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AFMD-82-56S 1 (1982-07-22)

handle is hein.gao/gaobabdmw0001 and id is 1 raw text is: 2 COMPTROLLER GENERAL OF THE UNITED STATES WASHINGTON D.C. 20548 B-203633 JULY 22, 1982 The Honorable Jack Brooks Chairman, Subcommittee on Legislation and National Security Committee on Government Operations House of Representatives 119024 Dear Mr. Chairman: Subject: Followup to GAO Report on the Claims Process- ing Procedures of the National Flood Insurance Program (GAO/AFMD-82-56S) On March 5, 1982, we delivered to you our report, Review of Claims Processing Procedures of the National Flood Insurance Pro- gram (AFMD-82-56). In the report we identified a number of prob- lem areas requiring the immediate attention of the Federal Emer- gency Management Agency (FEMA) and Electronic Data Systems Federal Corporation (EDSF), the flood program contractor. In following up on our report, we met with FEMA and EDSF officials to discuss our findings and review their planned corrective actions. This letter is to give you our assessment of their actions and plans. On May 19, FEMA responded to you concerning our March 5 re- port. Its response comprised three parts, each addressing a cor- responding section of our report. We reviewed the corrective ac- tions with appropriate officials and performed any necessary verification. We believe the actions already completed and those planned by FEMA are appropriate responses to the findings described in sections I and III of our report. We must point out, however, that only after the planned procedures are implemented and veri- fied will we be able to state with assurance that these-corrective actions are adequate. FEMA also presented the Federal Insurance Administration's analyses of the 24 claims we reported as questionable. We declared these claims questionable because we believed, based on information available to us, that the policy effective dates that were used should not have justified the claim payments that were made. We discussed each case with FEMA officials after their review and, because of the more detailed explanations they provided and addi- tional documentation they discovered, we revised the number of cases we believe were questionable. The results of FEMA's analysis and our current classification are as follows. (916020) A

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