FEMA has implemented additional mechanisms to more efficiently allocate Disaster Relief Fund monies, Administrator Craig Fugate recently told the House Committee on Transportation and Infrastructure’s Subcommittee on Economic Development, Public Buildings and Emergency Management. Fugate said the agency has increased its oversight of mission assignments, contracts and grants to secure funding in the DRF, the primary account used to fund disaster-assistance programs for states and local governments.

DRF dollars are released after the president issues a disaster declaration and Congress appropriates the funds. If there is a shortage of funds due to an unusually high number of disasters, FEMA may institute Immediate Needs Funding (INF) to slow the rate of expenditures from the DRF until Congress can approve supplemental funds.

The imprecise manner in which disasters were budgeted for and funded in 2011 have raised some concerns. According to FEMA, there have been 10 declared disasters this year that exceed $1 billion each. As a result of such disasters, the agency instituted an INF in August — noting that it expected DRF dollars to run out at the end of September. However, FEMA subsequently announced additional monies were identified through de-obligating funds from prior disaster applications that had not been closed, returning more than $4.7 billion to the fund as of Sept. 27.

Fugate testified that it was aggressive and smart management that prevented the lapse in the DRF in September. Through such efforts, FEMA managed to preserve the DRF for another five days at the end of the fiscal year, which was Sept. 30, he said.

“At the same time, projects and disaster recovery activities were put on hold during September to prioritize individual assistance funding and recoveries,” he explained. “All of these activities will require attention and resources in FY 12.”

The agency also has made improvements to the Public Assistance (PA) program, which provides federal disaster grants to eligible tribal, state and local governments, as well as certain private nonprofit entities. Funds are allocated for the repair, the replacement or the restoration of publicly owned facilities and infrastructure damaged during a disaster, according to FEMA. Fugate said a review currently is underway that will identify changes that will reduce administrative costs, speed the delivery of recovery funds and increase “applicant flexibility.”

In addition, a workgroup now is developing proposed program options for the improved implementation of the PA program for senior leadership to review.

“We are committed to enhancing the performance of the PA program so that we can do our part to help communities rebuild following a disaster,” he said.

FEMA anticipates that any changes to the PA program will happen in early 2012, Fugate said.