The Federal Emergency Management Agency approved New York State’s Division of Homeland Security and Emergency Services (DHSES-NY) application for approximately $40.8 million to provide Disaster Case Management Program (DCMP) services to disaster survivors for household recovery efforts. FEMA did not provide the oversight needed to ensure DHSES-NY, as the grantee, carried out its responsibilities. DHSES-NY and its managing contractor did not always properly account for FEMA grant funds in accordance with Federal regulations and FEMA guidelines when approving contractor costs claimed, resulting in questioned costs of $12.2 million. DHSES-NY’s paper-based system used to track DCMP grant funding and expenditures was not sufficient to ensure contractors claimed eligible costs for payment. As a result, there is no assurance the contractors’ claimed costs are valid putting Federal funds and taxpayers’ money at risk of fraud, waste, and abuse. We made six recommendations to FEMA that, when implemented, should help strengthen oversight of FEMA’s individual assistance grant funds. FEMA concurred with all six recommendations. We consider recommendations 1, 2, 3, 4, and 5 resolved and open with an estimated completion date of July 30, 2021. Recommendation 6 is considered unresolved and open.
NY
United States
