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FEMA Did Not Implement Controls to Prevent More than $3.7 Billion in Improper Payments from the Lost Wages Assistance Program

Audit · Department of Homeland Security OIG · 2022-09-22 · about Department of Homeland Security

Report

Title
FEMA Did Not Implement Controls to Prevent More than $3.7 Billion in Improper Payments from the Lost Wages Assistance Program
Submitting OIG
Department of Homeland Security OIG
Component agency
Department of Homeland Security
Type
Audit
Publication date
2022-09-22

Summary

The Federal Emergency Management Agency (FEMA) did not implement controls that may have prevented the 21 state workforce agencies (SWA) in our review from distributing more than $3.7 billion in improper payments through its Lost Wages Assistance (LWA) program.

Recommendations (7)

#StatusText
1ClosedWe recommend the FEMA Administrator develop and implement a standard risk assessment process before initiating new Federal grant programs. This risk assessment should focus on identifying and evaluating program risks that may affect FEMA’s ability to…
2ClosedWe recommend the FEMA Administrator, when mandated to rely on eligibility determinations of non-FEMA programs, develop a process to assess the program controls and identify risk to the extent practical.
3OpenWe recommend the FEMA Administrator update the State Administrative Plan template to incorporate a requirement for grantees to include a description of the steps to prevent improper payments.
4OpenWe recommend the FEMA Administrator develop and implement a process to monitor whether grantees implement and use the controls attested in FEMA-approved State Administrative Plans.
5OpenWe recommend the FEMA Administrator work with state workforce agencies to evaluate the Lost Wages Assistance program payments and verify that all recipients who received payment have a self-certification on file, as required; to determine whether the…
6OpenWe recommend the FEMA Administrator conduct an after-action study of the Lost Wages Assistance program and update FEMA’s Individuals and Households Program based on the lessons learned from the study.
7ClosedWe recommend the FEMA Administrator de-obligate and recover any monies determined to have been obtained fraudulently or other improper payments through Lost Wages Assistance from the state workforce agencies.

Source

Authoritative
oversight.gov report page
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