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Feds: Gulf Shores owes from Hurricane Ivan
March 23, 2009
GULF SHORES: March 22 – City of Gulf Shores officials learned this week that federal auditors say the city should repay $9.8 million of federal money used in “clean-up” functions in the aftermath of Hurricane Ivan.
The federal auditors claim the repayment money, $9.73 million that Gulf Shores received from FEMA and $65,526 that Gulf Shores earned on part of that money, was either misused or wasted. The auditors seven-page report – which was received by Gulf Shores City Hall last week – claims that:
1) Clean-up contractors were overpaid;
2) The city billed FEMA twice on some work;
3) Federal money was improperly spent removing sand
from private property;
4) Debris removal contracts were devised improperly.
Gulf Shores is already awaiting final word related to $4.5 million federal auditors have previously said the city should repay in disputed Hurricane Katrina billings.
City officials dispute the auditors’ claims saying that the city’s use of the funds not only saved the federal government money but also expedited the clean-up and that FEMA approved their methodology at the time.
The City of Gulf Shores currently has about $6 million in savings.
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