FEMA’s Inadequate Oversight Led to Delays in Closing Out Declared Disasters

Date Issued

Friday, August 16, 2024

Submitting OIG

Department of Homeland Security OIG

Other Participating OIGs

Department of Homeland Security OIG

Agencies Reviewed/Investigated

Department of Homeland Security

Components

Federal Emergency Management Agency (FEMA)

Report Number

OIG-24-45

Report Description

The Federal Emergency Management Agency (FEMA) did not ensure that it closed out disaster declarations in a timely manner. We reviewed 79 disaster declarations and identified 26 programs with nearly $9.4 million in unliquidated funds that remained open beyond their approved periods of performance. These programs included public assistance, individual assistance, and hazard mitigation grant programs that were awarded in 2012 or earlier. This situation is problematic because costs incurred after the period of performance ends are not reimbursable.

Report Type

Audit

Agency Wide

Yes

Number of Recommendations

Questioned Costs

Funds for Better Use

Open Recommendations

This report has 2 open recommendations.

Recommendation Number	Significant Recommendation	Recommended Questioned Costs	Recommended Funds for Better Use
1	No	$0	$0
We recommend that the FEMA Administrator direct FEMA Regions to:• begin administrative closeout of the 26 grant programs we identified with expired periods of performance to the extent permitted by the Stafford Act, for those with no pending requests for extension or lacking acceptable justifications for extension, and deobligate the associated $9.4 million in remaining funds;• assess and close, as appropriate, the 42 grant programs in our scope representing $7 billion in unliquidated funding; and• conduct a review of all authorized grant programs with expired periods of performance to determine whether to administratively closeout and deobligate remaining fund balances, to the extent permitted by the Stafford Act, for those with no pending requests for extension or lacking acceptable justifications for extension.
2	No	$0	$0
We recommend that the FEMA Administrator consistently apply FEMA Manual 205-0-1, Grants Management requirements, including that the recipient’s request and FEMA’s determination for extensions must be in writing and signed, and that FEMA’s determination include the rationale for the decision, including how the facts meet the applicable guidelines.