**GAO-08-437**                      Published: Jun 16, 2008. Publicly Released: Jul 16, 2008.                  

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## Highlights

The Federal Emergency Management Agency (FEMA) and its contractors administer and implement the National Flood Insurance Program (NFIP). GAO designated NFIP as a high-risk area in March 2006, and as of December 2007, FEMA owed more than $17.3 billion to the Treasury for hurricane-related losses. Concerns have been raised about the financial condition of NFIP and FEMA's efforts to mitigate losses and monitor NFIP contractors. This report (1) describes statistical and financial trends for NFIP from 1997 through 2006, (2) assesses the extent to which flood-damaged properties were purchased to mitigate risk, and (3) evaluates procedures for monitoring NFIP-related contracts. For this study, GAO analyzed financial and statistical data on the NFIP and its mitigation programs, reviewed documentation of contract monitoring activities, and interviewed FEMA officials and contractors.

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## Topics

Economic Development

Claims processingClaims settlementContract oversightContractorsData integrityFlood insuranceFloodsHurricanesInformation managementInsurance claimsInsurance premiumsInternal controlsMonitoringNatural disastersPerformance measuresPolicy evaluationProcurement policyProcurement regulationsProgram evaluationProgram managementProperty damage claimsProperty lossesRecords managementRisk managementDisaster mitigationContract mismanagementPolicies and procedures