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Audits, Inspections, and Evaluations

Report Number Title Issue Date Fiscal Year
OIG-17-80-D Cancellation of OIG Audit – FEMA’s Initial Response to the 2016 Catastrophic Flooding in Louisiana 2017
OIG-17-97-D We determined that FEMA did not have sufficient evidence to support its decision that Hurricanes Katrina and Rita directly caused damages to the roads and water distribution system.  The demonstration of direct cause is necessary for work to be considered eligible for Federal disaster assistance funding, as required by the Stafford Act and FEMA’s own policies.  As a result, FEMA should not have awarded the initial $785 million, or the additional $1.25 billion to complete the repairs.  We recommended that FEMA disallow $2.04 billion in questioned costs —the initial award of $785 million, plus the additional $1.25 billion award.  We made two recommendations and FEMA non-concurred with both of our recommendations.

>FEMA Should Disallow $2.04 Billion Approved for New Orleans Infrastructure Repairs 		2017
OIG-17-95-D We determined that The Hospital accounted for FEMA funds on a project-by-project basis as Federal regulations and FEMA guidelines require.  However, as of February 2017, the Hospital had not arranged for an audit of its Federal award, which it must complete and submit to the Federal Audit Clearinghouse by June 30, 2017.  We recommended that the Regional Administrator, FEMA Region IV, direct the South Carolina Emergency Division to actively monitor the Hospital’s compliance with the annual audit requirements.  If the Hospital does not meets it audit requirement by the June 30, 2017, due date, FEMA should direct South Carolina to impose appropriate additional award conditions to ensure the integrity of the FEMA award.

>Williamsburg Regional Hospital, South Carolina, Generally Accounted for and Expended FEMA Grant Funds Awarded for Emergency Work Properly 		2017
OIG-17-93-D We determined the Borough of Lavallette did not always account for and expend FEMA grant funds according to Federal regulations and FEMA guidelines.  Therefore, FEMA should disallow $3.9 million of $13.2 million in grant funds awarded to the Borough.  We made six recommendations to the Regional Administrator, FEMA Region II, to disallow duplicate costs, ineligible labor, contract and excessive equipment costs, unsupported equipment costs, unapplied credits, unneeded funds to put to better use and improve the State’s grant management activities.

>FEMA Should Recover $3.9 Million of $13.2 in Grant Funds Awarded to the Borough of Lavallette, New Jersey 		2017
OIG-17-120-D-SPANISH Este informe asistiremos a los beneficiarios y sub-beneficiarios de las subvenciones de asistencia por desastre de la Agencia Federal para el Manejo de Emergencias (FEMA) a: documentar y contabilizar los costos relacionados con el desastre; minimizar la pérdida de los fondos de asistencia por desastre de FEMA; maximizar la recuperación financiera; y prevenir el fraude, malversación y abuso de los fondos de desastre. El informe revisado es efectivo para todas las emergencias y desastres mayores declarados a partir del 1 de abril de 2017.

>Consejos de Auditoría para Administrar los Costos de Projectos Relacionados con Desastres 		2017
OIG-17-83-D Fort Bend County, Texas (County), needs additional technical assistance to account for FEMA Public Assistance grant funds according to Federal regulations and FEMA guidelines. Specifically, the County needs to revise its accounting policies and procedures to ensure it can fully support the disaster work it intends to complete with its own labor force. In addition, although the County’s procurement policies and procedures generally comply with Federal procurement standards, they did not include all required contract provisions in either of their disaster contracts. Because of our audit, the County revised its policies and procedures to include implementing a plan that specifically addressed Federal requirements for documenting and accounting for disaster-related costs and compliance with Federal procurement standards.

>Fort Bend County, Texas, Needs Additional Assistance and Monitoring to Ensure Proper Management of Its FEMA Grant 		2017
OIG-17-79-D We conducted this audit early in the Public Assistance process to identify areas where the Department may need additional technical assistance, or monitoring to ensure compliance, before improperly expending any of the Federal grant funds.  We determined if the Department conforms to its policies, procedures, and business practices, FEMA has reasonable assurance, but not absolute, that the Department will properly manage the Public Assistance grant funds it receives. During our audit, we determined the Department did not always use the lowest of FEMA and local rates for equipment costs.  Department officials agreed with this finding and took immediate corrective action by notifying Oregon that they would revise and resubmit payment reimbursement claims with correct equipment rate costs.  The Department has revised its procurement procedures for small contracts to include affirmative steps and assure the use of DBEs when possible, as 2 CFR 200.321 requires.  We are not requiring any further action from FEMA, therefore we consider this audit closed. 

>Linn County Road Department, Oregon, Has Sufficient Policies, Procedures, and Business Practices 		2017
OIG-17-77-D We determined that The County did not comply with Federal procurement standards in expending FEMA Public Assistance grant funds.  Specifically, the County used a shared services agreement with the Houston-Galveston Area Council (HGAC) to procure two contracts totaling $1.5 million.  The HGAC’s procurement practices unreasonably restricted competition by not allowing smaller contractors to compete for the work, and HGAC did not take the specific steps that Federal regulations require to provide opportunities for disadvantaged firms to bid on federally funded work when possible.  We recommended FEMA disallow those costs as ineligible and direct the state to better monitor the County’s grant subaward activities.

>FEMA Should Recover $1.5 Million in Grant Funds Awarded to Hays County, Texas 		2017
OIG-17-67 KPMG LLP, under contract with DHS OIG, audited FEMA’s financial statements and internal control over financial reporting.  The resulting management letter discusses 17 observations related to internal control for management’s consideration.  The auditors identified internal control deficiencies in several processes, including personnel actions; ethics training requirements and filings; intergovernmental activity payments; Web Integrated Financial Management System; and the deobligation of undelivered orders.  These deficiencies are not considered significant and were not required to be reported in our Independent Auditors' Report on DHS’ FY 2016 Financial Statements and Internal Control over Financial Reporting, dated November 14, 2016, included in the DHS FY 2016 Agency Financial Report.

>Federal Emergency Management Agency's Management Letter for DHS' Fiscal Year 2016 Financial Statements Audit 		2017
OIG-17-64 Most of the deficiencies identified by the independent public accounting firm KPMG, LLP were related to security management, access controls, configuration management, and contingency planning of FEMA’s core financial and feeder systems.  The deficiencies collectively limited FEMA’s ability to ensure that critical financial and operational data were maintained in such a manner as to ensure their confidentiality, integrity, and availability.  We recommend that FEMA, in coordination with the Department of Homeland Security Chief Information Officer and Acting Chief Financial Officer, make improvements to FEMA’s financial management systems and associated information technology security program.

>Information Technology Management Letter for the Federal Emergency Management Agency Component of the FY 2016 Department of Homeland Security Financial Statement Audit 		2017
OIG-17-50-VR We determined that FEMA did not implement our recommendations and suspended improvements on existing information technology systems. We recommended that FEMA include an enterprise solution in its Grants Management Modernization platform for tracking applicant compliance with the Public Assistance Program insurance requirements that are a condition of receiving a disaster assistance grant.

>Verification Review: FEMA's Lack of Process for Tracking Public Assistance Insurance Requirements Places Billions of Tax Dollars at Risk 		2017
OIG-17-66-D We determined the City has established adequate policies, procedures, and business practices to account for and expend Public Assistance grant funds according to Federal regulations and FEMA guidelines. Therefore, if the City follows its policies, procedures, and business practices it has in place, FEMA has reasonable, but not absolute assurance, that the City will properly manage the Public Assistance grant funds it receives. We did not identify any reportable issues and consider this audit closed.

>Milwaukie, Oregon, Has Adequate Policies, Procedures, and Business Practices to Manage Its FEMA Grant Funding 		2017
OIG-17-62-D We determined that the District’s accounting policies, procedures, and business practices are adequate to account for FEMA grant funds and insurance proceeds according to Federal regulations and FEMA guidelines.  However, the District’s procurement policies, procedures, and business practices were not adequate to meet minimum Federal standards and address key procurement elements such as to ensure no award is made to any party debarred or suspended from Federal assistance programs.  The District took immediate corrective actions and amended its procurement procedures to be compliant with Federal procurement standards.  Non-compliance occurred because District officials were not fully aware of the required procurement standards for Federal grants.  We recommended that FEMA direct Texas to continue providing technical assistance and closely monitor the District to ensure it complies with Federal procurement standards for awarding and administering disaster-related contracts to prevent improper spending of the estimated $12,854,705 ($9,641,029 Federal share) in contract costs for remaining permanent work.  FEMA agreed with the findings and recommendation in the report.

>Texas Should Continue to Provide Deweyville Independent School District Assistance in Managing FEMA Grant Funds 		2017
OIG-17-57-D We determined that the County can account for and adequately support disaster-related costs.  However, the County’s procurement policies, procedures, and business practices do not meet all Federal procurement standard requirements.  As a result, the County awarded two bridge construction contracts totaling $458,150 without full and open competition.  We recommended that FEMA not fund $458,150 of ineligible contract costs, unless FEMA grants an exception for all or part of the costs according to Federal regulations.  Because of our audit, County officials said they will not claim FEMA reimbursement for either of the two contracts.  We discussed this decision with FEMA Region VI officials who said they will be alert for these costs should the County seek reimbursement for either of the two bridge construction contracts.  Based on FEMA’s response we consider this report closed and require no further action from FEMA.

>Colorado County, Texas, Has Adequate Policies, Procedures, and Business Practices to Manage Its FEMA Grant 		2017
OIG-17-53 KPMG, LLC, under contract with DHS OIG, discussed nine observations related to internal controls for NFIP’s consideration.  These issues include internal control deficiencies and the need for improvement in calculating written premiums, reviewing paid claims, monitoring third party service providers, and recording investments, which are not critical and are below the level of a significant deficiency.  Internal control weaknesses considered significant deficiencies were presented in our Independent Auditors’ Report on DHS’ FY 2016 Financial Statements and Internal Control over Financial Reporting, dated November 14, 2016, included in the DHS FY 2016 Agency Financial Report.

>National Flood Insurance Program's Management Letter for DHS' Fiscal Year 2016 Financial Statements Audit 		2017
OIG-17-48-D We determined that the Iron County Forestry and Parks Department’s (Department) accounting policies, procedures, and business practices are adequate to account for grant funds according to Federal regulations and FEMA guidelines.  However, the Department needs to revise its procurement policies and procedures to comply fully with all Federal procurement standards.  If the Department makes these revisions and follows them, FEMA should have reasonable assurance that (1) small and minority businesses, women’s business enterprises, and labor surplus area firms will receive sufficient opportunities to compete for federally funded work; (2) the risk of misinterpretations and disputes relating to contracts will be minimized; and (3) contracts are awarded to individuals, companies, or recipients who do not pose a business risk to the government.  Department officials acknowledged that they had improperly procured their contracts, but said they plan to seek FEMA reimbursement for the $72,235 in disaster-related contract costs they had incurred.  We recommended that FEMA not fund $72,235 of ineligible contract costs and direct the Wisconsin Emergency Management Agency to provide additional technical assistance and monitoring to the Department to ensure it complies with applicable Federal procurement standards and to prevent the improper spending of approximately $3.2 million in estimated disaster work.  FEMA concurred with all of our findings and recommendations.

> Iron County Forestry and Parks Department, Wisconsin, Needs Assistance and Monitoring to Ensure Proper Management of Its FEMA Grant 		2017
OIG-16-110-D The Minneapolis Park and Recreation Board (Board) received a $2.4 million award in Federal Emergency Management Agency (FEMA) grant funds for damages in Minneapolis, Minnesota, from severe storms, straight-line winds, and flooding in June 2013. Our audit objective was to determine whether the Board accounted for and expended FEMA funds according to Federal regulations and FEMA guidelines.

>Minneapolis Park and Recreation Board, Minneapolis, Minnesota, Generally Accounted For and Expended FEMA Grant Funds Properly 		2016
OIG-16-35-D The Town of Jamestown, Colorado, (Town) received a $10.4 million Federal Emergency Management Agency (FEMA) grant award for damages resulting from severe storms, flooding, landslides, and mudslides that occurred in September 2013. We conducted this audit early in the grant process to identify areas where the Town may need additional technical assistance or monitoring to ensure compliance with Federal requirements. Most of the Town’s policies, procedures, and business practices are adequate to account for and expend Public Assistance grant funds according to Federal regulations and FEMA guidelines. The Town accounted for disaster-related costs on a project-by-project basis. The Town also has adequate procurement policies and procedures in place that are consistent with Federal procurement standards. Further, the Town’s insurance procedures and practices are adequate to ensure that the Town can properly manage anticipated insurance proceeds. Although the Town had adequate policies, procedures, and business practices, at the time of our audit, the Town lacked the personnel with the necessary financial expertise to perform financial management activities according to Federal standards.

>Jamestown, Colorado, Needs Additional Assistance and Monitoring to Ensure Proper Management of Its $10.4 Million FEMA Grant 		2016
OIG-16-112-D Nashville-Davidson County, Tennessee (County) received a net grant award of $69.8 million from the Tennessee Emergency Management Agency (Tennessee), a Federal Emergency Management Agency (FEMA) grantee, for damages resulting from a May 2010 flood. We audited 14 projects for emergency work totaling $19.3 million, or 71 percent of the $27.2 million awarded for emergency work.

>FEMA Should Recover $2.2 Million of $27.2 Million in Public Assistance Grant Funds Awarded to Nashville-Davidson County, Tennessee, for May 2010 Flood Emergency Work 		2016
OIG-16-36-D The University of Wisconsin-Superior received an $8.6 million FEMA grant from Wisconsin Emergency Management, and FEMA grantee, for damages resulting from severe storms and flooding in June 2012. Our audit objective was to determine whether the University accounted for and expended FEMA funds according to Federal requirements. The University effectively accounted for and expended FEMA Public Assistance grant funds according to Federal regulations and FEMA guidelines.

>The University of Wisconsin-Superior Effectively Managed FEMA Grant Funds Awarded for Severe Storms and Flooding in June 2012 		2016
OIG-16-114-D The Village of Pilger, Nebraska (Village), received a $5.6 million Federal Emergency Management Agency (FEMA) award for damages resulting from severe storms, tornadoes, straight-line winds, and flooding in June 2014. We conducted this audit early in the grant process to identify areas where the Village may need additional technical assistance or monitoring to ensure compliance.

>The Village Of Pilger, Nebraska, Took Corrective Actions to Comply with Federal Grant Award Requirements 		2016
OIG-16-38-D Oakwood Healthcare System, Inc. (Hospital), in Dearborn, Michigan, received a gross award of $15.2 million from the Michigan State Police Emergency Management and Homeland Security Division (Michigan), and FEMA grantee, for damages resulting from severe storms and flooding in August 2014. The Hospital did not always account for and expend FEMA grant funds according to Federal regulations and FEMA guidelines. Although the Hospital competitively awarded contracts for most non-exigent work, it did not always take the required affirmative steps to ensure the use of small and minority firms, women’s business enterprises, and labor surplus area firms when possible; and did not include all required contract provisions in its contracts. However, we did not question the costs because insurance proceeds covered essentially all the repair costs except for the insurance deductible. We also found that the Hospital did not initially account for labor costs properly. However, after we identified the improperly supported costs, Hospital employees corrected the records to reflect actual costs the Hospital incurred.

>Oakwood Healthcare System, Dearborn, Michigan, Needed Additional Assistance in Managing its FEMA Public Assistance Grant Funding 		2016
OIG-16-115-D Mississippi received a $29.9 million Hazard Mitigation grant from the Federal Emergency Management Agency (FEMA) for the state’s Coastal Retrofit Program (Program). The goal of the Program was to help 2,000 Mississippi homeowners strengthen their homes against wind damages in future disasters. We received complaints that the state was mishandling Federal funds for this Program.

>FEMA Should Suspend All Grant Payments on the $29.9 Million Coastal Retrofit Program Until Mississippi Can Properly Account for Federal Funds 		2016
OIG-16-40-D Colorado Springs Utilities, Colorado (Utilities), received a $937,367 Public Assistance grant for damages from storms occurring May through June 2015. We conducted this audit early in the grant process to identify areas where the Utilities may need additional technical assistance or monitoring to ensure compliance with Federal requirements. The Utilities has established policies, procedures, and business practices to account for and expend Federal Emergency Management Agency (FEMA) Public Assistance grant funds according to Federal regulations and FEMA guidelines. Therefore, if the Utilities follow those policies, procedures, and business practices, FEMA has reasonable assurance that the Utilities will properly manage its FEMA grant.

>Colorado Springs Utilities, Colorado, Has Adequate Policies, Procedures, and Business Practices to Effectively Manage Its FEMA Public Assistance Grant Funding 		2016
OIG-16-116-D At the time of our audit, the City of Hazelwood, Missouri (City), estimated it had sustained approximately $3.3 million in damages from flooding in December 2015. We conducted this audit early in the grant process to identify areas where the City may need additional technical assistance and monitoring to ensure compliance with Federal requirements.

>City of Hazelwood, Missouri, Needs Additional Assistance and Monitoring to Ensure Proper Management of Its Federal Grant 		2016
OIG-16-41 In 2011, the former FEMA Chief Security Officer hired two employees with criminal convictions in their backgrounds. Our analysis of employee records from 2011 to 2014 in the Office of the Chief Security Officer’s Fraud and Internal Investigations Division disclosed two more employees with criminal conduct in their backgrounds. FEMA’s Office of the Chief Security Officer no longer employs these four individuals. FEMA premium pay records from 2011 to 2014 for employees in the Fraud and Internal Investigations Division showed that division management allowed employees to violate FEMA’s premium pay policy for compensatory time in 2014; premium pay requests from the same period did not reveal any overtime violations. As a result of hiring employees with criminal backgrounds or conduct, the Office of the Chief Security Officer spent $349,944 unnecessarily. Finally, from 2013 to 2014, the Office of the Chief Security Officer misused the Disaster Relief Fund by allowing employees to perform non-disaster­related activities, which violates the Stafford Act and may also be a potential Antideficiency Act violation.

>Response to Allegations of Mismanagement in FEMA's Office of the Chief Security Office 		2016
OIG-16-117-D Ocean County, New Jersey (County) received a $105 million Public Assistance grant award from the New Jersey Office of Emergency Management (New Jersey), a Federal Emergency Management Agency (FEMA) grantee, for Hurricane Sandy damages in October 2012. Our audit objective was to determine whether the County accounted for and expended FEMA funds according to Federal requirements.

>Ocean County, New Jersey, Generally Accounted for and Expended FEMA Public Assistance Funds Properly 		2016
OIG-16-42-D At the time of our audit, the Federal Emergency Management Agency (FEMA) estimated that the City of Colorado Springs, Colorado, (City) had sustained approximately $3.6 million in damages from storms in 2015. We conducted this audit early in the grant process to identify areas where the City may need additional technical assistance or monitoring to ensure compliance with Federal requirements. The City has established policies, procedures, and business practices to account for and expend FEMA Public Assistance grant funds according to Federal regulations and FEMA guidelines. Therefore, if the City follows those policies, procedures, and business practices, FEMA has reasonable assurance that the City will properly manage its FEMA grant.

>Colorado Springs, Colorado, Has Adequate Policies, Procedures, and Business Practices to Effectively Manage Its FEMA Public Assistance Grant Funding 		2016
OIG-16-118-D Wisner-Pilger Public Schools (Wisner-Pilger) received a $7.9 million Federal Emergency Management Agency (FEMA) grant award for damages from severe storms, tornadoes, straight-line winds, and flooding in June 2014. We conducted this audit early in the grant process to identify areas where Wisner-Pilger may need additional technical assistance or monitoring to ensure compliance.

>Wisner-Pilger Public Schools, Nebraska, Took Corrective Actions to Comply with Federal Grant Award Requirements 		2016
OIG-16-43-D The Authority received an $8.04 million Public Assistance grant award from the Puerto Rico Emergency Management Agency (Puerto Rico), a FEMA grantee, for damages resulting from Hurricane Irene in August 2011. Our audit objective was to determine whether the Authority accounted for and expended FEMA funds according to Federal requirements. The Puerto Rico Electric Power Authority, Puerto Rico, (Authority) generally accounted for and expended Public Assistance grant funds according to Federal regulations and Federal Emergency Management Agency (FEMA) guidelines. However, the Authority did not comply with the Single Audit Act, which requires non-Federal entities that expend $500,000 or more in a year in Federal awards to obtain a single or program-specific audit for that year. Although the Authority did not take steps to ensure that it met the Single Audit Act requirements, Puerto Rico, as grantee, is responsible for ensuring that its subgrantee (the Authority) is aware of and complies with grant requirements. As a result of this deficiency, FEMA and Puerto Rico did not have an opportunity to review the Single Audit report that would have made them aware of any potential issues with the Authority’s administration of the FEMA grant.

>The Puerto Rico Electric Power Authority Effectively Managed FEMA Public Assistance Grant Funds Awarded for Hurricane Irene in August 2011 		2016
OIG-16-119-D The City of Louisville (City), Mississippi, received a Federal Emergency Management Agency (FEMA) Public Assistance award of $51.7 million for damages resulting from April 2014 storms. We reviewed Project 104 totaling $47.3 million for compliance with the Public Assistance AlternativeProcedures Pilot (PAAP) Program authorized by the Sandy Recovery Improvement Act of 2013.

>FEMA Improperly Awarded $47.3 Million to the City of Louisville, Mississippi 		2016
OIG-16-46 KPMG, LLP evaluated selected general IT controls and business process application controls at the Federal Emergency Management Agency (FEMA). KPMG, LLP determined that FEMA took corrective actions to address certain prior-year IT control deficiencies. For example, FEMA made improvements by designing and consistently implementing certain account management and configuration management controls. However, KPMG, LLP continued to identify general IT control deficiencies related to security management, access controls, segregation of duties, configuration management, and contingency planning for FEMA’s core financial and feeder systems. Collectively, these deficiencies limited FEMA’s ability to ensure that critical financial and operational data were maintained in such a manner as to ensure their confidentiality, integrity, and availability.

>Information Technology Management Letter for the Federal Emergency Management Agency Component of the FY 2015 Department of Homeland Security Financial Statement Audit 		2016
OIG-16-120-D FEMA estimated that the County had sustained approximately $1.97 million in damages from severe storms and flooding in late 2015. We conducted this audit early in the grant process to identify areas where the County may need additional technical assistance or monitoring to ensure compliance with Federal regulations and FEMA guidelines.

>Phelps County, Missouri, Needs Additional Assistance and Monitoring to Ensure Proper Management of Its $1.97 Million FEMA Grant 		2016
OIG-16-47 FEMA does not provide adequate oversight of the WYO program under the National Flood Insurance Program (NFIP). Specifically, FEMA is not using the results from its Financial Control Plan reviews to make program improvements; is not performing adequate oversight of the Special Allocated Loss Adjustment Expense reimbursement process; and does not have adequate internal controls to provide proper oversight of the appeals process. These conditions exist because FEMA does not have adequate guidance, resources, or internal controls. As a result of this inadequate oversight, FEMA is unable to ensure that WYO companies are properly implementing the NFIP and is unable to identify systemic problems in the program. Furthermore, without adequate internal controls in place, FEMA’s NFIP funds may be at risk for fraud, waste, abuse, or mismanagement.

>FEMA Does Not Provide Adequate Oversight of Its National Flood Insurance Write Your Own Program 		2016
OIG-16-121-D Washington County, Florida, (County) received an award of $13.9 million from the Florida Division of Emergency Management Agency (Florida), a Federal Emergency Management Agency (FEMA) grantee, for damages resulting from a July 2013 flood. We audited 14 projects totaling $3.6 million. Our audit objective was to determine whether the County accounted for and expended FEMA funds according to Federal requirements.

>Washington County, Florida, Effectively Managed FEMA Public Assistance Grant Funds Awarded for a July 2013 Flood 		2016
OIG-16-49 FEMA’s Homeland Security Grant Program (HSGP) provides funds to state, territorial, local, and tribal governments to enhance their ability to prepare for, prevent, protect, respond to, and recover from terrorist attacks, major disasters, and other emergencies. FEMA has not adequately analyzed recurring Office of Inspector General recommendations to implement permanent changes to improve its oversight of HSGP. This occurred because FEMA has not clearly communicated internal roles and responsibilities, and does not have policies and procedures for conducting substantive trend analysis of audit recommendations. Without sufficiently analyzing audit findings and recommendations, FEMA may not be able to develop proactive solutions to recurring and systemic problems, resulting in missed opportunities to improve the management and oversight of its HSGP.

>Analysis of Recurring Audit Recommendations Could Improve FEMA's Oversight of HSGP 		2016
OIG-16-122-D The severe winter storms, straight-line winds, flooding,landslides, and mudslides during December 6–23, 2015, caused severe damageto the City of Portland, Oregon (City). City officials estimate that disaster-related costs may exceed $11 million. We conducted this audit early in the PublicAssistance process to identify areas where the Citymay need additional technical assistance or monitoring to ensure compliance with Federal regulations and FEMA guidelines.

>Portland, Oregon, Has Adequate Policies, Procedures, and Business Practices to Manage Its FEMA Grant Funding 		2016
OIG-16-52-D The Pueblo of Jemez, New Mexico (Pueblo), received a Public Assistance grant award of $1.6 million from the New Mexico Department of Homeland Security and Emergency Management (New Mexico), a Federal Emergency Management Agency (FEMA) grantee, for damages from severe storms, flooding, and mudslides that occurred in September 2013. The Pueblo accounted for disaster costs on a project-by-project basis. However, the Pueblo did not follow Federal procurement standards in awarding five contracts totaling $312,117. As a result, full and open competition did not occur and FEMA has no assurance that small and minority businesses and women’s business enterprises had sufficient opportunities to bid on federally funded work. In some instances, FEMA also has no assurance that costs were reasonable.

>FEMA Should Recover $312,117 of $1.6 Million Grant Funds Awarded to the Pueblo of Jemez, New Mexico 		2016
OIG-16-124-D The Nebraska Public Power District (NPPD) received a $7.6 million Federal Emergency Management Agency (FEMA) grant award from the Nebraska Emergency Management Agency (Nebraska), a FEMA grantee, for damages it sustained from severe storms, tornadoes, straight line winds, and flooding in May 2014. Our audit objective was to determine whether NPPD accounted for and expended FEMA funds according to Federal requirements. What We

>Nebraska Public Power District Properly Managed FEMA Grant Funds Awarded for May 2014 Storms 		2016
OIG-16-53-D FROM: John E. McCoy II

Assistant Inspector General for Audits

SUBJECT: Office of Inspector General Emergency Management Oversight Team Deployment Audits

Audit Report Numbers OIG-13-84, OIG-13-117, OIG-13-124, OIG-14-50-D, OIG-14-111-D, OIG-15-92-D, OIG-15-102-D, OIG-15-105-D, OIG-16-53-D, OIG-16-85-D, OIG-16-106-D, OIG-17-37-D

After completing an internal review of our audits related to multiple Emergency Management Oversight Team (EMOT) projects, we have decided to permanently remove the subject reports from our public website.

Our internal review found the subject reports may not have adequately answered objectives and, in some cases, may have lacked sufficient and appropriate evidence to support conclusions. Answering objectives with sufficient and appropriate evidence is required under Government Auditing Standards or Quality Standards for Inspection and Evaluation. In an abundance of caution, we believe it best to recall the reports and not re-issue them.

Going forward, our EMOTs will deploy during the response phase of a disaster to identify and alert the Federal Emergency Management Agency (FEMA) and its stakeholders of potential issues or risks if they do not follow FEMA and other Federal requirements. The EMOT’s reviews will not be conducted under Government Auditing Standards. The teams will continue to observe and identify potential risk areas that will be addressed by future traditional audits, if necessary.

A complete list of the projects removed from our website is attached. You should not place any reliance on these reports.

Please contact me at (202) 254-4100 if you have any questions.

>FEMA's Initial Response to the Severe Storms and Flooding in South Carolina 		2016
OIG-16-125-D The Long Beach City School District, New York (District) received a $35.5 million Public Assistance grant award from the New York Division of Homeland Security and Emergency Services (New York), a Federal Emergency Management Agency (FEMA) grantee, for damages from Hurricane Sandy that occurred in October 2012.

>Long Beach City School District in New York Generally Accounted For and Expended FEMA Public Assistance Funds Properly 		2016
OIG-16-59 Public Law 110-53, Implementing Recommendations of the 9/11 Commission Act of 2007, requires the Department of Homeland Security (DHS) Office of Inspector General (OIG) to audit individual states’ management of Homeland Security Grant Program (HSGP) awards. We audited the State of Maryland, which was awarded $35 million from FEMA for fiscal years 2011–13. In most instances, Maryland distributed and spent the HSGP awards in compliance with applicable laws and regulations; however, the State lacked adequate controls over more than $10.8 million in grant funds we reviewed. This occurred because FEMA and the State did not ensure adequate management and oversight of HSGP funds.

>Maryland's Management of Homeland Security Grant Program Awards for Fiscal Years 2011-13 		2016
OIG-16-126-D FEMA grants billions of dollars each year to recipients that contract for services to help communities respond to and recover from disasters. We performed this audit to assess the extent to which FEMA has allowed contract costs we questioned for noncompliance with Federal procurement requirements. We also assessed whether FEMA has granted an exception to procurement requirements for a class of grants, rather than on a case-by-case basis.

>FEMA Can Do More to Improve Public Assistance Grantees’ and Subgrantees’ Compliance with Federal Procurement Rules 		2016
OIG-16-60-D The Municipality of Jayuya, Puerto Rico (Municipality), received a $4.46 million grant award from the Puerto Rico Emergency Management Agency (Puerto Rico), a Federal Emergency Management Agency (FEMA) grantee, for damages resulting from Hurricane Irene in August 2011. We audited projects totaling $3.54 million to determine whether the Municipality accounted for and expended FEMA funds according to Federal requirements. For the projects we reviewed, the Municipality generally accounted for and expended FEMA funds according to Federal requirements. However, we did identify $267,960 (Federal share $200,970) of costs that FEMA should disallow. These costs consisted of $237,695 of duplicate benefits and $30,265 of unsupported project costs.

>FEMA Should Recover $267,960 of $4.46 Million in Public Assistance Grant Funds Awarded to the Municipality of Jayuya, Puerto Rico, for Hurricane Irene Damages 		2016
OIG-16-127-D We conducted this audit to gain a better understanding of the problem and identify ways FEMA can improve Reservist performance.

>FEMA Can Enhance Readiness with Management of Its Disaster Incident Workforce 		2016
OIG-16-63-D San Bernardino County,California (County), receive a $16.5 million Public Assistance grant award for damages resulting from California wildfires that occurred from October 2007 through March 2008. We audited $14.3 million of the $16.5 million gross award.

>San Bernardino County, California, Generally Accounted for and Expended FEMA Public Assistance Funds Properly 		2016
OIG-16-132-D The April 17, 2013 fertilizer plant explosion devastated the City of West, Texas, killing 15 and leveling homes in a 5-block radius. The West School Administration (School District) received $63.4 million in Federal Emergency Management Agency (FEMA) grant funds from the Texas Division of Emergency Management, a FEMA grantee, for emergency and permanent recovery work.

>FEMA Miscalculated the 50 Percent Rule when Deciding to Replace School Buildings after the West, Texas Explosion 		2016
OIG-16-66-D The Municipality of Villalba, Puerto Rico (Municipality), received a $2.58 million grant awar from the Puerto Rico Emergency Management Agency (Puerto Rico), a Federal Emergency Management Agency (FEMA) grantee, for damages resulting from Hurricane Irene in August 2011.

>FEMA Should Disallow $1.30 Million of $2.58 Million in Public Assistance Grant Funds Awarded to the Municipality of Villalba, Puerto Rico, for Hurricane Irene Damages 		2016
OIG-16-133-D The Ouachita Parish Police Jury, Louisiana (Ouachita Parish), sustained potential damages of approximately $3.7 million from severe storms and flooding in March 2016. We conducted this audit early in the grant process to identify areas where the parish may need additional technical assistance or monitoring to ensure compliance with Federal requirements.

>Louisiana Should Provide the Ouachita Parish Police Jury Assistance in Managing FEMA Grant Funds 		2016
OIG-16-67-D The Town of Lyons, Colorado (Town), received a $36 million Public Assistance grant for damages from a September 2013 flood. We conducted this audit early in the grant process to identify areas where the Town may need additional technical assistance or monitoring to ensure compliance with Federal requirements.

>Lyons and Colorado Officials Should Continue to Improve Management of $36 Million FEMA Grant 		2016

*NDAA, Pub. L. 117-263, section 5274 Response Received. View responses

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