A new $2.6 million program in which FEMA reviews erroneous payments to disaster victims has lead to denial of only $1.6 million in waivers requested because of those mistakes, a new auditor’s report shows.
Waivers were approved in 96% of the cases.
“The waiver of millions of dollars in improper payments and FEMA’s inability to recover even when the recipient is found guilty of fraud shows that FEMA needs changes to its claims, payment, and recovery systems to ensure that taxpayer dollars are not wasted,’ the Project on Government Oversight notes in a story about the audit.
The Disaster Assistance Recoupment Fairness Act authorizes the payment reviews and waivers. It was passed in 2011 after major issues involving problems — and attempted recapture of money later — following Hurricane Katrina.
FEMA errors that could lead to waivers include “failure of FEMA personnel to include information in the system, failure of personnel to verify disasterrelated loss or need prior to authorizing payment, or adoption of a new policy in the midst of a disaster,” the inspector general’s report notes.
The Inspector General’s review is ongoing.
“Because the amount of debt that will be waived directly affects the cost-effectiveness of FEMA’s efforts to recoup improper payments, OIG will be analyzing FEMA’s adjudication process to determine if it follows the law, taking into account potential fraud, misrepresentation, or false claims by the debtor, which would preclude obtaining a waiver. Furthermore, OIG will determine whether the FEMA components that are involved in the DARFA process are adequately coordinating their efforts.”