Audit targets hurricane relief firm

A disaster consulting firm run by the former head of the Federal Emergency Management Agency has deducted nearly $141,000 from its latest bills to the state after an audit reported duplicate charges and questionable travel costs.

The questioned amount made up about 1.4 percent of $10 million in bills submitted by James Lee Witt Associates, a crisis and emergency management consulting firm hired to help the state with hurricane recovery, according to a brief report issued Monday by the Legislative Auditor's Office.

The auditor's office also recommended that Gov. Kathleen Blanco's homeland security department limit travel reimbursement to state or federal daily rates.

The audit was a routine check for required signatures, timeliness and supporting documentation.

Blanco said in July that Witt Associates helped bring $2.5 billion in relief money to Louisiana communities hit by hurricanes in 2005 _ Katrina on Aug. 29 and Rita on Sept. 24.

The governor's office will release a new contract with the firm this week, requiring it to follow state travel regulations and to reduce its overall prices, said Mark Smith, spokesman for the state's Government Office of Homeland Security and Emergency Preparation, which holds the contract.

Witt headed FEMA in the Clinton administration, and his firm lobbies on disaster issues for several clients and also consults on disaster preparedness planning, training and assessments.

An NBC News investigation in July questioned whether Witt Associates overbilled for work, pointing out that the firm sometimes charges the state double what it pays subcontractors.

Witt Associates defended its performance and billing rates, saying it helped Louisiana access more hurricane recovery money from FEMA than communities have in any other disaster in U.S. history.

The federal government approves and pays for the contract.