We completed the thirteenth report in our ongoing audits of the Lower Manhattan Development Corporation’s (the auditee) administration of the $2.783 billion in Community Development Block Grant Disaster Recovery Assistance funds provided to the State of New York in the aftermath of the September 11, 2001, terrorist attacks on the World Trade Center in New York City. The auditee disbursed approximately $50.3 million of these funds during our audit period, October 1, 2008 through March 31, 2009.

The objectives of this audit were to determine whether the auditee (1) disbursed Disaster Recovery Assistance funds in accordance with the guidelines established under U.S. Department of Housing and Urban Development (HUD)-approved partial action plans, (2) expended Disaster Recovery Assistance funds for eligible administration and planning expenses in accordance with applicable laws and regulations, and (3) had a financial management system in place that adequately safeguarded funds and prevented misuse. The auditee generally administered the grant funds we reviewed in accordance with HUD regulations, expended funds for eligible planning and administrative expenses, and continued to maintain a financial management system that adequately safeguarded funds and prevented misuse. There were no recommendations.