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Case Study: Frasier Meadows

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Frasier Meadows, a private not-for-profit retirement community in Boulder, Colorado, offers residents independent and assisted living options, as well as skilled nursing care. From September 11 - September 30, 2013, severe rainstorms caused flooding to Frasier Meadows’ assisted living and healthcare facilities and its underground parking garage (See Figure 1: Flood Damage to Frasier Meadows’ Underground Garage). The President declared a major disaster on September 14, 2013. Frasier Meadows accounted for disaster-related costs on a project-by-project basis. However, Colorado, as grantee, did not effectively carry out its grant management responsibilities, and did not ensure Frasier Meadows understood and followed Federal procurement standards. …show more content…

Federal regulations at 44 CFR 206.44(a) require the Governor, acting for Colorado, and the FEMA Regional Administrator to execute a FEMA-State Agreement. The FEMA-State Agreement outlines the understandings, commitments, and conditions under which Federal disaster assistance will be provided. In its FEMA-State Agreement, Colorado agreed to comply with the “requirements of laws and regulations found in the Stafford Act and 44 CFR.” Also, 44 CFR 206.207 requires Colorado to develop a State Administration Plan that outlines the actions Colorado will use to fulfill its duties to FEMA. Accordingly, FEMA is responsible for holding Colorado accountable to both the FEMA-State Agreement’s and the State Administration Plan’s terms and conditions. The Colorado “State Public Assistance Administration Plan for FEMA-4145-DR-CO Declared 09/14/2013,” page 2, states, in pertinent part, that the …show more content…

The State assures FEMA that it shall comply with all applicable Federal statutes and regulations in effect during the periods for which it receives grant funding, including those listed under Authority below. The State acknowledges that funding under the FEMA PA Program is conditional upon the State's compliance with the terms and conditions of this plan. In several prior audits, OIG has identified that Colorado did not properly manage or monitor its FEMA grants. Without effective management and monitoring of awards and subawards, there is a greater risk that FEMA’s disaster recovery activities will not be efficient or cost effective and subrecipients risk losing their Federal funding. Moreover, taxpayers’ monies are at a greater risk of being used to fund ineligible activities. In the past, Colorado has not complied with the terms and conditions of its FEMA-State agreements and FEMA has not effectively ensured Colorado enforced the terms of either the FEMA-State agreements or State Administration Plans. However, because FEMA has addressed our earlier recommendation to instruct Colorado officials on their responsibilities for monitoring subgrant activities and administering and managing grants, we do not again recommend that Colorado improve its grant management. However, FEMA should direct Colorado to work with Frasier Meadows’ officials to ensure their understanding and compliance with

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