Summary and Key Findings of Fiscal Year 2016 FEMA Disaster Grant and Program Audits

FEMA did not manage disaster relief grants and funds adequately and did not hold grant recipients accountable for properly managing disaster relief funds. We continue to identify persistent problems such as improper contract costs, and ineligible and unsupported expenditures as examples of this continued failure. Over the 7-year period, FYs 2009 to 2015, we found $1.64 billion, or 15 percent, in questioned costs out of the $10.9 billion that we audited, which we recommended FEMA disallow as ineligible and unsupported costs. In FY 2016, we found $155.6 million2, or 23 percent, in questioned costs out of the $686 million that we audited, confirming that FEMA is not making progress managing disaster relief funds adequately. We continue to identify persistent problems throughout FEMA’s grant process, we are concerned that billions of tax payer dollars remain at risk.