The Federal Emergency Management Agency (FEMA) did not manage Puerto Rico Disaster Case Management Program (PR-DCMP) funds in accordance with Federal regulations and FEMA program requirements. According to Federal regulations, non-Federal entities must support accumulation of costs and provide adequate documentation to support costs charged to a Federal award. However, FEMA did not require six DCMP nonprofit organizations (Providers) to provide supporting documentation for actual costs. Instead, FEMA made advance payments totaling $6.4 million to six Providers based on estimates, rather than reconciling the payments with actual costs. Additionally, FEMA lacked supporting documentation for Providers totaling $10.7 million.

This occurred because FEMA did not have adequate internal controls for separation of duties, written policies and procedures for oversight when the state is not the recipient, or records management. As a result, FEMA has no assurance that $17.1 million paid to eight Providers was DCMP-related and necessary to perform DCMP activities. Additionally, FEMA cannot ensure the remaining $47.9 million in costs is adequately supported, thereby increasing the risk of fraud, waste, and abuse of funds.

Read Report No. OIG-22-77

U.S. DEPARTMENT OF HOMELAND SECURITY, OFFICE OF INSPECTOR GENERAL
WWW.OIG.DHS.GOV  l TWITTER: @DHSOIG