Multiple investigations show FEMA’s pattern of noncompliance

On March 1, 2018, the Centro de Periodismo Investigativo (CPI) documented a FEMA pattern: authorize spending and later deny reimbursements or demand repayments, according to a 2016 OIG audit (58 reports) and a 2017 AP investigation.

For 2009–2015, OIG questioned 15% of audited funds: FEMA had to recover $1,064 million of $10,900 million evaluated. In FY2016, $155.6 million (23%) of $686 million audited were questioned costs. Despite recommendations, FEMA authorized $85.7 million of questioned funds in those 58 audits; 96% were contracts OIG disallowed. Eleven contracts for $86.2 million were awarded without following federal rules (e.g. Cimarron Electric in Oklahoma: of $52.2 million only $1 million was justified).

CPI placed the pattern in the Irma/María context: Trump declared FEMA had the last word on reconstruction funds; COR3 (Omar Marrero) would disburse after Myke Byrne’s approval; four months after the announcement, FEMA still had not delivered process guidance (Carlos Mercader, AAFA). In December OIG warned over Harvey/Irma/María amid recurring failures.

Authorizing is not disbursing. An OIG questioned cost is not theft adjudicated in a judgment.