We completed the 17th audit report in our ongoing review of the Lower Manhattan Development Corporation’s (LMDC) administration of the $2.783 billion in Community Development Block Grant (CDBG) Disaster Recovery Assistance funds awarded to the State of New York in the aftermath of the September 11, 2011, terrorist attacks on the World Trade Center in New York City.  During the audit period, April 1, 2011 through March 31, 2012, LMDC disbursed approximately $53 million of the $2.783 billion being administered.

The objective of this audit was to determine whether LMDC officials (1) disbursed CDBG Disaster Recovery Assistance Funds in accordance with the guidelines established under HUD-approved partial action plans for the Community and Cultural Enhancements, East Side K-8 School, and Other World Trade Center Area Improvements; (2) maintained a financial management system that adequately safeguarded the funds and prevented misuse; and (3) had a plan for the allocated program funds that remained unspent.  LMDC (1) generally disbursed CDBG Disaster Recovery Assistance funds in accordance with the guidelines established under the HUD-approved partial action plans and applicable laws and regulations for the programs subject to our review, (2) had a financial management system in place that adequately safeguarded funds and prevented misuse, and (3) had a plan for the allocated program funds that remained unspent.

There are no recommendations.