WASHINGTON — Former FEMA director Michael Brown was warned weeks before Hurricane Katrina hit that his agency's backlogged computer systems could delay supplies and put personnel at risk during an emergency, according to an audit released yesterday.

An internal review of the Federal Emergency Management Agency's information-sharing system shows it was overwhelmed during the 2004 hurricane season. The audit was released one day after Brown vehemently defended FEMA for the government's dismal response to Katrina, instead blaming state and local officials for poor planning and chaos.

The review by Department of Homeland Security acting Inspector General Richard Skinner noted FEMA's mission during disasters as rapid response and coordinating efforts among federal, state and local authorities.

"However, FEMA's systems do not support effective or efficient coordination of deployment operations because there is no sharing of information," the audit found. "Consequently, this created operational inefficiencies and hindered the delivery of essential disaster response and recovery services."

"The overall tone of the report is negative," FEMA chief information officer Barry West wrote in an Aug. 3 letter that Brown initialed. "We believe this characterization is inaccurate and does not acknowledge the highly performing, well-managed and staffed [informational technology] systems supporting FEMA incident response and recovery."

Among the problems the audit identified:

• FEMA's system could not track and coordinate delivery of ice and water to Florida, resulting in millions of dollars worth of unused ice and $1.6 million in leftover water.

• An estimated 200,000 victims had to wait for temporary housing aid because of backlogged computers.

• Emergency personnel potentially were put at risk because the system did not provide real-time disaster warnings and other information.

RECOVERY

More of New Orleans to reopen today

BATON ROUGE, La. — More areas of New Orleans that escaped flooding from hurricanes Katrina and Rita will be formally reopened starting today, Mayor Ray Nagin said.

The areas include the French Quarter, the central business district and Uptown, with its historic Garden District. Business owners will be allowed in today, and residents tomorrow.

"The re-entry started Monday and is going very well — exceedingly well," Nagin told legislators at a hearing yesterday at the state Capitol. "Everything you hoped to happen is happening. Algiers is alive and well and breathing."

Nagin opened the Algiers neighborhood Monday.

The mayor said checkpoints where officers stop people will be pulled back today so that only areas that were flooded will be off limits.

If all goes well, as of Tuesday, only the Lower 9th Ward, hit especially hard by the flooding, will be cordoned off.

Electricity has been restored to some dry parts of the city, but the water is not drinkable. The mayor disagreed with the head of the state's Health Department about the condition of the city's water, insisting residents could now wash in it, although they shouldn't drink it.

GOVERNMENT

GOP leaders seek ways to cut spending

WASHINGTON — The White House and Republican congressional leaders, seeking to calm outrage among some conservatives over spending, promised yesterday to find budget savings to help pay for the Hurricane Katrina recovery.

Amid outside estimates that rebuilding costs will reach $200 billion, White House budget director Joshua Bolten declined to give a long-term price tag.

"Without putting out an absolute figure," Bolten said, "we do know roughly what the outer bounds would be. I'm not going to discuss what the outer bounds will be."

Meanwhile, Bolten said officials are talking to Congress about where cuts can be made in the budget.

Conservative Republicans have been alarmed over the rapid approval of billions of dollars in hurricane aid without any discussion of cuts to offset them.

"How do we convince the voters in the midterm elections that two more years of Republican control will produce anything more than bigger government and growing deficits?" Rep. Jeff Flake, R-Ariz., asked in an opinion piece in the Wall Street Journal.

All 435 House seats will be up for re-election in November 2006.

INSURANCE

Insurance policy gives Biloxi a boost

JACKSON, Miss. — Biloxi, home to a dozen floating casinos smashed by Hurricane Katrina, took a gamble that paid off.

Two months before the storm struck Aug. 29, the coastal town of 50,000 secured an insurance policy against a catastrophic event such as a hurricane disrupting its stream of gambling revenue.

At Mayor A.J. Holloway's suggestion, Biloxi spent $92,000 on a "business interruption" policy that pays out $10 million.

"He is going to be looked on as a genius for that," city spokesman Vincent Creel said.

Casino proceeds account for about one-third of Biloxi's budget. The $10 million policy will cover about six months of lost revenue.

The policy was underwritten by Lloyd's of London, which has estimated its Katrina losses at $2.55 billion — its second-biggest loss after the 2001 terrorist attacks.

FUND RAISING

Donations for disaster soar past $1.3 billion

Dozens of nonprofits are raising money for short-term relief and long-term recovery in response to Hurricane Katrina, and total donations one month after the disaster have surged past $1.3 billion.

In the aftermath of the Sept. 11 attacks, Americans gave charities $2.2 billion — almost half to the American Red Cross. After the South Asian tsunami last December, Americans donated $1.3 billion.

Compiled from The Associated Press and Reuters