Feds recommend FEMA recover $1.5M in Duluth 2012 flood money
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A government audit recommends the Federal Emergency Management Agency recover $1.5 million given to Duluth for 2012 flood aid.
The Office of Inspector General of the U.S. Department of Homeland Security made that recommendation in a report last month.
Duluth received a $13 million grant for damage caused by severe storms and flooding in June 2012. But the audit found the city did not follow federal procurement standards in awarding $1.5 million for eight non-emergency contracts.
The audit says FEMA has no assurance that businesses owned by minorities and women had a chance to bid. The report notes that the state of Minnesota incorrectly advised the city to follow its own procurement procedures.
In a statement Wednesday, the city says it acted in good faith and disagrees with the recommendations.
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