FRAUD, WASTE, AND ABUSE CONTROLS.

SEC. 696. FRAUD, WASTE, AND ABUSE CONTROLS.(a) In General.—The Administrator shall ensure that—(1) all programs within the Agency administering Federal disaster relief assistance develop and maintain proper internal management controls to prevent and detect fraud, waste, and abuse;(2) application databases used by the Agency to collect information on eligible recipients must record disbursements;(3) such tracking is designed to highlight and identify ineligible applications; and(4) the databases used to collect information from applications for such assistance must be integrated with disbursements and payment records.(b) Audits and Reviews Required.—The Administrator shall ensure that any database or similar application processing system 120 STAT. 1461 for Federal disaster relief assistance programs administered by the Agency undergoes a review by the Inspector General of the Agency to determine the existence and implementation of such internal controls required under this section and the amendments made by this section.(c) Verification Measures for Individuals and Households Program.—Section 408 of the Robert T. Stafford Disaster Relief and Emergency Assistance Act (42 U.S.C. 5174) is amended—(1) by redesignating subsection (i) as subsection (j); and(2) by inserting after subsection (h) the following:“(i) Verification Measures.—In carrying out this section, the President shall develop a system, including an electronic database, that shall allow the President, or the designee of the President, to—“(1) verify the identity and address of recipients of assistance under this section to provide reasonable assurance that payments are made only to an individual or household that is eligible for such assistance;“(2) minimize the risk of making duplicative payments or payments for fraudulent claims under this section;“(3) collect any duplicate payment on a claim under this section, or reduce the amount of subsequent payments to offset the amount of any such duplicate payment;“(4) provide instructions to recipients of assistance under this section regarding the proper use of any such assistance, regardless of how such assistance is distributed; and“(5) conduct an expedited and simplified review and appeal process for an individual or household whose application for assistance under this section is denied.”.