6 U.S. Code § 793 - Oversight and accountability of Federal disaster expenditures

(a) Authority of Administrator to designate funds for oversight activities
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.
(b) Use of funds
(1) Types of oversight activities
Oversight funds may be used for the following types of oversight activities related to Agency mission assignments:
(A) Monitoring, tracking, and auditing expenditures of funds.
(B) Ensuring that sufficient management and internal control mechanisms are available so that Agency funds are spent appropriately and in accordance with all applicable laws and regulations.
(C) Reviewing selected contracts and other activities.
(D) Investigating allegations of fraud involving Agency funds.
(E) Conducting and participating in fraud prevention activities with other Federal, State, and local government personnel and contractors.
(2) Plans and reports
Oversight funds may be used to issue the plans required under subsection (e) and the reports required under subsection (f).
(c) Restriction on use of funds
Oversight funds may not be used to finance existing agency oversight responsibilities related to direct agency appropriations used for disaster response, relief, and recovery activities.
(d) Methods of oversight activities
(1) In general
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.
(2) Coordination of oversight activities
To the extent practicable, evaluations and audits under this section shall be performed by the inspector general of the agency.
(e) Development of oversight plans
(1) In general
If an agency receives oversight funds for a fiscal year, the head of the agency shall prepare a plan describing the oversight activities for disaster response, relief, and recovery anticipated to be undertaken during the subsequent fiscal year.
(2) Selection of oversight activities
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.
(3) Schedule
The plan shall include a schedule for conducting oversight activities, including anticipated dates of completion.
(f) Federal disaster assistance accountability reports
A Federal agency receiving oversight funds under this section shall submit annually to the Administrator and the appropriate committees of Congress a consolidated report regarding the use of such funds, including information summarizing oversight activities and the results achieved.
(g) Definition
In this section, the term “oversight funds” means funds referred to in subsection (a) that are designated for use in performing oversight activities.


(Pub. L. 109–295, title VI, § 693,Oct. 4, 2006, 120 Stat. 1458.)


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