News
Oct 13 2009
Some City Park rebuilding spending questioned by federal audit; park to appeal the findings
A federal audit is questioning nearly $300,000 in FEMA money City Park officials spent on rebuilding projects after Hurricane Katrina, a minor finding that represents about 1.5 percent of nearly $20 million reviewed by auditors.
Still, park leaders are appealing the findings, said John Hopper, the park's chief development officer. Most of the questioned costs were due to mark-ups by a contractor that gutted buildings at City Park, something the park contends was unavoidable.
The audit questioned $68,140 for sod replacement at Tad Gormley Stadium, stating FEMA's policy guidelines outline that grass and sod are eligible costs "only when necessary to stabilize slopes and minimize sediment runoff."
The idea that fixing the field at a stadium is not worthy of FEMA assistance appears to be contradicted by the audit's approval of payments for electrical and other repairs at the stadium, Hopper said.
"We're a park, " Hopper said. "We have a lot of green stuff, and we don't apologize for that."
The performance audit was released Thursday by the U.S. Department of Homeland Security's inspector general. It questioned $294,174 in FEMA Public Assistance money spent by City Park. The audit reviewed 46 projects totaling $18.3 million, accounting for the vast majority of the $21.2 million in hurricane damages FEMA has covered at the park.
The audit was generally positive, lauding two grant recipients -- the City Park Improvement Association and the state's Office of Facility Planning and Control -- for following state contracting laws and FEMA guidelines.
"I would guess that when you look at the percentages, FEMA would be pleased if every agency had a percentage of findings as low as ours, but they'd have to speak for themselves, " Hopper said.
FEMA spokesman Andrew Thomas declined to comment about the scope of the findings but did say the agency has until Nov. 17 to respond and it "will work closely with the (City Park) association, the state and all concerned parties to reach a satisfying resolution."
The audit's most significant finding was that the City Park Improvement Association did not follow a state law prohibiting contracts that allow mark-ups based on a percentage of overrun costs. Such mark-ups ended up costing $226,034, according to the audit.
Still, park leaders are appealing the findings, said John Hopper, the park's chief development officer. Most of the questioned costs were due to mark-ups by a contractor that gutted buildings at City Park, something the park contends was unavoidable.
The audit questioned $68,140 for sod replacement at Tad Gormley Stadium, stating FEMA's policy guidelines outline that grass and sod are eligible costs "only when necessary to stabilize slopes and minimize sediment runoff."
The idea that fixing the field at a stadium is not worthy of FEMA assistance appears to be contradicted by the audit's approval of payments for electrical and other repairs at the stadium, Hopper said.
"We're a park, " Hopper said. "We have a lot of green stuff, and we don't apologize for that."
The performance audit was released Thursday by the U.S. Department of Homeland Security's inspector general. It questioned $294,174 in FEMA Public Assistance money spent by City Park. The audit reviewed 46 projects totaling $18.3 million, accounting for the vast majority of the $21.2 million in hurricane damages FEMA has covered at the park.
The audit was generally positive, lauding two grant recipients -- the City Park Improvement Association and the state's Office of Facility Planning and Control -- for following state contracting laws and FEMA guidelines.
"I would guess that when you look at the percentages, FEMA would be pleased if every agency had a percentage of findings as low as ours, but they'd have to speak for themselves, " Hopper said.
FEMA spokesman Andrew Thomas declined to comment about the scope of the findings but did say the agency has until Nov. 17 to respond and it "will work closely with the (City Park) association, the state and all concerned parties to reach a satisfying resolution."
The audit's most significant finding was that the City Park Improvement Association did not follow a state law prohibiting contracts that allow mark-ups based on a percentage of overrun costs. Such mark-ups ended up costing $226,034, according to the audit.
