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Audits, Inspections, and Evaluations

Report Number Title Issue Date Fiscal Year
OIG-15-148-D The City received a $248.3 million grant for 2005 Hurricane Katrina damages. In this third audit of the grant, we reviewed $142.1 million FEMA approved for 43 permanent repair projects. At the time of our audit, the City had not completed work on all projects and, therefore, had not submitted a final claim for all project expenditures. For most of the projects in our audit scope, the City of Gulfport, Mississippi, (City) accounted for and expended Federal Emergency Management Agency (FEMA) funds according to Federal regulations and FEMA guidelines. However, the City did not comply with Federal procurement requirements when awarding two contracts for project management services valued at $10.4 million, of which $4.2 million was unreasonable. City officials were not aware that Federal procurement regulations prohibited the use of a qualifications-based contracting method for program management services. However, the grantee (Mississippi) is responsible for ensuring that its subgrantee (the City) is aware of and complies with Federal requirements, as well as for providing technical assistance and monitoring grant activities.

>FEMA Should Recover $4.2 Million of $142.1 Million in Grant Funds Awarded to the City of Gulfport, Mississippi, for Hurricane Katrina Damages 		2015
OIG-15-147-D The City of Asbury Park, New Jersey, (City) received a $9.3 million Public Assistance grant award from the New Jersey Office of Emergency Management (New Jersey), a Federal Emergency Management Agency (FEMA) grantee, for damages resulting from Hurricane Sandy, which occurred in October 2012. Our audit objective was to determine whether the City accounted for and expended FEMA funds according to Federal requirements. The City generally accounted for and expended FEMA funds for permanent work according to Federal regulations and FEMA guidelines. However, the City did not provide adequate support for $771,461 of the $798,819 it had claimed for debris removal and emergency work at the time of our audit. As a result, FEMA has no assurance that these costs are valid and eligible. FEMA initially estimated that debris and emergency work would exceed $2 million. Because we conducted this audit early in the grant cycle, the City has an opportunity to supplement deficient documentation or locate missing documentation before too much time elapses. FEMA should disallow any costs the City cannot adequately support and direct New Jersey to assist the City in properly supporting the costs it has claimed and additional costs the City plans to claim. The City also did not include all federally required contract provisions in five contracts totaling $3.9 million. We did not question these contract costs, because this instance of noncompliance did not cause negative consequences and because the City otherwise complied with Federal procurement standards.

>Asbury Park, New Jersey, Needs Assistance in Supporting More Than $2 Million in FEMA Grant Funds for Hurricane Sandy Debris and Emergency Work 		2015
OIG-15-146-D This is our sixth annual “capping” report summarizing our disaster-related audits. Our first five annual reports focused solely on our Public Assistance and Hazard Mitigation grant audits. This year, we added the results of our non-grant audits to reflect all of our work related to Disaster Relief Fund activities. In fiscal year (FY) 2014, we issued reports on 61 audits of FEMA grants, programs, and operations funded from the Disaster Relief Fund: 49 grant audits and 12 program audits. The 61 reports contained 159 recommendations, with potential monetary benefits of $1 billion, which included $971.7 million reported for grant audits and $29.3 million reported for program audits. The $971.7 million represents 28 percent of the $3.44 billion in grant funds we audited in FY 2014. One Hazard Mitigation Grant Program audit resulted in $812 million of the $971.7 million of potential monetary benefits. We continue to find problems with grant management, ineligible and unsupported costs, and noncompliance with Federal contracting requirements. The 12 program audits included 3 audits of FEMA’s initial response to disasters, 4 audits related to issues we identified during our audits of FEMA’s disaster responses, and 5 other audits of FEMA programs or operations. The 12 program audit reports recommended improvements to FEMA programs or operations and the recoupment of a $29.3 million debt that a state owed to FEMA. FEMA has been proactive in responding to our FY 2014 recommendations.

>Summary and Key Findings of Fiscal Year 2014 FEMA Disaster Grant and Program Audits 		2015
OIG-15-144 We evaluated the Department of Homeland Security (DHS) enterprise-wide security program for TopSecret/Sensitive Compartmented Information intelligence systems. We assessed DHS programs for continuous monitoring management, configuration management, identify and access management, incident response and reporting, risk management, security training, plans of actions and milestones, remote access management, contingency planning, and contractor systems. This report will be issued to the Office of Inspector General of the Intelligence Community.

>Review of DHS' Information Security Program for Intelligence Systems for Fiscal Year 2015 		2015
OIG-15-141-D The Township of Brick, New Jersey (Township) received a $14.57 million Public Assistance grant award from the New Jersey Office of Emergency Management (New Jersey), a Federal Emergency Management Agency (FEMA) grantee, resulting from Hurricane Sandy damages in October 2012. Our audit objective was to determine whether the Township accounted for and expended FEMA funds according to Federal requirements. FEMA should disallow $2.78 million in grant funds awarded to the Township. Although the Township generally accounted for FEMA funds on a project-by-project basis, it did not fully comply with Federal and FEMA procurement requirements in awarding contracts for disaster work, resulting in $1,496,131 in unreasonable debris removal costs. The unreasonable costs represent the difference between hourly rates the Township paid its contractors and the hourly rates that the State of New Jersey negotiated for statewide debris removal activities and made available to all municipalities within the state. Therefore, we question the unreasonable costs as ineligible. We also question as ineligible $1,286,255 of unrelated hazard mitigation costs. However, these costs may be eligible under other FEMA projects or programs. Therefore, the Township should work with New Jersey and FEMA to determine the eligibility of the hazard mitigation costs we question.

>FEMA Should Disallow $2.78 Million of $14.67 Million in Public Assistance Grant Funds Awarded to the Township of Brick, New Jersey, for Hurricane Sandy Damages 		2015
OIG-15-142-D The Puerto Rico Department of Housing received two Federal Emergency Management Agency (FEMA) grant awards totaling $186.13 million to implement the New Secure Housing Program following Hurricane Georges in September 1998. In August 2012, the Puerto Rico Department of Housing submitted final expenditure claims totaling $184.34 million. FEMA requested that we audit these claims to facilitate closeout of the grants. The Puerto Rico Department of Housing did not always account for and expend FEMA grant funds awarded for the New Secure Housing Program according to Federal requirements. Of the $179.98 million of construction costs the Puerto Rico Department of Housing claimed, we found that $90.79 million was ineligible. The majority of these findings occurred because the Puerto Rico Emergency Management Agency, as the grantee, should have done a better job of managing the grants.

>The Puerto Rico Department of Housing Did Not Properly Administer $90.79 Million of FEMA Grant Funds Awarded for the New Secure Housing Program 		2015
OIG-15-143-D Rock County Highway Department, Minnesota, (Department) received a $1.25 million grant for damages from a 2014 disaster. We conducted this audit early in the grant process to identify areas where the Department may need additional technical assistance or monitoring to ensure compliance with Federal requirements. The Department has established policies, procedures, and business practices to account for and expend Federal Emergency Management Agency (FEMA) Public Assistance grant funds according to Federal regulations and FEMA guidelines.

>Rock County, Minnesota, Highway Department Has Adequate Policies, Procedures, and Business Practices to Effectively Manage Its FEMA Public Assistance Grant Funding 		2015
OIG-15-140 We audited the DHS components’ coordination in performing their cyber missions. We sought to determine whether their cyber roles and responsibilities have been well delineated and a process is in place for department-wide information sharing and coordinated response to cyber incidents and criminal investigations. We also evaluated the components’ compliance with applicable DHS information security requirements. Department of Homeland Security (DHS) components have strengthened coordination in performing their cyber missions. For example, United States Immigration and Customs Enforcement (ICE) and United States Secret Service (USSS) have enhanced relationships with the National Protection and Programs Directorate’s (NPPD) National Cybersecurity and Communications Integration Center to improve information sharing and coordination on incident response and investigation. Despite these positive steps, the Department can take additional actions to improve its cyber mission coordination. For example, the Office of Policy has not developed a cyber strategic implementation plan due to its recent establishment and limited staff. Without a strategic plan, DHS cannot effectively align the components’ cyber responsibilities and capabilities with DHS’ overall mission.

>DHS Can Stregthen its Cyber Million Coordination Efforts 		2015
OIG-15-137 U.S. Customs and Border Protection (CBP) developed the Analytical Framework for Intelligence (AFI)—an index of relevant data in existing systems—to augment Department of Homeland Security’s (DHS) ability to gather and develop information about persons, events, and cargo of interest. We performed this audit to determine the status of AFI implementation and whether effective controls have been applied to protect the sensitive information processed and stored by the system. CBP has made significant progress in implementing AFI. CBP fully deployed AFI on schedule and within budget, and has taken measures to secure the sensitive information the system processes and stores from unauthorized access. In addition, CBP developed a privacy impact assessment to ensure that privacy considerations for operating AFI were addressed throughout system deployment. Since deployment, system users have provided positive feedback to the component about AFI’s functionality and usefulness. Despite these positive steps, we identified deficiencies that the component must address to further secure the system.

>Enhancements to Technical Controls Can Improve the Security of CBP's Analytical Framework for Intelligence 		2015
OIG-12-104 CBP Acquisition of Aviation Management Tracking System (Revised) 2012
OIG-15-139-D Los Alamos County, New Mexico, (County) received a $5.1 million award from the New Mexico Department of Homeland Security and Emergency Management Agency, a FEMA grantee, for damages resulting from severe storms and flooding in September 2013. Our audit objective was to determine whether the County accounted for and expended FEMA funds according to Federal regulations and FEMA guidelines. The County generally accounted for and expended Federal Emergency Management Agency (FEMA) Public Assistance grant funds according to Federal requirements. However, the County did not always comply with Federal procurement standards in awarding its three largest contracts for disaster work totaling $1.9 million. Specifically, the County did not take all required affirmative steps to assure the use of small, minority, women-owned, and labor-surplus area firms when possible. However, although the County did not take the specific steps that Federal procurement standards require, it did award all three contracts to these types of disadvantaged firms. In addition, the County’s contractors performed adequately and billed for their work appropriately. Therefore, we did not question costs because the County’s noncompliance with Federal requirements did not negatively impact the Federal government. County officials said that they were not aware of this requirement, but would update their policies and procedures to include this Federal procurement standard for future disasters.

>Los Alamos County, New Mexico, Generally Accounted For and Expended FEMA Grant Funds Properly 		2015
OIG-15-136-D St. Tammany Parish (Parish) received awards totaling $15.3 million from the Louisiana Governor’s Office of Homeland Security and Emergency Preparedness (Louisiana), a Federal Emergency Management Agency (FEMA) grantee, for the Hazard Mitigation Grant Program resulting from four federally declared disasters. The Parish’s hazard mitigation projects generally met FEMA’s eligibility requirements; and the Parish’s project management generally complied with applicable regulations and guidelines. However, the Parish did not always account for and expend grant funds according to Federal regulations and FEMA guidelines. We audited 11 projects totaling $14.98 million, or 98 percent of the total $15.3 million award. However, at the time of our audit, the Parish had completed only 4 of the 11 projects and had claimed project costs of $6.9 million for the 11 projects in our audit scope. We found $609,271 in ineligible project costs and $320,108 in unsupported project costs for total questioned costs of $929,379. These findings occurred, in part, because Louisiana has not properly managed its grants. Most significantly, Louisiana had not developed and implemented a comprehensive strategy to close all Hazard Mitigation Grant Program projects.

>FEMA Should Recover $929,379 of Hazard Mitigation Funds Awarded to St. Tammany Parish, Louisiana 		2015
OIG-15-138 The Department of Homeland Security (DHS) manages a diverse warehouse portfolio. According to the Government Accountability Office, managing the Federal government’s real property — which includes warehouses — is a high-risk area. DHS’ components own and lease warehouses for a variety of reasons, such as storing disaster relief supplies, computer equipment, seized assets, and excess property. Our audit objective was to determine the effectiveness of DHS’ process of assessing and managing its warehousing needs. Although DHS has taken steps to assess its warehouses, it cannot effectively manage its warehouse needs because some of the components misclassify many of their warehouses. We found buildings that should not have been on the Department’s warehouse inventory. Conversely, we found buildings that should have been classified as warehouses, but were not. Because the warehouse inventories are inaccurate, DHS cannot manage warehouses or demonstrate compliance with requirements to limit the size of real property inventories and reduce costs. Even though most warehouses we visited were well organized and appeared to support the components’ missions, we identified three warehouses that CBP could potentially consolidate or close and put $1 million per year to better use.

>Accurate Reporting and Oversight Needed to Help Manage DHS' Warehouse Portfolio 		2015
OIG-15-135-D On August 24, 2014, a magnitude 6.0 earthquake struck northern California. FEMA expects eligible damages in Napa County, California (County), from the earthquake and aftershocks to exceed $6 million. 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 County has adequate policies, procedures, and business practices to account for Public Assistance grant funds according to Federal regulations and Federal Emergency Management Agency (FEMA) guidelines. The County can account for disaster costs on a project-by-project basis and is able to adequately support repair costs. Additionally, the County’s insurance procedures and practices are adequate to ensure that the County can properly manage anticipated insurance proceeds. The County also has adequate procurement policies and procedures that are consistent with Federal procurement standards. However, the County did not follow Federal procurement standards or its own contracting requirements when it awarded, without competition, a non-emergency grant management contract for $973,778. Therefore, we question $973,778 as ineligible contract costs.

>Napa County, California, Needs Additional Technical Assistance and Monitoring to Ensure Compliance with Federal Regulations 		2015
OIG-15-133-D The Knoxville Utilities Board received a Public Assistance award of $5.2 million from the Tennessee Emergency Management Agency, a FEMA grantee, for damages resulting from severe storms and tornadoes in June 2011. We audited projects totaling $4.3 million. For the projects we reviewed, the Utility properly accounting for and expended FEMA funds according to Federal requirements.

>The Knoxville Utilities Board Effectively Managed FEMA Public Assistance Grant Funds Awarded for Damages from Tornadoes and Severe Storms in June 2011 		2015
OIG-15-134-D The Knoxville Utilities Board received a Public Assistance award of $2.7 million from the Tennessee Emergency Management Agency, a FEMA grantee, for damages resulting from severe storms and tornadoes in April 2011. We audited projects totaling $2.5 million. For the projects we reviewed, the Utility properly accounting for and expended FEMA funds according to Federal requirements.

>The Knoxville Utilities Board Effectively Managed FEMA Public Assistance Grant Funds Awarded for Damages from Tornadoes and Severe Storms in April 2011 		2015
OIG-15-132-D The City of Duluth, Minnesota, (City) received a Public Assistance grant award of $13.34 million from Minnesota’s Department of Public Safety, Division of Homeland Security and Emergency Management (Minnesota), a FEMA grantee, for damages resulting from severe storms and flooding in June 2012. The City did not follow Federal procurement standards in awarding $3.08 million for 12 contracts—$1.54 million for 8 non-exigent contracts and $1.54 million for 4 exigent contracts. Although the City competitively awarded all but 3 of the 12 contracts we reviewed, it did not take required steps to provide opportunities to disadvantaged firms to bid on federally funded work, as Congress intended. Therefore, we question the $1.54 million the City claimed for eight contracts for non-exigent work. We generally do not question costs for work when lives and property are at risk. Therefore, of the $1.54 million the City claimed for exigent work, we question only $8,566 in markups on the cost because one of the City’s contractors billed on a prohibited cost-plus-percentage-of-cost basis.

>FEMA Should Recover $1.78 Million of Public Assistance Grant Funds Awarded to the City of Duluth, Minnesota 		2015
OIG-15-129-D The City of Mankato, Minnesota (City) received a $939,719 grant for damages from a June 2014 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 has established policies, procedures, and business practices to account for and expend FEMA Public Assistance grant funds according to Federal regulations and FEMA guidelines.

>Mankato, Minnesota, Has Adequate Policies, Procedures, and Business Practices to Effectively Manage Its FEMA Public Assistance Grant Funding 		2015
OIG-15-130-D 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.

>The City of Kenner, Louisiana, Generally Accounted For and Expended FEMA Grant Funds Properly 		2015
OIG-15-131-D This is our third audit of the FEMA Public Assistance grant the City received for 2005 Hurricane Katrina damages. For the majority of the $376 million we reviewed, the City of Biloxi, Mississippi (City) accounted for and expended FEMA funds according to Federal requirements. However, the City did not follow all Federal procurement standards for a contract totaling$21.7 million for management of an infrastructure project. As a result, full and open competition did not always occur, which increased the risk of fraud, waste, and abuse, and at least $8.1 million of the $21.7 million in contract costs was unreasonable.

>FEMA Should Recover $21.7 Million of $376 Million in Public Assistance Grant Funds Awarded to the City of Biloxi, Mississippi, for Hurricane Katrina Damages 		2015
OIG-15-127-D Jefferson Parish, Louisiana, (Parish) received an award of $18.1 million from the Louisiana Governor’s Office of Homeland Security and Emergency Preparedness (Louisiana), a FEMA grantee, for damages resulting from Hurricane Isaac, which occurred in August 2012. Our audit objective was to determine whether the Parish accounted for and expended FEMA funds according to Federal regulations and FEMA guidelines. The Parish generally accounted for and expended FEMA funds according to Federal regulations and FEMA guidelines. However, we identified $129,480 of ineligible costs

>Jefferson Parish, Louisiana, Generally Accounted For and Expended FEMA Grant Funds Properly 		2015
OIG-15-128-D FEMA’s selection of the Hurricane Sandy JFO in Lincroft, New Jersey, was not cost effective because FEMA waited until after Hurricane Sandy struck. While FEMA’s policies and procedures provide FEMA disaster response officials flexibility in responding to the unique disaster circumstances, FEMA was unprepared to set up a cost-effective JFO in New Jersey. As a result, FEMA’s selection of the New Jersey JFO for Hurricane Sandy exposed the Federal Government to unnecessary costs and delayed JFO operations. By taking advantage of nearby Federal facilities or locating more affordable flexible office space, FEMA might have avoided these facility costs and saved significant Federal disaster funds. Additionally, FEMA could have saved over $1.5 million by taking corrective actions to reduce lease costs as the disaster workforce decreased.

>FEMA's Process for Selecting Joint Field Offices Needs Improvement 		2015
OIG-15-126-D On August 24, 2014, a magnitude 6.0 earthquake struck northern California. FEMA expects eligible damages in the City of Napa, California (City) from the earthquake and aftershocks to exceed $8 million. 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 has adequate policies, procedures, and business practices to account for Public Assistance grant funds according to Federal regulations and FEMA guidelines. The City can account for disaster costs on a project-by-project basis and is able to support disaster-related costs adequately. Additionally, the City’s insurance procedures and practices are adequate to assure FEMA that the City can properly manage anticipated insurance proceeds and obtain and maintain insurance to mitigate the cost of future damages.

>The City of Napa, California, Needs Additional Technical Assistance and Monitoring to Ensure Compliance with Federal Regulations 		2015
OIG-12-111 US-VISIT Faces Challenges in Identifying and Reporting Multiple Biographic Identities (Redacted) 2012
OIG-15-125-D Scott County’s Physical Development Department in Jordan, Minnesota (County), received a $2.6 million grant for damages from a June 2014 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 County has established policies, procedures, and business practices to account for and expend FEMA Public Assistance grant funds according to Federal regulations and FEMA guidelines.

>Scott County, Minnesota, Physical Development Department Has Adequate Policies, Procedures, and Business Practices to Effectively Manage Its FEMA Public Assistance Grant Funding 		2015
OIG-15-122 We did not find any evidence that the production and subsequent mailing of 3-year DACA-related EADs held in NPS from February 17 through February 19, 2015, was done in defiance of the Federal District Court’s injunction. We determined that a combination of factors led to the production, and mailing of about 2,000 of these 3-year EADs. USCIS Service Center Operations Directorate (SCOPS) management was not specific in its direction to USCIS Office of Information Technology (IT) staff. In addition, SCOPS management was mistaken in its assumptions about what IT staff was able to do or had done in halting production of the 3-year EADs. Finally, within IT, we concluded there was a lack of understanding about the consequences of actions taken related to release of the EADs that had been held. USCIS could not provide reliable data on the actual number of EADs held in NPS that were subsequently produced and mailed. USCIS also continues to discover EADs that were produced or issued after the injunction but not included in the 2,128 originally identified. Therefore, we cannot validate the number of 3-year EADs produced or issued after February 16, 2015.

>USCIS' Issuance of 3-year Employment Authorization Documents Following a Federal District Court Injunction 		2015
OIG-15-124 DHS provides grant guidance over the acquisition of public safety communication equipment. However, the guidance the Office of Emergency Communications and the Federal Emergency Management Agency (FEMA) issued is unclear, inconsistent, and does not prevent grantees from purchasing non-interoperable communications equipment. The Office of Emergency Communications, within the National Protection and Programs Directorate, develops the National Emergency Communications Plan and the SAFECOM Guidance; however, neither document dictates specific requirements when purchasing emergency communications equipment. FEMA’s grant guidance also does not specify interoperability requirements. Without clear and consistent DHS grant guidance requiring interoperability, grantees could spend Federal funds for non-interoperable communications equipment purchases. Without interoperable emergency communications equipment, the lives of first responders and those of whom they are trying to assist may be at risk.

>DHS Needs to Improve Grant Guidance for Public Safety Communications Equipment 		2015
OIG-15-121-MA We reviewed whether, from October 1, 2013, to December 31, 2014, DHS components reported conference expenses to OIG and the public as required. During this time period, DHS components reported 28 (15 percent) of 187 conferences they were required to report to OIG; of the 28, 2 (7 percent) were reported within the required 15 days. Based on conference expenses reported in the first quarter of fiscal year (FY) 2015, the components' compliance with the reporting requirement is improving-the percentage of conferences reported rose from 13 percent in FY 2014 to 30 percent in the first quarter of FY 2015. For all but one conference with expenses exceeding $100,000, DHS published conference expenditures on its website as required, but the public cannot easily find this information. We made three recommendations to improve DHS components' required reporting of conferences to OIG and the public. DHS concurred with these recommendations and took responsive action; we consider all three recommendations closed.

>Management Advisory on Department of Homeland Security Components' Reporting of Conference Spending (OIG 15-121-MA) 		2015
OIG-15-123-D The County received a $14 million grant for damages from Hurricane Isaac, an August 2012 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. At the time of our audit, the Jackson County, Mississippi, Board of Supervisors (County) had not established accounting procedures to account for disaster costs on a project-by-project basis, as Federal regulations and FEMA guidelines require. As a result, we had to rely on direct assistance from County officials to identify project costs and related supporting documentation. Additionally, although most of the County’s contracts complied with Federal procurement standards, the County improperly procured an architectural and engineering (A/E) contract totaling $1.3 million for dredging navigation channels. Inadequate competition increased the likelihood of fraud, waste, and abuse of Federal funds and resulted in at least $353,154 of unreasonable costs. Further, in soliciting bids for the A/E contract, the County did not provide opportunities for disadvantaged firms, such as small and minority firms, to bid on federally funded work as Congress intended. Lastly, the contract included a clause making payment contingent upon FEMA funding, which Federal cost principles do not allow.

>The Jackson County, Mississippi, Board of Supervisors Would Benefit from Technical Assistance in Managing Its $14 Million FEMA Grant Award 		2015
OIG-15-119-D Pulaski County (County) received an award of $5.8 million from the Missouri State Emergency Management Agency (Missouri), a FEMA grantee, for damages resulting from severe storms, straight-line winds, and flooding in August 2013. 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 grant requirements. The County’s policies, procedures, and business practices were generally adequate to account for and expend FEMA Public Assistance grant funds according to Federal regulations and FEMA guidelines. However, the County’s procurement policies and procedures did not include all elements needed to comply fully with Federal requirements for the approximately $724,515 in estimated future disaster contracting.

>Pulaski County, Missouri, Could Benefit from Additional Assistance in Managing Its FEMA Public Assistance Grant 		2015
OIG-15-120 We reviewed 12 of FEMA Region V’s 166 disaster-related responsibilities and determined that the region was not meeting 3 of these 12 responsibilities. Specifically, Region V did not: (1) have policies and procedures to provide temporary public transportation during disasters; (2) process first-level Public Assistance appeals in a timely manner; and (3) hold mandated meetings to inform the Regional Administrator about the region’s emergency management issues.

>Inspection of FEMA's Regional Offices - Region V 		2015
OIG-15-118 This audit is a follow-up to a 2007 Inspector General audit (OIG-07-5) of Transportation Security Administration’s (TSA) Federal Employees’ Compensation Act Program. Our objective was to determine whether TSA effectively and efficiently processed and managed workers’ compensation claims. TSA was responsive to our 2007 report recommendations and implemented internal controls across its workers’ compensation program. For example, TSA developed and implemented comprehensive policies and procedures for the submission and management of workers’ compensation claims. TSA also increased the number of workers’ compensation staff and implemented a strategy to address long-term, high-cost claims. Although TSA has made progress in addressing our prior report recommendations, we noted some additional concerns. Specifically, TSA used similar but separate functions for processing workers’ compensation claims without demonstrating increased effectiveness or efficiency in the processing or management of those claims. We also noted that TSA’s process for reviewing the accuracy of Department of Labor’s charges billed to TSA was not formally documented in its workers’ compensation policy.

>Transportation Security Administration's Management of Its Federal Employees' Compensation Act Program 		2015
OIG-15-117 The Government Charge Card Abuse Prevention Act of 2012 requires the Office of Inspector General to conduct an annual risk assessment on agency charge card programs. We conducted this audit to determine whether the Department of Homeland Security (DHS) implemented sufficient internal controls to prevent illegal, improper, or erroneous purchases and payments. DHS conducts a large volume of business using government charge cards each fiscal year. In fiscal years 2012 through 2014, DHS had more than $400 million per year in purchase and travel card transactions. DHS did not ensure components established documented procedures to comply with DHS requirements on charge card use. In addition, DHS components did not have sufficient oversight plans to prevent improper use of charge cards. As a result, there remains a moderate level of risk that DHS’ internal controls will not prevent illegal, improper, or erroneous purchases.

>Fiscal Year 2014 Assessment of DHS Charge Card Program Indicates Moderate Risk Remains 		2015
OIG-15-115-D Montgomery County, Maryland (County) received a Public Assistance award of $8.2 million from the Maryland Emergency Management Agency, a FEMA grantee for damages resulting from severe storms during June and July 2012. The County generally accounted for and expended Public Assistance grant funds according to Federal requirements. However, we did identify $36,244 of duplicate equipment costs the County claimed that FEMA should disallow.

>Montgomery County, Maryland, Effectively Managed FEMA Public Assistance Grant Funds Awarded for Severe Storms During June and July 2012 		2015
OIG-15-116-D Montgomery County, Maryland (County) received a Public Assistance award of $8.2 million from the Maryland Emergency Management Agency, a FEMA grantee for damages resulting from severe storms during June and July 2012. Our audit objective was to determine whether the County accounted for and expended FEMA funds according to Federal requirements. The County generally accounted for and expended Public Assistance grant funds according to Federal requirements. However, we did identify $36,244 of duplicate equipment costs the County claimed that FEMA should disallow.

>Montgomery County, Maryland, Generally Accounted for and Expended FEMA Public Assistance Grant Funds According to Federal Requirements – Hurricane Sandy Activities ( 		2015
OIG-15-113-D The Mountain View Electric Association (Association) received a $7.1 million award of FEMA Public Assistance grant funds to repair facilities damaged in the Colorado Black Forest Fire. We audited $7.4 million in disaster-related costs, which included $322,417 in cost overruns. The Association did not always account for and expend FEMA Public Assistance grant funds in accordance with Federal regulations. Specifically, the Association did not follow all applicable Federal procurement standards in awarding FEMA-approved work valued at over $4 million for utility repairs and debris removal. As a result, FEMA has no assurance that costs are reasonable or that disadvantaged firms had sufficient opportunities to bid on Federal work as Congress intended.

>FEMA Should Disallow over $4 Million Awarded to Mountain View Electric Association, Colorado, for Improper Procurement Practices 		2015
OIG-15-114-D Fox Waterway Agency (Fox Waterway) received a $9.4 million award in Federal Emergency Management Agency (FEMA) grant funds for damages resulting from severe storms, straight-line winds, and flooding during April and May 2013. Our audit objective was to determine whether Fox Waterway expended FEMA funds according to Federal regulations and FEMA guidelines. Fox Waterway did not account for and expend FEMA funds according to Federal regulations and FEMA guidelines. The period of performance has expired for all projects, and Fox Waterway has not requested time extensions. Further, Fox Waterway officials could not tell us how much they had spent on disaster-related work or provide us documentation supporting all expenditures. Therefore, we question $9,367,187 of costs— $8,230,969 as ineligible and $1,136,218 as unsupported.

>FEMA Should Recover $9.3 Million of Ineligible and Unsupported Costs from Fox Waterway Agency in Fox Lake, Illinois 		2015
OIG-15-112 As part of the follow-up to Management Alert – U.S. Immigration and Customs Enforcement’s San Pedro Service Processing Center, San Pedro, California, December 11, 2014, we obtained and analyzed additional information to determine ICE’s long-term plan for, and how much it spent on, the facility. Although U.S. Immigration and Customs Enforcement (ICE) is taking action to repair the safety issues at the San Pedro facility identified in our Management Alert, we have concerns regarding ICE’s process to renovate this facility. ICE did not develop a long-term plan for the facility and renovated a portion of the first floor by performing several small projects. Including the safety repairs, ICE will have spent $6 million on a mostly unused and unoccupied facility.

>Follow-up to Management Alert - U.S. Immigration and Customs Enforcement's Facility, San Pedro, California 		2015
OIG-15-111-D The City received a Public Assistance grant award of $9.8 million from the Oklahoma Department of Emergency Management (Oklahoma), a FEMA grantee, to recover from severe storms and tornadoes that occurred in May and June 2013. Oklahoma City, Oklahoma, (City) did not always account for and expend FEMA grant funds according to Federal regulations and FEMA guidelines. The City claimed $4.85 million in contract costs without taking the affirmative steps that Federal regulations require to ensure the use of small and minority firms, women’s business enterprises, and labor surplus area firms when possible, nor did it take the steps that its own affirmative policy required. As a result, FEMA has no assurance that these types of firms had sufficient opportunities to bid on federally funded work as Congress intended.

>FEMA Should Recover $4.85 Million of Ineligible Grant Funds Awarded to Oklahoma City, Oklahoma 		2015
OIG-15-110-D Lawrence County Engineer, Ohio (Lawrence), received a FEMA Public Assistance award of $7.5 million for damages resulting from severe storms and flooding in April and May 2011. Our audit objective was to determine whether Lawrence accounted for and expended FEMA funds according to Federal regulations and FEMA guidelines. Lawrence generally accounted for and expended FEMA Public Assistance grant funds according to Federal requirements. In the days following the flood, Lawrence employees worked diligently to clear and reopen roads. However, Lawrence did not follow all Federal procurement standards in awarding 17 contracts totaling $4.5 million that we reviewed. Lawrence awarded the contracts competitively, but did not take all required affirmative steps to ensure the use of small and minority firms, women’s business enterprises, and labor surplus area firms when possible. Therefore, FEMA has little assurance that these types of firms had sufficient opportunities to bid on Federal work to the extent Congress intended. Lawrence also did not include all required provisions in its contracts, which document the rights and responsibilities of Lawrence and its contractors.

>Lawrence County Engineer, Ohio, Generally Accounted For and Expended FEMA Grant Funds Properly 		2015
OIG-15-109-D The Unified School District #473 in Chapman, Kansas (Chapman), received an award of $65.2 million in FEMA grant funds for damages from severe storms, tornadoes, and flooding that occurred in May and June 2008. After the devastating storms, Chapman did an outstanding job of reopening all schools by August 18, 2008. However, a year after the storms, Chapman began work to rebuild its schools, but did not follow Federal procurement standards in awarding contracts valued at $50 million. As a result, FEMA has no assurance that contract costs were reasonable; full and open competition did not occur; and small and minority/women-owned firms did not receive opportunities to bid on Federal contracts.

>Kansas and the Unified School District #473 in Chapman, Kansas, Did Not Properly Administer $50 Million of FEMA Grant Funds 		2015
OIG-15-106-D Dixie Electric received a $9.2 million award in FEMA grant funds for 2012 Hurricane Isaac damages to its facilities located in Greenwell Springs, Louisiana. Our audit objective was to determine whether Dixie Electric accounted for and expended FEMA funds according to Federal regulations and FEMA guidelines. Dixie Electric Membership Corporation (Dixie Electric) generally accounted for and expended Federal Emergency Management Agency (FEMA) Public Assistance grant funds according to Federal requirements. Dixie Electric used its own employees, mutual aid agreements with other electric cooperatives, and contractors to restore power to its customers by September 4, 2012, only 6 days after the disaster. Although Dixie Electric did not always comply with Federal procurement standards in awarding 10 contracts for disaster work totaling $4.4 million, we question only $21,740 for non-compliance because contractors performed most of the work under exigent circumstances to restore power.

>Dixie Electric Membership Corporation, Greenwell Springs, Louisiana, Generally Accounted For and Expended FEMA Grants Funds Properly 		2015
OIG-15-108-IQO The Office of Integrity and Quality Oversight, Investigations Quality Assurance Division conducted an oversight review of the National Protection and Programs Directorate (NPPD), Internal Affairs Division (IAD) from November 2014 to February 2015. The review covered IAD activity from October 1, 2011, to September 30, 2014 (fiscal years 2012 through 2014). We conducted this review as part of the planned periodic review of the Department of Homeland Security (DHS) component internal affairs offices by the DHS Office of Inspector General (OIG) in keeping with the oversight responsibilities mandated by the Inspector General Act of 1978, as amended. Generally, we found that inquiries conducted and overseen by the Internal Affairs Division were thorough and complete. Our review, however, raised serious concerns about NPPD’s authority to conduct criminal investigations. Additionally, we found that criminal investigators assigned to IAD did not meet the minimum legal requirement of spending at least 50 percent of their time on criminal investigative activity to earn Law Enforcement Availability Pay. Lastly, we found particular issues with the written policies and the overall management of inquiries.

>Oversight Review of the National Protection and Programs Directorate, Internal Affairs Division 		2015
OIG-15-107 As a result, we identified more than $67 million in questioned costs related to operational overtime, management and administration, and training that were not spent according to grant guidance or were not adequately supported.

>New York's Management of Homeland Security Grant Program Awards for Fiscal Years 2010-12 		2015
OIG-15-105-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 Severe Storms and Flooding in Michigan 		2015
OIG-15-104-D We audited FEMA Public Assistance grant funds awarded to the Port of Tillamook Bay, Oregon (Port), for damages resulting from severe storms, flooding, landslides, and mudslides that occurred in December 2007. The Port properly accounted for FEMA funds, but did not always expend the funds according to Federal regulations and FEMA guidelines.

>FEMA Should Recover $337,135 of Ineligible or Unused Grant Funds Awarded to the Port of Tillamook Bay, Oregon 		2015
OIG-14-153 The U.S. Office of Special Counsel (OSC) received a whistleblower disclosure concerning the use of a risk-based rule by the Transportation Security Administration's (TSA) Secure Flight program that may create a vulnerability in aviation security. We assigned our Office of Inspections team currently assessing Security Enhancements to the TSA Pre?™ Initiative to review this allegation. We interviewed the whistleblower and TSA senior officials involved in the risk-based rule decision-making process. We also analyzed documentation regarding these rules to determine whether an aviation security vulnerability exists.

>Use of Risk Assessment within Secure Flight (Redacted) 		2014
OIG-15-103-D The City of Rocky Mount, North Carolina (City), received a Public Assistance award of $5.4 million from the North Carolina Division of Emergency Management, a FEMA grantee, for damages resulting from Hurricane Irene in August 2011. We audited the projects totaling $5.3 million to determine whether the City accounted for and expended FEMA funds according to Federal requirements. For the projects we reviewed, the City properly accounted for and expended FEMA funds according to Federal requirements.

>The City of Rocky Mount, North Carolina, Effectively Managed FEMA Public Assistance Grant Funds Awarded for Hurricane Irene Damages 		2015
OIG-15-102-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 2014 Mudslide near Oso, Washington 		2015
OIG-15-101-D FEMA awarded the Chippewa Cree Tribe of the Rocky Boy’s Indian Reservation in Montana (Tribe) a $31.6 million grant for damages from a June-July 2010 flood disaster. The Tribe mismanaged this grant, which resulted in a domino effect of negative consequences. First, the Tribe awarded a $3.7 million sole-source contract to a Tribal-owned corporation, the Chippewa Cree Construction Corporation (Corporation). The lack of full and open competition set the stage for fraud, waste, and abuse. Then, the Tribe neglected to identify the material deficiencies in the Corporation’s fiscal controls and accounting procedures. The Corporation’s Chief Executive Officer took advantage of these weaknesses; and a Federal court has since convicted him of Federal corruption charges for embezzling the Tribe’s insurance proceeds and FEMA grant funds, and sentenced him to prison in August 2014. Finally, the Tribe could not provide documentation sufficient to support the $3.9 million it claimed for Project 117.

>The Chippewa Cree Tribe of the Rocky Boy's Indian Reservation in Montana Mismanaged $3.9 Million in FEMA Disaster Grant Funds 		2015

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

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