Friday, February 22, 2008
FEMA MISSPENT FUNDS FROM SALES OF TRAILERS
RV Business
Friday, February 22, 2008
The Federal Emergency Management Agency (FEMA) took money from the sale of used travel trailers and inappropriately used it to buy $13 million worth of SUVs, global positioning systems and other items, according to a new government inquiry.
The Homeland Security Department's inspector general found that FEMA misspent millions after the 2004 and 2005 hurricane seasons that should have either been returned to the U.S. Treasury or used to buy more trailers for hurricane victims, USA Today reported.
"Even allowing for the hectic situation that arose in the aftermath of the 2004 and 2005 hurricanes, FEMA officials at all levels did not take appropriate action to ensure that proceeds from the sale of trailers and mobile homes were properly used," Inspector General Richard Skinner wrote in a report to be released today (Feb. 22).
The report says FEMA spent about $2.9 billion on 230,000 trailers and mobile homes for displaced victims of Hurricane Katrina and other storms. By law, when residents leave the trailers, FEMA may sell them to the public but the money can only be returned or spent on more trailers.
Skinner reported that FEMA also used some of the proceeds for tree removal services, travel expenses and government purchase cards.
"Once again, FEMA has proven to be a poor steward of taxpayer money," House Homeland Security Committee Chairman Bennie Thompson, D-Miss., said.
The IG report is the latest to criticize the agency's post-Katrina spending. In 2006, government auditors found that sloppy errors and fraudulent claims cost FEMA more than $1 billion in disaster-relief funds.
FEMA spokesman James McIntyre said FEMA officials recognized the latest spending problems early last year and put an immediate hold on further use of money from the sale of used trailers.
McIntyre said FEMA "accepts" the findings of the report and has made changes to make sure funds aren't misspent in the future. He added, however, that "FEMA emphasizes that the funds used from the sales of travel trailers and mobile homes were used specifically for what they were originally obligated for – that is, the proceeds were used for disaster relief and emergency assistance."
Friday, February 22, 2008
The Federal Emergency Management Agency (FEMA) took money from the sale of used travel trailers and inappropriately used it to buy $13 million worth of SUVs, global positioning systems and other items, according to a new government inquiry.
The Homeland Security Department's inspector general found that FEMA misspent millions after the 2004 and 2005 hurricane seasons that should have either been returned to the U.S. Treasury or used to buy more trailers for hurricane victims, USA Today reported.
"Even allowing for the hectic situation that arose in the aftermath of the 2004 and 2005 hurricanes, FEMA officials at all levels did not take appropriate action to ensure that proceeds from the sale of trailers and mobile homes were properly used," Inspector General Richard Skinner wrote in a report to be released today (Feb. 22).
The report says FEMA spent about $2.9 billion on 230,000 trailers and mobile homes for displaced victims of Hurricane Katrina and other storms. By law, when residents leave the trailers, FEMA may sell them to the public but the money can only be returned or spent on more trailers.
Skinner reported that FEMA also used some of the proceeds for tree removal services, travel expenses and government purchase cards.
"Once again, FEMA has proven to be a poor steward of taxpayer money," House Homeland Security Committee Chairman Bennie Thompson, D-Miss., said.
The IG report is the latest to criticize the agency's post-Katrina spending. In 2006, government auditors found that sloppy errors and fraudulent claims cost FEMA more than $1 billion in disaster-relief funds.
FEMA spokesman James McIntyre said FEMA officials recognized the latest spending problems early last year and put an immediate hold on further use of money from the sale of used trailers.
McIntyre said FEMA "accepts" the findings of the report and has made changes to make sure funds aren't misspent in the future. He added, however, that "FEMA emphasizes that the funds used from the sales of travel trailers and mobile homes were used specifically for what they were originally obligated for – that is, the proceeds were used for disaster relief and emergency assistance."
