Insurance & Federal Claims Services (IFCS)

Insurance & Federal Claims Services (IFCS)

Why? s (IFCS) practice is a group of professionals dedicated to assisting governmental, nonprofit and corporate entities to expedite financial recovery and mitigation after catastrophic loss through FEMA, Housing and Urban Development (HUD) and other federal disaster grant programs, and insurance claims. We combine our experience in financial recovery with our deep knowledge of grant programs to assist our clients in identifying the available financial recovery and mitigation options. We then use this experience to assist our clients in applying for and using recovery and mitigation funding, with a constant eye on complying with the associated legal, regulatory and programmatic requirements. Our team has decades of experience and includes former FEMA, Department of Homeland Security (DHS) and HUD senior executives, auditors and attorneys, former DHS Office of Inspector General (OIG) senior leadership, former senior Congressional staff, forensic accountants, finance professionals, engineers and former insurance adjusters experienced in working with grantees and subgrantees through the financial recovery process. From the initial kickoff meeting until the project closeout, our focus is on the end goal: assisting applicants not only to identify eligible costs on the front end, but also to assist in retaining those funds through closeout and any subsequent reviews or audits. The way we do this is through our DILIGENT approach.

Our key differentiators We offer a dedicated disaster recovery, mitigation and claims practice. We have former FEMA and HUD senior executives and professionals with OIG experience. We have professionals who drafted and oversaw the drafting of numerous Stafford Act provisions, related laws and the implementation of regulations (44 CFR), including Public assistance, Individual assistance and mitigation. We have experience with FEMA Alternative Procedures for public assistance. Currently we are assisting the largest ever applicant for this program with a grant over $1 billion. We assisted a state with its first statewide disaster grant integrity monitoring program. Our duties included performance of subgrantee risk and compliance reviews, which entailed examining supporting documentation for subgrantee expenditures, as well as evaluating compliance with relevant statutes, regulations and Office of Management & Budget (OMB) circulars. Our team has worked with clients to design and deliver end-toend financial recovery programs, including grant management; financial management; grant documentation; internal controls; program assessments; risk management; mitigation; financial and performance monitoring; fraud, waste and abuse prevention and detection; disaster closeout; audit resolution; and appeals. Our professionals have an inside-out perspective and a deep knowledge of FEMA, HUD/CDBG, insurance and other federal disaster grant and assistance programs and how they interplay with one another. We have conducted hundreds of A-133 audits of disaster relief funds received as a result of various disasters. We have worked in more than 40 states and all FEMA regions. Our focus is on assisting our clients through closeout to expedite grants and avoid deobligations. Types of assistance: Documenting debris removal costs Project Worksheets Quantifying repair and replacement of infrastructure & equipment Scope of work review Documenting emergency protective measures Section 428 Alternative Procedures for Public Assistance Hazard mitigation Project closeout Community Development Block Grant program Integrity monitoring Improved Projects Compliance reviews Alternate Projects Gap and risk assessment State and subgrant drawdown activity Direct administrative costs

our DILIGENT approach Dedicated resources Our IFCS practice is a dedicated group of professionals who assist governmental and nonprofit organizations expedite financial recovery after catastrophic loss through FEMA, other federal disaster grant programs (e.g., HUD/CDBG Disaster Recovery) and insurance claims. We combine our experience in financial recovery with our deep knowledge of programs and processes to assist our clients in identifying the available recovery and mitigation options; apply for and use recovery funding; and comply with the associated legal, regulatory and programmatic requirements. Industry experience Our professionals provide clients with decades of disaster grant and insurance claim experience, along with established processes, methodologies and technology to assist organizations in managing the financial function of large disaster reconstruction programs, assembling claims efficiently and achieving their recovery goals in the most efficient and expedient manner. Leverage knowledge resources Our practice includes professionals with deep knowledge, including a former FEMA Deputy Inspector General and DHS Inspector General, former HUD senior executives, a professional who was a former DHS Assistant Inspector General for Emergency Management and Oversight and FEMA CFO, and a former senior Congressional staff member who conducted dozens of investigations and hearings on disaster programs. Our practice also includes former FEMA officials, insurance adjusters and accountants who have been deployed to dozens of disasters nationwide. Our team brings a wealth of disaster management and FEMA grant experience. Information flow Control it! It s the subgrantee s burden to support its grants and provide documentation to FEMA and other agencies. Keep the information flow focused and pertinent to the FEMA claim. We offer experienced disaster grant management and claims professionals who are adept at assisting organizations to recover quickly by applying proven methodologies in disaster grant management. We have assisted clients with FEMA, insurance, HUD and other grant sources, and understand how these and other sources of funding interplay with one another.

Grants assistance and oversight Our team has conducted hundreds of assessments of FEMA grants, including reviews of internal controls and accounting systems used by states and subgrantees. Our experienced staff has also conducted FEMA grant administration and program reviews of almost every state. In addition, effective oversight of this process is critical to achieve a successful end result. Our extensive knowledge and understanding of how to provide oversight to complex recovery processes gives you an advantage in successfully maintaining and implementing your disaster recovery and mitigation programs. From the initial kickoff meeting until the project closeout, our focus is on the end goal: assisting applicants not only to identify eligible costs on the front end, but also to assist in retaining those funds through closeout and any subsequent reviews or audits. Educate internally The disaster grant process is complex and can be challenging for all involved, even if a subgrantee has previously been through the process. It is important to explain the process to those who will prepare, present and facilitate the drafting of the project worksheets and other grant documentation. Our staff has the knowledge and prior experience to assist states and their subgrantees in understanding federal requirements and identifying issues that could potentially affect funding. Navigate the complex recovery process Recovery from a disaster is an immensely complex process. We have worked on dozens of Presidentially declared disasters to assist grantees and subgrantees to properly account for disaster relief funds, comply with applicable requirements and obtain reimbursements for response and recovery projects. In addition, we bring a wealth of FEMA institutional knowledge to the process to assist in expediting the disaster recovery process. Timely assistance With increased scrutiny of government funding in all elements of finance and spending, disaster recovery and mitigation programs now and in the future will need an extensive understanding of the various regulatory requirements, plans for decisive actions and processes for full transparency. Understanding the intricacies and intents of the regulations, policies and guidelines requires intimate knowledge of local disaster recovery activities, requirements imposed by FEMA, oversight entities and federal laws and regulations governing the receipt and disbursement of disaster funds, and insight of what is forthcoming as administrations and policies change. Positioning our clients to drive value from disaster recovery and mitigation programs is what differentiates us. We have extensive experience capturing and organizing the costs necessary to prepare claims for a wide range of clients.

Specific areas where we can deliver knowledge and insight The Stafford Act, its regulations (44 CFR) and implementing policies OMB Circulars A-21, A-87, A-102, A-110, A-122 (all now incorporated in 2 CFR part 200) Sandy Recovery Improvement Act of 2013, including Alternative Procedures for Public Assistance and other provisions Grants management, including e-grants management systems Disaster programs administered by HUD and other federal agencies Disaster programs administered by FEMA (e.g., Public Assistance, including debris removal, Individual Assistance, hazard mitigation and National Flood Insurance Program) FEMA, HUD and OMB policies, practices and guidelines Financial and construction management Single audits in accordance with OMB Circular A-133 Federal Acquisition Regulations Federal and state cash management Insurance claims recovery Generally Accepted Government Auditing Standards (Yellow Book) Integrity monitoring Risk assessment Compliance reviews

Select project experience Our assistance has been vital to a public utility authority, which is the largest single subgrantee for financial recovery because of a catastrophic hurricane. We are applying our skills to assist with all aspects of their needs, including CDBG, FEMA public assistance, 406 mitigation, property insurance and FEMA 428 alternative grant funding assistance. We are assisting a large grantee with their FEMA grant administration activities due to damages suffered from a hurricane in 2008. Duties include the performance of subgrantee compliance reviews, which entail examining supporting documentation for subgrantee expenditures, as well as evaluating compliance with relevant statutes, regulations and OMB circulars. We are assisting in identifying potential subgrantee issues and questioned costs, and providing reports with findings to the state s Department of Emergency Management related to assigned Project Worksheets (PWs). Damage caused by a catastrophic hurricane resulted over $30 billion of federal funding (FEMA, CDBG-DR grants and FHWA funding) for financial recovery, which required monitoring. We are providing this grantee with risk assessments of grant recipients and acting as integrity monitor to help prevent fraud, waste and abuse of federal funding. One of the country s largest Department of Education is in the process of recovering on their $50 million FEMA claim resulting from a catastrophic hurricane. We are working with them to help coordinate central finance departments, as well as individual schools, to properly document claims for more than 70 schools and departments, as well as working closely with the Department to assist in communication with both FEMA and the State s office of Emergency Management. A large city agency, responsible for managing the design, construction and renovation of school facilities in one of the largest cities in the United States, is leveraging our skills to help facilitate their FEMA claim from a catastrophic hurricane. Over 50 of their schools sustained extensive damage resulting in significant costs for emergency and permanent work. We are assisting this applicant with all aspects of the FEMA claims process including the development of hazard mitigation for each of the damaged schools for section 406 funding. An F5 tornado damaged all critical operation areas of a regional 360-bed hospital. The hospital was eventually demolished, and we are helping the hospital with the preparation of their resulting property damage and business interruption insurance claim as well as FEMA claims. This involved helping the client coordinate between their insurance carrier, FEMA and the State Department of Homeland Security to provide required information in support of the FEMA claims. After the basement of their facility was flooded with over 15 feet of water, we helped a large regional hospital with the preparation of their insurance and FEMA claims. The basement housed the critical electrical and mechanical systems for the hospital. We assisted the client to recover funds from FEMA and other sources to help fund a new mechanical and electrical system building. Currently, we are working with a regional hospital serving eight counties with the preparation of their insurance and FEMA claims that resulted from flooding. This flooding damaged all of the facilities areas of critical operation. Our efforts include collection, analysis and presentation of financial information to parties involved, assisting with documenting and writing PWs, and providing financial information necessary for the closeout of PWs with FEMA and State auditors. We assisted a medical and research hospital in the preparation and documentation of its property damage and business interruption insurance claim as well as FEMA claims due to damage from a hurricane. We assisted with documenting and writing PWs. For further information, please contact: Allen Melton Americas Practice Leader +1 817 706 7108 allen.melton@ey.com Matt Jadacki Executive Director +1 202 327 6807 matt.jadacki@ey.com Bradley (BJ) Nichols Partner +1 617 680 1574 bradley.nichols@ey.com Robert Reeves Partner +1 214 969 8875 robert.reeves@ey.com Michael Herman Senior Manager +1 240 938 8397 michael.herman@ey.com

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