Department of Homeland Security
 

Costs Claimed by Sumter County, FL, Fire Rescue 


under Fire Station Construction Grant Number 


EMW-2009-FC-05940R 


American Recovery and Reinvestment Act of 2009 

OIG-12-126 September 2012
 
OFFICE OF INSPECTOR GENERAL 

Department of Homeland Security 

Washinglon. DC 20528 1 www.oig.dhs.gov 

SEP 20 1012 

MEMORANDUM FOR: Elizabeth M. Harman 

Assistant Admi nistrator 

Grant Programs Directorate 

Federal Emergency Management Agency 

~o( '1 '-I;/' '/ " FROM: Anne l. Richards (~ Assistant Inspector General for Audits 

SUBJECT: Costs Claimed by Sumter County, FL, Fire Rescue under Fire 

Station Construction Grant Number EMW·2009-FC-05940R 

Attached for your information is our final letter report, Costs Claimed by Sumter County, 

FL, Fire Rescue under Fire Station Construction Grant Number EMW-2009-FC-05940R. 

Since the report contains no recommendations to Federal Emergency Management 

Agency Officials, we did not solicit formal comment s. 

Consistent with our responsibility under the Inspector General Act, w e are providing 

copies of our report to congressional committees with oversight and appropriation 

respons ibility over the Department of Homeland Security. We will post the report on 

our website for pu blic dissemination. 

Major contributors to thi s report are Roger LaRouche, Director of Recovery Act Audits; 

Matt Mongin, Auditor; and Ignacio Yanes, Report Referencer. 

Please call me with any question, or your staff may contact John E. McCoy II, Deputy 

Assistant Inspector General for Audits, at (202) 254-4100. 

Attachm ent 
 

 OFFICE OF INSPECTOR GENERAL 

Department of Homeland Security 

Background 

ThefAmericanfRecoveryfandfReinvestmentfActfoff2009f(Recovery Act), as amended, 

appropriated $210 million to the Federal Emergency Management Agency (FEMA) for 

competitive grants for modifying, upgrading, or constructing nonfederal fire stations. 

On September 25, 2009, FEMA awarded a grant of $2,131,638 to the Sumter County, 

Florida, Fire Rescue (Sumter County) to construct two new fire stations and 

substantially renovate an existing fire station. 

 

The grant specified a period of performance from September 25, 2009, to September 

24, 2012. As of March 1, 2012, Sumter County had completed construction of the two 

new fire stations, renovated a fire station, and received reimbursements of $2,025,056 

from FEMA for design, engineering, construction, and management of the project. See 

figures 1 – 3 for photographs of the fire stations. 

Figure 1: Sumter County Fire Station #22

Source: Sumter Country Fire Rescue, Florida 

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 OFFICE OF INSPECTOR GENERAL 

Department of Homeland Security 

Figure 2. Sumter County Fire Station # 31 

Source: Sumter County Fire Rescue, Florida 

Figure 3. Sumter County Fire Station # 33 

Source: Sumter County Fire Rescue, Florida 

Under the terms of the grant, Sumter County agreed to use the grant funds according 

to FEMA’s FYf2009 A.R.R.A.fAssistanceftofFirefighters,fFirefStationfConstructionfGrants,f

GuidancefandfApplicationfKitf(GuidancefandfApplicationfKit),fand to comply with Office 

of Management and Budget (OMB) Circular A-87, Revised, CostfPrinciplesfforfState,f

LocalfandfIndianfTribalfGovernments,fand the UniformfAdministrativefRequirementsfforf

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 OFFICE OF INSPECTOR GENERAL 

Department of Homeland Security 

GrantsfandfCooperativefAgreementsftofStatefandfLocalfGovernmentsfcontained in the 

Code of Federal Regulations (44 CFR Part 13). 

The grant also includes requirements for complying with OMB Circular A-133, Revised, 

AuditsfoffStates,fLocalfGovernments,fandfNon-ProfitfOrganizations, and Recovery Act 

provisions for submitting quarterly recipient reports to the Federal Government on the 

use of Recovery Act funds; paying prevailing wages as determined by the Secretary of 

Labor; and using American-made iron, steel, and manufactured goods. 

Results of Audit 

Sumter County spent $3,545,448 to complete work on the three fire stations. From 

that amount, we determined that Sumter County incurred sufficient allowable, 

allocable, and reasonable costs to earn the $2,025,056 it claimed for reimbursement. 

In reviewing incurred costs, we identified purchases in excess of costs eligible for 

reimbursement that would not have qualified for repayment. We have listed some of 

these purchases in appendix B for FEMA’s and other grantee’s information in 

administering fire station construction grants. In addition, we concluded that Sumter 

County complied with grant requirements for submitting quarterly Recovery Act 

reports to the Federal Government and for ensuring that contractors were paid 

prevailing wages and used American iron, steel, and manufactured goods in the 

construction of the new fire stations. 

Compliance With Requirements for Reporting, Buying American, and Paying 

Prevailing Wages 

The Recovery Act requires recipients to submit quarterly reports on project activities to 

the Federal agency providing the grant; to ensure that projects are accomplished with 

American-made iron, steel, and manufactured goods; and to ensure that laborers and 

mechanics are paid, at a minimum, prevailing wages as determined by the Secretary of 

Labor under 40 U.S.C. Chapter 31, Subchapter IV. Sumter County submitted quarterly 

reports to FEMA on a timely basis and assured “Buy America” and prevailing wage 

provisions were followed during the construction of the fire stations by obtaining 

contractor and subcontractor certifications and by the on-site oversight of the Architect 

and Project Manager. Additionally, the Director of the Financial Services Department

advised us they reviewed pay vouchers to confirm payment of prevailing wages. 

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 OFFICE OF INSPECTOR GENERAL 

Department of Homeland Security 

Appendix A 

Objectives, Scope, and Methodology

The Department of Homeland Security (DHS) Office of Inspector General (OIG) was 

established by the HomelandfSecurityfActfoff2002 (Public Law 107-296) by amendment 

to the InspectorfGeneralfActfoff1978. This is one of a series of audit, inspection, and 

special reports prepared as part of our oversight responsibilities to promote economy, 

efficiency, and effectiveness within the Department. 

The objective of this audit was to determine whether costs claimed by Sumter County 

were allowable, allocable, and reasonable according to the grant and applicable Federal 

regulations. 

This audit covered $3,545,448 recorded as project costs by Sumter County from 

September 2009 to January 2012. 

In conducting our audit, we did the following: 

•	 Obtained and reviewed the Recovery Act, the grant application and award, the 

grant GuidancefandfApplicationfKit, and Federal cost principles and grant 

administrative requirements. 

•	 Interviewed Sumter County personnel to gain an understanding of their accounting 

system and the applicable internal controls. 

•	 Reviewed the fiscal year 2010 single audit report and interviewed the responsible 

auditor to identify issues and other conditions that could affect our examination. 

•	 Reviewed the recipient’s internal controls specifically related to our objectives. 

•	 Examined vendor invoices amounting to $3,545,448 and other evidence supporting 

these costs to assess their allowability and eligibility for FEMA reimbursement. 

•	 Reviewed contract files and supporting documentation for primary contractors and 

professional service providers for the fires station construction projects. 

•	 Reviewed accounting transactions related to purchases, payments, and receipt of 

FEMA reimbursements. 

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 OFFICE OF INSPECTOR GENERAL 

Department of Homeland Security 

•	 Used the grant provisions and applicable Federal requirements to determine 

whether amounts claimed were eligible for reimbursement.

•	 Performed fraud detection procedures. 

•	 Inspected the new fire stations and surrounding property. 

We conducted this performance audit between March and August, 2012, pursuant to the 

InspectorfGeneralfActfoff1978, 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 upon our audit objectives. We believe that the evidence 

obtained provides a reasonable basis for our findings and conclusions based upon our 

audit objectives.

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 OFFICE OF INSPECTOR GENERAL 

Department of Homeland Security 

Appendix B 

Purchases Not Eligible for Reimbursement 

ITEM STATION COST*

Landscape Irrigation #22 $6,800

Sewage Lift Station #22 19,538

Road Extension #22 48,572

Furniture #22 5,823

Relocate Transformer #22 6794

Landscape Change #22 9,454

Irrigation System #22 1,398

Furniture #22 19,950

Radio Antenna #22 851

Heavy Duty Washer #22 19,412

Irrigation #22 596

Audit Expense #22 6,685

Furniture #31 7,820

Health Department Generator #31 57,369

Natural Gas Line #31 1,576

Water Main #31 19,711

Audit Expense #31 6,685

Sewage Lift Station #33 5,700

Irrigation/Landscaping #33 20,899

Furniture #33 9,392

Relocate Transformer #33 5,040

Heavy Duty Washer #33 17,036

Radio Antenna #33 850

Water Main #33 83,528

Audit Expense #33 6,685

* These items were purchased with Sumter County funds. 

www.oig.dhs.gov 7 OIG-12-126 
 

 

 

 OFFICE OF INSPECTOR GENERAL 

Department of Homeland Security 

Appendix C

Report Distribution 

Department of Homeland Security

Secretary 

Deputy Secretary 

Chief of Staff 

Deputy Chief of Staff

General Counsel 

Executive Secretary 

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 

Acting Chief Privacy Officer 

Recovery Act Coordinator 

Federal Emergency Management Agency

Administrator 

Assistant Administrator, Grant Programs Directorate,

 Federal Emergency Management Agency

Audit Liaison Official 

Office of Management and Budget

Chief, Homeland Security Branch 

DHS OIG Budget Examiner

Congress

Congressional Oversight and Appropriations Committees, as appropriate 

www.oig.dhs.gov 8 OIG-12-126 
 

ADDITIONAL INFORMATION AND COPIES 

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