Newly released documents show the province was warned years ago about major problems with its Disaster Recovery Program (DRP).
Federal audits dating back to 2005 reveal more than $100 million worth of damage claims were not properly substantiated.
- Alberta Flood 2013: One Year Later
- Hundreds of Albertans appealing disaster recovery payout
- Exshaw flood victims continue fight for disaster recovery payments
The program had been administered by Landlink, a private company. Its contract was not renewed in May.
Alberta Municipal Affairs Minster Greg Weadick admits there have been problems with the program.
"In the past prior to this event, it has been too slow getting money into people’s hands."
Weadick says the system is about to be overhauled and the government will take over administration of the disaster fund.
"We're looking at how did we respond, how could we be better, where are the glitches."
Weadick's department has hired 28 new people and there are plans to create an online tool so homeowners have direct access to their claims.
Wildrose Leader Danielle Smith says she welcomes the move but adds that problems should have been addressed earlier.
"This is a company with so many warning signs that they couldn't manage this earlier, its disgraceful that the government didn't act before this. It’s put so many thousands of families in a horrible financial circumstance."
The province says the new DRP will be in place by the end of the year.