6 U.S. Code § 793 - Oversight and accountability of Federal disaster expenditures
The Administrator may designate up to 1 percent of the total amount provided to a Federal agency for a mission assignment as oversight funds to be used by the recipient agency for performing oversight of activities carried out under the Agency reimbursable mission assignment process. Such funds shall remain available until expended.
Oversight activities may be carried out by an agency under this section either directly or by contract. Such activities may include evaluations and financial and performance audits.
To the extent practicable, evaluations and audits under this section shall be performed by the inspector general of the agency.
In preparing the plan, the head of the agency shall select oversight activities based upon a risk assessment of those areas that present the greatest risk of fraud, waste, and abuse.
In this section, the term “oversight funds” means funds referred to in subsection (a) that are designated for use in performing oversight activities.
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