EY refers to the global organization, and may refer to one or more, of the member firms of Ernst & Young Global Limited, each of which is a separate legal entity. Ernst & Young Global Limited, a UK company limited by guarantee, does not provide services to clients.
How EY can help
-
EY Insurance & Federal Claims Services teams help clients with disaster assistance through federal disaster recovery grants and insurance claims services.
Read more
But what does it take to succeed in this initiative? How can grantees harness the full potential of VAYGo to not only meet compliance standards but also benefit from reduced documentation requirements at closeout through the “VAYGo closeout benefit”?
In this article, we explore leading practices that can help state grantees navigate the VAYGo process, confirming that they are not only compliant but also thrive in their recovery efforts.
VAYGo and the closeout benefit
Under VAYGo, FEMA conducts ongoing reviews of project documentation for a sample of grant expenditures to confirm that funding is utilized appropriately. A primary objective of VAYGo is to identify potential issues early in the project lifecycle, enabling FEMA and state grantees to address deficiencies promptly rather than face challenges during the lengthy grant closeout process. This proactive approach not only enhances accountability but also streamlines the overall recovery effort, as grantees that successfully complete two consecutive VAYGo testing cycles with an error rate of 1.5% or less receive the VAYGo closeout benefit.
The VAYGo closeout benefit significantly enhances the efficiency of the project closeout process for federal disaster recovery grantees as qualified grantees can bypass extensive financial documentation, such as contracts and proof of payment. Instead, they are required to submit a certification confirming that costs were validated according to the obligated scope of work.
While the VAYGo closeout benefit reduces documentation requirements at closeout, challenges remain in the midstream testing of project expenditures, highlighting the need for continuous improvement in the implementation of VAYGo processes.