Tulane University's Hurricane Katrina Allocation From FEMA Targeted For Reduction

Ann McClure's picture

The Federal Emergency Management Agency should reduce its rebuilding grants to Tulane University by $24.5 million to reflect private insurance payments made to the college after Hurricane Katrina, according to a federal inspector general's report. The inspector general for FEMA's parent agency, the Department of Homeland Security, said the federal government has already reduced Tulane's disaster allocation from $291.9 million to $166 million to reflect previous insurance payments.

"Since then, FEMA has determined that at least another $24.5 million of insurance proceeds retained by Tulane covered FEMA-eligible expenses," the inspector general's report said. "Therefore, FEMA should apply the additional $24.5 million of insurance proceeds to Tulane's projects."

Tulane doesn't agree with the finding.

"The OIG's April 19, 2012, memorandum does not provide an explanation of its analysis or the basis for the recommendations to FEMA and Tulane University has not received such detail," the university said in a statement Wednesday. "Therefore, Tulane cannot specifically respond to the proposed $24.5 million re-allocation of insurance proceeds. Tulane has been diligently working with FEMA and OIG on these issues and will continue to do so. No final allocation decision has been made by FEMA, and Tulane anticipates it will be able to resolve any issues relating to insurance allocation with FEMA."

Read more