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Section 2—Federal Changes and Initiatives ( 2015 <br />FY2015 DHS/FEMA annually publishes the National Preparedness Report (NPR) to <br />Program evaluate National progress in building, sustaining, and delivering the core <br />Priorities capabilities outlined in the goal of a secure and resilient Nation. This analysis <br />provides a National perspective on critical preparedness trends for whole <br />community partners to use to intbrm program priorities, allocate resources, and <br />communicate with stakeholders about issues of concern. <br />Grant subrecipients are required to consider national areas for improvement <br />identified in the FY2014 NPR, which includes the following core capabilities: <br />• Cybersecurity; <br />• Infrastructure Systems; <br />• Health and Social Services; <br />• Housing, and <br />• Long -terra Vulnerability Reduction. <br />Additionally, the DHS requires grant subrecipients to prioritize investments that <br />address capability targets and gaps identified through the annual Threat and <br />Hazard Identification and Risk Assessment (THIRA) and State Preparedness <br />Report (SPR) process. These assessments set capability targets and measure <br />current ability to meet those targets. <br />Minimum funding amounts are not prescribed by the DHS for these priorities; <br />however, grant subrecipients must support state, local, regional and national <br />efforts in achieving the desired outcomes of these priorities. <br />25% Law As in past years, at least 25% of FY2015 HSGP funds must be dedicated to Law <br />Enforcement Enforcement Terrorism Prevention -oriented Activities (LETPA). In order to <br />leverage funds for LETPA, activities outlined in the National Prevention <br />Framework, and National Protection Framework are eligible for use of LETPA <br />focused funds. All other terrorism prevention activities proposed for funding <br />under LETPA must be formally pre -approved by FEMA .3 <br />5% M&A The Management and Administration (M&A) allowance for subrecipients is set <br />at a maximum of 5% for the FY2015 HSGP .4 <br />Indirect Costs Indirect costs are allowable under the FY2015 HSGP grant award. Subrecipients <br />wishing to claim indirect costs may do so using either of the following two <br />methods: <br />1. Subrecipients with an indirect cost rate approved by their cognizant <br />federal agency may claim indirect costs based on the established rate. <br />s Ibid., page 5 <br />4 lbid., page 16 <br />