EDA Is Not Fully Complying with All Its Disaster Relief Award Policies

For our audit of the Economic Development Administration’s (EDA’s) disaster relief grants award administrative processes and oversight efforts, our objective was to determine whether EDA’s process for awarding disaster relief grants to applicants is adequate. Specifically, we focused on whether (1) EDA awarded grants on a competitive and merit basis and (2) the extent of EDA’s compliance with the requirements outlined in the Bipartisan Budget Act of 2018 as well as its own policies and procedures for determining which applicants should receive disaster relief funds. We found that EDA is awarding grants on a competitive and merit basis. However, EDA does not always comply with its own policies and procedures for determining which applicants should receive disaster relief funds. Specifically, we found that EDA did not I. ensure all applications documented a clear nexus and resilience principles; II. always use priority order of funding recommendations; and III. always meet its own internal review goals.