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Individual Disaster Assistance Programs: Framework for Fraud Prevention, Detection, and Prosecution

GAO-06-954T Published: Jul 12, 2006. Publicly Released: Jul 12, 2006.
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Highlights

Federal agencies spend billions of dollars annually to aid victims of natural and other disasters and acts of terrorism. Managers of federal disaster assistance programs face a dual challenge--delivering aid as quickly as possible while at the same time ensuring that relief payments go only to those who are truly in need. Due to the very nature of the government's need to quickly provide assistance to disaster victims, federal disaster relief programs are vulnerable to significant risk of improper payments and fraudulent activities. On February 13, 2006, and on June 14, 2006, GAO testified concerning extensive fraud, waste, and abuse in the Individuals and Household Program (IHP), a component of the Federal Emergency Management Agency's (FEMA) disaster assistance programs. GAO identified significant internal control weaknesses that resulted in FEMA making tens of thousands of Expedited Assistance payments that were based on bogus registration data. GAO also found numerous other internal control failures in FEMA's IHP disaster assistance program, resulting in an estimate that FEMA made $600 million to $1.4 billion in improper and potentially fraudulent payments to registrants. The purpose of this testimony is to establish a framework for preventing, detecting, and prosecuting disaster assistance fraud.

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Topics

AccountabilityCheck disbursement or controlCrime preventionData miningDisaster relief aidErroneous paymentsFraudHurricane KatrinaHurricane RitaInternal controlsProgram abusesQuestionable paymentsRisk assessmentRisk managementWaste, fraud, and abuse