Vermont capitol building

Client

State of Vermont Department of Emergency Management and Homeland Security (VT DEMHS)

Performance period

September 2016 – Present

Contract value

$300,000

Services

The State of Vermont selected CohnReznick to provide accounting assistance for two initial assignments:

  • Review all detailed invoices submitted by prior consultants and determine recovery potential
  • Reconcile State insurance claim against FEMA PWs and develop the records necessary for actual insurance application to PWs

CohnReznick reviewed over $3 million in billings from two prior contractors to determine the potential for recovery through DAC, Section 324 management funding, and HMGP management funding. To maximize reimbursement for the State, we reconciled the balances for both PA and HMGP management funds to determine availability and presented the State with options for recovery and prepared packages for draw submission.

CohnReznick reconciled all insurance claims received by the State for all State agencies against FEMA projects and developed an innovative approach to apply claim proceeds to FEMA projects through a pro-rata allocation of eligible to ineligible costs. During this process, we have identified over $5 million in additional eligible costs and will request cost overruns to further maximize State recovery.

The State of Vermont has expanded our Scope of Work to provide audit readiness for Large State PWs, including a $54 million Sandy Recovery Improvement Act (SRIA) consolidated project; perform a full reconciliation of their PA State Management PW spending and perform quarterly required FEMA financial reporting; and provide on-site representation in the event of a Federal audit.

Relevant features

FEMA PA and HMGP
Disaster Recovery Management
Section 324 State Management Recovery
Direct Administrative Costs (DAC) Recovery
Program Management
Final Cost Reconciliation and Project Closeout
Insurance
Duplication of Benefits
Audit Readiness & Support

Highlights

Reconciliation of all consultant costs incurred by the State and identification of source for reimbursement through DACs and Section 324 State management costs resulted in a $2.9 million recovery for the State
Innovative approach for application of insurance proceeds currently in approval with FEMA Region I and additional overrun identification is resulting in an additional $14 million—higher than originally anticipated by the State
Provide audit readiness and on-site support for all State agency Large projects, including $54 million SRIA Consolidated Project