From the nola.com article;

The title of the report, released this month by the government auditor, leaves no doubt about its findings of the Federal Emergency Management Agency's program: "FEMA's Management and Oversight of Payment for Insurance Company Services Should Be Improved."

The report also found that FEMA doesn't enforce audit requirements of the private companies that participate in the program and has no system for reviewing what information it does collect. FEMA has no idea what it actually costs private companies to run the program, and uses an outdated standard in determining how much it pays them, the report says.

In written comments on the report dated on the second anniversary of Hurricane Katrina, FEMA agreed to improve its oversight of the program, but called the GAO's comments on the flood program's expenses "inappropriate and misleading."

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