Other OIG Activities

Hotline Complaints

We received 739 Hotline calls during this reporting period. The majority consisted of allegations concerning Hurricanes Opal and Fran, and others involved the Illinois, Oregon, and Washington floods. We also received calls for the Midwest snows in Arkansas, Kentucky, Ohio, and Tennessee. We continue to receive allegations involving the California floods.

Allegations included:

• Disaster fund recipients were victimized by contractors who inflated repair fees and/or failed to complete repairs properly.
  
  
• Individuals falsely claimed to be FEMA employees.
  
  
• Landlords applied for tenants' personal losses and tenants applied for damage to structures and fixtures.
  
  
• Disaster assistance applicants used false names, multiple and/or fictitious addresses.
  
  
• Disaster assistance applicants claimed losses they did not incur or that they were not entitled to claim.
  
  
• Applicants did not use claim money for its intended purposes.

Oversight of Non-FEMA Audits

Complying with our responsibility to review audit reports prepared by non-FEMA auditors on FEMA programs and activities, and to monitor actions taken to implement recommendations, we processed 24 reports: 10 were prepared pursuant to OMB Circular A-128, "Audits of State and Local Governments"; 1 was prepared pursuant to OMB Circular A-133, "Audits of Institutions of Higher Education and Other Nonprofit Institutions"; 2 were prepared by the Defense Contract Audit Agency pursuant to the Federal Acquisition Regulations; and 11 were prepared by State auditors or public accounting firms. Five of the 24 reports questioned costs totaling $2 million.

GAO ACTIVITIES

• Reports in Process
  The General Accounting Office (GAO) began the following reviews in FEMA during the six-month period ending March 31, 1997:
  
  
  • Survey of Expenditures to Establish and Maintain Internet, World Wide Web, and Bulletin Boards
    
    
  • Survey of Expenditures for Subscriptions and News Clippings
    
    
  • Review of Government-wide Compliance with the Government Performance and Reform Act
    
    
  • Review of Federal Agencies' Terrorism Programs
    
    
  • Review of the Housing Assistance Fast-Track Process and Crisis-Counseling Program
    
    
  • Review of Environmental Cleanup Liabilities Reported on Agencies Financial Statements
    
    
• Reports Issued
  GAO did not issued any reports on FEMA activities during this six-month period.

AUDIT REPORTS UNRESOLVED OVER 6 MONTHS

Timely resolution of outstanding audit recommendations continues to be a priority at FEMA. The three audit reports containing recommendations unresolved for more than six months are reported below.

1. Department of the Interior Audit of Disaster Assistance Funds Awarded to U.S. Virgin Islands, Report E-D-5-93, November 20, 1992.
   The Department of Interior's OIG questioned $5.6 million of costs claimed under a disaster. The auditors found that costs were either not eligible under the grant or Federal regulations, or were not adequately supported by documentation. The review led to an investigation and an 18-count indictment returned by a Federal grand jury against a contractor that provided services. On February 15, 1996, two officials of the contracting firm pled guilty. Fines, penalties, and restitution amounts are to be determined by June 30, 1997, at which time the recommendation will be resolved.
   
   
2. Audit of Vulcan Services, Inc., FEMA Contract EMW-92-C-3857, Audit Reports E-7-95, issued December 13, 1994; and
   
   
3. E-26-95, issued March 31, 1995.
   The initial audit questioned $1.2 million of the $2.8 million claimed by the contractor. An additional $1.2 million was referred to the contracting officer as a matter involving disputed inspection fees. The second report provided specific details on costs claimed for inspection services. FEMA's Office of General Counsel referred the case to the Department of Justice for action. We anticipate the recommendations will be resolved by July 31, 1997.