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Schumer Urges FEMA Not to Take Back More Than $10.5 Million in Sandy Money

The audit of North Hempstead recommended FEMA should recover $9.9 million in disaster recovery funds that were 'ineligible, unsupported or unused.'

(TNS) - Sen. Chuck Schumer and local politicians gathered in Port Washington on Tuesday to push for the Federal Emergency Management Agency not to take back more than $10.5 million in superstorm Sandy money that federal audits questioned.

In audits released in September, the Office of Inspector General for the Department of Homeland Security, which oversees FEMA, scrutinized spending and contracts awarded by the Town of North Hempstead and Long Beach public schools.

The audit of North Hempstead recommended FEMA should recover $9.9 million in disaster recovery funds that were “ineligible, unsupported or unused.” The report questioned contracts for debris removal, duplicate costs, insurance benefits and documentation for equipment use.

“We followed FEMA procedures and we were careful custodians of the FEMA relief funds,” said Judi Bosworth, North Hempstead town supervisor.

The inspector general also recommended FEMA disallow $668,430 in costs awarded by Long Beach schools because a contractor tagged on 20 percent for overhead and profits in violation of federal rules.

“We worked closely with the FEMA team and followed their direction,” Long Beach Public Schools Superintendent David Weiss said. “We can’t afford to replace that money without otherwise tapping into reserves, which affects students.”

A FEMA representative could not immediately be reached for comment.

The audit recommendations are not binding and FEMA has until Oct. 31 to respond to the North Hempstead report and Nov. 30 for Long Beach. FEMA previously said it was reviewing the recommendations.

Schumer’s office in a news release said costs that were previously “deemed reasonable by FEMA” should not fall on local taxpayers to repay. Unless fraud is uncovered, the funds should not be recouped, his office said.

“Most of the dollars were already spent,” Schumer said. “To make matters worse, they were already approved by FEMA.”

North Hempstead officials called the audit shoddy, politically motivated and misleading. Of the $9.9 million cited, $5.5 million had never been awarded to the town, North Hempstead Town Attorney Elizabeth Botwin said.

“We’ll pursue this vigorously,” she said of an appeal.

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©2016 Newsday

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A resident policy fellow at the R Street Institute
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