The Cerro Grande Fire Assistance Act mandated that GAO annually audit all claim payments made to compensate the victims of the Cerro Grande Fire in northern New Mexico. For this second report on this topic, GAO determined whether the Federal Emergency Management Agency (FEMA), which is now a part of the Department of Homeland Security, (1) had revised its policies and procedures to address prior GAO recommendations and processed and paid claims consistent with that guidance and (2) properly reported such payments to the Congress.
Recommendations for Executive Action
|Directorate of Emergency Preparedness and Response||The Secretary of the Department of Homeland Security should direct the Emergency Preparedness and Response Directorate to complete the reconciliation of the amounts approved for payment in its payment approval system to amounts actually paid in FEMA's accounting system and correct all identified errors in its payment approval system.|
|Directorate of Emergency Preparedness and Response||The Secretary of the Department of Homeland Security should direct the Emergency Preparedness and Response Directorate to perform monthly reconciliations of the approved claim amounts in its payment approval system with the actual amounts reported in its accounting system as paid by DFC for as long as both systems are used to track and report paid amounts or request additional funding.|