Unsupported Payments Made to Policyholders Who Participated in the Hurricane Sandy Claims Review Process

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