FEMA Has Not Tried To Recoup $643 Million

NEW ORLEANS (AP) — A government audit says the Federal Emergency Management Agency hasn't tried to collect roughly $643 million in improper payments made to victims of Hurricane Katrina and other disasters. A report issued Monday by the Department of Homeland Security's inspector general's office says the improper payments have gone uncollected since June 2007 because FEMA hasn't given its final approval to a new recoupment process. FEMA has distributed more than $7 billion in disaster assistance payments since the 2005 hurricanes. An estimated 160,000 applicants received about $643 million in improper payments resulting from fraud, FEMA errors or other mistakes. The audit says a new process for recovering improper payments has been awaiting approval from FEMA's administrator since late 2008.