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May 31, 2006

Disaster Relief: Reimbursement to American Red Cross for Hurricanes Charley, Frances, Ivan, and Jeanne

"After review and some retesting, GAO relied upon audit work conducted by the CPA firm of KPMG, LLP, which determined that most Red Cross expenses were incurred for eligible disaster services and were supported by adequate documentation. However, KPMG identified six weaknesses in the Red Cross’s internal controls related to expenses incurred for the four hurricanes and reported $712,000 of known questioned costs, with which Red Cross concurred. The Red Cross also concurred with the content of the GAO report."

So often there is something questionable if not criminal about the behavior of the Red Cross. Why does the public tolerate this scam?

Posted by Gary Holden at May 31, 2006 8:14 AM