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Audits, Inspections, and Evaluations

Report Number Title Issue Date Fiscal Year
OIG-13-56 We have audited the balance sheet of the U.S. Department of Homeland Security (DHS or Department) as of September 30, 2012 and the related statements of net cost, changes in net position and custodial activity, and combined statement of budgetary resources for the year then ended (referred to herein as the “fiscal year (FY) 2012 financial statements”). The objective of our audit was to express an opinion on the fair presentation of these financial statements. We were also engaged to examine the Department’s internal control over financial reporting of the FY 2012 financial statements, based on the criteria established in Office of Management and Budget (OMB), Circular No. A-123, Management’s Responsibility for Internal Control, Appendix A.

>Federal Law Enforcement Training Center’s Management Letter for FY 2012 DHS Consolidated Financial Statements Audit 		2013
OIG-13-23 On October 12–13, 2006, the County experienced a severe lake effect snow and ice storm. The storm was dubbed the “October Storm” and officially referred to by the National Weather Service as “Lake Storm Aphid.” The October Storm dropped up to 2 feet of snow in less than 12 hours, causing tree limbs possessing significant foliage to snap, taking down power lines, and causing considerable damage throughout northern Erie County. The State of New York declared a state of emergency for the counties affected by the storm and requested FEMA aid. On October 24, 2006, President George W. Bush declared a major disaster for Erie and the surrounding counties. The original disaster declaration limited the period to 6 months for the County to incur reimbursable debris removal and cleanup costs. The County, unable to complete the needed work, requested numerous time extensions. The time extensions eventually expired on October 24, 2008, more than 2 years after the original disaster.

>FEMA Should Recover $48 Million of Public Assistance Grant Funds Awarded to Erie County, New York – Severe Weather October 2006 (Revised) 		2013
DA-12-14 FEMA Public Assistance Grant Funds Awarded to the City of Virginia Beach, Virginia 2012
DS-13-05 The California Emergency Management Agency (Cal EMA), a FEMA grantee, awarded the Department $8,002,596 for costs resulting from severe storms, flooding, mudslides, and landslides during the period from December 17, 2005, through January 3, 2006.' The award provided 75 percent FEMA funding for 38 large projects and 17 small projects. Our audit covered the period of December 17, 2005, to October 4, 2012. We audited 10 large projects and 2 small projects, with total awarded costs of $2,684,804.

>The California Department of Parks and Recreation Did Not Account for or Expend $1.8 Million in FEMA Grant Funds According to Federal Regulations and FEMA Guidelines ( 		2013
OIG-13-55 In December 2011, a limited distribution internal memorandum was leaked to news media. This document disclosed allegations of employee misconduct and inadequate performance, as well as misuse of funds and ineffective hiring within DHS’ Chemical Facility Anti-Terrorism Standards Program. In February 2012, former Chairman Lungren, of the House Committee on Homeland Security, Subcommittee on Cybersecurity, Infrastructure Protection and Security Technologies, requested that we review these issues. In April 2012, Ranking Member Waxman, of the House Committee on Energy and Commerce, also requested that we review the challenges facing the program. We consolidated both requests into one review.

>Effectiveness of the Infrastructure Security Compliance Division's Management Practices to Implement the Chemical Facility Anti-Terrorism Standards Program 		2013
OIG-13-48 We have audited the consolidated balance sheets of the U.S. Customs and Border Protection (CBP), a Component of the U.S. Department of Homeland Security (DHS), as of September 30, 2012 and 2011, and the related consolidated statements of net cost, changes in net position, and custodial activity, and the combined statements of budgetary resources (hereinafter, referred to as “consolidated financial statements”) for the years then ended. In planning and performing our audit of CBP’s consolidated financial statements, we considered CBP’s internal control over financial reporting in order to determine our auditing procedures for the purpose of expressing our opinion on the consolidated financial statements.

>Management Letter for U.S. Customs and Border Protection’s FY 2012 Consolidated Financial Statements 		2013
OIG-13-53 We have audited the accompanying consolidated balance sheets of the U.S. Customs and Border Protection (CBP), a Component of the U.S. Department of Homeland Security (DHS), as of September 30, 2012 and 2011, and the related consolidated statements of net cost, changes in net position, and custodial activity, and combined statements of budgetary resources (hereinafter referred to as “consolidated financial statements”) for the years then ended. The objective of our audits was to express an opinion on the fair presentation of these consolidated financial statements. In connection with our fiscal year 2012 audit, we also considered CBP’s internal control over financial reporting and tested CBP’s compliance with certain provisions of applicable laws, regulations, and contracts that could have a direct and material effect on these consolidated financial statements.

>Independent Auditors’ Report on U.S. Customs and Border Protection’s FY 2012 Financial Statements 		2013
OIG-13-51 Following Hurricanes Katrina and Rita in 2005, and other disasters up to December 31, 2010, FEMA disbursed more than $8 billion in assistance payments, some of which were later determined to have been improperly paid to individuals who were ineligible or who received duplicate payments. The debts in question arose in part because FEMA relaxed its internal controls in order to provide expedited delivery of assistance grants to displaced disaster survivors.The relaxed internal controls involved potential payments of $621.6 million to 167,488 recipients. After reviewing all of the cases, FEMA reduced the original estimate and determined that 91,178 recipients, who received more than $418.3 million, were candidates for recoupment. 1 According to FEMA, there is sufficient justification to waive the debt obligations and not to recoup payment from the other 76,310 recipients, who collectively received more than $203.3 million in disaster assistance.

>FEMA's Efforts To Recoup Improper Payments in Accordance With the Disaster Assistance Recoupment Fairness Act of 2011 (5) 		2013
DA-13-13 The District received an award of $24,8 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 protection measures, and permanent repair to buildings and facilities. The award consisted of 38 large projects and 37 small projects.

>FEMA Should Recover $3.2 Million of Public Assistance Grant Funds Awarded to the Moss Point School District - Hurricane Katrina 		2013
DA-13-12 The County received a Public Asslstance grant award totaling $3.0 million from the Georgia Emergency Management Agency (State), a FEMA grantee, for damages resulting from severe thunderstorms and strong tornado winds, which occurred in May 2008. The award provided 7S percent FEMA funding for debris removal, emergency protective measures, and permanent repairs to buildings and recreational facilities. The award consisted of 6 large projects and 21 small projects.

>FEMA Should Recover $34,219 From a $3.0 Million Public Assistance Grant Awarded to Bibb County, Georgia 		2013
OIG-13-49 The Department of Homeland Security (DHS) had minimal involvement in the Organized Crime and Drug Enforcement Task Force Operation Fast and Furious. Our review of DHS involvement in the operation determined that senior DHS officials in Washington, DC had no awareness of the methodology used by the task force to investigate Operation Fast and Furious until media reports were published in March 2011.

>DHS Involvement in OCDETF Operation Fast and Furious (Revised) 		2013
OIG-13-43 The objectives of the audit were to determine whether the State of Connecticut distributed and spent State Homeland Security Program and Urban Areas Security Initiative grant funds effectively and efficiently and in compliance with applicable Federal laws and regulations and complied with the Department’s guidelines governing the use of funding. We also addressed the extent to which funds awarded enhanced the State’s ability to prevent, prepare for, protect against, and respond to natural disasters, acts of terrorism, and other manmade disasters. The State received grant awards of approximately $43.9 million in State Homeland Security Program and Urban Areas Security Initiative grants for fiscal years 2008 through 2010.

>Connecticut’s Management of Homeland Security Program Grants Awarded During Fiscal Years 2008 Through 2010 		2013
DA-13-11 The City received a Public Assistance award totaling $3.0 million from the Virginia Division of Emergency Management (State), a FEMA grantee, for damage., resulting from Tropical Storm Ida and a Nor'easter, which occurred in November 2009. The award provided 75 percent FEMA funding for debris removal, emergency protective measures, and permanent repairs to buildings and other facilities. The award comisted of 12 large projects and 71 small projects.

>FEMA Should Recover $131,064 From a $3.0 Million Public Assistance Grant Awarded to the City of Norfolk, Virginia, for Tropical Storm Ida and a Nor’easter 		2013
DS-13-04 The Alaska Division of Homeland Security and Emergency Management (ADHSEM), a FEMA grantee, awarded the Department $6S4,716 for costs due to damages from severe storms, flooding, landslide and mudslides from August 15 through 25, 2006. The award provided 75 percent FEMA funding for three large projects and four small projects. Our audit covered the period from August 15, 2006, to January 9, 2013. We audited all seven projects with incurred charges totaling $305,319. As of January 2013, the Department has not submitted final costs claimed for two large projects.

>FEMA Should Disallow $21,113 of the $654,716 in Public Assistance Grant Funds Awarded to the Alaska Department of Natural Resources, Wasilla, Alaska 		2013
OIG-13-46 On September 29, 2009, FEMA awarded a $6 million grant (number 2009-PU-R1-0176) to the Port of Los Angeles (port) for a port-wide fiber optics project.Reimbursement for eligible project costs is based on the grant agreement; Office of Management and Budget (OMB) Circular A-87, Cost Principles for State, Local and Indian Tribal Governments; and FEMA guidance. As of August 10, 2012, the Port had claimed project costs totaling $5,703,711. The costs covered the period from September 1, 2009, through June 30, 2012.

>Costs Claimed by the Port of Los Angeles Under Port Security Grant Number 2009-PU-R1-0176 		2013
OIG-13-45 The objectives of the audit were to determine if the State of Indiana distributed and spent State Homeland Security Program and Urban Areas Security Initiative grant funds effectively and efficiently and in compliance with applicable Federal laws and regulations. We also addressed the extent to which grant funds enhanced Indiana’s ability to prevent, prepare for, protect against, and respond to natural disasters, acts of terrorism, and other manmade disasters. The audit included a review of approximately $57.3 million in State Homeland Security Program and Urban Areas Security Initiative grants awarded to Indiana during fiscal years 2008 through 2010.

>Indiana’s Management of State Homeland Security Program and Urban Areas Security Initiative Grants Awarded During Fiscal Years 2008–2010 		2013
OIG-13-44 The audit objectives were to determine whether the Commonwealth of Massachusetts distributed and spent State Homeland Security Program and Urban Areas Security Initiative grant funds effectively and efficiently, and in compliance with applicable Federal laws and regulations. We also addressed the extent to which grant funds enhanced the Commonwealth of Massachusetts’ ability to prevent, prepare for, protect against, and respond to natural disasters, acts of terrorism, and other manmade disasters. The Commonwealth of Massachusetts was awarded approximately $122 million in State Homeland Security Program and Urban Areas Security Initiative grants during fiscal years 2008 through 2011.

>Massachusetts’ Management of Homeland Security Grant Program Awards for Fiscal Years 2008 Through 2011 		2013
DD-13-07 The Louisiana Governor's Office of Homeland Security and Emergency Preparedness (GOHSEP), a FEMA grantee, awarded the School Board $6,58 million for damages resulting from three federally declared disasters: • Hurricane Katrina (1603-DR-LA). which occurred August 29, 2005 • Hurricane Gustav (1786-DR-LA), which occurred September 2, 2008 • Hurricane Ike (1792-DR-LA), which occurred September 13, 2008. The audit covered the period August 29, 2005, through November 3, 2011, the cutoff date of our audit, and included a review of 16 large and 10 small projects totaling $6.16 million, or 94 percent of the total awards.

>FEMA Should Recover $881,956 of Ineligible Funds and $862,983 of Unused Funds Awarded to St. Charles Parish School Board, Luling, Louisiana 		2013
DD-13-06 The louisiana Governor's Office of Homeland Security and Emergency Preparedness (GOHSEP), a FEMA grantee, awarded the Parish $63.2 million for damages resulting from Hurricane Rita, which occurred on September 24, 200S The award provided 100 percent FEMA funding for 126 large projects and 213 small projects. The audit covered the period September 24, 2005, through November 28, 2012, the cutoff date of our audit, and included a detailed review of 52 projects totaling $45.6 million, or 72 percent of the total award, and a limited review of insurance issues and costs related to one architectural and engineering firm.

>FEMA Should Recover $6.7 Million of Ineligible or Unused Funds Awarded to Cameron Parish, Louisiana, for Hurricane Rita 		2013
OIG-13-41 The Commonwealth was awarded approximately $32 million in State Homeland Security Program (SHSP) and Urban Areas Security Initiative (UASI) grant funds over fiscal years (FYs) 2008, 2009, and 2010. Appendix A provides details of the objectives, scope, and methodology for this audit. During FYs 2008 through 2010, the Louisville UASI was awarded $1.4 million, $2.2 million, and $2.2 million, respectively. A FEMA official said that Kentucky did not score high enough on the UASI risk formula to receive funding in FYs 2011 or 2012.

>Kentucky’s Management of State Homeland Security Program and Urban Areas Security Initiative Grants Awarded Fiscal Years 2008-2010 		2013
OIG-13-42 TSA reported that 446 airports currently are responsible for issuing badges to employees for access to secured areas of the airports. As of August 27, 2012, TSA reported that approximately 3.7 million badged employees had access to secured areas within the Nation’s airports. The badge vetting process is initiated when the airport transfers an applicant’s biographical and fingerprint information to a Designated Aviation Channeler (DAC), referred to in our report as a vendor. The vendor ensures that the information is properly formatted and complete before relaying the information to TSA for vetting against Federal criminal and immigration databases. Appendix C provides more details about the Aviation Channeling Services Provider (ACSP) process.

>Transportation Security Administration’s Aviation Channeling Services Provider Project 		2013
DA-13-10 The City received an award of $233.9 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. However, we limited the scope of our audit to debris removal and emergency protective measures (Categorie5 A and B), for which the City was awarded $86.6 million. Under Categories A and B, the award included 78 large and 73 small projects.

>FEMA Should Recover $8.5 Million of Public Assistance Grant Funds Awarded to the City of Gulfport, Mississippi, for Debris Removal and Emergency Protective Measures – Hurricane Katrina 		2013
DA-13-09 The Authority received a PA award totaling S2.9 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 emergency protective measures and permanent repairs to buildings and facilities. The award consIsted of 10 large projects and 8 5mall projects. We audited four large projects with awards totaling $2.3 million (see Exhibit. Schedule of Projects Audited). The audit covered the period of August 29, 2005, 10 April 19, 2012, during which the Authority received $2.3 millionIn FEMA funds for the four projects, At the time of our audit , the Authority had completed work on all awarded projects and had submitted a final claim to the State for all project expenditures.

>FEMA Should Recover $1.9 Million of Public Assistance Grant Funds Awarded to the Hancock County Utility Authority — Hurricane Katrina 		2013
OIG-13-40 This review focused on FEMA preparedness grants awarded directly to local fire stations, port facilities, and transit systems, called Assistance toFirefighters rants and TransportationInfrastructure Security Branch grants, that totaled $1.2 billion in fiscal year 2011. This report conveys concerns we identified during our limited review for FEMA to consider prior to implementing its revised monitoring plans. We may revisit FEMA’s monitoring of grantees using a risk-based approach once implementation is complete. In fiscal year 2012, FEMA inconsistently applied risk indicators to determine the level of financial and programmatic monitoring a grantee received. Additionally, in selecting grantees to monitor, FEMA did not assign risk indicators to all grantees. As a result, during fiscal year 2012, FEMA could not ensure that it monitored all grantees with increased risk. For fiscal year 2013, FEMA combined programmatic and financial monitoring into an integrated plan and revised its risk indicators to better reflect grantees’ inherent risk.

>FEMA’s Use of Risk-based Monitoring for Grantee Oversight 		2013
OIG-13-39 This transition allowed remote control of processes and exposed industrial control systems to cyber security risks that could be exploited over the Internet. The National Cybersecurity and Communications Integration Center, a division of the Office of Cybersecurity and Communications within the National Protection and Programs Directorate (NPPD), is the operational arm of NPPD and is responsible for providing full-time monitoring, information sharing, analysis, and incident response capabilities to protect Federal agencies’ networks and critical infrastructure and key resources, such as industrial control systems.

>DHS Can Make Improvements to Secure Industrial Control Systems 		2013
OIG-13-38 We have audited the balance sheet of the U.S. Department of Homeland Security (DHS or Department) as of September 30, 2012 and the related statements of net cost, changes in net position and custodial activity, and combined statement of budgetary resources for the year then ended (referred to herein as the “fiscal year (FY) 2012 financial statements”). The objective of our audit was to express an opinion on the fair presentation of these financial statements.

>Management Letter for the FY 2012 DHS Financial Statements and Internal Control over Financial Reporting Audit 		2013
OIG-13-30 We have reviewed the accompanying Table of Prior Year Drug Control Obligations and related disclosures of the U.S. Department of Homeland Security’s (DHS) Immigration and Customs Enforcement (ICE) for the year ended September 30, 2012. We have also reviewed the accompanying management’s assertions for the year ended September 30, 2012. ICE’s management is responsible for the Table of Prior Year Drug Control Obligations, related disclosures, and the assertions.

>Independent Review of U.S. Immigration and Customs Enforcement’s Reporting of FY 2012 Drug Control Obligations (Revised) 		2013
OIG-13-37 The American Recovery and Reinvestment Act of 2009 (Recovery Act), as amended, appropriated $150 million to the Federal Emergency Management Agency (FEMA) for Public Transportation Security Assistance and Railroad Security Assistance under sections 1406 and 1513 of the imlementing Recommendations of the 9/11 Commission Act of 2007, as amended. FEMA focused grants under this program on (1) operational packages for canine teams, mobile explosives detection screening teams, and antiterrorism teams, and (2) capital projects for activities such as infrastructure protection. On July 31, 2009, FEMA awarded a transit security grant of $1,670,988 to the Northeast Illinois Railroad Corporation (commonly referred to as METRA) for one antiterrorism team.

>Costs Claimed by the Northern Illinois Railroad Corporation Under Transit Security 		2013
OIG-13-36 The Department obligated about $389 million for noncompetitive contracts during fiscal year 2012. Our review of 40 contract files with a reported value of more than $174 million showed that, compared with previous reviews of noncompetitive contracts awarded during fiscal years 2008 through 2011, the Department continued to improve its management oversight of acquisition personnel’s compliance with policies and procedures. However, these personnel did not always document their consideration of vendors’ past performance when researching background on eligible contractors. As a result, the Department cannot be assured that acquisition personnel always awarded government contracts to eligible and qualified vendors as required.

>DHS Contracts Awarded Through Other Than Full and Open Competition During Fiscal Year 2012 		2013
OIG-13-35 We have reviewed the accompanying Performance Summary Report of the U.S. Department of Homeland Security’s (DHS) Customs and Border Protection (CBP) for the year ended September 30, 2012. We have also reviewed the accompanying management’s assertions for the year ended September 30, 2012. CBP’s management is responsible for the Performance Summary Report and the assertions.

>Independent Review of U.S. Customs and Border Protection’s Reporting of FY 2012 Drug Control Performance Summary Report 		2013
OIG-13-34 We have reviewed the accompanying Table of FY 2012 Drug Control Obligations and related disclosures of the U.S. Department of Homeland Security’s (DHS) Customs and Border Protection (CBP) for the year ended September 30, 2012. We have also reviewed the accompanying management’s assertions for the year ended September 30, 2012. CBP’s management is responsible for the preparation of the Table of FY 2012 Drug Control Obligations, related disclosures, and the assertions.

>Independent Review of U.S. Customs and Border Protection’s Reporting of FY 2012 Drug Control Obligations 		2013
OIG-13-33 The objectives of the audit were to determine whether the State of Wisconsin (1) spent grant funds effectively and efficiently; (2) complied with applicable Federal laws and regulations and DHS guidelines governing the use of such funding; and (3) enhanced the ability of State grantees to prevent, prepare for, protect against, and respond to natural disasters, acts of terrorism, and other manmade disasters. The audit included a review of approximately $43 million in State Homeland Security Program and Urban Areas Security Initiative grant funds awarded by the Federal Emergency Management Agency (FEMA) to Wisconsin from fiscal years 2008 through 2010.

>Wisconsin’s Management of Homeland Security Program and Urban Areas Security Initiative Grants Awarded During Fiscal Years 2008 Through 2010 		2013
OIG-13-32 We have reviewed the accompanying Performance Summary Report of the U.S. Department of Homeland Security’s (DHS) Immigration and Customs Enforcement (ICE) for the year ended September 30, 2012. We have also reviewed the accompanying management’s assertions for the year ended September 30, 2012. ICE’s management is responsible for the Performance Summary Report and the assertions.

>Review of U.S. Immigration and Customs Enforcement’s Reporting of FY 2012 Drug Control Performance Summary Report 		2013
OIG-13-31 We have reviewed the accompanying Table of FY 2012 Drug Control Obligations and related disclosures of the U.S. Department of Homeland Security’s (DHS) United States Coast Guard (USCG) for the year ended September 30, 2012. We have also reviewed the accompanying management’s assertions for the year ended September 30, 2012. USCG’s management is responsible for the Table of FY 2012 Drug Control Obligations, related disclosures, and the assertions.

>Independent Review of U.S. Coast Guard’s Reporting of FY 2012 Drug Control Obligations 		2013
OIG-13-29 We have reviewed the accompanying Table of Prior Year Drug Control Obligations of the U.S. Department of Homeland Security’s (DHS) Federal Emergency Management Agency (FEMA) for the year ended September 30, 2012. We have also reviewed the accompanying statement that full compliance with the Office of National Drug Control Policy (ONDCP) Circular, Drug Control Accounting, dated May 1, 2007 (the Circular) would constitute an nreasonable burden (Unreasonable Burden Statement). FEMA’s management is responsible for the preparation of the Table of Prior Year Drug Control Obligations and the Unreasonable Burden Statement (collectively the Alternative Report).

>Independent Review of the Federal Emergency Management Agency’s Reporting of FY 2012 Drug Control Obligations 		2013
OIG-13-28 We have reviewed the accompanying Table of Prior Year Drug Control Obligations of the U.S. Department of Homeland Security’s (DHS) Federal Law Enforcement Training Center (FLETC) for the year ended September 30, 2012. We have also reviewed the accompanying statement that full compliance with the Office of National Drug Control Policy (ONDCP) Circular, Drug Control Accounting, dated May 1, 2007 (the Circular) would constitute an unreasonable burden (Unreasonable Burden Statement). FLETC’s management is responsible for the preparation of the Table of Prior Year Drug Control Obligations and the Unreasonable Burden Statement (collectively the Alternative Report).

>Independent Review of the Federal Law Enforcement Training Center’s Reporting of FY 2012 Drug Control Obligations 		2013
OIG-13-27 We have reviewed the accompanying Performance Summary Report of the U.S. Department of Homeland Security’s (DHS) United States Coast Guard (USCG) for the year ended September 30, 2012. We have also reviewed the accompanying management’s assertions for the year ended September 30, 2012. USCG’s management is responsible for the Performance Summary Report and the assertions.

>Independent Review of U.S. Coast Guard's Reporting of FY 2012 Drug Control Performance Summary Report 		2013
OIG-13-26 DNDO reported that there are currently 444 radiation portal monitors operating at seaports throughout the U.S., which are meeting the requirement to screen all containerized cargo at the 22 seaports with the most container volume. We were unable to determine whether DNDO and CBP initially deployed radiation portal monitors to ensure operational efficiency because the components did not thoroughly document deployment decisions and plans. Although all cargo is being screened, we identified some radiation portal monitors utilized infrequently or not utilized at all.

>United States Customs and Border Protection’s Radiation Portal Monitors at Seaports 		2013
OIG-13-25 The New York State Division of Homeland Security and Emergency Services (HSES), a FEMA grantee, awarded the County $10.2 million for damages caused by heavy rains in August 2009. The award provided 75 percent FEMA funding for 28 large and 177 small projects. The audit covered the period August 8, 2009, through August 17, 2012, and included a review of 11 large projects totaling less than $1.5 million, or less than 15 percent of the total award (see Exhibit A, Schedule of Projects Audited)_ As of the cutoff date of our audit, none of the Iarge projects that we reviewed were closed.

>Erie County, New York, Generally Followed Regulations for Spending Public Assistance Grant Funds for Flooding in August 2009 		2013
DD-13-05 We are currently auditing $12.3 million of Federal Emergency Management Agency (FEMA) Public Assistance (PA grant funds) awarded to the Audubon Commission (Commission) in New Orleans, louisiana (Public Assistance Identification Number 071-U76DM-OOJ. The Louisiana Governor's Office of Homeland Security and Emergency Preparedness (GOHSEP), a FEMA grantee, awarded these funds to the Commission for disaster recovery work resulting from Hurricane Katrina, which occurred in August 2005.

>FEMA Should Disallow $7.6 Million in Public Assistance Grant Funds Awarded to the Audubon Commission, New Orleans, Louisiana 		2013
OIG-13-24 In April 2012, United States Secret Service (USSS) employees were in Cartagena, Colombia, preparing for a Presidential visit to the Summit of the Americas. during these preparations, several USSS employees were suspected of soliciting prostitutes. In response, USSS took the following steps: (1) managers in Cartagena responded to the alleged solicitation; (2) USSS’ internal affairs office investigated the alleged solicitation; and (3) USSS revised policies and supervision staffing for protective visits. We assessed USSS’ response to the alleged solicitation of prostitutes by its employees.

>Adequacy of USSS’ Internal Investigation of Alleged Misconduct in Cartagena, Colombia 		2013
OIG-13-22 The Chicago Fire Department submitted a grant application that identified six projects: five fire station renovations and one new station construction. The proposed costs for the six projects were $26 million, consisting of a Federal share of $15 million and an applicant share of $11 million. The grant application identified a Federal share of 43 percent and an applicant share of 57 percent. FEMA awarded a grant of $4.8 million to the Chicago Fire Department to construct a new fire station. The grant award did not specify an amount or percentage for the matching share. A FEMA official told us that FEMA had not specified a Federal share in the award because it knew that the cost of the new station would exceed the Federal share and its main concern was that construction of the station be completed.

>Costs Claimed by Chicago Fire Department Under Fire Station Construction Grant Number EMW-2009-FC-05246R 		2013
DD-13-04 The Illinois Emergency Management Agency (lEMA), a FEMA grantee, awarded Martinsville $13.5 million for damages caused by severe storms and flooding that occurred June 1 to July 22, 2008. The award provided 75 percent FEMA funding for four large projects. The audit covered the period June 1, 2008, through May 4, 2012, the cutoff date of our audit, and induded a review of 100 percent of the total award (see exhibit A, Schedule of Projects Audited). As of the cutoff date of our audit, all projects remained open.

>FEMA Improperly Applied the 50 Percent Rule in Its Decision To Pay for the Replacement of the Martinsville High School, Martinsville, Illinois 		2013
OIG-13-21 Since our fiscal year 2011 evaluation, the Office of Intelligence and Analysis (I&A) has improved its oversight of Department-wide systems and established programs to monitor ongoing security practices. I&A has developed and implemented a training program to educate DHS’ growing number of personnel assigned security duties on intelligence systems. In addition, progress has been made in collaboration with other DHS components in centralizing the planning and prioritization of security weakness remediation, streamlining system configuration management, and maintaining a current systems inventory. However, we identified deficiencies at the United States Coast Guard (USCG) in system authorizations and specialized training and incident response, contingency planning, and security capital planning at the United States Secret Service (USSS).

>(U) Further Development and Reinforcement of Department Policies Can Strengthen DHS' Intelligence Systems Security Program 		2013
DD-13-03 The Illinois Emergency Management Agency {lEMA), a FEMA grantee, awarded Ottawa $16.3 million for damages resulting from severe storms and flooding that occurred September 13 through October 5, 2008. The award provided 75 percent funding for four large and four small projects.The audit covered the period September 13, 2008, through May 16, 2012, the cutoff date of our audit, and included a review of three large projects and one small project totaling $16.2 million, or 99 percent of the total award. As of our cutoff date, none of the Iarge projects were closed.

>Ottawa Illinois Elementary School District Should Obtain Required Flood Insurance or FEMA Should Disallow $14 Million in Public Assistance Grant Funds 		2013
DD-13-02 The Louisiana Governor's Office of Homeland Security and Emergency Preparedness (GOHSEPj, a FEMA grantee, awarded the Parish $5.9 million for damages resulting from Hurricane Ike, declared on September 13, 2008. The award provided 100 percent FEMA funding for four large projects and six small projects. The audit covered the period September 11, 2008, through May 3, 2012, the cutoff date of our audit, and included a detailed review of all ten projects (see exhibit A). As of the cut-off date of our audit, the Parish had claimed $5.1 million.

>FEMA Public Assistance Grant Funds Awarded to St. John the Baptist Parish, Louisiana 		2013
DS-13-03 The California Emergency Management Agency (Cal EMA), a FEMA grantee, awarded the City $2,307,402 for costs resulting from storms, flooding, debris flows, and mudslides from December 27, 2004, through January 11, 2005. The award provided 75 percent FEMA funding for 11 large projects and 9 small projects. Our audit covered the period from December 27, 2004, to July 11, 2012. We audited five large projects with a total award of $1,425,482 (see Exhibit, Schedule of Audited Projects). As of July 2012, the City had allocated costs totaling $2,131,549 to the projects in our review and had not submitted a final claim for this subgrant award.

>The City of San Buenaventura, California, Did Not Properly Account for and Expend FEMA Public Assistance Grant Funds 		2013
DS-13-02 Subsequently, FEMA approved project worksheet versions 1 to 4 and increased funding to $830,672 based on actual costs and insurance adjustments. However, during project closeout, the Town submitted to FEMA a cost claim of $1,599,777, or $769,105 more than what FEMA approved. FEMA reviewed the Town’s submission and determined that the additional charges were associated with project improvements that substantially changed the approved SOW and classified it as an improved project—and capped project funding at $830,672. The Town has requested reimbursement for project-related costs totaling $1,599,777, and appealed FEMA’s funding determination.

>The Town of San Anselmo, California, Did Not Properly Account for and Expend FEMA's Public Assistance Grant Funds 		2013
OIG-13-18 The objectives of the State audits were to determine whether each State distributed and spent the grant funds (1) effectively and efficiently, and (2) in ompliance with applicable Federal laws and regulations. We also addressed the extent to which grant funds enhanced the States’ ability to prevent, prepare for, protect against, and respond to natural disasters, acts of terrorism, and other manmade disasters. The audits included more than $924 million in State Homeland Security Program and Urban Areas Security Initiative grants awarded to the 16 States and territories during 3-year periods between fiscal years 2006 and 2010.

>Annual Report to Congress on States’ and Urban Areas’ Management of Homeland Security Grant Programs Fiscal Year 2012 		2013
OIG-13-17 Following Hurricanes Katrina and Rita in 2005, and other disasters up to December 31, 2010, FEMA disbursed more than $8 billion in assistance payments, some of which were later determined to have been improperly paid to individuals who were ineligible or who received duplicate payments. The debts in question arose in part because FEMA relaxed its internal controls in order to provide expedited delivery of assistance grants to displaced disaster survivors. The relaxed internal controls involved potential payments of $621.6 million to 167,488 recipients. After reviewing all of the cases, FEMA reduced that original estimate and determined that 91,178 recipients, who received more than $371 million, were candidates for recoupment. According to FEMA, there is sufficient justification to waive the debt obligations and not to recoup payment from the other 76,310 recipients, who collectively received more than $250 million in disaster assistance.

>FEMA’s Efforts To Recoup Improper Payments in Accordance With the Disaster Assistance Recoupment Fairness Act of 2011 (4) 		2013

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

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