We determined that the city of Houston has adequate policies, procedures, and business practices that comply with Federal procurement regulations and FEMA guidelines to expend FEMA grant funds. We found Houston may have inappropriately included the $73.8 million cost of Houston First Corporation’s (Houston First) disaster damages in its damage estimate, even though it was not an eligible applicant for them. We did not examine procurement policies and procedures related to Houston First because the entity was outside the scope of our audit. During the audit, FEMA acknowledged it would reiterate in writing to the City of Houston the importance of proper oversight for all procurements executed by Houston First. This report contains no recommendations.
Consistent with CDC guidance, most Office of Inspector General employees are currently serving the American people remotely. We are determined to keep interruptions to our operations to a minimum, and we appreciate your patience during this time.
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