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and assessment of risk through the THIRA. States must maintain and update their THIRAs and <br />their SPRs annually to ensure that the community's shared understanding of risk evolves to <br />account for changes in the risk landscape, including successful mitigation efforts, emerging <br />threats, hazards, and associated consequences. Information on the National Preparedness System <br />can be found in the http://www fema.gov/nationa_l-preparedness-s spm, which is posted on the <br />FEMA website. Additional details regarding the National Preparedness System and how it is <br />supported by the EMPG Program can be found in Appendix A — FY 2016 EMPG Program <br />Priorities. <br />Payments <br />DHS/FEMA utilizes the DHS/FEMA Payment and Reporting System (PARS)for financial <br />reporting, invoicing and tracking payments. <br />Monitoring <br />EMPG recipients will be monitored programmatically and financially biannually and as needed <br />by FEMA staff to ensure that the activities and project goals, objectives, performance <br />requirements, timelines, milestone completion, budgets, and other related program criteria are <br />being met. <br />Monitoring may be accomplished through either a desk -based review or on-site monitoring <br />visits, or both. Monitoring will involve the review and analysis of the financial, programmatic, <br />performance, compliance and administrative processes, policies, activities, and other attributes of <br />each federal assistance award and will 'identify areas where technical assistance, corrective <br />actions and other support that may needed. <br />Conflict of Interest <br />To eliminate and reduce the impact of conflicts of interest in the subaward process, recipients <br />and pass-through entities must follow their own policies and procedures regarding the <br />elimination or reduction of conflicts of interest when making subawards. Recipients and pass- <br />through entities also are required to follow any applicable state, local, or tribal statutes or <br />regulations governing conflicts of interest in the malting of subawards. <br />The recipient or pass-through entity must disclose to FEMA, in writing, any real or potential <br />conflict of interest as defined by the federal, state, local, or tribal statutes or regulations or their <br />own existing policies that may arise during the administration of the federal award. Recipients <br />and pass-through entities must disclose any real or potential conflicts to their Regional EMPG <br />Program Manager within five days of learning of the conflict of interest. Similarly, subrecipients <br />must disclose any real or potential conflict of interest to the pass-through entity as required by <br />the Recipient's conflict of interest policies, or any applicable state, local, or tribal statutes or <br />regulations. <br />Conflicts of interest may arise during the process of FEMA making a federal award in situations <br />where an employee, officer, or agent, any members of his or her immediate family, or his or her <br />partner has a close personal relationship, a business relationship, or a professional relationship, <br />with an applicant, subapplicant, recipient, subrecipient, or FEMA employee. <br />Page 22 of 46 <br />FY 2016 EMPG <br />55A-92 <br />