FEMA Dealing with a Financial Disaster

The Government Accountability Office found FEMA has recouped less than 1% of the $1 billion GAO claims it blew on fraudulent payments after Hurricane Katrina.

The latest audit shows FEMA giving housing payments to people living rent-free in FEMA shelters.

Other squandered money:

• $20 million in double payments for people who claimed the same damage from Hurrican Katrina and Hurricane Rita
• $3 million dollars in aid to foreign students not eligible for FEMA assistance
• Of 20 flat bottom boats FEMA bought -- the agency can't find 18 of them, and can't find the legal titles for the other two

An earlier audit spotlighted $1 billion in FEMA fraud and waste. FEMA itself has only identified $290 million in improper payments -- and collected only $7 million of that. (AP)