FEMA paid 17.1 million to nonprofits without verifying they delivered after María

On October 5, 2022, the Centro de Periodismo Investigativo (CPI) reported that an audit by the Department of Homeland Security Office of Inspector General (DHS OIG) found irregularities in the 17.1 million FEMA disbursed to nonprofits for post-disaster work in Puerto Rico — including entities CPI had already documented leaving most of their cases unresolved.

The Disaster Case Management Program, in force about 18 months from August 2018, recruited nine organizations to link María survivors with aid. The audit reviewed payments to eight of them and concluded FEMA did not implement the oversight the law requires, which “increased the risk of fraud, waste and abuse” of public funds. Inspector General Joseph V. Cuffari wrote that FEMA “has no assurance” those 17.1 million were related to the program and necessary for its performance; the OIG report was published September 29, 2022.

A prior CPI investigation (October 2020) had flagged a program budget of 73 million, with more than half of nearly 25,000 cases without a full resolution. Family Endeavors received 29.5 million (39% of 11,229 cases met the plan); Disaster Services Corporation, 11.6 million (only 23% of 4,868 cases). Those two entities handled 65% of 24,648 cases open as of August 17, 2020.

The OIG noted that a single person supervised payments and reimbursements — contrary to federal standards —; under that name sit at least 15 approvals for 2.9 million. The report does not identify that person or the organizations that received payments without full documentation, nor whether there will be actions. FEMA must answer with a remediation plan in 90 days. FEMA rejected findings in draft; spokesman Jeremy Edwards told CPI on Tuesday the agency is incorporating lessons learned after disasters.

Disbursed is not verified compliance. An audit finding is not a conviction or automatic recovery of funds. Obligated is not disbursed.