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More than $2.6 Million in Potentially Fraudulent LWA Payments Were Linked to DHS Employees’ Identities

Audit · Department of Homeland Security OIG · 2022-09-28 · about Department of Homeland Security

Report

Title
More than $2.6 Million in Potentially Fraudulent LWA Payments Were Linked to DHS Employees’ Identities
Submitting OIG
Department of Homeland Security OIG
Component agency
Department of Homeland Security
Type
Audit
Publication date
2022-09-28

Summary

The Federal Emergency Management Agency (FEMA) did not implement controls to prevent state workforce agencies (SWA) from paying more than $2.6 million in Lost Wages Assistance (LWA) for potentially fraudulent claims made by Department of Homeland Security employees, or claimants who fraudulently used the identities of DHS employees to obtain LWA benefits.

Recommendations (8)

#StatusText
1Closed: 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…
2ClosedWe recommend the FEMA Administrator conduct an after-action study of the Lost Wages Assistance program and update FEMA Individual Assistance programs based on the lessons learned from the study.
3ClosedWe 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, where practical.
4OpenWe recommend the Chief Human Capital Officer for DHS’ Management Directorate develop, implement, and communicate departmental policies and procedures for the Unemployment Compensation for Federal Employees program to each component to ensure…
5ClosedWe recommend the FEMA Administrator develop and implement a process to monitor whether grantees implement and use the controls attested to in FEMA-approved state administrative plans.
5ClosedWe recommend the FEMA Administrator develop and implement a process to monitor whether grantees implement and use the controls attested to in FEMA-approved state administrative plans.
6ClosedWe recommend the FEMA Administrator develop and implement a process to review state administrative plans for consistency and ensure they include fraud prevention and mitigation strategies.
7ClosedWe recommend the FEMA Administrator de-obligate and recover any monies determined to have been obtained fraudulently or other improper payments through the Lost Wages Assistance program from the state workforce agencies.

Source

Authoritative
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