Although the Federal Emergency Management Agency (FEMA) processed and obligated funds timely to other Federal agencies (OFA), it did not provide sufficient oversight to ensure OFAs used pandemic funding as required. Specifically, FEMA did not develop detailed cost estimates when initially establishing MAs, validate unliquidated and open obligations throughout the MA lifecycle, and verify cost eligibility against Public Assistance guidance before closing the MA.

Two key factors contributed to FEMA’s inability to ensure OFAs used pandemic funding as required. First, FEMA officials followed unofficial processes rather than FEMA’s Mission Assignment Guide, which contains required oversight procedures. Second, FEMA’s Closeout Team did not have sufficient staffing to follow up when OFAs did not provide required unliquidated and open obligation data.

As a result, FEMA does not have adequate visibility into how OFAs ultimately used more than $8.3 billion in obligated funds for COVID-19 MAs and we are questioning as unsupported more than $103 million FEMA reimbursed to OFAs without sufficient documentation to determine eligibility.

Read Report No. OIG-22-76

U.S. DEPARTMENT OF HOMELAND SECURITY, OFFICE OF INSPECTOR GENERAL
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