The City of Kenner, Louisiana, Generally Accounted For and Expended FEMA Grant Funds Properly

The City of Kenner, Louisiana (City), received a $5.4 million FEMA Public Assistance grant award for August 2012 Hurricane Isaac damages. Our audit objective was to determine whether the City accounted for and expended FEMA funds according to Federal regulations and FEMA guidelines. The City generally accounted for and expended FEMA Public Assistance grant funds according to Federal requirements. However, FEMA should recover $148,500 of the $5.4 million award because the City claimed project costs that insurance covered. In addition, the City awarded 12 contracts totaling $3.1 million, without taking the required affirmative steps to ensure the use of small and minority firms, women’s business enterprises, and labor-surplus area firms when possible. As a result, FEMA has little assurance that these types of firms had sufficient opportunities to bid on federally funded work.