2017 Hurricanes

FEMA’s Intergovernmental Service Agreement (IGSA) with the Texas General Land Office (TxGLO) was appropriate to ensure direct housing assistance program compliance with applicable laws and regulations.  However, FEMA initiated the IGSA without first developing the processes and controls TxGLO needed to administer the program.  As a result, FEMA and the State had to develop and finalize implementation guidelines after signing the IGSA, delaying TxGLO’s disaster response.  In addition, FEMA disaster personnel had to prepare the necessary guidance, toolkits, and training resources while simultaneously responding to Hurricane Harvey.  Also, FEMA used workarounds and TxGLO set up a separate system, creating additional operational challenges and inefficiencies.  We made three recommendations to improve future state administered direct housing assistance efforts.  FEMA concurred with all three recommendations. 

We determined that FEMA followed applicable laws, regulations, and guidance in its efforts to provide funding for reconstruction of the Vieques’ Community Health Center.  FEMA’s assessment of the funding needs for the project is complete and $39,569,695 (Federal share) was obligated on January 21, 2020 for a full facility replacement.  We did not make any recommendations but announced an audit to assess FEMA’s Public Assistance Program Alternative Procedures process for all permanent work projects.

KPMG, LLP found that the Federal Emergency Management Agency (FEMA) did not always ensure Virgin Islands Territorial Emergency Management Agency (VITEMA) and the Virgin Islands Department of Education (VIDE) established and implemented policies, procedures, and practices to account for and expend Public Assistance (PA) grant funds according to Federal regulations and FEMA guidance.  For example, VIDE did not have policies and procedures to address procurement-related conflicts of interest and related disciplinary actions.  This occurred because FEMA did not adequately train VIDE personnel and did not review these policies and procedures.  We made five recommendations that, when implemented, should improve management of FEMA PA grant funds, ensuring the funds are expended according to Federal regulations and FEMA guidance.  FEMA concurred with the recommendations. 

KPMG, LLC found the Federal Emergency Management Agency (FEMA) did not provide adequate guidance to the Virgin Islands Emergency Management Agency (VITEMA) and the Virgin Islands Housing Finance Agency (VIHFA) and that VITEMA and VIHFA did not adequately manage FEMA Public Assistance (PA) funds.  Also, VITEMA and VIHFA did not always ensure the accuracy of project funding information or promptly notify FEMA about significant project cost overruns.  This occurred because FEMA did not provide the necessary guidance to and oversight of VITEMA and VIHFA to properly manage PA funds.  Because of these deficiencies, PA programs are at increased risk of mismanagement and expenditure of funds for unallowable activities.  We made seven recommendations to improve VITEMA’s and VIHFA’s management of FEMA PA funds, ensuring they are expended according to Federal regulations and FEMA guidance.  FEMA concurred with the recommendations.

Following Hurricane Maria, FEMA did not maximize the use of advance contracts to address identified capability deficiencies and needs in Puerto Rico.  Specifically, we identified 49 of 241 new contracts issued in the aftermath of Hurricane Maria for the same goods or services covered by existing advance contracts.  We attributed FEMA’s limited use of advance contracts to its lack of a strategy and documented planning process for ensuring maximum use of advance contracts. Further, FEMA did not maintain contract files in accordance with Federal acquisition regulations and departmental or its own policy.  This occurred because FEMA’s Office of the Chief Procurement Officer did not have controls in place to ensure contract personnel follow Federal regulations and departmental or its own internal policy.  As a result, FEMA’s ability to hold contractors accountable for deliverables is hindered if contract files are not easily located. We made four recommendations to help FEMA improve its strategy for advance contracts, its process for identifying capability needs and gaps, and its contract file management practices. FEMA concurred with all four recommendations and described corrective actions it plans to take.