§793 Oversight and accountability of Federal disaster expenditures

Summary

The Administrator can set aside up to 1% of the money given to a federal agency for a mission assignment as oversight funds. Those oversight funds stay available until spent. Agencies can use them to watch and check how mission money is used, audit spending, review some contracts, investigate fraud, and work with other government partners on fraud prevention. The funds can also pay for the required oversight plans and reports. Agencies must not use these funds to cover existing oversight duties tied to direct disaster appropriations. Oversight work can be done by the agency or by contract, and, when possible, the agency’s inspector general should do audits. If an agency gets oversight funds for a fiscal year, the agency head must make a risk-based plan for the next year with a schedule, and must send an annual report to the Administrator and Congress about how the funds were used and what was found.