Washington — The National Flood Insurance Program owes the Treasury $17 billion, according a new report from the U.S. Government Accountability Office (GAO). Moreover, the report contends that program is ill equipped to meet losses in the event of a future catastrophe.

The report places the blame for the program’s plight on the Federal Emergency Management Association (FEMA), which administers the program. GAO accuses FEMA of being too lax with record keeping and in its oversight of contractors. “Lack of monitoring records, inconsistent applications of procedures and lack of coordination have diminished the effectiveness of monitoring of NFIP-related contracts,” the report states.

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