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FEMA Should Recover $2.4 Million in Investment Gains Pennsylvania Improperly Earned on Federal Disaster Funds

Executive Summary

We determined that Pennsylvania did not comply with Federal regulations.  Since 2005 Pennsylvania has returned to compliance.  However, it has not remitted earnings on drawdowns held as investments.  We recommended that FEMA collect $2,430,541 from Pennsylvania in investment earnings on disaster assistance funds.  FEMA Region III concurred with the two recommendations in the report.

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