Input:
	Background

On September 6, 2017, the eye of Hurricane Irma traveled about 50  nautical miles to the north of the northern shore of Puerto Rico as a  category 5 hurricane. Less than two weeks later, Hurricane Maria made  landfall as a category 4 hurricane on the main island of Puerto Rico on  the morning of September 20, 2017 with wind speeds up to 155 miles per hour. The center of the hurricane moved through southeastern Puerto  Rico to the northwest part of the island, as shown in figure 1 below.
In response to the request of the Governor of Puerto Rico, the President  declared a major disaster the day after each hurricane impacted Puerto  Rico. Major disaster declarations can trigger a variety of federal  response and recovery programs for government and nongovernmental  entities, households, and individuals, including assistance through the  Public Assistance program. Under the National Response Framework,  DHS is the federal department with primary responsibility for coordinating  disaster response, and within DHS, FEMA has lead responsibility. The  Administrator of FEMA serves as the principal adviser to the President  and the Secretary of Homeland Security regarding emergency  management.

		FEMA’s Public Assistance Program

FEMA’s Public Assistance program provides funding to state, territorial,  local, and tribal governments to assist them in responding to and  recovering from major disasters or emergencies. As shown in figure 2,  Public Assistance program funds are categorized broadly as either  “emergency work” or “permanent work.” Within those two broad  categories are separate sub-categories. In addition to the emergency  work and permanent work categories, FEMA’s Public Assistance program  includes category Z, which represents indirect costs, administrative  expenses, and other expenses a recipient or subrecipient incurs in  administering and managing projects.
Puerto Rico’s agencies, such as the Department of Housing; public  corporations, such the Puerto Rico Electric Power Authority and the  Puerto Rico Aqueduct and Sewer Authority; and Puerto Rico’s 78  municipalities are eligible to apply for the Public Assistance program.  FEMA’s Public Assistance program also provides funding for cost- effective hazard mitigation measures to reduce or eliminate the long-term  risk to people and property from future natural and man-made disasters  and their effects. Specifically, FEMA provides funding for hazard  mitigation measures in conjunction with the repair of disaster-damaged  facilities to enhance their resilience during future disasters. For example,  a community that had a fire station damaged by a disaster could use  Public Assistance funding to repair the facility and incorporate additional  measures such as installing hurricane shutters over the windows to  mitigate the potential for future damage.
In Puerto Rico, the Public Assistance program is administered through a  partnership between FEMA and the recipient (Puerto Rico), which  provides funding to eligible subrecipients (local or territory-level entities).  Under the standard Public Assistance program process, once the  President has declared a disaster, Public Assistance staff work with the  recipient or subrecipients to help them document damages, identify  eligible costs and work, and prepare requests for Public Assistance grant  funds by developing project proposals. Officials then review and obtain  approval of projects prior to FEMA obligating funds to reimburse  recipients or subrecipients for eligible work.

		The Use of Alternative Procedures for Public Assistance Projects in Puerto Rico

The Sandy Recovery Improvement Act of 2013 authorized the use of  alternative procedures in administering the Public Assistance program,  thereby providing new flexibilities to FEMA, states, territories, and local  governments for debris removal, infrastructure repair, and rebuilding  projects using funds from this program. The stated goals of the alternative procedures are to reduce the costs to the federal government,  increase flexibility in the administration of the Public Assistance program,  expedite the provision of assistance under the program, and provide  financial incentives for recipients of the program for the timely and cost- effective completion of projects.
Unlike the standard Public Assistance program where FEMA will fund the  actual cost of a project, the Public Assistance alternative procedures  allow awards for permanent work projects to be made on the basis of  fixed cost estimates to provide financial incentives for the timely and cost- effective completion of work. Under these procedures, if the actual cost  of the project exceeds the fixed cost estimate agreed upon by FEMA and  the recipient, the recipient or subrecipient is responsible for the additional  costs. However, if the actual cost of completing eligible work for a project  is below the estimate, the recipient or subrecipient may use the remaining  funds for other eligible purposes, such as for additional cost-effective  hazard mitigation measures to increase the resiliency of public  infrastructure. These funds may also be used for activities that improve  the recipient’s or subrecipient’s future Public Assistance operations or  planning. Although FEMA had approved alternative procedure grants in  30 states as of April, 2018, in these cases, alternative procedures were  used on a project-by-project basis. Puerto Rico’s recovery from the 2017  hurricanes is the first recovery to use alternative procedures for all large  permanent work projects.
On October 30, 2017, Puerto Rico requested to use the alternative  procedures process for all large-project funding for Public Assistance  permanent work, categories C through G. According to FEMA guidance,  as part of the alternative procedures process in Puerto Rico, FEMA and  Puerto Rico must agree on a group of personnel with cost estimation  expertise who will serve as part of a center of excellence. This center of  excellence will assist FEMA and Puerto Rico in developing cost  estimating methodologies to be used for determining fixed cost estimates  for Public Assistance permanent work projects. FEMA officials stated that  they are in the process of conducting inspections for Public Assistance  projects for permanent work and, as of August 2018, had a total list of  10,000 site inspections to complete. FEMA officials stated that October  2019 is their target date for completing all alternative procedures fixed  cost estimates for Public Assistance permanent work. However,  pursuant to 428 guidance published in April 2018, this time frame may be  adjusted on a project-by-project basis, based on extenuating  circumstances.

		Puerto Rico’s Central Recovery Office Oversees Federal Recovery Spending

Amendment 5 to the President’s disaster declaration imposed a number  of grant conditions, including that Puerto Rico establish an oversight  authority supported by third-party experts. This authority is to act as the  grant recipient for all Public Assistance and hazard mitigation funding to  ensure sound project management and enhanced, centralized oversight  over FEMA grant distributions. In October 2017, the Governor of Puerto  Rico established COR3, a Puerto Rico government office, to plan, guide,  and oversee recovery efforts, including administering and overseeing the  Public Assistance program. According to FEMA and COR3 officials,  COR3 will fulfill the oversight requirements outlined in Amendment 5.  According to COR 3 officials, COR3 was also established to ensure  coordination with FEMA. The Executive Director of COR3 will act as the  Governor’s Authorized Representative, which is the designated individual  responsible for administering federal disaster assistance programs on  behalf of Puerto Rico. Among other things, COR3 will:  Identify, procure, and administer all federal, territorial, and private  resources available to Puerto Rico related to recovery;
Provide oversight of subrecipients using risk-based monitoring; and
Provide technical assistance and advise Puerto Rico’s governmental  agencies and municipalities regarding any matter related to recovery.
According to COR3 officials, they will also implement internal controls,  policies, and procedures to appropriately manage recovery funds.
COR3 has also launched an online transparency portal intended to  provide a breakdown of FEMA Public Assistance and other federal  funding made available for disaster recovery in Puerto Rico.

		Bipartisan Budget Act of 2018 Requirements for Puerto Rico and Congressional Oversight of Recovery Efforts

The Bipartisan Budget Act of 2018 (Bipartisan Budget Act) required that  Puerto Rico submit an economic and disaster recovery plan to Congress  by August 9, 2018, that defines the priorities, goals, and expected  outcomes of Puerto Rico’s recovery related to a number of sectors,  including, among other things, infrastructure, housing, electric power  systems and grid restoration. The Bipartisan Budget Act also directs the  Governor of Puerto Rico to develop the disaster recovery plan in  coordination with FEMA, with support and contributions from other federal  agencies having designated responsibilities in the National Disaster  Recovery Framework.
As of June 2015, Puerto Rico had roughly $66.9 billion in outstanding  debt. According to the recovery plan, economic contraction in the years  prior to the hurricanes contributed to a severe fiscal crisis and Puerto  Rico’s credit rating dropped below investment grade in early 2014,  followed by a series of defaults on debt payments. In response to Puerto  Rico’s financial crisis, Congress passed and the President signed the  Puerto Rico Oversight, Management, and Economic Stability Act in June  2016, which established the FOMB with broad budgetary and financial  control over Puerto Rico. The Bipartisan Budget Act also permits the  FOMB to review any federal funds over $10 million that are designated for  Puerto Rico’s response to or recovery from Hurricanes Irma or Maria.

	FEMA Obligated Almost $4 Billion in Public Assistance Funding, and Puerto Rico and FEMA Have Taken Actions to Provide Oversight of Federal Recovery Funds

FEMA obligated nearly $4 billion in Public Assistance funds for Puerto  Rico’s emergency work projects, as well as the repair and restoration of  its public infrastructure, among other things. In order to provide financial  oversight of these funds, Puerto Rico is developing an internal controls  plan as well as management policies and procedures that will, in part,  help provide financial monitoring. In the interim, FEMA has instituted a  manual reimbursement process to mitigate risk and ensure fiscal  accountability.

		FEMA Obligated Almost $4 Billion, and Puerto Rico Expended Almost $1.7 Billion in Public Assistance Funding as of September 2018

As shown in figure 3, FEMA has obligated $3.63 billion (93 percent) for  emergency work (categories A and B), and $151 million (4 percent) for  permanent work (categories C through G) in Puerto Rico as of September  30, 2018. An additional $136 million (3 percent) was obligated for  management and administrative costs.
As of the end of fiscal year 2018, Puerto Rico expended about $1.7 billion  (about 43 percent) of the almost $4 billion Public Assistance funds  obligated by FEMA. Ninety-eight percent of this amount went toward  emergency work projects in categories A and B. For example, the Puerto  Rico Aqueduct and Sewer Authority expended almost $91 million to cover  the costs of generator usage. Aside from generators, one category B  project by the Puerto Rico Emergency Management Agency repaired the  emergency warning system for about $9.4 million. A third project put a  temporary roof on a Puerto Rico Institute of Culture facility in Vieques for  $4,000.
As shown in table 1, the majority of FEMA’s obligations in Puerto Rico as  of September 30, 2018, have been for emergency work categories  because these projects began soon after the disasters struck and focused  on removing debris and providing assistance to address immediate  threats to life and property.
In contrast, permanent work projects take time to identify, develop, and  ultimately complete as they represent the longer-term repair and  restoration of public infrastructure. Funds expended by Puerto Rico for  permanent work have been mostly limited to roads and bridges (category  C) because impassable roads like the one shown in figure 4 below  impede the provision of critical services to citizens. They can also get in  the way of other disaster recovery efforts.
Expenditures for roads and bridges (category C) amount to approximately  $32 million, while expenditures for other permanent work categories (D- G) total approximately $1 million. According to FEMA officials, Public  Assistance projects in categories D-G are still pending prioritization and  formulation. For example, figure 5 below shows a recreational public  space along the edge of a river in Maricao. The dashed line indicates  where the iron railing and concrete paving used to continue, overlooking  the river, before Hurricane Maria. As of September 2018, the municipality  was awaiting FEMA assistance to begin restoration   FEMA categorizes Puerto Rico’s subrecipients as commonwealth public  corporations, commonwealth agencies, municipalities, and all other  entities.  As shown in table 2 below, 89 percent of obligations, as of the  end of September 2018, for Puerto Rico were awarded to commonwealth  public corporations and commonwealth agencies, with 47 percent  awarded to the Puerto Rico Electric Power Authority.  Overall, about 43  percent of obligated funds have been expended.

		Puerto Rico is Developing an Internal Controls Plan and Recovery Management Policies and Procedures to Provide Oversight of Federal Recovery Funds

As previously discussed, Puerto Rico designated COR3 to administer and  manage the Public Assistance program in coordination with FEMA. As  part of COR3’s recovery oversight role, COR3 officials stated that they  are developing an internal controls plan and recovery management  policies and procedures with FEMA. According to COR3, these oversight  documents will provide detailed guidance on grant application,  procurement, payment and cash management, and financial monitoring  and reporting, among other things. According to COR3 officials, they have  held numerous meetings to coordinate with FEMA and have submitted  drafts of the internal controls plan as well as management policies and  procedures for FEMA’s consideration. In addition, according to COR3  officials, COR3 plans to provide direct technical assistance related to  federal grants management to Puerto Rico’s cabinet-level agencies,  public corporations, municipalities and other eligible subrecipients. As  part of COR3’s advisory role, COR3 is expected to help Puerto Rico’s  agencies, public corporations, municipalities, and some nonprofit entities  formulate projects, draft cost estimates, and make funding requests,  among other things.

		FEMA Has Instituted an Interim Manual Reimbursement Process to Mitigate Risk

Federal grant award regulations allow FEMA to impose additional specific  grant award conditions in specific circumstances, such as to mitigate risk  and ensure fiscal accountability of the recipient or subrecipient.  According to FEMA, once FEMA obligates funds, the recipient is able to  expend funds as necessary. However, in November 2017, according to  FEMA officials, the agency instituted a manual reimbursement process for  subrecipients in Puerto Rico for federal funds, including Public Assistance  funds, to mitigate fiduciary risk and decrease the risk of misuse of funds.  Specifically, FEMA officials stated that they decided to institute this  process because the government of Puerto Rico had expended funds  prior to submitting complete documentation of work performed.  According to FEMA officials, they also decided to institute the manual  reimbursement process due to Puerto Rico’s financial situation,  weaknesses in internal controls, and the large amount of recovery funds,  among other things.
This manual reimbursement process requires that COR3 fill out the Office  of Management and Budget’s Standard Form 270 and submit supporting  documentation before obligated funds can be withdrawn by Puerto Rico  through COR3 and reimbursed to subrecipients. Subsequently, FEMA  must review the submitted Standard Form 270 and all project  documentation for completeness, compliance, and accuracy before  disbursing funds to the recipient. In cases where FEMA requires  additional documentation to process a Standard Form 270 request, FEMA  will submit requests for information asking COR3 to supply the  information needed for FEMA to complete the review. FEMA officials  said that they aim to complete the entire process described above within  ten calendar days, or 15-20 calendar days if FEMA needs to request  additional information from COR3. Additionally, FEMA officials stated that  the manual reimbursement process is intended as a temporary measure.  They will cease the process once FEMA has reviewed the operational  effectiveness of COR3’s internal controls and approved the final internal  controls plan, which are under review.

	FEMA, COR3, and Subrecipients Report Initial Challenges with the Recovery Process

FEMA, COR3, and Puerto Rico municipal government officials from ten  municipalities we interviewed reported initial challenges with the recovery  process, including with Public Assistance alternative procedures. These  concerns included (1) workforce capacity constraints, (2) a need for  additional guidance, (3) delays related to choosing cost estimators, and  (4) reimbursement for emergency work.
Workforce capacity constraints. FEMA and municipality officials cited  concerns about FEMA staff turnover and lack of knowledge about how  the Public Assistance alternative procedures are to be applied in Puerto  Rico. While several municipal officials we spoke to remarked positively on  consistent communication with FEMA officials, municipal officials in six  municipalities we visited cited high levels of turnover among FEMA staff  as a challenge. For example, officials in three municipalities said that  discontinuity in FEMA personnel has caused them to have duplicative  conversations with FEMA. An official from one municipality described the  disruption that had been caused by repeated changes in FEMA  personnel, especially when their point of contact at FEMA changed at  least six times since the hurricanes.
FEMA officials acknowledged that more personnel with expertise in the  alternative procedures process are needed to administer the Public  Assistance program and assist subrecipients. According to FEMA  officials, FEMA has leveraged existing expertise from personnel in the  Federal Coordinating Officer Advisory Group to train new employees to  increase workforce capacity. FEMA personnel from this group are rotating  experts assigned to recovery issues to increase institutional  understanding of alternative procedures and train local hires. According to  FEMA officials, these local hires can serve as FEMA staff for up to one  year before they become reservists. In addition, FEMA officials stated  that they have identified contractors with previous experience regarding  alternative procedures to provide additional assistance to subrecipients.
Need for additional guidance. Municipal officials cited concerns about a  lack of comprehensive guidance for the alternative procedures process.  Specifically, officials in eight municipalities we interviewed cited problems  with missing, incomplete, or conflicting guidance from FEMA. In addition,  officials in four municipalities stated that they are waiting on additional  written instructions to establish more clear and consistent guidance.  Officials from one municipality told us that the lack of written guidance  has meant that the municipality has had to re-submit documents to FEMA  multiple times to respond to changing guidance that they have received  verbally. Additionally, four municipalities cited missing, incomplete, or  conflicting guidance from COR3 as a challenge. However, one  municipality noted that the quality of communication with COR3 has  improved over time as COR3 has become more established.
According to FEMA officials, they are drafting supplemental guidance for  the alternative procedures process with the goal of incorporating lessons  learned from prior iterations of the alternative procedures. Similarly,  according to COR3 officials, COR3 is currently developing additional  guidance and standard operating procedures to help subrecipients,  including municipalities and Puerto Rico government agencies, better  understand FEMA Public Assistance grant requirements.
Delays related to choosing cost estimators for Puerto Rico. As  mentioned previously, FEMA’s guidance for alternative procedures  requires that FEMA and Puerto Rico, through COR3, choose personnel  with expertise in cost estimation to serve as a center of excellence, which  will develop a cost estimating methodology. FEMA has chosen personnel  to staff the center of excellence. However, in August 2018, FEMA officials  told us that COR3 had not yet finalized their choice of personnel, which  had delayed the cost estimation process. Subsequently, COR3 officials  told us that personnel have been identified to serve on the center of  excellence and the final contracting process for these personnel is now in  progress.
Reimbursement for emergency work. Officials in nine municipalities we  spoke to said that they had not been fully reimbursed for emergency work  they completed. Further, officials in five municipalities we interviewed  stated that the lack of full reimbursement has caused financial hardships.  For example, officials in three municipalities said that the lack of full  reimbursement has meant that the municipalities have had to pause or  delay recovery work due to lack of financial resources. A mayor in one  municipality stated that they have scaled back some essential services,  such as the frequency of garbage pick-up, while waiting for full  reimbursement.
According to FEMA officials, delays in providing reimbursement were due  to several factors including a loss in FEMA personnel to process  reimbursement requests and a significant increase in the volume of  reimbursement requests submitted by COR3 to FEMA. FEMA officials  also stated an increasing need to make requests for information to COR3  due to a lack of documentation submitted at the time of the  reimbursement request. In response to these factors, FEMA officials told  us that they have undertaken new procedures with COR3. For example,  according to FEMA officials, COR3 adopted procedures to review the  completeness of documentation prior to submitting a reimbursement  request to FEMA. FEMA officials stated that the agency is also holding  weekly meetings with COR3 to increase coordination, and that FEMA  increased the number of personnel devoted to reimbursement reviews.  According to officials from FEMA and COR3, these steps have  contributed to reduced delays.

	Puerto Rico Developed an Economic and Disaster Recovery Plan in Response to the Bipartisan Budget Act of 2018 That Addresses Long- and Short-Term Needs

In response to the Bipartisan Budget Act, Puerto Rico submitted an  economic and disaster recovery plan (recovery plan) to Congress on  August 8, 2018. The recovery plan defines the priorities, goals, and  expected outcomes of Puerto Rico’s recovery related to building  government capacity for the recovery and strengthening of Puerto Rico’s  infrastructure, among other things. The recovery plan estimates  infrastructure repair and recovery costs of $132 billion and total recovery  costs of $139 billion for a time period starting in 2018 and ending in 2028.  According to the recovery plan, COR3 will guide recovery investment and  policy in the months and years ahead and is intended to serve as a focal  point for strategic thought and management of Puerto Rico’s recovery.
The recovery plan is generally responsive to the directives outlined in the  Bipartisan Budget Act. For example, Puerto Rico submitted the plan to  Congress within 180 days of enactment of the Bipartisan Budget Act. The  recovery plan defines priorities, goals, and expected outcomes for Puerto  Rico’s recovery effort based on damage assessments conducted by  sector. As mentioned earlier, Puerto Rico developed the recovery plan in  coordination with FEMA and with support of the U.S. Department of  Energy, the U.S. Department of Health and Human Services, and other  federal agencies with responsibilities outlined in the National Disaster  Recovery Framework.
Additionally, the FOMB of Puerto Rico certified the recovery plan on  August 28, 2018, as directed in the Bipartisan Budget Act, but provided  two caveats to its certification. First, FOMB expressed concern that the  recovery plan lacks sufficient detail of funding sources and estimates a  much greater amount of federal funding than the certified fiscal plan for  Puerto Rico projects. The recovery plan states that at the time of its  release, Puerto Rico had not undergone eligibility reviews in various  federal funding programs, and therefore the ability to identify accurate  funding sources was limited. COR3 officials confirmed that full recovery  funding needs will not be known until all damage assessments are  complete, and they will continue to identify and leverage all funding  resources as they are made available. Second, FOMB indicated that the  recovery plan does not address oversight of federal funds and the  recovery process. While the Bipartisan Budget Act does not require  specific mechanisms for oversight of federal funding as part of the  recovery plan, according to COR3 officials, they plan to implement  internal controls, policies, and procedures to provide oversight.
Puerto Rico’s recovery plan outlines 276 “courses of action” (actions)— defined by the plan as “a collection of potential activities, policies, and  other actions that could contribute to recovery”—selected by Puerto Rico  to align with its future recovery vision. As shown in table 3 below, the  actions reflect Puerto Rico’s short-term and long-term recovery vision,  organized into three areas. First, the recovery plan proposes “precursor”  actions—those that serve as a foundation for all future actions—that will  be prioritized for implementation. For example, the recovery plan includes  actions to build capacity of municipalities to secure and manage recovery  funds, and to improve the quality and volume of public data available to  decision makers. Second, the recovery plan proposes a set of actions  that aim to build the infrastructure and systems that support Puerto Rico’s  economy, society, and disaster resiliency, such as addressing  vulnerabilities in Puerto Rico’s electric grid. Finally, the recovery plan  proposes a set of actions that address Puerto Rico’s long-term recovery  goals, such as developing and enhancing Puerto Rico’s visitor economy.
Most individual actions in the recovery plan include initial and recurring  cost estimates for the time period from 2018 through 2028. The recovery  plan describes all cost estimates as preliminary, and says that more  specific cost estimates require completion of damage assessments and  more details about the implementation of actions.
To develop Puerto Rico’s disaster recovery plan, FEMA assisted COR3 in  retaining the Homeland Security Operational Analysis Center (HSOAC), a  federally-funded research and development center operated by the RAND  Corporation under contract with DHS. According to FEMA officials, FEMA  provided funding and technical assistance, through contractor support, for  Puerto Rico to develop the recovery plan, but COR3 and Puerto Rico will  be responsible for its implementation. These officials also stated that  Puerto Rico received input and technical assistance from other federal  departments, such as those in the Recovery Support Function Leadership  Group led by FEMA.
HSOAC developed the recovery plan in consultation with Puerto Rico by  developing a preliminary sector-by-sector assessment of damages and  needs caused by Hurricanes Irma and Maria across Puerto Rico. In  conjunction with Puerto Rico’s stated vision for the recovery process,  HSOAC’s damage assessment report provided the baseline needed to  define, compare, and prioritize actions.
HSOAC worked in teams of sector-specific experts to develop and refine  the actions by reviewing reports, proposals, best practices, and other  literature. For example, in June 2018, the U.S. Department of Energy  released a report on energy resilience for Puerto Rico’s electric grid,  containing recommendations for Puerto Rico to consider when developing  the Recovery Plan. HSOAC sought feedback from various subject matter  experts and stakeholders while developing the recovery plan. According  to FEMA officials, FEMA’s joint recovery office delivered interim drafts of  the recovery plan to federal agency partners and Puerto Rico for  feedback. HSOAC also sought input from local-level stakeholders,  including Puerto Rico’s municipal governments. For example, HSOAC  commissioned a survey of officials from municipalities to gauge the  challenges they faced in the aftermath of the 2017 hurricanes. According  to FEMA and HSOAC officials, the survey, along with other input provided  by mayors led to the development of actions focused on building the  capacity of municipal governments to support recovery efforts.
HSOAC officials noted that while the final recovery plan was submitted to  Congress, they will continue to produce products that will assist Puerto  Rico and their stakeholders in recovery implementation. HSOAC intends  to release updated versions of the recovery plan, including updated  damage and needs assessments. Other expected products include  detailed descriptions and cost estimates for each action and a lessons  learned report. The Bipartisan Budget Act also directs Puerto Rico to  develop a public report on the progress made in achieving the recovery  plan’s goals every 180 days after submission.
FEMA officials explained that the recovery plan serves as a strategic,  direction-setting plan for recovery, and does not provide step-by-step or  site-by-site guidance on the recovery process. FEMA officials also  acknowledged that there may be some overlap between some of the  actions in the recovery plan and some of the permanent work funded  through FEMA’s Public Assistance program, but that it is COR3’s  responsibility to merge and coordinate such recovery efforts.

	Agency Comments and Our Evaluation

We provided a draft of this report to DHS and the government of Puerto  Rico for review and comment. In its comments, reproduced in appendix I,  DHS summarized the amount of Public Assistance funding provided to  Puerto Rico through fiscal year 2018. DHS also described FEMA’s  temporary manual reimbursement process instituted to mitigate risk and  ensure fiscal accountability of taxpayer dollars, and stated that FEMA is  committed to supporting Puerto Rico as it finalizes internal controls,  management policies and procedures to oversee disaster recovery funds.   DHS also provided technical comments, which we incorporated as  appropriate.
The government of Puerto Rico provided comments that we reproduced  in appendix II. In its comments, the government of Puerto Rico stated that  in addition to what was discussed in this report, COR3 achieved progress  and faced additional challenges.
This report is a part of an ongoing review of disaster recovery efforts in  Puerto Rico. The remainder of our ongoing work will continue to examine  Puerto Rico’s recovery process, including implementation of the Public  Assistance alternative procedures process and efforts by FEMA and  Puerto Rico to oversee disaster recovery funds, including the manual  reimbursement process.
If you and your staff have any questions, please contact me at (404) 679- 1875 or curriec@gao.gov. Contact points for our Offices of Congressional  Relations and Public Affairs may be found on the last page of this report.  GAO staff who made key contributions to this report are listed in appendix  II.

Appendix I: Comments from the Department of Homeland Security

Appendix II: Comments from the Government of Puerto Rico

Appendix III: GAO Contact and Staff Acknowledgments

	GAO Contact

Chris Currie, (404) 679-1875 or CurrieC@gao.gov.

	Staff Acknowledgments

In addition to the contact named above, Joel Aldape (Assistant Director),  Pedro Almoguera, Aditi Archer, Michelle Bacon, Sylvia Bascope, Lilia  Chaidez, Taylor Hadfield, Danielle Pakdaman, Lorraine Ettaro, Eric  Hauswirth, Heidi Nielson, and Kevin Reeves made key contributions to  this report.