3. Uses of VFA Funding

States are encouraged to use their funding to assist those departments with the greatest need as well as to fund projects having the most benefits. VFA dollars may be used to fund multi-community/fire department projects such as a mutual-aid communications network. Projects to develop static water supplies such as dry hydrants and cisterns also provide great benefits and may enable some communities to lower their fire insurance rates. VFA funding may be used to convert FEPP vehicles to water tenders, engines, brush trucks, and equipment trucks. Fire prevention activities should be conducted by fire departments to inform communities of ways to safeguard their properties and to prevent ignitions as referenced in the CFFA. Each fire that is prevented, eliminates risks to lives, property, and natural resources and saves the cost and risks of a fire department response. Activities such as the above usually generate greater benefits to the community than funding nozzles; but in some cases a department may need to buy the nozzles. See Appendix E for unique examples of VFA projects.

VFA funding is not authorized for purchase, construction, or renovation of capital improvements such as fire stations or pressurized water systems. Loans are available through other Federal sources for these purposes.

The VFA Program is monitored to assure that funding is legally spent in ways that improve the protection of rural communities.

4. State Audits

Audits are used to monitor compliance with State and Federal laws and regulations and to ensure the integrity of the VFA Program. States are responsible for conducting audits. States will furnish the Cognizant Federal Agency (see definition in Appendix M) with audit reports; Regional Foresters and the Area Director will cooperate, as needed, in developing actions to correct program deficiencies.

Audit requirements for State and local governments, institutions of higher education, and nonprofit corporations are contained in the Office of Management and Budget (OMB) circular A-133. Implementing regulations are contained in 7 CFR 3016 for State and local governments and 7 CFR 3019 for institutions of higher education and nonprofit corporations. The regulations ensure program integrity through State audits. Contact your VFA program manager for a copy of these regulations.

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