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Audits, Inspections, and Evaluations

Report Number Title Issue Date Fiscal Year
OIG-15-34-D Larimer County, Colorado (County) received a $22.5 million grant for damages from a September 2013 disaster. 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 requirements. The policies, procedures, and business practices of the County are not adequate to account for and expend Federal Emergency Management Agency (FEMA) grant funds according to all Federal requirements. As a result, the County is at risk of losing some or all of its FEMA-approved funding, which totaled $22.5 million as of June 2014.

>Larimer County, Colorado, Needs Assistance to Ensure Compliance with FEMA Public Assistance Grant Requirements 		2015
OIG-15-35-D The Imperial Irrigation District (District) received a $10.5 million award of Federal Emergency Management Agency (FEMA) Public Assistance grant funds for damages resulting from an April 2010 earthquake. We audited $7.8 million, or 74 percent of the total award. The District did not always account for and expend FEMA grant funds according to Federal requirements. The District awarded contracts totaling $3.6 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 no assurance that these types of firms had opportunities to bid on Federal work as Congress intended. The District’s claim also included $45,408 of ineligible contract costs and $1,473 of unsupported equipment costs. In addition, FEMA should deobligate $2.5 million and put those funds to better use because the District completed disaster work and no longer needs those funds.

>FEMA Should Recover $6.2 Million of Ineligible and Unused Grant Funds Awarded to the Imperial Irrigation District, California 		2015
OIG-15-30-D The City of Loveland, Colorado (City) received a $21.1 million grant for damages from a September 2013 disaster. 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 generally has established policies, procedures, and business practices to adequately account for and expend FEMA Public Assistance Program grant funds according to Federal regulations and FEMA guidelines. However, we identified areas related to accounting, procurement, and insurance in which the City needs to improve its procedures to ensure compliance with Federal requirements for the $21.1 million Federal disaster award.

>The City of Loveland, Colorado, Could Benefit from Additional Assistance in Managing its FEMA Public Assistance Grant Funding 		2015
OIG-15-08 Although Ohio took steps in recent years to improve its management of funds awarded under the HSGP, the Federal Emergency Management Agency (FEMA) cannot be assured that Ohio effectively managed grant funds from fiscal years (FY) 2010 through 2012. Specifically, Ohio needs to improve its performance measures, the accounting for grant funds, the timeliness of releasing funds to subgrantees, and its monitoring of subgrantees, including their procurement and property management practices. Although we identified many of these same challenges in two previous audits of Ohio’s management of HSGP funding, FEMA has not changed its oversight practices to target Ohio’s areas of repeated deficiencies. Ohio continues to disregard some Federal regulations and grant guidance. Consequently, the State may be limited in its ability to prevent, prepare for, protect against, and respond to natural disasters, acts of terrorism, and other manmade disasters.

>Ohio’s Management of Homeland Security Grant Program Awards for Fiscal Years 2010 Through 2012 (Revised) 		2015
OIG-15-19-D We received two Office of Inspector General (OIG) Hotline complaints about insurance reviews of Florida disaster assistance applicants. In addition, three OIG audits of Florida grant recipients raised similar concerns. The quality of FEMA’s insurance reviews in Florida was not adequate to maximize insurance available under applicants’ policies and to ensure that duplication of benefits did not occur. FEMA’s Florida Recovery Office knew about these deficiencies in its insurance review process but did not correct them. As a result, FEMA may have funded up to $177 million that insurance should have covered.

>FEMA Insurance Reviews of Applicants Receiving Public Assistance Grant Funds for 2004 and 2005 Florida Hurricanes Were Not Adequate 		2015
OIG-15-15-D The Gulf Coast Mental Health Center (Center) received an award of $2.1 million from the Mississippi Emergency Management Agency, a Federal Emergency Management Agency (FEMA) grantee, for damages resulting from Hurricane Katrina, which occurred in August 2005. Our audit objective was to determine whether the Center accounted for and expended FEMA funds according to Federal regulations and FEMA guidelines. The Center generally accounted for and expended FEMA funds according to Federal regulations and FEMA guidelines. However, we identified $61,200 of duplicate benefits for costs recoverable from another source. This amount represented about 4 percent of the $1.4 million we reviewed for five projects.

>Gulf Coast Mental Health Center, Mississippi, Generally Accounted for and Expended FEMA Public Assistance Grant Funds According to Federal Requirements 		2015
OIG-15-14 This report responds to the annual reporting requirement and summarizes 18 audits completed in fiscal year 2014. The audits included about $447 million in State Homeland Security Program and Urban Areas Security Initiative grants awarded by the Federal Emergency Management Agency (FEMA) to 13 states, 4 territories, and the District of Columbia during 3-year periods between fiscal years 2009 and 2012. During fiscal year 2014, we issued reports for Alabama, Alaska, American Samoa, Delaware, District of Columbia, Guam, Hawaii, Idaho, Iowa, Maine, New Hampshire, North Dakota, Northern Mariana Islands, Oregon, Puerto Rico, South Dakota, Vermont, and Wyoming. In most instances, the states and urban areas administered grant programs efficiently and effectively and in compliance with grant guidance and regulations. We also identified one innovative practice that other jurisdictions could consider using. We identified two major areas for improvement: strategic planning and oversight of grant activities. We also identified about $14.5 million in questioned costs.

>Annual Report to Congress on States’ and Urban Areas’ Management of Homeland Security Grant Programs Fiscal Year 2014 		2015
OIG-15-12-D The District received a Public Assistance grant award of $4.9 million for damages resulting from Hurricane Katrina, which occurred in August 2005. Our audit objective was to determine whether the District accounted for and expended FEMA grant funds according to Federal regulations and FEMA guidelines. For the projects we reviewed, the Gulfport School District, Mississippi, (District) properly accounted for and expended FEMA funds according to Federal regulations and FEMA guidelines.

>Gulfport School District, Mississippi, Properly Accounted for and Expended FEMA Public Assistance Grant Funds Awarded for Hurricane Katrina Damages 		2015
OIG-15-06-D Between 1994 and 2013, FEMA operated seven Long Term Recovery Offices. FEMA obligated and spent more than $4 billion in administrative costs and more than $1 billion in salaries for these offices. Our audit objective was to determine whether FEMA’s policies, procedures, and performance measures for establishing, operating, and closing Long Term Recovery Offices meet Federal statutes and are consistently applied. FEMA does not track costs or data associated with performance measures for Long Term Recovery Offices. Without tracking costs or data, FEMA cannot determine whether these offices are cost effective. FEMA establishes, operates, and closes Long Term Recovery Offices without standardized policies, procedures, and performance measures. Without these controls in place, FEMA is at risk for mismanagement of Federal disaster funds and cannot ensure consistency in establishing and managing these offices. Correcting these deficiencies will provide FEMA the information and guidance it needs to determine whether Long Term Recovery Offices are cost effective. In addition, FEMA can better ensure consistency in establishing and managing these offices.

>FEMA Needs To Track Performance Data and Develop Policies, Procedures, and Performance Measures for Long Term Recovery Offices 		2015
OIG-15-03-D The County received over $24 million in Public Assistance awards for three federally declared flooding events. Our objective was to determine whether the County accounted for and expended FEMA grant funds according to Federal regulations and FEMA guidelines. The County has procedures in place to account for disaster-related costs on a project-by-project basis. The County however, has completed very little of the work FEMA approved for the three federally declared disasters. At the time of our field work, the County did not have sufficient records available for us to determine whether the County is fully capable of managing the three Federal grants.

>The State of North Dakota Needs to Assist Ramsey County in Completing $24 Million of FEMA Public Assistance Projects for Three Federally Declared Disasters that Occurred in 2009–2011 		2015
OIG-15-01-D The Administrators of the Tulane Educational Fund(Tulane) received a Federal Emergency Management Agency (FEMA) Public Assistance award of $291.9 Million for damages caused by Hurricane Katrina in August 2005. The objective our audit was to determine whether Tulane accounted for and expended the FEMA grant funds correctly. Tulane’s contractor could not support or justify $13.0 million of the $36.1 million (gross) that we audited. These findings occurred because (1) the contractor could not show that it actually incurred the costs that it billed Tulane; (2) Tulane did not ensure that its contractor’s billings were valid, eligible, and supported; and (3) Louisiana, as the grantee, did not effectively execute its responsibilities to ensure compliance with Federal regulations and FEMA guidelines.

>FEMA Should Recover $13 Million of Grant Funds Awarded to The Administrators of the Tulane Educational Fund, New Orleans, Louisiana 		2015
OIG-15-02-D The Hospital received an award of $110 million from the Indiana Department of Homeland Security, a FEMA grantee, for damages caused by severe storms and flooding that occurred May 30, through June 27, 2008. Our objective of the audit was to determine whether the Hospital accounted for and expended FEMA grant funds according to federal regulations and FEMA guidelines. Columbus Regional Hospital, Columbus Indiana, (Hospital) generally accounted for FEMA projects on a project-by-project basis as Federal regulations and FEMA guidelines require. However, the Hospital’s claim included ineligible costs.

>FEMA Should Recover $3 Million of Ineligible Costs And $4.3 Million of Unneeded Funds from the Columbus Regional Hospital 		2015
OIG-14-147 HSGP guidance requires a state administrative agency to administer and manage grant funding awarded under the HSGP. According to the District of Columbia Homeland Security and Emergency Management Agency (DCHSEMA), in March 2007, it was designated as the state administrative agency for HSGP. As such, DC HSEMA is responsible for managing the SHSP and UASI grants in accordance with established Federal guidelines. DC HSEMA was allocated SHSP grant funds for the District of Columbia, as well as UASI grant funds for the National Capital Region (NCR). During fiscal years (FYs) 2010 through 2012, FEMA awarded the DC HSEMA SHSP and UASI grant funds totaling about $189 million. Figure 1 illustrates the UASI funding the NCR received and the SHSP funding the District of Columbia received over the 3 year period. UASI funding for the NCR averaged about $57 million per year during FYs 2010 through 2012, the period covered by our audit. The District of Columbia received its highest level of SHSP funding in FY 2010, but faced a decline of more than $7 million from FYs 2010 to 2012

>District of Columbia’s Management of Homeland Security Grant Program Awards for Fiscal Years 2010 Through 2012 		2014
OIG-14-151 We audited the Federal Emergency Management Agency’s (FEMA) Logistics Supply Chain Management System program. According to FEMA, the Logistics Supply Chain Management System replaced its earlier logistics operations systems to automate and track distribution better and deliver emergency supplies more dependably. FEMA also intended for the system to help track supplies provided by partners in other Federal agencies; nongovernmental organizations; state, local, and tribal governments; and the private sector. Our audit objective was to determine whether FEMA’s Logistics Supply Chain Management System is able to support Federal logistics operations effectively in the event of a catastrophic disaster. After spending about $247 million over 9 years, FEMA cannot be certain that its supply chain management system will be effective during a catastrophic disaster. FEMA estimated that the life cycle cost of the system would be about $556 million—$231 million more than the original life cycle cost estimate. According to FEMA, the Logistics Supply Chain Management System became fully operational in January 2013, which was about 19 months behind schedule. However, the system could not perform as originally planned. Specifically, it cannot interface with the logistics management systems of FEMA’s partners, nor does FEMA have real time visibility over all supplies shipped by its partners. As of March 2014, the Logistics Supply Chain Management System still had not achieved full operational capability. We attribute these deficiencies to inadequate program management and oversight by the Department of Homeland Security (DHS) and FEMA. As a result, FEMA may not be able to efficiently and effectively aid survivors of catastrophic disaster.

>FEMA’s Logistics Supply Chain Management System May Not Be Effective During a Catastrophic Disaster 		2014
OIG-14-146-D The County received a Public Assistance award of $6.2 million from the Georgia Emergency Management Agency (Georgia), a FEMA grantee, for damages resulting from tornadoes and strong winds, which occurred in April 2011. The award provided 75 percent FEMA funding for debris removal activities and emergency protective measures. The award consisted of 5 large projects and 14 small projects

>Catoosa County, Georgia, Effectively Managed FEMA Public Assistance Grant Funds Awarded for Severe Storms and Flooding in April 2011 		2014
OIG-14-148-D he Louisiana Governor’s Office of Homeland Security and Emergency Preparedness (Louisiana), a FEMA grantee, awarded the Foundation $11.2 million for damages resulting from Hurricane Katrina, which occurred on August 29, 2005. The award provided 100 percent funding for 12 large projects.1 The audit covered the period August 29, 2005, through January 9, 2014, the cutoff date of our audit, and included a review of 12 large projects totaling $11.2 million, or all projects (see Exhibit, Schedule of Projects Audited).2 At the time of our audit, the Foundation had completed all 12 projects and had claimed $5.3 million, but had not requested any projects be closed. Therefore, all of the projects remained open.

>FEMA Should Disallow $9.6 Million of Disaster-Related Costs Incurred by the University of New Orleans Research and Technology Foundation, New Orleans, Louisiana 		2014
OIG-14-149-D We audited Public Assistance grant funds awarded to the East St. Tammany Events Center (Center) in Slidell, Louisiana, (Public Assistance Identification Number 103-USUFP-00). Our audit objective was to determine whether the Center accounted for and expended Federal Emergency Management Agency (FEMA) grant funds according to Federal regulations and FEMA guidelines. The Louisiana Governor’s Office of Homeland Security and Emergency Preparedness (Louisiana), a FEMA grantee, awarded the Center $3.7 million ($2.8 million after insurance reductions) for damages resulting from Hurricane Katrina, which occurred on August 29, 2005. The award provided 100 percent funding for four large and nine small projects. 1 The audit covered the period August 29, 2005, through July 31, 2014, the cutoff date of our audit, and included a review of all projects, or 100 percent of the total award (see Exhibit, Schedule of Projects Audited). As of our cutoff date, the Center had claimed $2.7 million and had completed all projects.

>East St. Tammany Events Center Generally Followed Regulations for Spending FEMA Public Assistance Funds 		2014
OIG-14-150-D We audited Hazard Mitigation Grant Program (HMGP) funds the Federal Emergency Management Agency (FEMA) awarded to the State of Louisiana from September 2005 through March 2014. Our objectives were to determine (1) the amount of HMGP funds FEMA authorized; (2) the amount of HMGP funds FEMA obligated; and (3) the progress the Governor’s Office of Homeland Security and Emergency Preparedness (Louisiana), a FEMA grantee, is making in closing approved HMGP grants.

>FEMA and the State of Louisiana Need to Accelerate the Funding of $812 Million in Hazard Mitigation Grant Program Funds and Develop a Plan to Close Approved Projects ( 		2014
OIG-14-152-D Our audit objective was to determine whether the Utility District accounted for and expended Federal Emergency Management Agency (FEMA) funds according to Federal regulations and FEMA guidelines. The Utility District received a Public Assistance grant award of $2.5 million from the Mississippi Emergency Management Agency (Mississippi), a FEMA grantee, for damages resulting from Hurricane Katrina, which occurred in August 2005. The award provided 100 percent FEMA funding for debris removal activities, emergency protective measures, and repairs to permanent buildings and facilities. The award consisted of three large projects and six small projects.

>West Jackson County Utility District, Mississippi, Effectively Managed FEMA Public Assistance Grant Funds Awarded for Hurricane Katrina Damages 		2014
OIG-14-145-D We audited Public Assistance grant funds awarded to the City of Cedar Rapids, Iowa (City) (Public Assistance Identification Number 113-12000-00). Our overall audit objective was to determine whether the City accounted for and expended Federal Emergency Management Agency (FEMA) grant funds according to Federal regulations and FEMA guidelines. The specific objective of this phase of the audit was to determine whether FEMA (1) correctly applied the "50 Percent Rule" when deciding to replace, rather than repair, City facilities, and (2) properly approved facility relocations.

>FEMA’s Incorrect Decisions to Replace Rather than Repair Facilities in Cedar Rapids, Iowa Cost Taxpayers Over $12 Million 		2014
OIG-14-143-D Our audit objective was to determine whether the Village’s policies, procedures, and business practices are adequate to account for and expend Federal Emergency Management Agency (FEMA) grant funds according to Federal regulations and FEMA guidelines. We conducted this audit early in the Public Assistance process to identify areas where the Village may need additional technical assistance or monitoring to ensure compliance. In addition, by undergoing an audit early in the grant cycle, grant recipients have the opportunity to correct non-compliance with Federal regulations before they spend the majority of their funding. It also allows them the opportunity to supplement deficient documentation or locate missing documentation before too much time elapses.

>The Village of Corrales, New Mexico, Needs Assistance to Ensure Compliance with FEMA Public Assistance Grant Requirements 		2014
OIG-14-141-D Our audit objective was to determine whether the Department’s policies, procedures, and business practices are adequate to account for and expend Federal Emergency Management Agency (FEMA) grant funds according to Federal regulations and FEMA guidelines. 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. In addition, by undergoing an audit early in the grant cycle, grant recipients have the opportunity to correct non-compliance with Federal regulations before they spend the majority of their funding. It also allows them the opportunity to supplement deficient documentation or locate missing documentation before too much time elapses.

>New York City Department of Correction Has Adequate Policies, Procedures, and Business Practices in Place to Effectively Manage FEMA Public Assistance Grant Funds 		2014
OIG-14-136-D Our audit objective was to determine whether the City's policies, procedures, and business practices are adequate to account for and expend Federal Emergency Management Agency (FEMA) grant funds according to Federal regulations and FEMA guidelines. We conducted this audit early in the Public Assistance process to identify areas where the City may need additional technical assistance or monitoring to ensure compliance. In addition, by undergoing an audit early in the grant cycle, grant recipients have the opportunity to correct non-compliance with Federal regulations before they spend the majority of their funding.

>The City of Albuquerque, New Mexico, Needs Assistance to Ensure Compliance with FEMA Public Assistance Grant Requirements 		2014
OIG-14-134-D During 2004, the Louisiana Legislative Auditor and our office issued Audit reports on the State’s management of the Hazard Mitigation, Unmet Needs, and Flood Mitigation Assistance grant programs. The scope of our 2004 audit included funding for the Hazard Mitigation Grant Program and Unmet Needs programs totaling $40,524,912 in Direct project costs and administrative and management costs from Eight disasters declared between September 1998 and October 2002. We recommended that, among other actions, FEMA identify and deobligate any ineligible, unsupported, or duplicate funding. In March 2005, as a result of our recommendations, FEMA Region VI started the process of recouping $30.4 million from the State. By May 2007, the State had provided FEMA Region VI with sufficient documentation to reduce the original debt from $30.4 million to $26.6 million. In July 2010, the Regional Administrator, after applying cost overruns, reduced the debt to $23.1 million and referred it to the FEMA Finance Center in September 2010 for issuance of the Bill for Collection. In January 2012, the FEMA Finance Center transferred the debt to Treasury. As of May 2014, Treasury still held the uncollected debt.

>FEMA’s Efforts To Collect a $23.1 Million Debt from the State of Louisiana Should Have Been More Aggressive 		2014
OIG-14-133-D Our audit objective was to determine whether the Corporation accounted for and expended Federal Emergency Management Agency (FEMA) grant funds according to Federal regulations and FEMA guidelines. Although it has been almost 9 years since Hurricane Katrina, the Corporation has not spent the majority of its funding. Therefore, we expanded our audit objective to determine whether its policies, procedures, and business practices are adequate to properly account for and expend FEMA grant funds. Our goal was to identify areas where the Corporation may need additional technical assistance or monitoring to correct noncompliance with Federal regulations before it spends the majority of its funding

>Louisiana Should Monitor $39.8 Million of FEMA Funds Awarded to Pontchartrain Housing Corporation I to Ensure Compliance with Federal Regulations 		2014
OIG-14-130-D At the time of audit fieldwork, the New Jersey Office of Emergency Management (New Jersey), a FEMA grantee, had awarded the City just over $18 million for damages resulting from Hurricane Sandy, which occurred on October 29, 2012. The award provided 90 percent funding for debris removal (Category A), emergency protective measures (Category S), and permanent work {Categories C-G) for nine projects (eight large projects and one small).1 We included five of the nine projects totaling $16.8 million or 93 percent of the award in our review (see Exhibit, Schedule of Projects Reviewed). The audit covered the period October 26, 2012, through April 9, 2014. At the time of our fieldwork, the City had not submitted any claims to New Jersey for work under the projects in our audit scope.

>The City of Elizabeth, New Jersey, Has Adequate Policies, Procedures, and Business Practices in Place to Effectively Manage FEMA Public Assistance Grant Funds 		2014
OIG-14-127-D Our audit objective was to determine whether the County accounted for and expended Federal Emergency Management Agency {FEMA) funds according to Federal regulations and FEMA guidelines. The County received a Public Assistance grant award of $87.7 million from the Mississippi Emergency Management Agency (Mississippi), a FEMA grantee, for damages resulting from Hurricane Katrina, which occurred in August 2005. The award provided 100 percent FEMA funding for debris removal, emergency protective measures, and permanent repairs to buildings and facilities. The award consisted of 126 large projects 1 and 109 small projects.

>FEMA Should Recover $4.9 Million of $87.7 Million in Public Assistance Grant Funds Awarded to the Hancock County, Mississippi, Board of Supervisors for Hurricane Katrina Damages 		2014
OIG-14-128-D We conducted this audit early in the Public Assistance process to identify areas where the Pueblo may need additional technical assistance or monitoring to ensure compliance. In addition, by undergoing an audit early n the grant cycle, grant recipients have the opportunity to correct noncompliance with Federal regulations before they spend the majority of their funding. It also allows them the opportunity to supplement deficient documentation or locate missing documentation before too much time elapses. Our audit covered the period July 19, 2013, through January 28, 2014. At the time of our audit,FEMA estimated the Pueblo, a FEMA grantee, sustained approximately $7.4 million in damages from two disasters.

>Santa Clara Pueblo, New Mexico, Needs Assistance to Ensure Compliance with FEMA Public Assistance Grant Requirements 		2014
OIG-14-125-D We audited Federal Emergency Management Agency (FEMA) Public Assistance grant funds awarded to the City of Flagstaff, Arizona (City), Public Assistance Identification Number 005-23620-00. Our audit objective was to determine whether the City accounted for and expended FEMA grant funds according to Federal regulations and FEMA guidelines. The Arizona Division of Emergency Management (Arizona), a FEMA grantee, warded the City $3.5 million for damages resulting from severe storms and flooding during the incident period of July 20, to August 7, 2010. The award provided 75 percent FEMA funding for one large project and four small projects. The audit covered the period of July 20, 2010, to August 8, 2013. We audited the one large project (Project 12) for a total of $3.3 million or 97 percent of the award. At the time of our audit, the City had ompleted work on the large project and submitted its final claim to Arizona. However, Arizona had not completed its review of the City’s final claim; therefore, the project remained open.

>City of Flagstaff, Arizona, Generally Accounted for and Expended FEMA Grant Funds Properly, But FEMA Should Disallow $124,443 and Deobligate $57,941 of Public Assistance Grant Funds 		2014
OIG-14-123-D Applying FEMA’s 50 percent repair or replace rule correctly can be very difficult and susceptible to error, misinterpretation, and manipulation. Our audit results have demonstrated that millions of dollars are at risk from incorrect 50 percent repair or replace rule decisions. In fiscal years 2012 and 2013, we recommended FEMA disallow over $100 million of costs that resulted from questionable 50 percent repair or replace decisions in five audits. In those audits, FEMA made the replace decisions based on collective 50 Percent Rule estimates of $31 million for repairs and $50 million for replacements (based on FEMA’s application of its policy). Due to various problems we identified, we ultimately recommended that FEMA should have paid $226 million to repair facilities, instead of $327 million to replace them. In our discussions with FEMA officials, they acknowledged the difficulties involved in reversing replacement decisions after they had communicated those decisions to grant recipients.

>FEMA's Progress in Clarifying its "50 Percent Rule" for the Public Assistance Grant Program 		2014
OIG-14-124-D We audited Public Assistance funds awarded to Cobb County, Georgia (County) (FIPS Code 067-99067-00). Our audit objective was to determine whether the County accounted for and expended Federal Emergency Management Agency (FEMA) funds according to Federal regulations and FEMA guidelines. The County received a Public Assistance grant award of $7.7 million from the Georgia Emergency Management Agency (Georgia), a FEMA grantee, for damages resulting from severe storms and flooding, which occurred in September 2009. The award provided 75 percent FEMA funding for debris removal, emergency protective measures, and permanent repairs to buildings and facilities. The award consisted of 32 large projects and 184 small projects.

>FEMA Should Recover $985,887 of Ineligible and Unneeded Public Assistance Grant Funds Awarded to Cobb County, Georgia, as a Result of Severe Storms and Flooding 		2014
OIG-14-120-D We audited Public Assistance grant funds awarded to New York City’s Department of Transportation (Department) in New York, New York (Public Assistance Identification Number 061-51000-51). Our audit objective was to determine whether the Department’s policies, procedures, and business practices were adequate to account for and expend Federal Emergency Management Agency (FEMA) grant funds according to Federal regulations and FEMA guidelines. We conducted this audit early in the Public Assistance process with the goal of identifying areas where the Department may need additional technical assistance or monitoring. In addition, proactively auditing grant recipients early in the grant cycle allows them the opportunity to correct non-compliance with Federal regulations before they spend the majority of their funding. It also allows them the opportunity to supplement deficient

>New York City’s Department of Transportation Needs Assistance to Ensure Compliance with Federal Regulations 		2014
OIG-14-121-D We audited Hazard Mitigation Grant Program funds awarded to the Puerto Rico Department of Housing (FIPS Code 000-92151) following Hurricane Georges in September 1998. We conducted the audit at the request of FEMA Region II to facilitate FEMA's closeout of the grant. The Puerto Rico Department of Housing (Department) received a Hazard Mitigation Grant Program award of $165.3 million from the Puerto Rico Office of Management and Budget (Puerto Rico), a Federal Emergency Management Agency (FEMA) grantee, to implement the New Secure Housing Program. The award provided 75 percent FEMA funding under the New Secure ousing Program and 100 percent under the Emergency Home Repairs Program.

>The Puerto Rico Department of Housing Generally Complied with FEMA Hazard Mitigation Grant Program Eligibility Requirements for Participants of the New Secure Housing Program – Hurricane Georges 		2014
OIG-14-118-D The objective of this aspect ofthe audit was to determine FEM A's efficiency and effectiveness to register non-English/Spanish-speaking disaster survivor$ for disaster assistance and provide them with information through its Helpline. We reviewed the capabilities, management, and policies and procedures of FEMA's Disaster Assistance Helpline from September 2013 to June 2014. To accomplish our objective, we interviewed FEMA officials from the Response and Recovery Division, the National Service Processing Center, Disaster Affairs, External Affairs, Strategic Communications, Public Affairs, and the Helpline itself (operators); reviewed policies, procedures, processes, executive orders, strategy documents, as well as FEMA's limited English Proficiency efforts, as they relate to the Helpline; analyzed the efficiency, effectiveness, and accessibility of the Helpline through covert testing; and performed other procedures necessary to accomplish our objective. We did not assess internal controls related to FEMA's Helpline because it was not necessary to accomplish our objective.

>FEMA Should Take Steps To Improve the Efficiency and Effectiveness of the Disaster Assistance Helpline for Disaster Survivors That Do Not Speak English or Spanish 		2014
OIG-14-114-D We audited Public Assistance grant funds awarded to Jefferson County, Alabama, (County) (FIPS Code 073-99073-00). The County received a Public Assistance award of $17.7 million from the Alabama Emergency Management Agency (Alabama), a FEMA grantee, for damages resulting from tornados, straight-line winds, and flooding that occurred in April 2011. The award provided 90 percent FEMA funding for debris removal activities; emergency protective measures; repair/replacement of vehicles; and repairs to buildings and other facilities. The award consisted of 12 large projects and 8 small projects. We audited all projects, or 100 percent of the $17.7 million award (see Exhibit, Schedule of Projects Audited and Questioned Costs). The audit covered the period April 15, 2011, to August 27, 2013, during which the County claimed $17.7 million.

>FEMA Should Recover $3.9 Million of Public Assistance Grant Funds Awarded to Jefferson County, Alabama, as a Result of Severe Storms in April 2011 		2014
OIG-14-115-D We audited Public Assistance grant funds awarded to New York City’s Department of Design and Construction (Department) in New York, New York (Public Assistance Identification Number 081-51000-19). The New York State Division of Homeland Security and Emergency Services (New York), a FEMA grantee, awarded the Department $13.3 million for d amages resulting from Hurricane Sandy, which occurred on October 29, 2012. The award provided 90 percent funding for two projects—one large debris removal project (Category A) and one large permanent work project (Category C).1 We audited both large projects for the period October 29, 2012, through June 27, 2013 (see exhibit). As of June 2014, the Department had completed all work under the award, but had not yet submitted its final claim to the grantee or FEMA. Therefore, the projects remain open.

>New York City’s Department of Design and Construction Needs Assistance To Ensure Compliance with Federal Regulations 		2014
OIG-14-111-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 Colorado Flood 		2014
OIG-14-109-D The California Governor's Office of Emergency Services {California), a FEMA grantee, awarded the District $3.4 million for damages resulting from severe storms, flooding, mudslides, and landslides from December 17, 2005, through January 3, 2006. The award provided 75 percent FEMA funding for one large project and two small projects.1 The audit covered the period December 17, 2005, to January 8, 2014. We audited all three projects, or 100 percent of the claim, totaling $4.1 million (see exhibit).2 Table 1 shows the gross and net award (before and after FEMA deducted anticipated insurance proceeds) for all projects. As of the date of this report, California was preparing to review the District's final claim.

>FEMA Should Recover $258,488 of Public Assistance Grant Funds Awarded to the Graton Community Services District, California 		2014
OIG-14-110-D The State of Oklahoma (Oklahoma) lies in the heart of “Tornado Alley” and experiences the mos t tornado dis as ters nationwide. In a s pan of 15 days , from May 18 to June 2, 2013, the Oklahoma City area perienced tornadoes, high winds, and floods, resulting in 48 fatalities and more than 508 injuries. On May 20, 2013, the President issued a major dis as ter declaration for Oklahoma. On May 28, 2013, the Office of Inspector General deployed an Emergency Management Overs ight Team to the Joint Field Office in Oklahoma City, Oklahoma. The Emergency Management Overs ight Team s erves as an independent unit for overs ight of disaster response and recovery activities and provides FEMA an additional res ource for proactive evaluation to prevent and detect systemic problems in Federal assistance programs.

>Mitigation Planning Shortfalls Precluded FEMA Hazard Mitigation Grants to Fund Residential Safe Room Construction During the Disaster Recovery Phase 		2014
OIG-14-106-D Between May 17, and June 11, 2013, a severe flood damaged six Regional Educational Attendance Areas in Alaska.Regional Educational Attendance Areas are political subdivisions within Alaska. On June 25, 2013, the President issued a Major Disaster Declaration for Alaska that authorized FEMA to provide Individual Assistance and Public Assistance to four Regional Educational Attendance Areas. Individual Assistance includes Other Needs Assistance, which provides additional financial aid such as replacement of household items for those uninsured or under insured survivors who are unable to meet these needs through other means

>FEMA's Response to the Disaster in Galena, Alaska 		2014
OIG-14-107-D The Louisiana Governor’s Office of Homeland Security and Emergency Preparedness (Louisiana), a FEMA grantee, awarded Desire Street Ministries $10.1 million for damages resulting from Hurricane Katrina, which ccurred on August 29, 2005. The award provided 100 percent funding for five large and two small projects. The audit covered the period August 29, 2005, through November 1, 2012, the cutoff date of our audit and ncluded a review of all projects (see Exhibit A, Schedule of Projects Audited and Questioned Costs). As of our cutoff date, Desire Street Ministries had claimed $1.8 million, but had not completed all its approved projects. Subsequently, in December 2012, Desire Street Ministries requested approval for an alternate project to build a community wellness center, rather than replace its school building. FEMA approved the alternate project in January 2014. Therefore, for this alternate project, we extended our audit cutoff date to January 23, 2014. Desire Street Ministries had started the design phase for the community wellness center, but had not started construction.

>FEMA Should Recover $1.3 Million of Public Assistance Grant Funds Awarded to Desire Street Ministries, New Orleans, Louisiana, for Hurricane Katrina ( 		2014
OIG-14-102-D This is the fifth annual Capping Report we have issued that summarizes the results of the PA program and HMGP grant and subgrant audits we conducted throughout the year. Each year, our audits reveal significant issues representing millions of dollars in findings and recommendations to FEMA. We focus our audits on FEMA’s PA and HMGP grant funds, which are funded from the Disaster Relief Fund. The PA program and HMGP provide a means for response, recovery, and mitigation from disasters. Through the PA program, FEMA provides grants to State, tribal, and local governments, and certain types of private nonprofit organizations so that communities can quickly respond to and recover from major disaster or emergency declarations. FEMA’s HMGP provides recovery from a declared disaster by also providing grants to State, tribal, and local overnments, and certain types of private nonprofit organizations to implement long ‐ term hazard mitigation measures after a major disaster declaration.

>Capping Report: FY 2013 FEMA Public Assistance and Hazard Mitigation Grant and Subgrant Audits 		2014
OIG-14-103-D At the time of our audit fieldwork, the California Governor's Office of Emergency Services (State), a FEMA grantee, was in the process of drafting the County's Project Worksheets with an estimated total award of $4.4 million for damages resulting from wildfires. The incident period for the declared disaster was from August 17, 2013, through October 24, 2013. The award will provide 75 percent funding for debris removal (Category A), emergency protective measures (Category B), and permanent work on roads and bridges and utilities (Categories C and F, respectively) for six large and two small projectsl We reviewed two of the six large projects totaling $1.2 million, or 28 percent of the projected FEMA award. The audit covered the period from August 17, 2013, through March 13, 2014. At that time, the County had not yet claimed any disaster related costs.

>Tuolumne County, California, Has Policies, Procedures, and Business Practices in Place Adequate To Manage FEMA Public Assistance Grant Funds 		2014
OIG-14-104-D The Hawaii State Civil Defense (State), a FEMA grantee, awarded the University $22,488,551 for costs resulting from severe floods and flash flooding on October 30, 2004. The award provided 75 percent FEMA funding for 32 large projects and 51 small projects. Our audit covered the period from October 2004 to December 2011, the date FEMA closed the University's subgrant application. We 11udited eight large projects, with total costs of $24,595,158 ($16, 772,672 after insurance reductions). We decided to audit this grant, in part, due to the significant amount of funds associated with the grant; the delay from when the disaster occurred to its declaration; and other issues that came to our attention pertaining to the University's accounting and procurement practices.

>FEMA Should Recover $764,968 of Public Assistance Program Grant Funds Awarded to the University of Hawaii, Honolulu, Hawaii 		2014
OIG-14-101-D The College received a Public Assistance grant award of $5.9 million from the Mississippi Emergency Management Agency (State), a FEMA grantee, for damages resulting from Hurricane Katrina, which occurred in August 2005. The award provided 100 percent FEMA funding for debris removal, emergency protective measures, and permanent repairs to buildings and facilities. The award consisted of 25 large projects and 22 small projects. We audited two large projects with awards totaling $5.5 million (see Exhibit, Schedule of Projects Audited). The audit covered the period of August 29, 2005, to September 5, 2013, during which the College laimed $5.4 million in FEMA funds for the two projects. At the time of our audit, the College had not completed work on all projects and, therefore, had not submitted a final claim to the State for all project expenditures.

>Pearl River Community College, Mississippi, Properly Accounted for and Expended FEMA Public Assistance Grant Funds Awarded under Hurricane Katrina 		2014
OIG-14-95-D We audited Public Assistance funds awarded to St. Stanislaus College Preparatory (St. Stanislaus) located in Bay Saint Louis, Mississippi (FIPS Code 045-22226-00). St. Stanislaus received a Public Assistance grant award of $26.6 million from the Mississippi Emergency Management Agency (State), a FEMA grantee, for damages resulting from Hurricane Katrina, which occurred in August 2005. The award provided 100 percent FEMA funding for debris removal activities, emergency protective measures, and repairs to permanent buildings and facilities. The award consisted of 26 large projects and 11 small projects. We audited four large projects with awards totaling $11.2 million (see Exhibit, Schedule of Projects Audited and Questioned Costs). The audit covered the period of August 29, 2005, to February 19, 2013, during which St. Stanislaus claimed $12.2 million in FEMA funds for the four projects. At the time of our audit, St. Stanislaus had not completed work on all projects and, therefore, had not submitted a final claim to the State for all project expenditures.

>FEMA Should Recover $8.0 Million of $26.6 Million in Public Assistance Grant Funds Awarded to St. Stanislaus College Preparatory in Mississippi – Hurricane Katrina 		2014
OIG-14-91-D The objective of the audit was to determine the efficiency and effectiveness of FEMA policies and procedures concerning disaster grant costs associated with permanently relocated facilities. Specifically, we determined whether (1) FEMA’s present policies and procedures effectively address how FEMA should use program income to offset permanently relocated facility costs; and (2) internal controls were in place to identify when applicants receive program income to offset permanently relocated facility costs. The audit included a review of costs for permanently relocated damaged facilities in Mississippi and Louisiana for Hurricane Katrina and in Texas for Hurricane Ike.

>FEMA Could Realize Millions in Savings by Strengthening Policies and Internal Controls Over Grant Funding for Permanently Relocated Damaged Facilities 		2014
OIG-14-100-D From May 18 to 20, 2013, Oklahoma City, Oklahoma, and surrounding counties experienced severe storms and tornadoes, including an EF-5 tornado that struck the City of Moore on May 20, 2013. The EF-5 tornado damaged nearly 2,400 residential homes, of which at least 1,100 appeared to be totally destroyed, leaving nothing but debris and wreckage. As a result of the severe storms and tornadoes, Oklahoma reported 26 fatalities and more than 387 injuries. On May 20, 2013, the President declared a major disaster with an incident period beginning on May 18, 2013, and extending to June 2, 2013

>FEMA’s Slab Removal Waiver in Oklahoma 4117-DR-OK 		2014
OIG-14-77 We contracted with the independent public accounting firm KPMG LLP (KPMG) to conduct the audit of the DHS’ FY 2013 financial statements and internal control over financial reporting. The contract required that KPMG perform its audit according to generally accepted government auditing standards and guidance from the Office of Management and Budget and the Government Accountability Office. KPMG is responsible for the attached management letter dated January 15, 2014, and the conclusions expressed in it.

>Federal Emergency Management Agency's Management Letter for FY 2013 DHS Financial Statements Audit 		2014
OIG-14-72-D We audited one large project (Project 150) for debris removal activities with an award totaling $5.4 million. The audit covered the period from October 29, 2012, to December 2, 2013, during which the Borough received an advance payment of $2.0 million from the State. At the time of our audit, the Borough had completed work under the project, but had not submitted any claims for reimbursement of proect expenditures to the State. The Borough provided us with a list of debris removal expenditures (force account and contract) totaling approximately $6.9 million that it planned to claim to the State under the award.2 We used this list of expenditures to conduct the audit. We conducted this performance audit between May 2013 and December 2013 pursuant to the InspectorfGeneralfActfoff1978, as amended.

>FEMA Should Review the Eligibility of $523,007 of $5.4 Million in Public Assistance Grant Funds Awarded to the Borough of Belmar, New Jersey, for Hurricane Sandy Debris Removal Activities 		2014

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

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