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Investigative Bulletin

FEMA’s failure to recover $300k of food & shelter overpayments
for longer than 6 months

Government agencies are required to generate a report each quarter listing high-value overpayments and the actions being taken to recover those funds.  The Inspector General for the Department of Homeland Security published its list for Quarter 2 of Fiscal Year 2012 last Tuesday (May 29, 2012).  A fuller explanation and the report itself is attached..Meanwhile, the highlights:

Overpayments discovered between 1/1/2012 – 3/31/2012:

Overpaid             Recovered       Outstanding balance

$452,652.74     $391,305.71     $61,347.03

Previously reported overpayments which remain uncollected as of 3/31/2012:

Overpaid             Recovered since the last report        Outstanding balance

$1,350,710.29     $7,007.14                                             $1,343,703.15

*Collection is NOT underway respecting $362,484.63 of the above because FEMA is unclear about the legality of recovering improperly issued Emergency Food & Shelter funds.*

Uncollected overpayments referred to Treasury for tax garnishment:

  • $19,239.54 paid by FEMA to an INDIVIDUAL in Seabrook, TX for “Individuals & Households Payments.”  DHS-IG first reported the improper payment on November 11, 2008.
  • $38,563.00 paid by the U.S. Coast Guard to a Miami, FL entity for a product or service.  DHS-IG first reported the overpayment on September 25, 2010.

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