We determined the Borough of Lavallette did not always account for and expend FEMA grant funds according to Federal regulations and FEMA guidelines. Therefore, FEMA should disallow $3.9 million of $13.2 million in grant funds awarded to the Borough. We made six recommendations to the Regional Administrator, FEMA Region II, to disallow duplicate costs, ineligible labor, contract and excessive equipment costs, unsupported equipment costs, unapplied credits, unneeded funds to put to better use and improve the State’s grant management activities.
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