FEMA Should Recover $10.9 Million of Improper Contracting Costs from Grant Funds Awarded to Columbus Regional Hospital, Columbus, Indiana

The Indiana Department of Homeland Security (IDHS), a FEMA grantee, awarded the Hospital $94.4 million for damages resulting from severe storms and flooding that occurred May 30, through June 27, 2008. The award provided 75 percent funding for 122 large and 130 small projects.1 As of January 27, 2013, the cut-off date of our audit, the Hospital had claimed $71.1 million and IDHS had disbursed $63.7 million.