The agency the public trusts to bring stability in the wake of disaster now itself appears in chaos.

The Government Accountability Office says the Federal Emergency Management Agency has squandered tens of millions of dollars and is unable to control fraud while it attempts to distribute aid.

The report looked at the agency's efforts during Hurricane Katrina, and uncovered waste and fiscal abuse totaling roughly $1 billion.

The study cited instances such as $17 million in rent payments to those who already received FEMA-sponsored rent-free housing; $20 million wasted on people who claimed duplicate property damage from both hurricanes; and $3 million given to 500 ineligible foreign students.

Even when it identified fraud, the agency was woefully ineffective. FEMA identified $290 million in improper payments, but has recouped just $7 million.

These findings, coupled with a slow post-Katrina response, clearly raise questions about the agency's effectiveness under the broad umbrella of the Department of Homeland Security. The Senate Homeland Security Committee, which called for the GAO report, wants a revamping of FEMA's internal procedures, and rightly so. Sen. Susan Collins (R-Maine), committee chairwoman, is also pushing legislation that empowers FEMA to go directly to the president for aid, saying that would reduce bureaucracy and ultimately improve accountability. That's also worth exploring.

Solving these problems quickly must be a priority to ensure the agency is equipped to handle the next disaster and properly manage taxpayers' money going forward.

Squandering disaster funds not only impairs public confidence, it also prevents much-needed relief dollars from getting to where they are most needed — in the pockets of disaster victims.

The GAO report has shown there's much work to be done. It's up to Congress and the administration to make sure it gets done, and soon.