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FEMA Should Recover $701,028 of Public Assistance Grant Funds Awarded to Memphis Light, Gas and Water Division – Severe Weather February 2008

Executive Summary

Our audit objective was to determine whether the Utility accounted for and expended Federal Emergency Management Agency (FEMA) grant funds according to Federal regulations and FEMA guidelines. As of January 4,2012, the Utility received a PA award of $3.2 million from the Tennessee Emergency Management Agency (State), a FEMA grantee, for damages resulting from severe storms, tornadoes, straight-line winds, and flooding, which occurred in February 2008. The award provided 75 percent FEMA funding for emergency protective measures and electrical , repair work. The award included three large projects and two small projects.

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