Following Push, Schumer Announces FEMA Has Decided Not to Clawback Millions in Already-Spent Sandy Aid From Town of North Hempstead
Press Release
U.S. Senator Charles E. Schumer today announced that, following his push, the Federal Emergency Management Agency (FEMA) has decided to not claw back millions in federal Sandy funds Schumer helped secure for the Town of North Hempstead, following a September Inspector General report recommending that these funds be disallowed.
"It's good news that FEMA has heeded the call and recommended to the OIG that already-spent federal funds not be clawed back from the town," said U.S. Senator Charles Schumer. "The Town of North Hempstead worked in good faith, around the clock, to recover quickly after Superstorm Sandy. Had FEMA approved the Inspector General's recommendations, local taxpayers would have been on the hook for millions and millions of dollars. Residents in the Town of North Hempstead can now breathe a sigh of relief because FEMA has heard our case loud and clear and made a decision that was in Long Island's best interest."
"We thank Senator Schumer and the Town's other federal representatives who helped the Town explain to FEMA that after Sandy we followed the necessary procedures, complied with contract rules and served as careful custodians of federal disaster relief funds," said Judi Bosworth, the Town of North Hempstead Supervisor.
After Superstorm Sandy, FEMA provided millions of dollars in public assistance grants--much of which has been spent but some remains--to The Town of North Hempstead for debris removal efforts, repairs, and other emergency work as a result of the storm. As part of its obligation to reduce fraud and waste, the Department of Homeland Security (DHS) Office of Inspector General (OIG) conducts audits to identify improper payments made to municipalities. Specifically, OIG released a report that deemed $9.9 million in approved funds for the Town of North Hempstead ineligible, unsupported, or unused. The OIG audited $36.6 million in Public Assistance grants awarded to the Town of North Hempstead as a result of Superstorm Sandy. However, only about $5.5 million in funds was at risk of being clawed back, because, according to DHSES, the rest of the $9.9 million was never actually disbursed to the town.
The OIG said that the Town did not follow Federal procurement standards in awarding $4.9 million in debris removal contracts. In October, Schumer explained that, following the storm, the Town was out of power for approximately ten days and Town officials made the decision that immediate debris removal was urgent as a matter of public health and safety. According to DHSES, FEMA determined these costs to be reasonable. Moreover, the OIG recommended that FEMA disallow $3.2 million in duplicate costs for debris removal; the duplicate costs were found and corrected during FEMA's standard reconciliation process and therefore, Schumer explained that this recommendation was unnecessary. The OIG also claimed that North Hempstead did not provide adequate documentation to support $562,387 in costs, however, Schumer explained that the documentation provided contained a level of detail that DHSES described as routinely accepted by FEMA. Finally, the OIG recommended that $405,158 for costs related to wind damage be disallowed as a duplication of benefits that was covered by the Town's insurance; they also recommended that $791,175 in costs be disallowed because the Town came in under budget on a project. Schumer, in October, said that instead of commending North Hempstead for completing work under budget, the OIG said these funds should be disallowed.
In October, Schumer made his full case to FEMA on why the money should not be clawed back. Schumer said that local taxpayers should not be forced to bear the burden of costs that, according to the New York State Department of Homeland Security and Emergency Services (DHSES), were previously deemed reasonable by FEMA. Unless blatant fraud was uncovered, Schumer said that these funds should not be recouped.
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