FEMA Wasted More Than $1 Billion During COVID-19, Audit Says
The Federal Emergency Management Agency (FEMA) mismanaged billions of taxpayer dollars during the COVID-19 pandemic, according to a new audit from the U.S. Department of Homeland Security Office of Inspector General (OIG DHS).
“FEMA over-obligated at least $1.5 billion in funds for one state’s medical staffing grant and did not determine the cost allowability of the $8.1 billion in funds drawn down by the state,” OIG DHS auditors wrote.
“Additionally, we reviewed a sample of 20 other grants and identified approximately $32.8 million in improper payments. Finally, FEMA did not issue determination memorandums when denying or reducing reimbursement requests, as required.”
According to FEMA’s website, a determination memorandum, and a letter that accompanies it, tells the recipient or recipients whether they are eligible to receive the money.
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OIG DHS auditors wrote that “these issues occurred due to the unprecedented circumstances surrounding the COVID-19 pandemic and FEMA not following established requirements when delivering Public Assistance funding.”
“For example, for the medical staffing grant, FEMA did not validate the reasonableness of cost estimates provided by the state before obligating funds,” according to the audit.
“Further, FEMA experienced delays in its improper payment reviews of the state’s expended funds due to an increased workload from COVID-19 and other major disasters. FEMA also delayed taking action to recoup unsupported costs it identified in its improper payment reviews and instead worked with the state to maximize reimbursements during the review process.”
FEMA received about $45 billion in CARES Act funding and more than $50 billion from the American Rescue Plan Act . By the end of fiscal year 2023, FEMA had obligated about $69 billion to fund COVID-19 recovery measures.
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As reported this week, contractors who work for FEMA lack the proper training or certification to help with the aftermaths of various disasters. Government Accountability Office staff said they reviewed 15 contracts from three recent disasters. FEMA did take proper oversight steps, such as assessing contractor reports of work performed and conducting site inspections.
Additionally, some FEMA staff performed oversight without the required authorization or certification, which is not in accordance with Department of Homeland Security guidance or FEMA policy.
The United States and its territories have experienced several devastating and costly natural disasters that required FEMA assistance. From fiscal years 2018 through 2023, FEMA spent more than $10 billion on contracts — mostly for services, such as housing inspections — to conduct response and recovery efforts.
Special thanks to Warhammer’s Wife proofreading this story before publication to make certain there were no misspellings, grammatical errors or other embarrassing mistakes and/or typos. Follow Warhammer on Twitter @Real_Warhammer
