FEMA overestimated hurricane relief costs

NEW ORLEANS, July 22 (UPI) -- U.S. officials admit that hurricane relief supply costs earlier this year were greatly overestimated by mistakenly counting single items as multiples.

A General Services Administration estimate of $85 million in household goods intended for victims of hurricanes Katrina and Rita should actually have been $18.5 million, the Federal Emergency Management Agency confirmed and CNN reported Tuesday.

"It was determined that some of the unit costs were 'eaches' and others were 'for-case' lots. The final adjustments reveal there was a significant overstatement in the total asset valuation," GSA officials reported to FEMA, which released audit findings Monday.

Earlier reports have confirmed that many of the hurricane relief goods never made it to their intended recipients and were given away as federal surplus, CNN said.