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Homeland Security Funds Going Unspent Due to Regulatory Inefficiencies, Report Finds By Marina Malenic Global Security Newswire WASHINGTON — Regulations at all levels of government compounded by the injection of large amounts of resources into a recently created and still evolving system have slowed the distribution of billions of dollars set aside for state and local homeland security programs, according to a report released yesterday by a task force investigating the funding system (see GSN, May 27). “There’s a lot of money out there that needs to be distributed, both quickly and effectively,” Homeland Secretary Tom Ridge said yesterday. “I have no doubt that this report will not only aid us in that effort but will also prove to be an invaluable tool as we move forward to improve and streamline this process,” he added. In March, Ridge announced the creation of the Homeland Security Advisory Council — a bipartisan group comprised of state, local, municipal and tribal leaders — after recognizing inefficiencies in distributing the unprecedented amount of homeland security funding, totaling more than $8 billion over the past two years. The panel found that no single issue or level of government had been responsible for delays, but pointed to several factors that have contributed to preventing development of a streamlined funding process. Its specific findings of inefficiencies include: * The reimbursement requirement under the homeland security grant program poses difficulties for local governments that often do not have funds on hand; * Ordinary procurement, legislative oversight and cash management processes cannot be relied upon in extraordinary times; * The lack of national standards guiding the distribution, tracking and oversight of funds contributes to disbursement delays; * State and local governments are often overwhelmed and understaffed to deal with the complex grant system; * Communication gaps exist between all levels of government; * Some local jurisdictions have expectations that may be unrealistic given the limited amount of funding available; and * Equipment backlogs and vendor delays have slowed the process. In response to these difficulties, the task force issued a list of recommendations for officials at all levels of government: * Alter state and local legislative and procurement procedures; * For certain fiscal 2005 grants only, allow state and local governments to receive grant money from the U.S. Treasury within 120 days before spending it, as opposed to the three to five days currently allowed; * Establish an Office of the Comptroller within the Homeland Security Department to assume financial responsibility over grant programs; * Further expand use of existing grant funds for overtime for threat- and risk-specific security operations; * Enhance training and technical assistance to state and local officials involved in management and distribution of homeland security grants; * Standardize terminology and use of real-time grant tracking at all levels of government; and * Establish multistate cooperative purchasing agreements to expedite equipment procurement.
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