FEMA's Procurement and Cost Reimbursement Review Process Needs Improvement

Submitting OIG:

Report Description:

We determined that FEMA did not ensure procurements and costs for debris removal operations in Monroe County, Florida, met Federal requirements and FEMA guidelines. Specifically, FEMA did not adequately review local entities’ procurements for debris removal projects and reimbursed local entities for questionable costs. These deficiencies were due to weaknesses in FEMA training and its quality assurance process. As a result, FEMA approved reimbursement to local entities for nearly $25.6 million (more than $23 million in Federal share) for debris removal projects, including contracts that may not have met Federal procurement requirements, and more than $2 million in questionable costs. Without improvements to FEMA’s training and project review processes, FEMA risks continuing to expose millions of dollars in disaster relief funds to fraud, waste, and abuse. We made three recommendations with which FEMA officials concurred. Based on the information FEMA provided, we consider the three recommendations resolved and open.

Date Issued:

Thursday, March 4, 2021

Agency Reviewed / Investigated:

Department of Homeland Security

Submitting OIG-Specific Report Number:

OIG-21-26

Component, if applicable:

Federal Emergency Management Agency (FEMA)

Location(s):

United States

Type of Report:

Audit

Questioned Costs:

Funds for Better Use:

Number of Recommendations:

View Document:

Attachment	Size
OIG-21-26-Mar21.pdf	2.1 MB

Recommendation Number	Recommendation Status	Significant Recommendation
1	Open	No
Identify minimum training (baseline) requirements and follow through by providing, tracking, and documenting this training for project reviewers, including Program Delivery Managers, Document Validation Specialists, and Quality Assurance Specialists, before they perform their duties.
2	Open	No
Strengthen the project review process by evaluating FEMA’s internal controls and making improvements that, at a minimum, ensure: (a) projects return to the prior review queue if the projects do not comply with Federal procurement requirements or FEMA guidelines, including when insufficient documentation is provided; (b) roles and responsibilities for procurement reviews and quality assurance are clearly defined; (c) project review policies are followed, such as the use of Determination Memos and Quality Assurance Checklists, as appropriate; and (d) controls are tracked and an auditable file is created in FEMA systems
3	Open	No
Ensure the Regional Administrator, Federal Emergency Management Agency Region IV, review debris removal procurements and projects and either disallow or acquire support documentation for $25,594,524 ($23,282,276 Federal share) in questionable debris costs.

Recommendation Number

Recommendation Status

Significant Recommendation

Additional Details

Open

Identify minimum training (baseline) requirements and follow through by providing, tracking, and documenting this training for project reviewers, including Program Delivery Managers, Document Validation Specialists, and Quality Assurance Specialists, before they perform their duties.

Open

Strengthen the project review process by evaluating FEMA’s internal controls and making improvements that, at a minimum, ensure: (a) projects return to the prior review queue if the projects do not comply with Federal procurement requirements or FEMA guidelines, including when insufficient documentation is provided; (b) roles and responsibilities for procurement reviews and quality assurance are clearly defined; (c) project review policies are followed, such as the use of Determination Memos and Quality Assurance Checklists, as appropriate; and (d) controls are tracked and an auditable file is created in FEMA systems

Open

Ensure the Regional Administrator, Federal Emergency Management Agency Region IV, review debris removal procurements and projects and either disallow or acquire support documentation for $25,594,524 ($23,282,276 Federal share) in questionable debris costs.

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FEMA's Procurement and Cost Reimbursement Review Process Needs Improvement

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