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

- **Rec 1** (Closed): We 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…
- **Rec 2** (Closed): We 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.
- **Rec 3** (Open): We 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.
- **Rec 4** (Open): We 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.
- **Rec 5** (Open): We 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…
- **Rec 6** (Open): We 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.
- **Rec 7** (Closed): We 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
- [oversight.gov report page](https://www.oversight.gov/reports/audit/fema-did-not-implement-controls-prevent-more-37-billion-improper-payments-lost-wages)
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