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Audits, Inspections, and Evaluations

Report Number Title Issue Date Fiscal Year
OIG-18-71 We found that FEMA overpaid its employees because it mistakenly believed the Department’s payroll provider had an automated control to prevent payments over the annual cap, and because it did not follow its own premium pay policy. We also found that FEMA has no effective policy or practice to determine the Fair Labor Standards Act status of FEMA employees during disaster deployments, which also contributed to this issue. Since discovering the overpayments, FEMA has been working to calculate how many people were overpaid, but it cannot finish that analysis until it addresses a number of outstanding questions.

>FEMA Paid Employees Over the Annual Premium Pay Cap 		2018
OIG-18-66 In July 2017, FEMA reported that it awarded 252 projects under the PA alternative procedures pilot program valued at $11.9 billion, with just 26 of those projects (10.32 percent) closed. During our fieldwork, we gained access to FEMA’s grant management system of record and reviewed supporting documentation for the project worksheets in our scope to determine if FEMA followed its criteria when validating cost estimates. However, FEMA did not sufficiently document actions that it took to validate subrecipient cost estimates to ensure costs are reasonable. Of the three obligated projects we reviewed during our fieldwork, we did not find evidence that FEMA completed the required steps identified to validate the reasonableness of subrecipient cost estimates.

>Sandy Recovery Improvement Act Review 		2018
OIG-18-64 The County estimated that it had sustained $2.7 million in damages from severe storms and flooding in February 2017. We conducted the audit early in the grant process to identify areas in which the County may need additional technical assistance and monitoring to ensure compliance with Federal requirements. DHS OIG found that the County does not have adequate procurement policies, procedures, and business practices that comply fully with all Federal standards for its planned procurements, totaling approximately $500,000. At the time of our fieldwork, FEMA had not completed project worksheets to define the scope of disaster work. At this early stage in the grant process, Utah needs to provide the County with additional technical assistance and increased monitoring. Doing so should provide FEMA reasonable, but not absolute, assurance that the County will spend the $2.7 million in total estimated disaster-related costs according to Federal requirements.

>Cache County, Utah, Needs Additional Assistance and Monitoring to Ensure Proper Management of Its FEMA Grant 		2018
OIG-18-63 The Diamondhead Water and Sewer District (District), received a Federal Emergency Management Agency (FEMA) grant award of $49.3 million from the Mississippi Emergency Management Agency (Mississippi) for damage resulting from Hurricane Katrina in 2005. We had concerns because it took the District about 10 years to break ground on its new wastewater treatment plant. We also wanted to determine whether FEMA accurately applied its “50 Percent Rule.” we identified $1.5 million of improper procurement, unsupported costs, duplicate insurance benefits, and uncompleted project costs that FEMA should disallow to the District. These problems were largely the result of Mississippi not fulfilling its grantee responsibility to ensure the District properly managed FEMA funds. Mississippi is responsible for monitoring subgrant activities, and is compensated with Federal funds to support subgrant management and oversight. It is FEMA’s responsibility to hold Mississippi accountable for proper grant administration.

>FEMA Should Recover $20.4 Million in Grant Funds Awarded to Diamondhead Water and Sewer District, Mississippi 		2018
OIG-18-62 The Victor Valley Wastewater Reclamation Authority, through its main engineering contractor (Contractor C), presented incorrect data and misinformed FEMA in obtaining a Federal grant of more than $33 million for its pipeline replacement and relocation project. Authority officials wanted to move the pipeline outside of the Mojave Riverbed, but noted the high cost to do so. Authority officials knew that replacing and relocating the pipeline was the most expensive repair option, as their Contractors A and C informed them. However, through Contractor C, Authority officials repeatedly provided FEMA incorrect data that made Alternative 2 appear to be the least expensive. Based on the incorrect information Authority officials provided, FEMA funded $11 million for the replacement and relocation project in 2013 and an additional $22 million in 2014, a total of $33 million. We question the entire $33 million as ineligible because the Authority did not comply with Federal regulations, and FEMA policies and procedures, in preparing cost estimates for FEMA.

>Victor Valley Wastewater Reclamation Authority, California, Provided FEMA Incorrect Information for Its $33 Million Project 		2018
OIG-18-60 At the time of our audit, Federal Emergency Management Agency (FEMA) estimated that the City of Waterloo, Iowa (City), sustained approximately $1.9 million in damages from severe storms and flooding from September 21 through October 3, 2016. The City did not provide all requested information and explanations necessary to perform our review; therefore, we were unable to assess whether the City’s policies, procedures, and business practices were adequate to account for FEMA Public Assistance grant funds properly. The City’s failure to cooperate with a Federal audit put approximately $1.9 million dollars in potential FEMA grant funding at risk of being deobligated or not funded.

>The City of Waterloo, Iowa Jeopardizes $1.9 Million in Estimated FEMA Grant Funding 		2018
OIG-18-54 In November 2015, we reported that the Federal Emergency Management Agency’s (FEMA) information technology (IT) management approach did not adequately address technology planning, governance, and system support challenges to effectively support its mission. We issued five recommendations to the FEMA Chief Information Officer (CIO) aimed at improving the agency’s management of IT.1 Specifically, we recommended the CIO finalize key planning documents related to IT modernization; execute against those planning documents; fully implement an IT governance board; improve integration and functionality of existing systems; and implement agency-wide acquisition, development, and operation and maintenance standards.

 

>Management Alert - Inadequate FEMA Progress in Addressing Open Recommendations from our 2015 Report, "FEMA Faces Challenges in Managing Information Technology" (OIG-16-10) 		2018
OIG-18-49 The Federal Emergency Management Agency (FEMA) estimated that the City of Cedar Falls, Iowa (City), had sustained approximately $893,000 in damage caused by severe storms and flooding from September 21 through October 3, 2016. We audited early in the grant process to identify areas in which the City may need additional technical assistance or monitoring to ensure compliance with Federal procurement requirements. Except for procurement, the City’s policies, procedures, and business practices appear to be adequate to account for and expend FEMA grant funds according to Federal regulations and FEMA policies. Specifically, the City’s procurement policies did not provide sufficient opportunities for disadvantaged firms to compete for contracts, or prevent awarding contracts to debarred or suspended contractors. After we discussed these issues, City officials moved quickly to modify procurement policies to comply with Federal requirements.

>City of Cedar Falls, Iowa Has Policies, Procedures, and Business Practices to Manage Its FEMA Grant 		2018
OIG-18-40 The Indiana Department of Homeland Security (Indiana) received $27.9 million in Federal Emergency Management Agency (FEMA) Hazard Mitigation Grant Program (HMGP) funds to disburse to eligible subgrantees for projects in 10 disasters declared from June 2004 to April 2014. Our objective was to determine whether Indiana administered the grant program in accordance with Federal regulations and ensured subgrantees properly accounted for and expended FEMA funds. Indiana unable to demonstrate it has procedures and processes to ensure compliance with all Federal monitoring and financial reporting requirements. Specifically, Indiana did not perform required subgrant monitoring during project implementation and post closeout; submit quarterly progress and financial reports that met requirements; and comply with financial management requirements to ensure subgrantees accounted for and expended FEMA grant funds according to Federal regulations and FEMA guidelines.

>Indiana Needs to Improve the Management of Its FEMA Hazard Mitigation Grants 		2018
OIG-18-39 Audit of FEMA Public Assistance Grant Funds Awarded to Volunteer Energy 2018
OIG-18-38 Facing continued negative publicity and pressure from Members of Congress, FEMA established the Sandy Claims Review Process (SCRP). In doing so, FEMA did not rely on legislatively mandated internal controls designed to ensure appropriate payments for flood victims. Additionally, during the formation and operation of the SCRP, FEMA failed to establish contractor expectations or provide consistent guidance and oversight related to Hurricane Sandy claims. These omissions resulted in policyholders receiving unsupported additional payments, excessive costs to operate the SCRP, and time delays in processing the claims

>Unsupported Payments Made to Policyholders Who Participated in the Hurricane Sandy Claims Review Process 		2018
OIG-18-33 Because of the high dollar amount in disaster funds likely awarded and the history of audit questioned costs for FEMA disaster funds, FEMA’s inadequate grant management poses a significant risk to taxpayer dollars. We identified issues in our previous reports that demonstrate FEMA’s ongoing issues with ensuring disaster grant recipients and subrecipients comply with Federal regulations and FEMA guidelines. Specifically, FEMA faces significant challenges in ensuring its grant recipients properly manage FEMA disaster funds. This alert highlights the significant deficiencies with FEMA’s internal controls and its lack of enforcement of Federal requirements. As FEMA moves forward with its recovery efforts, it must hold recipients accountable for proper grant management. FEMA must implement and use effective controls to overcome existing problems with managing and monitoring funds for disaster response and recovery.

>Management Alert - FEMA Faces Significant Challenges Ensuring Recipients Properly Manage Disaster Funds 		2018
OIG-18-30 This is a Department of Homeland Security, Office of Inspector General management alert to make the Federal Emergency Management Agency (FEMA) and its partners aware of active attempts — observed during our ongoing disaster oversight work in Puerto Rico — to profit from disaster survivors seeking FEMA assistance. We observed posted notices featuring a logo similar to FEMA’s, advertising paid services to complete the FEMA disaster assistance application on behalf of survivors. These services appear to be associated with FEMA, but actually are not, and demand a fee for services FEMA provides at no cost.

To complete the disaster assistance application forms, the paid service requires disaster survivors to provide their Personally Identifiable Information (PII) — such as their social security number, household annual income, and bank account numbers — to a third party, which exposes survivors to unnecessary risks.

>Management Alert - FEMA Must Take Steps to Stop Those Attempting to Profit from Disaster Survivors Seeking Assistance in Puerto Rico 		2018
OIG-18-29 This is a Department of Homeland Security Office of the Inspector General (OIG) special report on Federal Emergency Management Agency (FEMA) and FEMA recipient and sub recipient disaster-related procurements. FEMA is currently responding to some of the most catastrophic disasters in U.S. history — Hurricanes Harvey, Irma, Maria, and the October 2017, California wildfires. Because of the massive scale of damage and the large number and high-dollar contracts that will likely be awarded, there is a significant risk that billions of taxpayer dollars may be exposed to waste, fraud, and abuse.

>Lessons Learned from Prior Reports on Disaster-related Procurement and Contracting 		2018
OIG-18-26 Severe winter storms, flooding, and mudslides during January and February 2017 caused significant damage to Solano County, California (County). County officials estimate damages at $1.6 million. Based on our limited testing, the County appears to have in place policies, procedures, and business practices to generally account for and expend FEMA Public Assistance grant funds according to Federal regulations and FEMA guidelines. The County should be able to account for disaster-related costs on a project-by-project basis and adequately support these costs.

>Solano County, California, Has Policies, Procedures, and Business Practices to Manage Its FEMA Grant Funding 		2018
OIG-18-28 Osceola Electric Cooperative, Inc. (Osceola) received a $10 million Federal Emergency Management Agency (FEMA) grant award for damages caused by a severe winter storm in April 2013. Although the disaster occurred 4 years ago, Osceola has not completed all FEMA projects. We conducted this audit early in the grant process to identify areas in which Osceola may need additional technical assistance or monitoring to ensure compliance. Osceola generally accounted for and expended $10 million FEMA Public Assistance Funds according to Federal regulations and FEMA guidelines.

>Osceola Electric Cooperative, Iowa, Generally Managed FEMA Grant Funds According to Federal Requirements 		2018
OIG-18-25 The Omaha Tribe’s serious financial management weaknesses combined with inadequate and missing documentation resulted in unreliable financial records. As a result, we have little confidence that the transactions recorded in the accounting system actually occurred or that the tribe completed its FEMA-authorized projects. Therefore, we question $13.9 million as unsupported. Due to the unreliable financial information, we calculated the amount unsupported as the entire $16.9 million FEMA provided for both grants, less $2.8 million in unused Federal funding that FEMA should put to better use; $165,000 in unclaimed insurance coverage; and approximately $74,749 that we were able to verify as supported and eligible.

>The Omaha Tribe of Nebraska and Iowa Mismanaged $14 Million in FEMA Disaster Grants 		2018
OIG-18-21 FEMA is currently responding to Hurricane Harvey in Texas, one of the largest disasters in U.S. history, with current damage estimates reported to exceed $100 billion. Due to the massive scale of damage, FEMA and Texas, as a FEMA grantee, will face many challenges in the recovery phase of the disaster. As FEMA moves into the recovery phase for Hurricane Harvey, it will begin to obligate hundreds of millions, if not billions, of dollars from the Disaster Relief Fund for administrative costs and for Public Assistance and Hazard Mitigation grants to eligible state, tribal, and local governments and certain nonprofit organizations. Texas, as FEMA’s grantee, will be responsible for oversight and monitoring of the disaster grants to Texas subrecipients.

>Special Report: Lessons Learned from Prior DHS-OIG Reports Related to FEMA's Response to Texas Disasters and Texas' Management of FEMA Grant Funds 		2018
OIG-18-07
    1. Report: O:\Special Projects\508 Reports\FY18\MGMT
    2. Press release:  O:\Special Projects\508 Reports\FY17\PR
    3. Testimony: O:\Special Projects\508 Reports\FY17\TM
  • PTS or final report folder
  • 508 compliant- need default tools
    1. Action Wizard tab
    • >DHS Needs a More Unified Approach         		2018
    OIG-18-17 The Hospital must improve its policies, procedures, and business practices to account for and expend FEMA grant funds according to Federal regulations and FEMA guidelines. Specifically, it did not properly document and adequately account for project costs; comply with its overtime policy; and comply with Federal requirements for insurance. Additionally, there were major differences in the damage estimates FEMA and the Hospital calculated.

    >Napa State Hospital, California, Should Improve the Management of Its $6.7 Million FEMA Grant         		2018
    OIG-18-13 FEMA and CBP Oversight of Operation Stonegarden Program Needs Improvement 2018
    OIG-18-14 Management Alert - Concerns with Potential Duplicate or Ineligible FEMA Public Assistance Funding for Facilities Damaged by Back-to-Back Disasters 2018
    OIG-17-46-D We determined that although the Board accounted for disaster-related costs on a project-by-project basis, it did not comply with Federal procurement standards in awarding contracts for disaster work totaling $4.8 million.  Additionally FEMA inadvertently obligated an additional $508,884 in duplicate obligations.  Also the Board could have benefited from additional technical advice from Minnesota.  We recommended that FEMA disallow as ineligible $4.8 million for contracts that did not comply with Federal procurement standards and $508,884 for duplicate obligations.  We also recommended FEMA direct Minnesota to provide technical assistance and monitoring to the Board to ensure it complies with Federal procurement regulations, which should result in $2.6 million in cost avoidance.  FEMA generally agreed with the findings and recommendations in the report.

    >Minneapolis Park and Recreation Board Did Not Follow All Federal Procurement Standards for $5.1 Million in Contracts         		2017
    OIG-17-44-D The purpose of this advisory report is to notify FEMA of an issue we observed during our ongoing audit of CalRecycle.  We determined that CalRecycle expects it will cost about $230 million to complete debris removal work, and has received invoices totaling $200 million from two contractors performing the work.  Yet, these invoices included documentation with numerous discrepancies that did not fully support the invoiced costs as Federal cost principles and procurement standards require.  Moreover, as of September 8, 2016, our audit cutoff date, CalRecycle had paid its contractors about $186.4 million of the $200 million in invoiced costs, but had not completed its review of invoices nor collected all missing support records.   FEMA and California, therefore, should continue to assist CalRecycle in assuring that all costs are valid and eligible.  We recommended that FEMA Region IX Administrator (1) direct California, as grantee, to provide CalRecycle with technical assistance it may need to ensure compliance with all applicable Federal regulations, specifically for document support and contract management, and to avoid improperly funding any of the $230 million ($173 million Federal share) in contract costs CalRecycle estimates it will claim for damages caused by this disaster; and (2) direct California, as grantee, to ensure that all CalRecycle’s cost reimbursement claims for debris removal work are supported with adequate documentation and that costs are eligible in accordance with FEMA’s debris removal guidelines.

    >Management Advisory - CalRecycle, a California State Agency, Needs Assistance to Ensure that $230 Million in Disaster Costs Are Valid         		2017
    OIG-17-41-D We determined that for the projects we reviewed, the County effectively accounted for and expended FEMA Public Assistance grant funds according to Federal regulations and FEMA guidelines. Because the audit did not identify any issues requiring further action from FEMA Region IV, we consider this audit closed.

    >Aiken County, South Carolina, Effectively Managed FEMA Grant Funds Awarded for Severe 2014 Winter Storm         		2017
    OIG-17-38-D We determined that FEMA has not identified and recovered Federal funds that New York City spent, more than three years ago, on repairs to commercial residential properties.  These repairs included short-term measures such as temporary boilers and power generators.  FEMA recognizes that commercial landlords may have received an incidental benefit from the Federal assistance provided to New York City and used it for repairs to multifamily dwellings to ensure tenants could shelter in their homes.  However, it is the responsibility of New York State Division of Homeland Security and Emergency Services (the grantee) to ensure that the money that FEMA provides is spent in accordance with Federal laws and regulations.  Under FEMA rules, for-profit organizations are ineligible for Public Assistance grant funds.  We recommended that FEMA review and improve, as necessary, policies and procedures that protect government resources used to support disaster response and recovery activities.  We made three recommendations and FEMA concurred with all of them.

    >FEMA Needs to Improve Its Oversight of the Sheltering and Temporary Essential Power Pilot Program         		2017
    OIG-17-37-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 Severe Storms and Flooding in West Virginia DR-4273         		2017
    OIG-17-34-D We determined that the Columbia County Roads Department (Department) does not have written procurement policies and procedures that fully conform to Federal procurement standards; is not accounting for direct administrative costs properly; and cannot yet initiate large permanent work projects more than 9 months after the disaster.  These findings occurred because Department officials were not familiar with applicable Federal regulations and FEMA guidelines adequately.  In addition, the Oregon Office of Emergency Management (Oregon) is responsible for ensuring that its subrecipient,the Department, is aware of and complies with these requirements, as well as for providing technical assistance and monitoring grant activities.  Because of our audit, the Department is revising its policies and procedures to comply with Federal requirements.  However, the Department needs additional, ongoing assistance from Oregon and FEMA to ensure that it properly manages the $2 million FEMA grant it expects to receive.  Therefore, we recommended that FEMA disallow contract costs that do not comply with applicable Federal procurement standards, unless FEMA grants an exception to the administrative requirements as 2 CFR 200.102 allows and determines the costs are reasonable.  The OIG made three other recommendations to FEMA related to directing Oregon, as its grant recipient, to provide increased monitoring and technical assistance to the Department, to ensure the Department follows Federal regulations and FEMA guidelines and avoids misspending its $2 million grant award.

    >Columbia County Roads Department, Oregon, Needs Continued State and FEMA Assistance in Managing Its FEMA Grant         		2017
    OIG-17-35-D We determined the County has established policies, procedures, and business practices to properly account for and expend FEMA Public Assistance grant funds.  Therefore, if the County adheres to those policies, procedures, and business practices, FEMA has reasonable assurance that the County will properly manage the estimated $55.4 million in FEMA project funding awarded for replacement of the facility.

    >Escambia County, Florida, Has Adequate Policies, Procedures, and Business Practices to Effectively Manage FEMA Grant Funds Awarded to Replace Its Central Booking and Detention Center         		2017
    OIG-17-121-MA We are providing this report to emphasize the potential housing challenges and risks that FEMA needs to address during Hurricane Harvey’s recovery efforts based on our observations and discussions with FEMA officials at the Austin, Texas Joint Field Office.  FEMA is currently responding to Hurricanes Harvey, Irma, and Maria, some of the most catastrophic disasters in recent United States history.  Damages from Hurricane Harvey are estimated to exceed $100 billion.  On September 22, 2017, the State of Texas General Land Office entered into an Intergovernmental Service Agreement to provide assistance to FEMA in the delivery of Direct Housing Assistance (DHA) to Hurricane Harvey survivors on a temporary basis.  FEMA estimates these costs will reach approximately $1 billion.  The agreement does not clearly identify basic controls to ensure DHA funds are spent according to Federal regulations. For instance, the agreement does not include approval authorities and physical inspections, or separation of duties and independent certifications.  We are concerned that without adequate controls in place the Federal funds may be at risk of fraud, waste, and abuse.  Therefore, it is imperative that FEMA ensure Texas’ proposed project management plan clearly identifies the internal controls needed to ensure that Federal funds will be properly spent.  Our report also provides observations on the current and past issues with FEMA’s use of direct housing assistance programs.

    >Management Alert - Observations and Concerns with FEMA's Housing Assistance Program for Hurricane Harvey Efforts in Texas         		2017
    OIG-17-25-D We determined that the Authority did not comply with Federal regulations in its award and administration of three contracts totaling $31.7 million. As a result, FEMA has no assurance that these costs were reasonable or that the Authority selected the most qualified contractors. Specifically, the Authority did not: perform cost/price analyses of bid proposals to ensure fair and reasonable costs; follow its own procurement policy and Federal regulations when evaluating and selecting its contractors; include all mandatory Federal provisions in contracts to document rights and responsibilities of the parties; maintain records sufficient to detail the significant history of its procurements; maintain an adequate contract administration system that included careful review of invoices; or include a ceiling price in time-and-material contracts that contractors exceed at their own risk. Therefore, we recommended that FEMA should ineligible contract costs, review costs associated with the Authority’s other large projects and disallow any costs that are ineligible; review the process the Authority used to procure its engineering contract; and direct the California Governor’s Office of Emergency Services, to provide increased guidance to the Authority and more closely monitor its performance to ensure the Authority complies with mandatory Federal regulations and FEMA guidelines.

    >The Victor Valley Wastewater Reclamation Authority in Victorville, California, Did Not Properly Manage $32 Million in FEMA Grant Funds         		2017
    OIG-17-120-D The Audit Tips provides an overview of OIG responsibilities; applicable disaster assistance Federal statutes, regulations, and guidelines; the audit process and frequent audit findings; and key points to remember when administering FEMA grants.  Using this report should assist disaster assistance applicants to (1) document and account for disaster-related costs; (2) minimize the loss of FEMA disaster assistance funds; (3) maximize financial recovery; and (4) prevent fraud, waste, and abuse of disaster funds.  We have updated the report to include information on FEMA’s second edition of the Public Assistance Program and Policy Guide that supersedes many of the Public Assistance publications and individual policy documents

    >Audit Tips for Managing Disaster-Related Project Costs         		2017
    OIG-17-118-D We determined that the County accounted for and expended the majority of FEMA grant funds according to Federal regulations and FEMA guidelines.  However, the County claimed $246,294 of ineligible and unsupported costs for two large projects.  County officials said these issues occurred because FEMA officials provided inconsistent guidance regarding the types of direct administrative costs that were eligible; and internal clerical errors for overstated material costs.  We recommended FEMA disallow $246,294 of ineligible and unsupported costs and provide clearer guidance for documenting eligible direct administrative costs.

    >FEMA Should Disallow $246,294 of $3.0 Million in Public Assistance Grant Funds Awarded to Lincoln County, Missouri         		2017
    OIG-17-21-D We determined that for the projects we reviewed, the City effectively accounted for and expended FEMA Public Assistance grant funds according to Federal regulations and FEMA guidelines.  City officials accounted for disaster expenditures on a project-by-project basis, procured contracts for disaster work appropriately, and maintained adequate documentation to support the costs.  We made no recommendations.

    >Perth Amboy, New Jersey, Effectively Managed FEMA Grant Funds Awarded for Hurricane Sandy Damages         		2017
    OIG-17-117-D We identified that the Diocese generally accounted for FEMA funds on a project-by-project basis as required by Federal regulations and FEMA guidelines.  However, it did not follow Federal procurement standards in awarding two contracts totaling $897,955. The Diocese and its parishes did not provide supporting documentation for procurements or their local procurement processes.  This occurred primarily because the Diocese was not familiar with certain Federal regulations and FEMA guidelines.  As FEMA’s grantee, New York should have done more to ensure the Diocese was aware of and complied with Federal procurement standards and documentation requirements.  FEMA should emphasize New York’s role in proper grant administration.

    >Audit of FEMA Grant Funds Awarded to the Roman Catholic Diocese of Brooklyn, New York         		2017
    OIG-17-20-D We determined that the Authority did not account for FEMA funds on a project-by-project basis as Federal regulations and FEMA guidelines require.  We also identified $577,959 (Federal share $433,469) of project costs that FEMA should disallow.  We recommended that the Regional Administrator, FEMA Region II disallow the $577,959 of questioned costs.

    >FEMA Should Disallow $577,959 of $2.9 Million Awarded to Puerto Rico Aqueduct and Sewer Authority for Hurricane Irene Damages         		2017
    OIG-17-113-D We determined that while the Commission has a system in place to account for funds on a project-by-project basis and generally expended Public Assistance grant funds according to FEMA guidelines, the Commission needs additional assistance in developing long-term solutions for repetitive damages to county roads and managing its $5.4 million FEMA grant. We found that the Commission did not receive adequate guidance from FEMA and Alabama concerning Hazard Mitigation funding for long-term solutions to repetitive damages to roads; thus, potentially costing FEMA millions of dollars in the future; and project formulation, causing improperly written project scopes.  Additionally, the Commission did not have proper procurement procedures to ensure that small businesses, minority-owned firms, and women’s business enterprises have an opportunity to bid on Federal contracts; and adequate procedures to ensure proper documentation is collected to support $24,000 in costs. The report contains five recommendations to the Regional Administrator, FEMA Region IV, to provide the Commission with additional guidance to properly manage its $5.4 million and save millions in the future.  FEMA agreed with all recommendations.

    >The Covington County Commission Needs Additional Assistance in Managing a $5.4 Million FEMA Grant     		2017
    OIG-17-19-D We determined that the Cooperative has an effective accounting system in place to ensure it accounts for disaster-related costs on a project-by-project basis and can properly support those expenditures.  As of June 2016, Cooperative officials had completed all disaster repairs using their own resources and contractors.  However, Cooperative officials said they do not intend to claim $4.1 million in contracting costs because they believe their contracting methodology did not fully comply with Federal requirements when hiring disaster contractors.  Therefore, we did not assess the Cooperative’s procurement policies and procedures, nor review its contract costs.  Because the audit did not identify any issues requiring further action from FEMA, we consider this audit closed. 

    >Western Farmers Electric Cooperative, Oklahoma, Has Adequate Policies, Procedures, and Business Practices to Manage its FEMA Grant         		2017
    OIG-17-110 We determined that FEMA is unable to assess flood hazard miles to meet its program goal and is not ensuring mapping partner quality reviews are completed in accordance with applicable guidance.  FEMA needs to improve its management and oversight of flood mapping projects to achieve or reassess its program goals and ensure the production of accurate and timely flood maps.  We made four recommendations that would help FEMA strengthen its management and oversight of flood mapping projects to achieve program goals.  FEMA concurred with all four recommendations.

    >FEMA Needs to Improve Management of its Flood Mapping Program         		2017
    OIG-17-18-D We determined the Town did not always account for and expend FEMA grant funds according to Federal regulations and FEMA guidelines.  Therefore, FEMA should disallow $2.0 million of $3.59 million in grant funds awarded to the Town.  We made four recommendations to the Regional Administrator, FEMA Region I, to disallow ineligible or unsupported costs and improve the State’s grant management activities.

    >FEMA Should Disallow $2.0 Million of $3.59 Million Awarded to Stratford, Connecticut         		2017
    OIG-17-106-D We determined that Downe Township did not always follow Federal procurement standards in awarding contracts for disaster work.  We recommended that FEMA disallow $832,040 of $2.5 million in grant funds awarded to the Township.  The Township did not have support for $445,385 of the questioned costs.  We also recommended that the Administrator, FEMA Region II, deobligate unused project costs, and withhold $2.3 million in funds requested for additional project work until New Jersey provides assurance that the Township complies with all Federal procurement standards for FEMA funded work.  FEMA Region II concurred with all of our recommendations.

    >Audit of FEMA Public Assistance Grant Funds Awarded to Downe Township, New Jersey         		2017
    OIG-17-16-VR We determined that the Colorado State Division of Homeland Security and Emergency Services’ additional technical assistance and continuous monitoring of Larimer County’s procurement and project-related activities are effective.  We also verified that the County can document and account for its disaster-related costs on a project-by-project basis and that its policies and procedures are adequate to account for FEMA grant funds according to Federal regulations and FEMA guidelines. Because the verification review did not identify any issues requiring further actions from FEMA, the report contains no recommendations and we consider this verification review closed.

    >Verification Review of Larimer County, Colorado, OIG Audit Report (OIG-15-34-D)         		2017
    OIG-17-108-D We determined that FEMA’s policies are not sufficient enough to prohibit unaccredited, unlicensed, unregistered, and non-state approved non-profit schools from receiving Public Assistance funds.  We made one recommendation for the FEMA Assistant Administrator for the Recovery Directorate to strengthen its policies and guidelines pertaining to non-profit schools eligibility for Public Assistance.  FEMA agreed with our finding and recommendation, and will take corrective action to resolve the recommendation by February 28, 2018; therefore, we consider the recommendation resolved and open.

    >FEMA Should Strengthen Its Policies and Guidelines for Determining Public Assistance Eligibility of PNP Schools         		2017
    OIG-17-17-D We determined that the Omaha Public Power District (OPPD) generally accounted for disaster costs on a project-by-project basis and adequately supported costs it claimed.  However, OPPD overstated the fringe benefit rate it applied to its labor costs on three large projects. We recommended that FEMA disallow $67,570 in ineligible costs and instruct Nebraska to ensure that OPPD calculates and applies its fringe benefit rate according to Federal cost principles and FEMA guidelines for all future disasters.  FEMA concurred with all three of our recommendations.

    >Omaha Public Power District in Nebraska Generally Accounted for and Expended FEMA Grant Funds Properly         		2017
    OIG-17-105-D We determined that the County’s accounting policies, procedures, and business practices appear adequate to account for FEMA grant funds according to Federal regulations and FEMA guidelines.  However, the County could benefit from Florida, as FEMA’s grant recipient, providing additional technical assistance and monitoring of its pending projects.

    >St. Johns County, Florida, Could Benefit from Additional Technical Assistance and Monitoring to Ensure St. Johns County, Florida, Could Benefit from Additional Technical Assistance and Monitoring to Ensure Compliance with FEMA Grant Requirements         		2017
    OIG-17-13-D We determined that of the 55 grant audit reports we issued in fiscal year 2015, 43 reports contained 154 recommendations resulting in potential monetary benefits of $1.734 billion. This amount included $457.46 million in questioned costs that we recommended FEMA disallow as ineligible or unsupported and $1.28 billion in cost avoidance, unused obligated funding, and unused funds at risk that we recommended FEMA put to better use. The eight program audits did not relate to specific grants. In three program audits, we deployed staff to major disasters to assess FEMA’s initial response to disasters. Another program audit related to technical assistance we provided during a disaster deployment. The remaining four program audits covered other FEMA programs or operations, contained six recommendations for improving FEMA programs or operations, and identified $1.6 million in potential monetary benefits.

    >Summary and Key Findings of Fiscal Year 2015 FEMA Disaster Grant and Program Audits         		2017
    OIG-17-27-MA We determined that the Contract Officer and Project Officer performed their duties according to Federal statutes, program guidance, and the IDIQ contract. In addition, there does not appear to be any internal control issues related to the segregation of duties related to contract purchases and receipt of goods.  We made no recommendations and FEMA concurred with our determination.

    >Management Advisory Report: Review of FEMA Region IV Strategic Source IDIQ Contract for Office Supplies (OIG-17-27-MA)         		2017
    OIG-17-07-D 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.

    >FEMA Should Recover $2.4 Million in Investment Gains Pennsylvania Improperly Earned on Federal Disaster Funds         		2017
    OIG-17-102-D We determined that the City followed Federal regulations and FEMA guidelines when accounting for FEMA funds; however, FEMA mistakenly obligated $587,538 of ineligible funding because of a mathematical error.  We made two recommendations to the Regional Administrator, FEMA Region IV, to disallow $587,538 as ineligible costs.  FEMA agreed with our finding and recommendations, and has taken corrective action to resolve both recommendations.  Therefore, we consider these recommendations resolved and closed with no further action required from FEMA.

    >Audit of FEMA Public Assistance Grant Funds Awarded to the City of Pensacola, Florida         		2017
    OIG-17-06-D For the projects we reviewed, we identified $1,771,894 (Federal share $1,328,921) of costs that FEMA should disallow.  We recommended that Regional Administrator, FEMA Region IV, disallow $1,771,894 of ineligible costs and direct the Florida Division of Emergency Management to monitor the County’s performance for compliance with Federal grant requirements on open projects.

    >FEMA Should Recover $1.8 Million of $5.5 Million in Public Assistance Grant Funds Awarded to Columbia County, Florida, for Tropical Storm Debby Damages         		2017

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

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