The City of New York, NY, Did Not Always Use Disaster Recovery Funds Under Its Program for Eligible and Supported Costs

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Date Issued

Thursday, September 27, 2018

Submitting OIG

Department of Housing and Urban Development OIG

Other Participating OIGs

Department of Housing and Urban Development OIG

Agencies Reviewed/Investigated

Department of Housing and Urban Development

Components

Disaster

Community Planning and Development

Community Development Block Grant

Report Number

2018-NY-1007

Report Type

Disaster Recovery Report

Location

NY
United States

Number of Recommendations

Questioned Costs

$597,899

Funds for Better Use

$544

Open Recommendations

This report has 5 open recommendations.

Recommendation Number	Significant Recommendation	Recommended Questioned Costs	Recommended Funds for Better Use
2018-NY-1007-001-A	No	$594,012	$0
We recommend that HUDs Deputy Assistant Secretary for Grant Programs require the City to provide documentation to show that the $594,012 disbursed due to the use of multipliers was for eligible, reasonable, necessary, and supported costs or reimburse its program from non-Federal funds.
2018-NY-1007-001-B	No	$2,689	$0
We recommend that HUDs Deputy Assistant Secretary for Grant Programs require the City to provide documentation to show that the $2,689 disbursed due to a higher than required overtime rate was supported by documentation from the trade unions or reimburse its program from non-Federal funds.
2018-NY-1007-001-C	No	$1,198	$0
We recommend that HUDs Deputy Assistant Secretary for Grant Programs require the City to reimburse its program $1,198 from non-Federal funds for overpaid wages due to billing and payroll errors.
2018-NY-1007-001-D	No	$0	$544
We recommend that HUDs Deputy Assistant Secretary for Grant Programs require the City to pay $544 in unpaid wages to the subcontractors of the affected employees and submit evidence that these employees have been paid.
2018-NY-1007-001-G	No	$0	$0
We recommend that HUDs Deputy Assistant Secretary for Grant Programs require the City to provide documentation showing that payments made under the Rockaway Boardwalk construction management services contract complied with Davis-Bacon and Related Acts requirements and that restitution is made to affected workers for any underpayments identified.