Washington – Nearly three years after it was formed, the mammoth Department of Homeland Security is troubled by severe management and financial problems that contributed to the flawed response to Hurricane Katrina, according to an independent audit released Wednesday.
The report by Homeland Security Inspector General Richard Skinner aimed some of its criticism at one of the department’s major activities, the Federal Emergency Management Agency. Katrina and a subsequent storm, Rita, added to FEMA’s “already overburdened resources and infrastructure,” the report said.
In addition, the report found, “the circumstances created by Hurricanes Katrina and Rita provide an unprecedented opportunity for fraud, waste and abuse,” primarily because FEMA’s grant and contract programs are still not being managed properly.
“While DHS is taking several steps to manage and control spending under Katrina, the sheer size of the response and recovery efforts will create an unprecedented need for oversight,” the report concludes.
The audit is the latest in a series of tough assessments of the beleaguered department, which has been widely criticized since it was formed in March 2003 by combining 22 disparate agencies. In a final “report card” issued earlier this month, for example, the former members of the Sept. 11 commission gave the department low or failing grades in many key areas, including airline passenger screening and border control.
Earlier this week, a group of House Democrats issued a report alleging that the department had failed to follow through on 33 promised improvements to border security, infrastructure protection and other programs.
Homeland security officials acknowledged some problems but disputed some and offered explanations for others. For example, the department said it has created a special procurement office to oversee hurricane contracts and is using consultants to monitor the process.
Department spokesman William Knocke said that “retooling FEMA is one of our greatest and most urgent priorities.”



