The Federal Emergency Management Agency (FEMA) did not always implement effective internal controls to provide oversight of COVID-19 Funeral Assistance. FEMA’s funeral assistance program greatly expanded the universe of reimbursable expenses for deaths related to COVID-19, even beyond those specifically identified as ineligible under established FEMA policy, without establishing guardrails to ensure relief was limited to necessary expenses and serious needs as required by statute.

Full Details: Oversight.gov Report Page

Audit | 8/24/2023

1 - Open

We recommend that the FEMA Administrator resolve questioned costs totaling an estimated $24,438,662 for expenses deemed ineligible by FEMA’s Individual Assistance Program and Policy Guide and determine the amount of any debts owed by recipients for erroneous payments.

2 - Closed

We recommend that the FEMA Administrator resolve other questioned costs included in our report and determine the amount of any debts owed by recipients for erroneous payments. Other questioned costs requiring resolution include: a) $1,348,546 for awards issued to multiple applicants for the same decedents; b) $554,653 for awards issued for applications that exceeded the $9,000 per decedent award limit; and c) $591,805 for 93 applications for which FEMA did not adequately review eligibility criteria of the applications.

3 - Open

We recommend that the FEMA Administrator ensure that future iterations of the Individual Assistance Program and Policy Guide and supporting procedures (a) provide consistent guidance on eligibility of funeral expenses for all future disaster declarations; and (b) allow for reimbursement of only necessary expenses and serious needs, consistent with the law.

4 - Closed

We recommend that the FEMA Administrator strengthen and monitor improvement of FEMA’s COVID-19 Funeral Assistance training practices with particular focus on: a) distinguishing legitimate sources of potential duplication such as decedent’s name and social security number from potential duplications that arise due to FEMA using a repurposed Individual Assistance processing system, with a data field such as damaged dwelling address; b) preventing FEMA from reimbursing expenses exceeding the maximum $9,000 per decedent; and c) deducting financial assistance received from outside sources such as pre-need funeral arrangements, burial insurance, and assistance from other voluntary or government agencies.

5 - Open

We recommend that the FEMA Administrator ensure that FEMA provides its COVID-19 Funeral Assistance call center contractor the guidance and training necessary to meet the quality control and production monitoring metrics as prescribed by its agreement with the contractor.

Treasury Inspector General for Tax Administration

Processing of Recovery Rebate Credit Claims During the 2022 Filing Season

Full Details: Oversight.gov Report Page

Audit | 8/24/2023

1 - Closed

On March 14, 2022, we notified the Director, Submission Processing, Wage and Investment Division, of our concerns regarding the accuracy of COVID Tax Tip 2022-29 regarding Internal Revenue Code §§ 6428B(f) and 6428B(h). Specifically, the guidance states incorrectly that taxpayers can claim the RRC for a shared dependent even if the IRS has already made an advance payment for the dependent. We recommended that the IRS revise the Tax Tip and related Frequently Asked Questions, etc., to state that taxpayers who share qualifying dependents are required to reduce the amount of the RRC claimed by the advance payment issued to either parent on behalf of the dependent.

2 - Closed

The Commissioner, Wage and Investment Division, should review the 274,865 individuals identified where the IRS issued an RRC to potentially ineligible dependents and nonresidents and take the actions needed to recover payments that are determined to be erroneous.

3 - Closed

Continue to periodically issue information on the availability of the RRC and how to claim it through Frequently Asked Questions on IRS.gov, communications with tax return preparers, annual unclaimed refund announcements, etc. until the statutory period for taxpayers to file a Tax Year 2020 and 2021 tax return to claim the RRC has expired.

4 - Closed

Send a letter to the nearly 3 million individuals we identified where the tax return data show the individual is potentially eligible for the RRC encouraging the individuals to amend their Tax Year 2021 return and claim the credit if eligible. The letter should clearly state the eligibility requirements for claiming the RRC in simple terms and direct the individuals to additional resources if needed to assist them in determining whether they are eligible.

Department of the Treasury OIG

Desk Review of the Commonwealth of Virginia’s Use of Coronavirus Relief Fund Proceeds

Full Details: Oversight.gov Report Page

Other | 8/09/2023

Department of the Treasury OIG

Desk Review of Navajo Nation Tribal Government's Use of Coronavirus Relief Fund Proceeds (Redacted)

Full Details: Oversight.gov Report Page

Other | 8/08/2023

1-1 - Open

Treasury OIG should follow-up on Navajo Nation management's corrective action related to $141,187 in questioned costs reported in Single Audit finding number 2020-009.

1-2 - Open

Treasury OIG should follow-up to obtain the status of the Navajo Nation's 2021 Single Audit.

2-1 - Open

3-1 - Open

4-1 - Open

5-1 - Open

Treasury OIG should follow-up with Navajo Nation management to obtain missing documentation to support expenditures and that Navajo Nation has made necessary reporting corrections; and determine the feasibility of performing a focused audit for Aggregate Payments to individuals with a specific focus on Navajo Nation's non-payroll COVID-19 hardship claims and payroll expenditures for employees substantially dedicated to COVID-19 recovery efforts.

6-1 - Open

Treasury OIG should confirm that Navajo Nation management has reversed $(Amount Redacted) in duplicate hardship check payments that were fraudulently cashed by tribal citizens and recorded by management within the Aggregate Payments to Individuals payment type in the Cycle 3 GrantSolutions submission.

7-1 - Open

Treasury OIG should ensure Navajo Nation management re-issued $(Amount Redacted) in stale-dated checks before the end of December 31, 2022 and ensure that checks were cashed by the beneficiaries, or funds are returned to Treasury.

9-1 - Open

Treasury OIG should ensure Navajo Nation management has reversed the $(Amount Redacted) in sub-recipient incurred costs that they determined to be ineligible as a result of their internal investigation.

Department of the Treasury OIG

Desk Review of the Commonwealth of the Northern Mariana Islands’ Use of Coronavirus Relief Fund Proceeds

Full Details: Oversight.gov Report Page

Other | 8/08/2023

Department of the Treasury OIG

Desk Review of Navajo Nation Tribal Government's Use of Coronavirus Relief Fund Proceeds (Redacted)

Full Details: Oversight.gov Report Page

Date Range

Report Type

Report Category

Submitting Agency

State/Local Agency

State (State and Local Reports)

Fraud Type

Agency Reviewed

Related Organizations

Management Challenges

Any Recommendations

Any Open Recommendations

Reports

The IRS Continues to Reduce Backlog Inventories in the Tax Processing Centers

Action Is Being Taken to Address the System Limitation That Contributed to the Destruction of Tax Year 2019 Paper‑Filed Information Returns

City of Springfield, Massachusetts – Use of Coronavirus Relief Fund Proceeds

Interim Audit Update ─ Audit of American Samoa’s Uses of Coronavirus Relief Fund Payment (Redacted)

Ineffective Controls Over COVID-19 Funeral Assistance Leave the Program Susceptible to Waste and Abuse

Processing of Recovery Rebate Credit Claims During the 2022 Filing Season

Desk Review of the Commonwealth of Virginia’s Use of Coronavirus Relief Fund Proceeds

Desk Review of Navajo Nation Tribal Government's Use of Coronavirus Relief Fund Proceeds (Redacted)

Desk Review of the Commonwealth of the Northern Mariana Islands’ Use of Coronavirus Relief Fund Proceeds

Desk Review of Navajo Nation Tribal Government's Use of Coronavirus Relief Fund Proceeds (Redacted)

Glossary

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