...The report by Homeland Security Inspector General Richard L. Skinner aimed some of its most pointed criticism at one of DHS's major entities, the Federal Emergency Management Agency. Katrina and a subsequent storm, Rita, increased the load on FEMA's "already overburdened resources and infrastructure," the report said.
In addition, the report found, "the circumstances created by Hurricanes Katrina and Rita provide an unprecedented opportunity for fraud, waste and abuse," primarily because FEMA's grant and contract programs are still not being managed properly.
"While DHS is taking several steps to manage and control spending under Katrina, the sheer size of the response and recovery efforts will create an unprecedented need for oversight," the report concludes...
The report is in this PDF file. It isn't searchable, but a quick scan doesn't make it look like there are any major smoking guns. If you find any, please leave them in comments.