FEMA Could Realize Millions in Savings by Strengthening Policies and Internal Controls Over Grant Funding for Permanently Relocated Damaged Facilities

The objective of the audit was to determine the efficiency and effectiveness of FEMA policies and procedures concerning disaster grant costs associated with permanently relocated facilities. Specifically, we determined whether (1) FEMA’s present policies and procedures effectively address how FEMA should use program income to offset permanently relocated facility costs; and (2) internal controls were in place to identify when applicants receive program income to offset permanently relocated facility costs. The audit included a review of costs for permanently relocated damaged facilities in Mississippi and Louisiana for Hurricane Katrina and in Texas for Hurricane Ike.