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HUD audit questions state’s...

HUD audit questions state’s post-Katrina utility spending

By: Magnolia Tribune - January 3, 2014

HUD audit questions state’s post-Katrina utility spending

The state failed to adequately oversee a $653 million program for regional water and wastewater improvements after Hurricane Katrina, leading to construction of some plants that are too small, “excessive,” or may not be needed, a federal audit concludes.

The audit says the state failed to put in place controls that would have ensured the program met post-Katrina needs and economic-development goals.

The Office of Inspector General for the U.S. Department of Housing and Development further found the state spent $9.6 million on an emergency basis for a wastewater-treatment facility in Harrison County’s River Hills when no emergency existed. The inspector general also faulted appraisals on three parcels of property that cost a total of $2.1 million.

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Magnolia Tribune

This article was produced by Magnolia Tribune staff.