Justice slow to dispense terrorism preparedness grants, report says

The Justice Department is taking too long to award terrorism preparedness grants to state and local agencies, and the recipients aren't spending the money fast enough, according to a new report from the department's inspector general.

As of January 2002, the Justice Department still had not awarded more than half of the $243 million appropriated for the grant program from fiscal 1998 through fiscal 2001, according to a March audit by Justice's inspector general. About $65 million remained unspent, and nearly $1 million in equipment purchased with grants could not be used because the recipients of the grants didn't distribute it properly, could not locate it, or did not have enough training to operate it, the audit said.

"Delays in spending could hurt the ability of state and local entities to respond to terrorist attacks," said the report, "Office of Justice Programs: State and Local Domestic Preparedness Grant Programs." The audit reviewed the program's operations through January 2002 and grant money spent through September 2001.

In 1996, Congress authorized the Justice Department to administer grants to state and local agencies to help them better prepare for, and respond to, terrorist attacks. Last month, the Justice Department awarded about $15 million domestic preparedness grants to five states. The government plans to award grants to all 50 states, territories and the District of Columbia.

To qualify for funding, states and local communities must submit strategic plans to the government outlining how they plan to spend their grants and estimating their level of risk, capabilities and needs in handling terrorist attacks. States have taken a long time to complete their strategic plans, slowing the process for awarding grants, according to the report. Firefighters, law enforcement officials and emergency management personnel in the same jurisdiction must reach a consensus on the type of equipment they plan to purchase to avoid duplication, which can also drag the process out, the report said.

The audit, which reviewed 13 grants awarded across the country, recommended that the Justice Department establish application deadlines for the grant-making process and follow up on late submissions. The agency should also make sure recipients properly distribute and maintain equipment and adequately train personnel, the report said. In addition, the report directed the Office of Domestic Preparedness to develop performance measures to assess the ability of state and local entities to respond effectively to terrorist acts.

"In view of the urgency of the need to respond effectively to a terrorist attack, the Office for Domestic Preparedness needs to implement more aggressive measures to assist grantees in using available funds-such as setting time frames and holding the grantee accountable for delays in using available funds," the report said.

The Justice Department agreed with the inspector general's recommendations and said it is establishing application deadlines for the fiscal 2002 grants and for future funding. As for ensuring communities spend their funds quickly, the agency pledged to increase its oversight through e-mail and on-site reviews, but also pointed out difficulties with local procurement procedures.

"Much of the equipment purchased with Office of Domestic Preparedness funds is highly specialized equipment that is available in only limited supply," the report said. "Manufacturers often have extensive back orders for this equipment, which delays the expenditure of funds."

The Justice Department contacted the grant recipients the inspector general identified as not being able to account for or use certain equipment. The agency said most of the jurisdictions in question had recovered the equipment and that more than 25 percent of the equipment deemed unavailable for use by the inspector general was used in response to the Sept. 11 attacks and still operating.