At the end of this lesson, you should be able to:

• Manage allocations, deallocations, obligations, and deobligations in the NEMIS HMGP.

The Manage Allocations and Obligations processes allow FEMA Regional and Headquarters staff members to:

• Allocate funds for approved HMGP projects
• Obligate funds for approved HMGP projects
• Deobligate funds for HMGP projects
• Deallocate funds for HMGP projects

These processes can only be performed after project applications have been approved by FEMA staff in the Eligibility Determination process.

The NEMIS HMGP System allows users to allocate funds for HMGP project applications after they have been approved by FEMA staff in the Eligibility Determination process.

An allocation does not have to be created individually in the system for each project. Multiple projects can be part of one “batch” allocation.

After a batch allocation is processed, an individual obligation for each project must be created. Another allocation cannot be processed until all of the projects in the batch allocation are obligated.

The COMP referred to in Step 25 above is the Comptroller. After the Comptroller, the allocation request goes through the following approval levels:

• Disaster Recovery Manager (DRM)
• Financial Policy Division (FPD)
• Office of Financial Management Planning and Analysis (OFMPA)

After the request is approved by OFMPA, the allocation is entered automatically into the Integrated Financial Management Information System (IFMIS).

The allocation request can be rejected at any time during the approval process. If the request is rejected at the HQ Level, it will be rejected back to the Comptroller, who will reject it back to the MT DC. The MT DC then deletes the Allocation work packet and rejects it back to the HMO. The work packet will then display a "REJECT" status in Mitigation → Projects → Management.

Once the allocation shows "ACCEPT" or "REJECTED" on the Select Allocation screen, an email will be sent to the HMO who submitted the allocation request.

On the bottom right part of the Select Allocation screen, click the CANCEL button. The funds are now available for the Obligation process.

Unlike the allocation process, in which several projects can be grouped together in one allocation request, a single obligation for each individual project must be created.

All projects included in a batch allocation must be obligated before another allocation can be processed.

Unlike the allocation process, in which several projects can be grouped together in one allocation request, a single obligation for each individual project MUST be created in the system.

All projects included in the batch allocation must be fully obligated before another allocation can be processed.

For disasters declared on or after March 1, 2015, all obligations and deobligations will be made on a project-based basis. This change will add transparency to the drawdown process for both FEMA and the recipient; will provide controls to prevent overdrawing of projects; and will allow FEMA to provide the recipient with reports on a daily, weekly, monthly, or quarterly basis by disaster, by project. While the process remains similar to the old process, there is a new look and feel to the obligation screens.

Some of the benefits of this change include:

• Enhanced controls for both FEMA and the recipient. Because funds will be obligated and disbursed at the project level, drawdowns for each individual project cannot exceed the amount obligated for that project, therefore eliminating the possibility of overdrawing funds on an individual project.
• Simplification of data analytics. Analyzing data to perform payment reviews and other audit sampling will be selected using information contained in FEMA’s systems. This new process will provide greater transparency on a nationwide basis, reducing the burden on recipients and FEMA.
• Streamlined reporting process. Reports will provide both obligations and drawdowns by project for quarterly reports that recipients can use as the basis of the quarterly reports or as a reconciliation control for their reporting process.

The change will be effective for disasters occurring after the implementation date and will not be applied retroactively to prior disasters. The change was implemented March 1, 2015. For disasters declared after March 1, 2015 the recipient will be required to request funding on a project by project basis. Funds already in the recipient’s account will remain in a lump sum until they are fully drawn down, but new project obligations will begin to display on a project by project basis.

The Deallocation process and tasks are the same as the Allocation process and tasks. Similar to creating a deobligation, be sure to enter the minus sign "-" before the dollar amount.

NOTE: The deallocation process must be performed manually for CURRENT FY funds that are deobligated. The system will automatically deallocate PREVIOUS FY funds that were deobligated.

In Lesson 3, we discussed the following topics:

• Creating and submitting allocations
• Creating, submitting and verifying obligations
• Creating and submitting deobligations
• Creating and submitting deallocations