§5205 Disaster grant closeout procedures

Summary

Stops the federal government from trying to recover disaster or emergency grant money from a State or local government more than 3 years after the grantee sent the final certified expenditure report saying the project was finished, unless there is evidence of civil or criminal fraud. If a dispute comes up after that 3-year date, the law assumes the grantee kept accounting records that show where the money came from and how it was spent. That assumption can be overturned only by clear proof that the State or local government did not keep those records. Not being able to produce source documents more than 3 years later does not by itself overturn the assumption. The right to inspect source records lasts as long as the records are kept. A State or local government does not have to repay money or get penalties if an approved agreement listed the costs, the costs were reasonable, and the grant’s purpose was met. The FEMA Administrator may create incentives and penalties to speed up closeouts and must work to improve and shorten closeout practices.