Department of Homeland Security

Office of Inspector General 

Use of American Recovery and 
 


Reinvestment Act Funds by the 
 


Federal Emergency Management Agency 
 


for the Transit Security Grant Program
 
 

American Recovery and Reinvestment Act of 2009
 
 

OIG-11-18 December 2010 
 

Office ofInspector General

U.S. Department of Homeland Security

Washington, DC 20528

Homeland

Security

Preface

The Department of Homeland Security Office of Inspector General was established by

the Homeland Security Act of2002 (Public Law 107-296) by amendment to the Inspector

General Act of1978. This is one of a series of audits, inspections, and special reports

prepared as part of our oversight responsibilities for programs, grants, and projects

administered by the department under the American Recovery and Reinvestment Act of

2009.

This report presents information on the status ofRecovery Act funds used by the Federal

Emergency Management Agency under the Transportation Security Grant Program and

whether FEMA was administering the Recovery Act funds for the TSGP according to

program plans and requirements.

The recommendation herein has been developed to the best knowledge available to our

office, and has been discussed in draft with those responsible for implementation. We

trust this report will result in more effective, efficient, and economical operations. We

express our appreciation to all ofthose who contributed to the preparation ofthis report.

Anne

~~L. Richards

Assistant Inspector General for Audits

December 9, 2010
Table of Contents/Abbreviations 
 

Executive Summary .............................................................................................................1
 
 

Background..........................................................................................................................2
 
 

Results of Review ................................................................................................................3


 Grant Awards and Project Status ....................................................................................3 


 Tracking Grant Program Performance ............................................................................5 
 


Recommendation .................................................................................................................6
 
 

Management Comments and OIG Analysis ........................................................................6 
 


Appendixes

 Appendix A: Purpose, Scope, and Methodology.............................................................7 
 


Appendix B: Management Comments to the Draft Report .............................................8 
 


Appendix C: Transit Security Grant Program Performance Measures .........................10 
 


Appendix D: Major Contributors ...................................................................................11 
 


Appendix E: Report Distribution ...................................................................................12 
 


Abbreviations 

DHS Department of Homeland Security 
 

FEMA Federal Emergency Management Agency 
 

GAO General Accountability Office 
 

OIG Office of Inspector General 
 

OMB Office of Management and Budget 
 

TSA Transportation Security Administration 
 

TSGP Transit Security Grant Program 
 
OIG
 
 

Department of Homeland Security 

Office of Inspector General 

Executive Summary 

The American Recovery and Reinvestment Act of 2009 provided $610 

million to the Federal Emergency Management Agency, of which $150 

million was for the Transportation Security Grant Program. The purpose 

of the Transportation Security Grant Program is to help transit and rail 

operators to protect critical surface transportation infrastructure and the 

traveling public from acts of terrorism, major disasters, and other 

emergencies. 

Our objective was to determine whether the Federal Emergency 

Management Agency administered the American Recovery and 

Reinvestment Act funds for the Transportation Security Grant Program 

according to plans and requirements. 

The Federal Emergency Management Agency is administering the 

Transportation Security Grant Program in accordance with plans and 

requirements. As of September 30, 2009, the agency had obligated 100% 

of the American Recovery and Reinvestment Act funds appropriated for the 

Transportation Security Grant Program by awarding 19 grants. Federal 

Emergency Management Agency reports show that grantees had outlays 

of grant funds of approximately $22 million dollars or approximately 15% 

of funds awarded as of October 4, 2010. Recipients reported to the federal 

government that they had created or retained 215 jobs as June 30, 2010, 

the most recent federal reporting period. 

We are recommending that the Federal Emergency Management Agency 

incorporate systems to collect information necessary to measure the 

effectiveness of the Transportation Security Grant Program. 

Use of American Recovery and Reinvestment Act Funds by the Federal Emergency Management 
 


Agency for the Transit Security Grant Program
 
 

Page 1 
Background 

The American Recovery and Reinvestment Act of 2009 (Recovery Act) 

appropriated to the Department of Homeland Security (DHS) $2.75 billion 

for preserving and stimulating economic growth in the United States. Of 

that amount, the Federal Emergency Management Agency (FEMA) 

received $610 million, of which $150 million was for Public 

Transportation Security Assistance and Railroad Security Assistance. 

Grants for this assistance are funded under FEMA’s Transportation 

Security Grant Program (TSGP), which is authorized by sections 1406 and 

1513 of the Implementing Recommendations of the 9/11 Commission Act 

of 2007 (P.L. 110-53). The Recovery Act requires DHS to obligate the 

grant funds by September 30, 2010. 

FEMA awarded grants to eligible transit agencies and railroad carriers 

(hereinafter referred to as transit agencies) for operational packages and 

capital projects. Eligible transit agencies may also apply for grants on 

behalf of law enforcement agencies with dedicated transit bureaus. To be 

eligible for a grant, transit agencies must either have undergone a security 

assessment conducted by the Transportation Security Administration 

(TSA) or developed or updated their security plan within the past 3 years. 

FEMA and TSA have identified 120 transit agencies in 33 states as 

eligible for TSGP grants. 

According to FEMA guidance, operational packages cover activities such 

as hiring law enforcement officers for K-9 units, installing mobile 

explosive screening, and hiring antiterrorism teams. FEMA allocated 

$100 million to finance operational packages. FEMA allocated $50 

million to finance capital projects for asset hardening, such as reinforcing 

tunnels and underground facilities, installing surveillance systems, and 

putting in perimeter security. For both operational and capital projects, 

FEMA and TSA assessed risk on the basis of threat, vulnerability, and 

consequence factors. 

To qualify for operational packages, transit police forces or law 

enforcement providers must (1) employ at least 100 authorized 

enforcement positions dedicated to transit security as of January 1, 2009, 

and (2) limit funding requests to no more than 5% of the force’s current 

authorized sworn positions. As a prerequisite for capital projects, transit 

agencies must have certified that the project will begin within 90 days and 

be completed within 24 months of FEMA’s release of approved grant 

funds.1 

1

 After FEMA approves capital projects, it withholds the release of funds to the grantee until it also 

approves, if applicable, plans for historic preservation and/or environmental impact. 

Use of American Recovery and Reinvestment Act Funds by the Federal Emergency Management 
 


Agency for the Transit Security Grant Program
 
 

Page 2 
Office of Management and Budget (OMB) Memorandum M-09-15, 

Updated Implementing Guidance for the American Recovery and 

Reinvestment Act of 2009, requires federal agencies to submit plans for 

each program funded by the Recovery Act. The plan must include 

information on the goals and objectives of the program; kinds and scope of 

activities to be performed; delivery schedule; measures of program 

outputs, outcomes, and efficiency; and program monitoring processes. 

A June 2009 Government Accountability Office (GAO) review of the 

TSGP2

 said that FEMA needed to establish a plan for monitoring the use 

of grant funds. According to GAO, the plan should show how FEMA 

would systematically collect data and track grant activities until FEMA’s 

grant management system can perform those functions, and should include 

steps and milestones for measuring the effectiveness of the TSGP and its 

administration. 

Results of Review 

FEMA is administering the Recovery Act TSGP according to plans and 

requirements. However, it has not yet implemented a process to collect 

and analyze grant program performance measures identified in its 

Recovery Act plan for TSGP. FEMA and recipient reports show that 

grantees have spent approximately $22 million, or 14.76% of total grant 

awards, and have funded 215 jobs as of October 4, 2010. These matters 

are discussed in further detail below. 

Grant Awards and Project Status 

FEMA obligated the $150 million through the award of 19 grants by 

September 30, 2009. Specifically, FEMA received and rated 15 grant 

applications for operational packages and awarded grants totaling 

approximately $78 million. Regarding capital projects, 48 transit agencies 

submitted proposals. For high-risk capital projects that could be 

completed with Recovery Act funds alone, FEMA and TSA awarded four 

grants totaling $72 million3

. Table 1 presents TSGP grants awarded with 

Recovery Act funds. 

2 Transit Security Grant Program, DHS Allocates Grants Based on Risk, but Its Risk Methodology, 

Management Controls, and Grant Oversight Can Be Strengthened (GAO-09-491). 3

 FEMA reallocated the remaining $22 million in available operational funds ($100 million less $78 

million) to capital projects, thereby increasing the capital funding from $50 million to $72 million. 

Use of American Recovery and Reinvestment Act Funds by the Federal Emergency Management 
 


Agency for the Transit Security Grant Program
 
 

Page 3 
 

 

 

Table 1. TSGP Grants Awarded With Recovery Act Funds 

Grantee 

Award 

Type Amount 

Metropolitan Council of Minneapolis Operational $1,328,700 

King County, WA, Dept. of Trans. Operational 1,906,530 

National Railroad Passenger Corp. (Amtrak) Operational 6,343,500 

Dallas Area Rapid Transit Operational 1,362,690 

Metro Transit Authority, Harris County, TX Operational 3,040,560 

Chicago Transit Authority Operational 4,869,000 

Delaware River Port Authority Operational 2,085,000 

Niagara Frontier Trans. Operational 2,234,070 

Southeastern Pennsylvania Trans. Authority Operational 4,458,870 

Greater Cleveland Regional Trans. Authority Operational 1,396,830 

Northeast Illinois Railroad Corp. Operational 1,670,988 

Metro Atlanta Rapid Transit Authority Operational 685,980 

Metro Trans. Authority of New York Operational 35,904,000 

Puerto Rico Department of Trans. Operational 965,193 

Washington Metro Area Transit Authority Operational 9,560,064

 Subtotal Operational Projects 77,811,975 

Metropolitan Trans. Authority of New York Capital* 11,813,686 

San Francisco Bay Area Rapid Transit District Capital*

 5,143,219 

The Port Auth. of New York and New Jersey Capital*

 48,286,592 

Chicago Transit Authority Capital* 6,944,528

 Subtotal Capital Projects 72,188,025

 Total All Projects 150,000,000 

* Recipients started all capital projects within 90 days of FEMA release of funds. 

Grant progress in terms of outlays and jobs is not significant. As of 

October 4, 2010, FEMA reported grantee outlays of approximately $22 

million, about 14.76% of total project awards. Recipients reported that 

about 215 jobs were created or retained4 as of the last quarterly reporting 

period5

 ending June 30, 2010. Outlays and jobs are summarized in table 2. 

4

 According to OMB Memorandum M-09-15, jobs created are positions that are both created and filled or 

previously existing unfilled positions that are filled. Retained positions are previously existing filled 

positions that are retained as a result of Recovery Act funding. 

5

 Section 1512 of the Recovery Act requires recipients to submit quarterly reports that include information 

on funds expended and jobs created and retained. 

Use of American Recovery and Reinvestment Act Funds by the Federal Emergency Management 
 


Agency for the Transit Security Grant Program
 
 

Page 4 
Table 2. TSGP – Status of Funds and Jobs 

Grantee 

Description 

Obligation1 Outlays1 Jobs2 

Metropolitan Council of Minneapolis $1,328,700 $221,038 5 

King County, WA, Dept. of Trans. 1,906,530 457,518 5 

National Railroad Passenger Corp. (Amtrak) 6,343,500 03

 12 

Dallas Area Rapid Transit 1,362,690 39,012 0 

Metro Transit Authority, Harris County, TX 3,040,560 402,473 10 

Chicago Transit Authority 4,869,000 0 0 

Delaware River Port Authority 2,085,000 391,205 8 

Niagara Frontier Trans. 2,234,070 388,815 6 

Southeastern Pennsylvania Trans. Authority 4,458,870 843,885 12 

Greater Cleveland Regional Trans. Authority 1,396,830 106,698 3 

Northeast Illinois Railroad Corp. 1,670,988 361,499 6 

Metro Atlanta Rapid Transit Authority 685,980 0 0 

Metro Trans. Authority of New York 35,904,000 0 0 

Puerto Rico Department of Trans. 965,193 0 0 

Washington Metro Area Transit Authority 9,560,064 1,058,080 59 

Metropolitan Trans. Auth. of New York 11,813,686 0 0 

San Francisco Bay Area Rapid Transit District 5,143,219 0 0 

The Port Auth. of New York and New Jersey 48,286,592 17,871,852 89 

Chicago Transit Authority 6,944,528 0 0

 Totals 150,000,000 22,142,075 215 

1

As of October 4, 2010, according to a FEMA weekly status report on Recovery Act programs. 2

As of June 30, 2010, according to recipients Section 1512 quarterly report. 

3

FEMA does not disburse funds to Amtrak because, according to the 9/11 Act, FEMA 

transferred the grant funds to the Department of Transportation for administration after it made 

the grant award. FEMA, however, still retains responsibility for monitoring grant activities. 

According to its June 30, 2010, Section 1512 quarterly report, Amtrak had expenditures of 

$300,724. 

Tracking Grant Program Performance 

FEMA’s May 15, 2009, Recovery Act Plan for TSGP named five key 

performance indicators, such as number of operation packages completed, 

that it would use to measure the effectiveness of grant performance. Since 

then, FEMA has identified nine additional performance measures, such as 

percentage of drawdowns (funds received) as a function of available 

funds, which it would use in conjunction with the original measures. The 

new measures are pending approval by senior FEMA management. 

According to FEMA, these additional measures will allow performance 

data to be collected at a more granular level and provide improved 

performance oversight of the grant program. (All measures are listed in 

appendix C.) 

Use of American Recovery and Reinvestment Act Funds by the Federal Emergency Management 
 

Agency for the Transit Security Grant Program
 

Page 5 
FEMA, however, has not yet implemented a system to collect performance 

information or to report performance results. The GAO report on the 

TSGP identified this need for plans and systems to monitor the use of 

grant funds and assess the effectiveness of the grant program. Even 

though FEMA needs information on grant performance to measure overall 

program effectiveness, it has not yet implemented the GAO 

recommendations. 

Recommendation 

We recommend that the Assistant Administrator, Grant Programs, include 

mechanisms to collect data necessary to evaluate the performance 

measures for TSGP grants awarded with Recovery Act funds. 

Management Comments and OIG Analysis 

FEMA Comments to the Recommendation: 

Concur: FEMA said that it is moving “forward with a wellestablished monitoring plan and the data collection tools necessary 

to execute the plan.” FEMA also replied that it had developed and 

recommended performance measures to be used for the TSGP; but 

that the measures are still under review by FEMA leadership to 

determine the most efficient way to incorporate them into the 

TSGP guidance. 

FEMA has also developed the input data for these measures and 

incorporated it into the current electronic monitoring database 

questions providing a process to collect data and gauge 

performance. FEMA updates this database continuously and it is 

currently used by program staff for the execution of program 

monitoring. 

OIG Analysis: 

The response provided by FEMA describes actions that will be 

sufficient to resolve this recommendation. However, we will track 

the recommendation as unresolved and open until FEMA provides 

us with the target dates for when the new measures will be 

approved by its leadership and incorporated into guidance for the 

TSGP, or evidence that the actions have been completed. 

Use of American Recovery and Reinvestment Act Funds by the Federal Emergency Management 
 


Agency for the Transit Security Grant Program
 
 

Page 6 
Appendix A 

Purpose. Scope, and Methodology 

Our objective was to determine (1) whether FEMA was 

administering Recovery Act funds for the TSGP according to 

program plans and requirements, and (2) the status of the TSGP 

funds and projects. We: 

�	 

�	 

�	 

�	 

�	 

Reviewed applicable laws, regulations, policies, and 

internal directives FEMA used to administer and monitor 

the TSGP; 

Reviewed the approach for TSGP grantee selections to 

determine if the approach was in accordance with the 

program guidance; 

Reviewed the TSGP performance and monitoring metrics 

to determine whether reporting was designed and 

functioning in accordance with program guidelines and 

requirements; 

Interviewed officials from FEMA’s Grant Program 

Directorate to obtain information on the administration, 

management, and oversight of the program; and 

Interviewed recipients of all 19 grants to obtain information 

on grant status grants and on potential problem areas. 

We conducted this audit from February through June 2010 in 

Washington, DC, under the authority of the Inspector General Act 

of 1978, as amended, and according to generally accepted 

government auditing standards. Those standards require that we 

plan and perform the audit to obtain sufficient, appropriate 

evidence to provide a reasonable basis for our findings and 

conclusions based on our audit objectives. We believe that the 

evidence obtained provides a reasonable basis for the findings and 

conclusions based on our audit objectives. 

Use of American Recovery and Reinvestment Act Funds by the Federal Emergency Management 
 


Agency for the Transit Security Grant Program
 
 

Page 7 
I).S. U<"",.",,<.,, Dr I'.",cla",l So"'.,.;,,· WO C S''''<l. SW

lI'.,h;nj1'''''' rIC :O-ln

OCT 1 4 1010

MEMORANDUM FOR: Anne L. Richards

Assisrant Inspector Generol

Office of Inspector General

FROM: DavId. J. Kaufman~

A 1~".9~ ""-

Director

Office of roliey and rrogram Analysis

SUBJECT: Comments on OIG Draft Report, Use ojAmerican

Recovery GIld Reim-cstlllcn! Act Fu"ds by the Federal

Emergellcy Managelllel1l AgencyJOrille Transit Security

Crrmts Program

Thank you for the opportunity to review and comlllent on the Office of Inspector

General's (OIG's) subject drllft audit report. As the Federal Emergency Mmlllgement

Agency (FEMA) works toward refining its progrJms, the OIG's independent analysis of

program performance greatly benefits our ability to continuously improve our activities.

FEMA concurs with the draft report's recommendation to ensure th(l/ the plans. policies.

a"d systems impleme,,'ed in re~pol1se to 'lie GAO audit include mechanisms to calfect

da/(lncccssary [0 eva(uate the pelfortl/allce lIIeaSIll-esfor TSGP grants owanled with

RecOl'e,y Act funds.

FEMA continues to move for.vard with a well-established prOb'Tam monitoring plan and

with the data collection tools necessary to execute the plan.

As noted in your draft report, perfonnance measures have been developed and

recommended for the Transit Security Grant Program (TSGP), in collaboration with our

partners at the Transportation Security Administration (TSA). FEMA leadership is

currently reviewing these measures and how best to incorporate them into the TSGr

guidance.

Appendix B 

Management Comments to the Draft Report 

Use of American Recovery and Reinvestment Act Funds by the Federal Emergency Management 
 


Agency for the Transit Security Grant Program
 
 

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Page 2

The input data for these measures has been incorporated into the current electronic

monitoring database questions providing a process to collect data and gauge perfonnance.

This database is continuously updated and is in use by program stafffor the execution of

program monitoring. The FY 2010 monitoring plan for the TSGP outlines the

requirements to monitor each ofthe Tier Itransit agencies, including those that received

American Recovery and Reinvestment Act (ARRA) funding. Monitoring visits and data

collection are on-going.

Measuring the TSGP and TSGP ARRA grant perfonnance is a top priority for FEMA

leadership as we move forward into FY 2011. Emphasis on the collection ofappropriate

and meaningful perfonnance data drives the execution ofthe FY 2010 monitoring plan.

Thank you again for the opportunity to comment on this draft report and we look forward

to working with you on other issues as we both strive to improve FEMA.

Appendix B 

Management Comments to the Draft Report 

Use of American Recovery and Reinvestment Act Funds by the Federal Emergency Management 
 


Agency for the Transit Security Grant Program
 
 

Page 9 
Description 

No. Performance Measure

 1. Number of completed grants for operational packages

 2. Number of grant-financed security patrols operating in the highest density 

population areas. 

3. Number of operation deterrence projects completed 

Percentage of grants for which a closeout report was received within 3 months of 

4. the end of the grant period 

5. Number of vehicle/vessel security enhancement projects completed

 6.* Percentage of projects completed 

7.* Percentage change in closed-circuit television (CCTV) TSGP projects 

Percentage of funded transit systems participating in a Regional Transit Security 

8.* Working Group 

9.* Percentage of drawdowns (funds received) 

10.* Percentage of TSGP CCTV projects completed 

11.* Percentage of drawdowns as a function of available funds 

12.* Ratio of drawdowns to funding/expenditures for completed projects 

13.* Percentage of Biannual Strategy Implementation Reports submitted on time 

14.* Percentage of TSGP training projects completed 

*

New measure - pending senior management approval. 

Appendix C 

Transit Security Grant Program Performance Measures 

Use of American Recovery and Reinvestment Act Funds by the Federal Emergency Management 
 


Agency for the Transit Security Grant Program
 
 

Page 10 
Appendix D 

Major Contributors 

Roger LaRouche, Director 

William Gillies, Audit Manager 

Pamela Weatherly, Lead Program Analyst 

Jason Kim, Auditor 

Hortencia Francis, Program Analyst 

Use of American Recovery and Reinvestment Act Funds by the Federal Emergency Management 
 


Agency for the Transit Security Grant Program
 
 

Page 11 
Appendix E 

Report Distribution 

Department of Homeland Security 

Secretary 

Deputy Secretary 

Chief of Staff 

Deputy Chief of Staff 

General Counsel 

Senior Counselor to the Secretary 

Executive Secretariat 

Director, GAO/OIG Liaison Office 

Assistant Secretary for Office of Policy 

Assistant Secretary for Office of Public Affairs 

Assistant Secretary for Office of Legislative Affairs 

Under Secretary for Management 

DHS Acting Chief Procurement Officer 

Director Office of Procurement Operations 

DHS Component Liaison, FEMA 

Office of Management and Budget 

Chief, Homeland Security Branch 

DHS OIG Budget Examiner 

Congress 

Congressional Oversight and Appropriations Committees, as 

appropriate 

Use of American Recovery and Reinvestment Act Funds by the Federal Emergency Management 
 


Agency for the Transit Security Grant Program
 
 

Page 12 
ADDITIONAL INFORMATION AND COPIES 

To obtain additional copies of this report, please call the Office of Inspector General (OIG) at (202) 254-4100, 

fax your request to (202) 254-4305, or visit the OIG web site at www.dhs.gov/oig. 

OIG HOTLINE 

To report alleged fraud, waste, abuse or mismanagement, or any other kind of criminal or noncriminal 

misconduct relative to department programs or operations: 

• Call our Hotline at 1-800-323-8603; 

• Fax the complaint directly to us at (202) 254-4292; 

• Email us at DHSOIGHOTLINE@dhs.gov; or 

• Write to us at: 

DHS Office of Inspector General/MAIL STOP 2600, 

Attention: Office of Investigations - Hotline, 

245 Murray Drive, SW, Building 410, 

Washington, DC 20528. 

The OIG seeks to protect the identity of each writer and caller.