BATON ROUGE, La.
- One month after the
implementation of the
new Express Pay System,
the state has paid
nearly $102 million in
Federal Emergency
Management Agency (FEMA)
Public Assistance funds
to local applicants.
The new program,
administered by the
Louisiana Recovery
Authority (LRA) and the
Governor’s Office of
Homeland Security and
Emergency Preparedness (GOHSEP),
has reduced the wait
time for local
governments to receive
reimbursements to less
than a week.
“We continue to look for
common sense solutions
to increase the flow of
recovery dollars to
local governments,” said
LRA Executive Director
Paul Rainwater “By
reducing the time local
governments have to wait
for reimbursements from
the state we are doing
our part to ensure the
return of long-term,
brick and mortar
infrastructure to south
Louisiana.”
Since March 3rd,
the launch date of the
Express Pay System,
Public Assistance
applicants have
requested more than $146
million and the state
has paid $102 million of
requested funds, a
nearly 70 percent
disbursement rate with
an average of just six
days for reimbursement.
Previously the payment
process averaged between
45 and 60 days.
Prior to the Express Pay
program the weekly
average of state payouts
was approximately $20
million; with the
addition of the Express
Pay System, as an
alternate process,
weekly payouts have been
increased by 90 percent
to $38 million.
”The Express Pay Program
has given the applicants
the ability to move
forward with projects in
a more timely manner,
as reimbursement time
has been decreased by
more than 70 percent.”
said Mark Riley,
Assistant Deputy
Director, Disaster
Recovery, Governor’s
Office of Homeland
Security and Emergency
Preparedness. “We are
very pleased with the
results we have seen
within the first month
of implementing the
program.”
Upon receipt of a local
applicant’s
Reimbursement Request
Form (RRF) and other
supporting
documentation, GOHSEP
applies an expedited
review process to the
applicant’s claim and
reimburses the applicant
within 10 to 14 business
days.
"Communities have been
making hard decisions
about what and how to
rebuild their
infrastructure, and the
Express Pay System is
helping speed the
process to implement
their rebuilding plans,"
said Jim Stark, FEMA’s
Acting Associate Deputy
Administrator for Gulf
Coast Recovery. "These
initiatives by LRA and
GOHSEP illustrate their
commitment to ensuring
all eligible Public
Assistance monies reach
cities and parishes
where it is so needed."
All FEMA Public
Assistance Project
Worksheets are paid up
to 90 percent of the
obligated amount, with
the remaining 10 percent
held as retainer until a
detail review of the
final request for
reimbursement on the
project has been
completed.
Gov. Jindal charged the
Louisiana Recovery
Authority and GOHSEP
with streamlining the
Public Assistance
process and speeding up
payments to local
applicants. The LRA and
GOHSEP worked closely
with FEMA to determine
how local applicants
could be paid within 10
to 14 days.
While the time period
for reimbursements from
the Public Assistance
program has been
reduced, the state's
internal controls, which
must ensure that costs
are allowable under
federal law, are still
in place. The Express
Pay System has the
support and backing of
the Legislative Auditor
and is being implemented
to improve efficiencies
in government.
FEMA's Public Assistance
program works with state
and local governments
and certain private
non-profit organizations
to fund recovery
measures such as the
rebuilding of buildings,
roads, bridges and water
and sewer plants.
Project funds are
obligated by FEMA
through the Public
Assistance program. Once
the funds are obligated
by FEMA, the applicant
must request
reimbursement from
GOHSEP for eligible work
completed. Obligated
funds may change over
time as the project is
often adjusted as bids
come in and scope of
work is aligned.
Hurricanes Katrina and
Rita devastated south
Louisiana, claiming
1,464 lives, destroying
more than 200,000 homes
and 18,000 businesses.
The Louisiana Recovery
Authority (LRA) is the
planning and
coordinating body that
was created in the
aftermath of these
storms to lead one of
the most extensive
rebuilding efforts in
the world. The LRA is a
33-member body which is
coordinating across
jurisdictions,
supporting community
recovery and resurgence,
ensuring integrity and
effectiveness, and
planning for the
recovery and rebuilding
of Louisiana.
