FEMA Should Increase Oversight to Prevent Misuse of Humanitarian Relief Funds

Submitting OIG:

Report Description:

FEMA awarded $110 million in humanitarian relief funds provided by ARPA to the EFSP National Board to provide services to families and individuals encountered by DHS in communities most impacted by the humanitarian crisis at the Southwest border. As of September 8, 2021, the National Board awarded $80.6 million of the funds to 25 local recipient organizations (LRO) in California, New Mexico, Arizona, and Texas. We reviewed $12.9 million from 18 LROs and found they did not always use the funds consistent with the American Rescue Plan Act of 2021 Humanitarian Relief Funding and Application Guidance (funding and application guidance).

Date Issued:

Thursday, March 30, 2023

Agency Reviewed / Investigated:

Department of Homeland Security

Submitting OIG-Specific Report Number:

OIG-23-20

Component, if applicable:

Federal Emergency Management Agency (FEMA)

Location(s):

Agency-Wide

Type of Report:

Audit

Questioned Costs:

Funds for Better Use:

Number of Recommendations:

Additional Details Link:

https://www.oig.dhs.gov/sites/default/files/assets/2023-03/OIG-23-20-Mar23.pdf

Recommendation Number	Recommendation Status	Significant Recommendation
1	Open	No
We recommend the FEMA Administrator ensure that the EFSP National Board resolve the $7.4 million in questioned costs and incorporate controls in the American Rescue Plan Act of 2021 Humanitarian Relief Funding and Application Guidance to minimize future reimbursements of unsupported costs. Additionally, the FEMA Administrator should ensure the labor hour reimbursements made to the COVID-19 testing contractor are appropriately supported.
2	Open	No
We recommend the FEMA Administrator ensure the EFSP National Board implements oversight measures to enforce the American Rescue Plan Act of 2021 Humanitarian Relief Funding and Application Guidance for future supplemental appropriations. Specifically, develop a risk-based methodology to review a sample of ongoing funding execution for future supplemental appropriations to ensure funds approved are: reviewed and reconciled for completeness and accuracy; and  supported with appropriate documentation, including rosters or other documentation for the number of people served.

Recommendation Number

Recommendation Status

Significant Recommendation

Additional Details

Open

We recommend the FEMA Administrator ensure that the EFSP National Board resolve the $7.4 million in questioned costs and incorporate controls in the American Rescue Plan Act of 2021 Humanitarian Relief Funding and Application Guidance to minimize future reimbursements of unsupported costs. Additionally, the FEMA Administrator should ensure the labor hour reimbursements made to the COVID-19 testing contractor are appropriately supported.

Open

We recommend the FEMA Administrator ensure the EFSP National Board implements oversight measures to enforce the American Rescue Plan Act of 2021 Humanitarian Relief Funding and Application Guidance for future supplemental appropriations. Specifically, develop a risk-based methodology to review a sample of ongoing funding execution for future supplemental appropriations to ensure funds approved are: reviewed and reconciled for completeness and accuracy; and  supported with appropriate documentation, including rosters or other documentation for the number of people served.

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FEMA Should Increase Oversight to Prevent Misuse of Humanitarian Relief Funds

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