandy SSBG Supplemental Funds Expenditures and 

Recipients and Closeout Requirements, June 12, 2015, p. 1. 

19 OMB, Memorandum for the Heads of Executive Departments and Agencies, 

Accountability for Funds Provided by the Disaster Relief Appropriations Act, M-13-07, 

March 12, 2013. 

20 ACF Information Memorandum, Transmittal No. 01-2013, Hurricane Sandy SSBG 

Supplemental Funds, March 28, 2013. 

21 OIG, The Department of Health and Human Services Designed Its Internal Controls 

Over Hurricane Sandy Disaster Relief Funds To Include Elements Specified by the 

Office of Management and Budget, A-02-13-02010, July 2014. 
 

Sandy SSBG: Funds Benefited States’ Efforts, Though ACF’s Guidance Could Be Improved (OEI-09-15-00200)

 

5

Superstorm Sandy disaster assistance funds.22, 23, 24, 25 In its March 2016 

audit, OIG found that one grantee claimed almost $60,000 in unallowable 

costs. However, in other audits, OIG found that grantees appropriately 

budgeted and claimed disaster assistance funds. Other reports issued by 

OIG include examinations of the responses of hospitals and child care 

providers after Superstorm Sandy, issued in 2014 and 2015, 

respectively.26, 27

METHODOLOGY

Data Collection and Analysis

Between July and November 2015, we collected information from ACF, 

the five States that received Sandy SSBG funds, and selected subrecipients. We report on States’ activities and ACF’s oversight through 

September 2015. 

States’ experiences using funds. To examine States’ experiences using 

Sandy SSBG funds, we interviewed and collected documentation from 

ACF staff and officials from the five States that received Sandy SSBG 

funds. See Appendix B for the list of State agencies whose officials 

participated in our interviews. From ACF, we collected States’ initial and 

amended Intended Use Plans, post-expenditure reports, and progress 

reports and analyzed this information to determine how States used their 

Sandy SSBG funds. We conducted onsite visits to New York and 

New Jersey and held conference calls with officials from Connecticut, 

Maryland, and Rhode Island to collect information about how they 

developed their Intended Use Plans and distributed funds to affected 

____________________________________________________________ 

22 OIG, New York University School of Medicine Budgeted Costs That Were 

Appropriate and Claimed Allowable Hurricane Sandy Disaster Relief Act Funds, 

A-02-14-02011, December 2015. 

23 OIG, Link2Health Solutions, Inc., Budgeted Costs That Were Not Appropriate and 

Claimed Some Unallowable Hurricane Sandy Disaster Relief Act Funds, A-02-14-02013, 

March 2016.

24 OIG, Bayview Nursing and Rehabilitation Center Claimed Allowable Hurricane Sandy 

Disaster Relief Act Funds, A-02-15-02010, April 2016. 

25 OIG, New York Implemented Effective Internal Controls Over Hurricane Sandy Social 

Services Block Grant Funds and Appropriately Budgeted and Claimed Allowable Costs, 

A-02-14-02009, May 2016. 

26 OIG, Hospital Emergency Preparedness and Response During Superstorm Sandy, 

OEI-06-13-00260, September 2014. 

27 OIG, The Response to Superstorm Sandy Highlights the Importance of Recovery 

Planning for Child Care Nationwide, OEI-04-14-00410, December 2015. 
 

Sandy SSBG: Funds Benefited States’ Efforts, Though ACF’s Guidance Could Be Improved (OEI-09-15-00200)

 

6

individuals. We also collected information about the challenges that States 

experienced using and accounting for their funds. 

While onsite in New York and New Jersey, we visited a purposive sample 

of nine sub-recipients (four sub-recipients in New York and five in New 

Jersey) to discuss their use of Sandy SSBG funds.28

 For our sample 

selection, we focused on sub-recipients that received or provided services 

representing the largest Sandy SSBG expenditures in each State. We used 

the information and documentation collected during these visits to 

describe sub-recipients’ experiences using and accounting for Sandy 

SSBG funds. 

ACF’s oversight of Sandy SSBG funds. To examine ACF’s oversight, we 

interviewed and collected documentation from ACF staff about their 

review and monitoring of Sandy SSBG funds. We conducted structured 

interviews with staff from ACF and its contractors to determine the type of 

reviews they conducted for Sandy SSBG funds. We also collected reports 

and other documents describing the results of ACF’s State and subrecipient reviews. We reviewed these reports to examine the extent to 

which ACF identified improper uses of Sandy SSBG funds and how it 

responded to these findings. 

Limitations

Because we collected information from a purposive sample of subrecipients in New Jersey and New York, the experiences of sub-recipients 

are not representative of all sub-recipients that received Sandy SSBG 

funds. Also, although we examined the nature and extent of ACF’s 

oversight activities, we did not assess the effectiveness of those activities 

or the accuracy of ACF’s calculated error rate. 

Standards

This study was conducted in accordance with the Quality Standards for 

Inspection and Evaluation issued by the Council of the Inspectors General 

on Integrity and Efficiency. 

____________________________________________________________ 

28 New York and New Jersey each provided OIG a list of Sandy SSBG sub-recipients as 

of March 2015. We selected our sample of sub-recipients from the 479 New York and 

250 New Jersey Sandy SSBG sub-recipients included on those lists. 
 

FINDINGS 

Sandy SSBG funds assisted States’ immediate and 

longer-term recovery 

Overall, State officials reported that they were able to use Sandy SSBG

funds to address their priority disaster-related expenses. ACF approved 

most of their proposed activities and made the funds available when needed. 

Further, State officials indicated that the flexible terms of Sandy SSBG 

grants helped them coordinate disaster assistance from multiple sources. 

States used Sandy SSBG funds to supplement other funding that, in some 

cases, came with more restrictions. 

By September 2015, the time of our review, States had expended two-thirds 

($316 million of $475 million) of the Sandy SSBG funds available to them. 

As a group, States spent most of the funds on housing services, health 

services; the repair, renovation, and rebuilding of health facilities; and 

counseling services. Table 2 highlights some of the activities that States 

completed using Sandy SSBG funds. During this time period, all five States 

used at least some of their Sandy SSBG funds for housing and case 

management services. (See Appendix A for State-specific expenditure 

amounts by service type). 

Sandy SSBG: Funds Benefited States’ Efforts, Though ACF’s Guidance Could Be Improved (OEI-09-15-00200)

 

7 

Superstorm Sandy Damage Sandy SSBG Funded-Renovation

Source: Sandy SSBG sub-recipient. Used With Permission. 

Officials from New York and New Jersey, the States most affected by the 

storm, reported the greatest variety of uses for Sandy SSBG funds. Each 

used Sandy SSBG funds in at least half of the 28 main service categories. 

Unlike the other three States, New York and New Jersey used Sandy SSBG 

funds to provide family violence prevention and intervention services, 
 

Sandy SSBG: Funds Benefited States’ Efforts, Though ACF’s Guidance Could Be Improved (OEI-09-15-00200)

 

8

education and training, and employment services to address longer-term 

needs of residents affected by the storm. 

Table 2: Examples of States’ Sandy SSBG-funded Activities 

Source: States Intended Use Plans and Progress Reports. 

States redirected Sandy funds as circumstances changed. All five States 

amended their initial Intended Use Plans. After receiving approval from 

ACF, States reallocated some Sandy SSBG funds to other previously 

approved or newly identified activities. New Jersey officials reported that 

the flexibility to move funds from one activity to another was helpful as 

they learned more about the types of assistance people needed to recover 

from the storm. For example, New Jersey redirected funds to expand 

mental health services and its homeowner and renter assistance program for 

individuals affected by Superstorm Sandy. Similarly, New York redirected 

funds to existing Sandy SSBG programs related to child care, food and 

nutrition, and mental health services, as well as to a new program to provide 

housing for vulnerable populations affected by the storm.

States used different strategies for distributing Sandy SSBG funds, which 

also helped them address their needs. For example, New Jersey officials 

reported that using the State’s existing infrastructure and working with 

providers with a proven record allowed it to get assistance where it was 

needed more quickly. Connecticut opened the funds up to a wide pool of 

State Activities 

New York

 Repair, renovation, and rebuilding of health and child care facilities

 Uncompensated operational expenses incurred by health facilities, child care 

providers, and food banks during and after Superstorm Sandy

 Social and support services, including child care and housing services

New Jersey

 Assistance with mortgage and rent payments, utilities, and appliances

 Housing and supportive services for individuals with serious mental illness

 Home repair grants for seniors

 Employment services for displaced homemakers

Connecticut

 Repairs and renovations to docks and pilings damaged by Superstorm 

Sandy

 Case management, counseling, housing, and referral services

 Unreimbursed expenditures covered by a damaged preschool

Maryland

 Housing and transportation services

 Legal services

 Summer camp focused on disaster resilience for affected children

 Repairs to equipment and structures used by watermen

Rhode Island

 Case management and housing services

 Post-hurricane clean-up to allow families to return to home 

 Information and referral services
 

Sandy SSBG: Funds Benefited States’ Efforts, Though ACF’s Guidance Could Be Improved (OEI-09-15-00200)

 

9

potential service providers, whereas Maryland decided to set up a State-run

program to fund services. 

The initial deadline that ACF established for expending 

Sandy SSBG funds did not allow States the time they 

needed to use the funds

Both ACF’s initial guidance for expending Sandy SSBG funds and the 

announcement to extend the deadline—issued about 3 months before the 

original deadline—limited how States used the funds. ACF initially 

instructed States that Sandy SSBG funds must be expended by 

September 30, 2015. ACF reported that, in establishing the initial deadline, 

it focused on ensuring the timely and efficient delivery of disaster 

assistance. In response to States’ need for additional time to use the Sandy 

SSBG funds, ACF reinterpreted the statutory deadline and issued revised 

instructions to States in June 2015. The revised instructions indicated that 

Sandy SSBG funds could be expended through September 2017—2 years 

beyond the original deadline. However, State officials reported that they 

were winding down some programs before they learned that ACF would 

revise the spending deadline. For example, New Jersey officials noted that 

some Sandy SSBG-funded programs stopped accepting applications in 

anticipation of the initial deadline. Further, these officials indicated that 

they would have planned their Sandy activities differently if they had 

known earlier that the funds would be available for expenditure through 

September 2017. 

The initial deadline for expending funds made it difficult for States and subrecipients to hire new staff focused on Sandy-related efforts. State officials 

and sub-recipients reported that the initial deadline restricted the pool of 

qualified candidates for available positions to only those willing to consider 

a job ending by September 2015. In some cases, it would have taken 

through 2013 to recruit and screen job candidates, so some Sandy SSBGfunded new hires would have been employed for less than 2 years. 

Additionally, the September 2015 deadline limited States’ and subrecipients’ ability to address longer term needs. For example, State officials 

and sub-recipients noted that many effects of the storm continued or grew 

well after the initial impact, including housing shortages, mental health 

issues, and family disruptions. In some cases, sub-recipients were able to 

extend their Sandy SSBG-funded activities to meet continuing needs. Other 

activities ended as initially planned.
 

Sandy SSBG: Funds Benefited States’ Efforts, Though ACF’s Guidance Could Be Improved (OEI-09-15-00200)

 

10

States reported wanting more direction from ACF on 

allowable Sandy SSBG activities and documentation 

requirements 

State officials reported that, although ACF provided general guidance 

about Sandy SSBG funds, they wanted more direction from ACF about 

allowable activities and documentation requirements. State officials and 

sub-recipients reported that they were not always clear about how they 

could use their Sandy SSBG funds or the type of documentation that ACF 

would expect from grantees to support their Sandy SSBG reimbursements 

during program integrity reviews. 

Given the flexibility of the Sandy SSBG grant, ACF did not prepare detailed 

guidance for States before they began planning their activities. 

Supplemental SSBG funds are designed to allow States to identify their own 

activities and related eligibility and documentation requirements. Although

ACF did not prepare detailed guidance, in an April 2013 webinar, it

provided States general information on SSBG program goals as well as 

allowable activities for both general and disaster-specific SSBG service 

categories. ACF also compiled a list of questions and answers from 

discussions with individual States and, from April 2013 to November 2014, 

issued a series of guidance documents to share with the States that received 

Sandy SSBG funds.

To assist States in developing their programs, ACF reported facilitating 

State-to-State technical assistance on using supplemental SSBG 

funds. ACF held monthly meetings with staff from the five States to 

respond to questions and provide an opportunity for States to exchange 

information about their programs. ACF also reported connecting the five 

States that received Sandy funds to other States with supplemental SSBG 

experience to discuss lessons learned and recommendations from prior 

disasters. 

Despite ACF’s general guidance and support of State-to-State technical 

assistance, States remained uncertain about whether SSBG Sandy funds 

would cover certain proposed activities. This resulted in delays while States 

worked with ACF to get their Intended Use Plans approved. Even after 

ACF approved States’ Intended Use Plans, some States needed more 

direction about allowable activities before soliciting, contracting with, or 

reimbursing sub-recipients. For example, State officials and sub-recipients 

still had questions about whether certain expenses, such as vehicles costs, or 

past-due rent or electric bills, could be reimbursed with Sandy SSBG funds. 
 

Sandy SSBG: Funds Benefited States’ Efforts, Though ACF’s Guidance Could Be Improved (OEI-09-15-00200)

 

11

State officials and their sub-recipients reported that Sandy SSBG 

documentation requirements for program integrity purposes were not 

clear. In some cases, State officials and sub-recipients did not always 

know what documentation ACF would expect as evidence that subrecipients were eligible to receive Sandy SSBG funds. For example, subrecipients were not always clear about what documentation was needed to 

prove that their clients lived in affected areas. In other cases, subrecipients did not know and/or collect the type of documentation needed to 

support claims for Sandy SSBG reimbursement. Some recipients, such as 

small providers of child care, did not routinely collect and maintain the 

type of documents needed to support their Sandy SSBG claims. State 

officials also reported that they were unable to adequately prepare for 

ACF’s program integrity reviews because they lacked information about 

the review standards, including expected documentation. 

ACF implemented required reviews to account for 

Sandy SSBG funds and identify improper payments 

ACF’s oversight of Sandy funds represented a departure from its established 

practices for oversight of SSBG funds. Historically, ACF’s oversight of 

SSBG funds focused on States’ annual reporting of their SSBG plans and 

expenditures. With Sandy SSBG funds, ACF required additional reporting 

by States. States submitted amendments, as necessary, to their Intended Use 

Plans and quarterly reports detailing their Sandy SSBG expenditures and 

progress. ACF further expanded its existing oversight of SSBG funds by 

conducting program integrity reviews to examine States’ internal controls 

and potentially improper payments. Table 3 illustrates how ACF expanded 

its oversight for each State that received Sandy SSBG funds. During these 

reviews, ACF visited States and/or collected documentation to examine 

their compliance with program requirements. 
 

Sandy SSBG: Funds Benefited States’ Efforts, Though ACF’s Guidance Could Be Improved (OEI-09-15-00200)

 

12

Table 3: ACF’s Completed Program Integrity Reviews Through 

September 30, 2015 

Quarterly Postexpenditure 

Reports

Quarterly 

Progress 

Reports

Internal 

Controls

Review

Improper 

Payment 

Review

New York    

New Jersey    

Connecticut   

Maryland  

Rhode Island  

Source: OIG analysis of interviews and documentation from ACF and States. 

As part of its expanded oversight, ACF conducted program integrity 

reviews of New York and New Jersey’s internal controls. These reviews 

focused on the two States that received most of the Sandy SSBG funds.29 

During the respective reviews, ACF found that most of the internal 

controls in both States were operating effectively. However, ACF found 

that New Jersey did not always issue timely payments to sub-recipients 

and recommended that New Jersey revisit its preventive internal controls 

to ensure that invoices are paid on time.30 ACF also identified incomplete 

documentation by New York and its sub-recipients. ACF recommended 

that New York ensure that all required forms and reports are completed 

and approved before accepting them from sub-recipients and submitting 

them to ACF.31 

Starting with the FY 2014 review period, ACF implemented improper 

payment reviews for Sandy SSBG funds, in line with OMB’s guidance.

32

 

ACF focused its first improper payment review cycle on New Jersey, 

____________________________________________________________ 

29 ACF’s review of New Jersey’s internal controls covered the State’s activities from 

June 1, 2013 through July 31, 2014. ACF’s review of New York’s internal controls 

covered the State’s activities from July 1, 2014 through October 30, 2015. 

30 ACF, FY 2014 Internal Control Review, State of New Jersey, Social Services Block 

Grant (Hurricane Sandy Supplemental Funds). 

31 ACF, FY 2015 Internal Control Review, New York State, Social Services Block Grant 

(Hurricane Sandy Supplemental Funds). 

32 ACF’s FY 2014 improper payment review period covered July 1, 2013 through 

June 30 2014. 
Sandy SSBG: Funds Benefited States’ Efforts, Though ACF’s Guidance Could Be Improved (OEI-09-15-00200) 13

which, at that time, was responsible for most Sandy SSBG expenditures. 

During the FY 2014 review period, ACF and its contractors examined the 

eligibility of individuals and households in New Jersey that received 

Sandy SSBG funds. ACF initially calculated an error rate of about 

13 percent.

33

 However, ACF subsequently noted that many of these errors 

resulted from documentation that New Jersey maintained, but was not able 

to retrieve in time for the review. Considering the additional 

documentation, the FY 2014 error rate would have been reduced to about 

5 percent.34

For FY 2015, ACF expanded the number and breadth of its improper 

payment reviews and addressed some concerns raised in the first review 

cycle. In this cycle, ACF conducted reviews of New Jersey, New York,

and Connecticut, three States that received about 99 percent of all Sandy 

SSBG funds.35 Along with the eligibility reviews conducted for FY 2014, 

ACF and its contractors assessed the appropriateness of payments to subrecipients that provided benefits and services to individuals affected by 

Superstorm Sandy. To address concerns raised in FY 2014, ACF 

modified its improper payment review methodology to allow States to 

respond to preliminary review findings and provide additional 

documentation, if available, to support claims. For FY 2015, the error rate 

related to eligibility was about 1.2 percent and the error rate for payments 

to sub-recipients that provided benefits and services was about 

0.2 percent.36 Of the total errors, about $460,000 was associated with 

overpayments.37 ACF indicated that it would work with States to develop

corrective actions plans. ACF expected corrective actions to include

enhanced State efforts to monitor and work with the most error prone subrecipients, as a means to address weaknesses in documentation and 

eligibility determinations, and payment recoveries. 

Supplementing ACF’s program integrity reviews, States also implemented 

a variety of oversight activities for Sandy SSBG funds. State officials 

____________________________________________________________

33 ACF, Social Services Block Grant, Hurricane Sandy Disaster Relief Funds, Improper 

Payments Report, Estimated Improper Payments and Payment Error Rate for Social 

Services Block Grant FY 2014 Report to the Office of Management and Budget, 

October 2014.

34 HHS, FY 2015, Agency Financial Report, pg. 225

35 ACF, Social Services Block Grant, Hurricane Sandy Disaster Relief Funds, Improper 

Payments Report, Estimated Improper Payments and Payment Error Rate for 

Social Services Block Grant FY 2015 Report to the Office of Management and Budget, 

October 2015.

36 HHS, FY 2015, Agency Financial Report, p. 225.

37 Ibid, pg. 227.
 

Sandy SSBG: Funds Benefited States’ Efforts, Though ACF’s Guidance Could Be Improved (OEI-09-15-00200)

 

14

typically reported that they first screened prospective sub-recipients, 

whether individuals, service agencies, or facilities, for their eligibility to 

receive Sandy SSBG funds. After approving awards, States required subrecipients to provide detailed documentation of their expenses, such as 

receipts, invoices, or employee pay records, before they released Sandy 

SSBG funds. States tailored other oversight activities to the type of 

services and activities being funded. For example, two States that funded 

reconstruction projects required onsite building inspections. As part of 

their Sandy SSBG oversight, States also reviewed patient case records and 

verified the residences of individuals who received rent or other 

supportive services. 
 

Sandy SSBG: Funds Benefited States’ Efforts, Though ACF’s Guidance Could Be Improved (OEI-09-15-00200)

 

15

CONCLUSION AND RECOMMENDATIONS

Supplemental SSBG funds are intended to provide a flexible source of 

funding that allow States to identify and target their disaster-related needs. 

States were able to use the funds for services, such as housing and other 

assistance for affected individuals, and reimbursement to health facilities 

for their reconstruction expenses. However, to take full advantage of 

available funding for future disasters, States and grantees must receive 

appropriate guidance about when funds expire, how they may use the 

funds, and what documents or other evidence they must maintain for 

program integrity purposes. 

Therefore, we recommend that ACF: 

Take additional steps to ensure, within the scope of the 

legislation, that States are given appropriate time to expend 

any future supplemental SSBG awards 

For future disasters, ACF should seek to give States as much time as 

allowed under authorizing legislation to expend supplemental SSBG funds 

to address long-term recovery-related needs. Additional steps could 

include developing or revising procedures for staff responsible for 

preparing guidance to States about expenditure timeframes. The goal 

would be to communicate the expenditure timeframes to States before they 

begin developing their Intended Use Plans, avoiding the need to revise 

timeframes later. 

ACF should conduct a post-grant review to identify lessons 

learned and best practices 

ACF should conduct a post-grant review to help it identify information to 

share with States about specific activities that they can reimburse using 

Sandy SSBG funds. The broad SSBG service categories allow States to 

determine how they will target their funds, but may leave questions about 

whether specific activities are consistent with SSBG program goals and 

requirements. Some of these questions can be answered by States that 

have experience using SSBG funds. Therefore, ACF should conduct a 

post-grant review, in consultation with States that received Superstorm 

Sandy supplemental SSBG funding, to identify lessons learned and best 

practices. ACF can use information learned from this review to provide 

more direction to States affected by future disasters. This direction should 

include examples and clarifications to help States to more readily judge, in 

advance, which activities may be covered. 
 

Sandy SSBG: Funds Benefited States’ Efforts, Though ACF’s Guidance Could Be Improved (OEI-09-15-00200)

 

16

Prepare guidance about supplemental SSBG documentation 

requirements 

ACF should prepare guidance about the type of documentation that States 

and sub-recipients should maintain to support eligibility and claims for 

reimbursement. ACF’s new program integrity reviews for Sandy SSBG 

funds left some States and sub-recipients unsure about the type of 

documentation they would need to support their Sandy-related claims. 

ACF could use feedback from States and its findings from its Sandy SSBG 

program integrity reviews to clarify its expectations for documentation for 

areas about which sub-recipients have questions or concerns. 
 

Sandy SSBG: Funds Benefited States’ Efforts, Though ACF’s Guidance Could Be Improved (OEI-09-15-00200)

 

17

AGENCY COMMENTS AND OFFICE OF INSPECTOR GENERAL 

RESPONSE

ACF concurred with all of our recommendations. In its comments, ACF 

noted that it had worked to respond to State-identified needs and that, 

consistent with its statutory authority, had provided States the necessary 

flexibility to administer their Sandy SSBG funds. 

ACF concurred with our recommendation to take additional steps to 

ensure that States are given appropriate time to expend any future 

supplemental SSBG awards. ACF noted the importance of early 

communication of deadlines to ensure the efficient and timely use of 

funds. ACF also indicated that for future supplemental SSBG 

authorizations, it will implement measures that allow States the full 

timeframe available under the law to use the funds. ACF added that it will 

conduct an internal administrative review to identify future strategies for 

releasing funds and issuing guidance on expenditure timeframes.

ACF concurred with our recommendation to conduct a post-grant review 

to identify best practices and lessons learned. ACF stated that it will 

continue to work with States to identify best practices, lessons learned, 

technical assistance, and guidance that can be shared with other States in 

the event that Congress authorizes disaster supplemental funding in the 

future. 

ACF also concurred with our recommendation to prepare guidance 

clarifying supplemental SSBG documentation requirements. ACF stated 

that it plans to solicit feedback from States on guidance and technical 

assistance that can be provided to States in the future and work with key 

State officials to identify resources that can be made available to States 

quickly in connection with disaster supplemental funding in the future. 

OIG supports ACF’s plans to work with States on guidance and technical 

assistance. We reiterate that guidance for States should address the types 

of documentation needed to support eligibility and reimbursement for 

supplemental disaster funds. 

For the full text of ACF’s comments, see Appendix C.
 

Sandy SSBG: Funds Benefited States’ Efforts, Though ACF’s Guidance Could Be Improved (OEI-09-15-00200)

 

18

APPENDIX A

State-specific Sandy SSBG Expenditures by Service Category, 

Through September 30, 2015 

New York New Jersey Connecticut Maryland Rhode 

Island Total

1. Adoption 0 0 0 0 0 0

2. Case Management $8,192,775 $2,158,016 $1,060,526 $71,181 $3,624 $11,486,122

3. Congregate Meals $1,876,145 $22,994 0 $245 0 $1,899,384

4. Counselling $522,279 $13,359,523 $742,167 0 0 $14,623,969

5. Day Care, Adults 0 0 0 0 0 0

6. Day Care, Children $777,277 $412,297 0 0 0 $1,189,574

7. Education & Training $188,442 $2,702,151 0 0 0 $2,890,593

8. Employment $97,511 $910,228 0 0 0 $1,007,739

9. Family Planning 0 0 0 0 0 0

10. Foster Care, Adults 0 0 0 0 0 0

11. Foster Care, Children $39,178 0 0 0 0 $39,178

12. Health-Related $3,004,382 $6,446,487 0 $1,160 0 $9,452,029

13. Home-Based $347,698 0 0 $1,310 0 $349,008

14. Home-Delivered Meals 0 $94,698 0 0 0 $94,698

15. Housing $1,180,262 $122,686,293 $744,916 $221,737 $85,476 $124,918,684

16. Independent/Transitional Living $40,151 0 0 0 0 $40,151

17. Information & Referral $2,619,642 $5,626,551 $88,372 0 $68,036 $8,402,601

18. Legal $3,578,024 $1,860,581 0 $4,192 0 $5,442,797

19. Pregnancy & Parenting 0 0 0 0 0 0

20. Prevention & Intervention $1,345,644 $9,784,588 0 0 0 $11,130,232

21. Protective, Adults 0 0 0 $632 0 $632

22. Protective, Children 0 $1,801,167 0 0 0 $1,801,167

23. Recreation 0 0 0 $138,757 0 $138,757

24. Residential Treatment $67,119 0 0 0 0 $67,119

25. Special, Disabled $592,251 $466,389 0 0 0 $1,058,640

26. Special, Youth at Risk $661,141 0 0 0 0 $661,141

27. Substance Abuse $68,964 $294,232 0 0 0 $363,196

28. Transportation $211,182 0 0 $490 0 $211,672

Other $26,422,566 $1,260,553 0 $228,060 0 $27,911,179

Other, Health $29,708,882 0 0 0 0 $29,708,882

Other,

Mental Health $5,782,529 0 0 0 0 $5,782,529

Other, Repair, Renovation, & 

Rebuilding-Child Care Facilities $2,133,088 $288,929 $1,159,000 0 0 $3,581,017

Other, Repair, Renovation, & 

Rebuilding-Health Care Facilities $27,576,959 $942,754 0 0 0 $28,519,713

Other, Repair, Renovation, & 

Rebuilding-Mental Health Facilities $1,218,525 0 0 0 0 $1,218,525

Other, Repair, Renovation, & 

Rebuilding-Other $5,289,382 $5,946,364 $35,000 0 0 $11,270,746

Total Services $123,541,998 $177,064,795 $3,829,981 $667,764 $157,136 $305,261,674

Administrative Costs $5,209,573 $5,428,810 $10,803 $28,191 0 $10,677,377

Total Services plus 

Administrative Costs $128,751,571 $182,493,605 $3,840,784 $695,955 $157,136 $315,939,051

Source: States’ post-expenditure reports, through September 30, 2015.
 

Sandy SSBG: Funds Benefited States’ Efforts, Though ACF’s Guidance Could Be Improved (OEI-09-15-00200)

 

19

APPENDIX B

State Agencies that Participated in OIG Interviews 

New York 

Office of Children and Family Services (Lead Sandy SSBG Agency) 

 Division of Administration 

Financial Operations 

 Audit and Quality Control 

Contract Management 

New Jersey 

Department of Human Services (Lead Sandy SSBG Agency) 

 Office of Recovery 

Division of Mental Health and Addiction Services 

 Division of Aging Services 

 Division of Disability Services 

 

Department of Children and Families 

 

Department of Health 

Office of the Attorney General 

New Jersey Housing and Mortgage Finance Agency

Connecticut 

Department of Social Services (Lead Sandy SSBG Agency) 

Maryland 

Department of Human Resources (Lead Sandy SSBG Agency) 

Rhode Island 

Department of Human Services (Lead Sandy SSBG Agency) 
 

Sandy SSBG: Funds Benefited States’ Efforts, Though ACF’s Guidance Could Be Improved (OEI-09-15-00200)

 

20

APPENDIX C

Agency Comments 
 

Sandy SSBG: Funds Benefited States’ Efforts, Though ACF’s Guidance Could Be Improved (OEI-09-15-00200)

 

21
 

Sandy SSBG: Funds Benefited States’ Efforts, Though ACF’s Guidance Could Be Improved (OEI-09-15-00200)

 

22
 

Sandy SSBG: Funds Benefited States’ Efforts, Though ACF’s Guidance Could Be Improved (OEI-09-15-00200)

 

23

ACKNOWLEDGMENTS

This report was prepared under the direction of Blaine Collins, Regional 

Inspector General for Evaluation and Inspections in the San Francisco 

regional office, and Michael Henry, Deputy Regional Inspector General. 

Camille Harper served as the team leader for this study and Christina 

Lester served as the lead analyst. Central office staff who provided 

support include Clarence Arnold, Joanne Legomsky, Melicia Seay, and 

Sherri Weinstein. 
Office of Inspector General

http://oig.hhs.gov 

The mission of the Office of Inspector General (OIG), as mandated by Public Law 95452, as 

amended, is to protect the integrity of the Department of Health and Human Services 

(HHS) programs, as well as the health and welfare of individuals served by those programs. 

This statutory mission is carried out through a nationwide network of audits, investigations, 

and inspections conducted by the following operating components: 

Office of Audit Services 

The Office of Audit Services (OAS) provides auditing services for HHS, either by conducting 

audits with its own audit resources or by overseeing audit work done by others. Audits 

examine the performance of HHS programs and/or its grantees and contractors in carrying 

out their respective responsibilities and are intended to provide independent assessments of 

HHS programs and operations. These assessments help reduce waste, abuse, and 

mismanagement and promote economy and efficiency throughout HHS. 

Office of Evaluation and Inspections 

The Office of Evaluation and Inspections (OEI) conducts national evaluations to provide 

HHS, Congress, and the public with timely, useful, and reliable information on significant 

issues. These evaluations focus on preventing fraud, waste, or abuse and promoting 

economy, efficiency, and effectiveness of departmental programs. To promote impact, OEI 

reports also present practical recommendations for improving program operations. 

Office of Investigations 

The Office of Investigations (OI) conducts criminal, civil, and administrative investigations 

of fraud and misconduct related to HHS programs, operations, and individuals. With 

investigators working in all 50 States and the District of Columbia, OI utilizes its resources 

by actively coordinating with the Department of Justice and other Federal, State, and local 

law enforcement authorities. The investigative efforts of OI often lead to criminal 

convictions, administrative sanctions, and/or civil monetary penalties. 

Office of Counsel to the Inspector General 

The Office of Counsel to the Inspector General (OCIG) provides general legal services to 

OIG, rendering advice and opinions on HHS programs and operations and providing all 

legal support for OIG’s internal operations. OCIG represents OIG in all civil and 

administrative fraud and abuse cases involving HHS programs, including False Claims Act, 

program exclusion, and civil monetary penalty cases. In connection with these cases, OCIG 

also negotiates and monitors corporate integrity agreements. OCIG renders advisory 

opinions, issues compliance program guidance, publishes fraud alerts, and provides other 

guidance to the health care industry concerning the anti-kickback statute and other OIG 

enforcement authorities.