The Department of Homeland Security is recommending that the government recover $2 million in Hurricane Katrina-related disaster recovery assistance from East Jefferson General Hospital in Metairie, La., according to an article on Nola.com.
Unused money for completed projects accounts for about three quarters of that money, and the remainder represents spending that was not properly documented or was ineligible, according to a March 21 audit report.
The Homeland Security report primarily faults the Governor's Office of Homeland Security and Emergency Preparedness, which administered $12.4 million in Katrina-related FEMA grants to the hospital, the article said. According to the report, the state's lackadaisical project closeout left $1.5 million unnecessarily earmarked for the hospital.
"Without timely closeouts, unneeded federal funds remain obligated as a liability against FEMA's appropriated funds and can limit FEMA's ability to authorize other disaster assistance projects," the report states.
Hospital officials took responsibility for $135,319 in ineligible costs, such as skylight installation. State officials are reserving formal comment, according to the report.
Read the article.
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