National Flood Insurance Program's Management Letter for FY 2012 DHS Consolidated Financial Statements Audit (Redacted) [open pdf - 896KB]
From the Background: "The Federal Insurance and Mitigation Administration of the Department of Homeland Security (DHS) Federal Emergency Management Agency (FEMA) manages the National Flood Insurance Program (NFIP). Private insurance companies and the Direct Servicing Agent administer the flood insurance policies issued through the NFIP. The insurance companies and Direct Servicing Agent write NFIP policies, adjust flood claims, process and distribute claim payments to policyholders, and establish and maintain loss reserves. The data associated with flood policies and claims are used to calculate estimates included in the year-end NFIP financial statements, which are recorded in the year-end DHS financial statements. Thus, the precision of the estimates used to reflect actual events is dependent upon the accuracy and consistency of the underlying data submitted by the insurance companies and the Direct Servicing Agent on a monthly basis."
Department of Homeland Security, Office of Inspector General, Report No. OIG-13-86
Department of Homeland Security Office of Inspector General: https://www.oig.dhs.gov/