FEMA Adequately Managed Port Security Grants, but Program Effectiveness Remains Unevaluated

Title Full

Date Issued

Wednesday, September 24, 2025

Submitting OIG

Department of Homeland Security OIG

Agencies Reviewed/Investigated

Department of Homeland Security

Report Number

OIG-25-45

Report Description

The Federal Emergency Management Agency’s (FEMA) Port Security Grant Program (PSGP) reimbursements — totaling more than $280 million — were allowable and paid in accordance with requirements, based on our review of records for fiscal years 20182021. We did, however, question $281,045 in non-Federal cost share expenditures for which recipients either did not maintain adequate documentation or purchased items that were not allowable under the program, resulting in $199,083 in funds that may need to be returned to FEMA to meet non-Federal cost share requirements.

Report Type

Audit

Agency Wide

Yes

Number of Recommendations

Questioned Costs

Funds for Better Use

Report updated under NDAA 5274

External Entity

https://www.oig.dhs.gov/sites/default/files/assets/2025-09/OIG-25-45-Sep25.pdf

External Link

https://www.oig.dhs.gov/sites/default/files/assets/2025-09/OIG-25-45-Sep25.pdf

Open Recommendations

This report has 5 open recommendations.

Recommendation Number	Significant Recommendation	Recommended Questioned Costs	Recommended Funds for Better Use
1	No	$0	$0
We recommend FEMA’s Administrator communicate non-Federal cost share requirements to grant recipients.
2	No	$0	$0
We recommend FEMA’s Administrator obtain the necessary supporting documentation or begin the process to recover $199,083 in Federal reimbursements resulting from $281,045 in unallowable costs for two PSGP recipients to meet their respective cost shares.
3	No	$0	$0
We recommend FEMA’s Administrator modify the applicant risk review process to use histories of past noncompliance and document the risk analysis and determination when assessing an applicant’s overall risk level.
3	No	$0	$0
We recommend FEMA’s Administrator modify the applicant risk review process to use histories of past noncompliance and document the risk analysis and determination when assessing an applicant’s overall risk level.
4	No	$0	$0
We recommend FEMA’s Administrator, in consultation with the Coast Guard, develop and implement a formal plan that includes required actions, projected milestones, and necessary support to track and measure PSGP’s performance in strengthening the security and resiliency of the Nation’s ports against emerging threats.