Financial Review and Analysis of a Sheltering System

Project Overview

The city of Houston, Texas, provided refuge to more displaced and evacuated individuals from Hurricane Katrina than any other city. However, the reimbursement costs for the sheltering system were significantly higher than anticipated. This discrepancy led the Department of Homeland Security’s Office of the Inspector General (DHS-OIG) to examine the expenditures, particularly program management costs.

Understanding the Mission

The federal government tasked Hagerty with conducting a financial review of Houston’s sheltering system. The primary goal was to identify cost-reduction strategies and establish a sustainable program moving forward.

The Hagerty Advantage

Hagerty mobilized our expert team of financial management, grant oversight, and process optimization specialists. The team traveled to Houston and conducted an in-depth financial review of the sheltering system. They interviewed program managers and staff across the City’s sheltering operations, thoroughly examining expenses. In short order, the team identified several key factors driving the soaring costs: an overly complex and inefficient invoicing process, the intensive case management needs of evacuees, and confusion surrounding the Federal Emergency Management Agency’s (FEMA) detailed documentation requirements.

Achieving Results

Hagerty developed a comprehensive set of recommendations designed to save time and reduce costs, including eliminating redundant procedures, streamlining inefficient processes, and introducing straightforward cost-control measures. The Hagerty team worked closely with the federal government to communicate these sheltering system recommendations to the relevant parties within the city of Houston. They also made it clear that reimbursement would no longer be provided for inefficient or unnecessary processes. As a result, the client implemented the recommended changes, ultimately saving millions of dollars for the city, the federal government, and taxpayers.

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