Auditors watching how state spends aid
Feds could demand Harvey funds back if rules are violated
AUSTIN — Auditors. Of all the things Texas is worried about after Hurricane Harvey hit, add federal government auditors to the list.
During a hearing in the Texas Senate on Wednesday, the state’s emergency disaster director warned that local governments and the state have got to be careful about how they are spending money and filling out federal forms, because the feds have proven they will come and take money back if rules are not followed.
Nim Kidd, chief of the Texas Department of Emergency Management, noted that earlier this year, federal auditors started taking action to force New Orleans to return $2 billion it received for repairing sewer systems there after Hurricane Katrina in 2005 — 12 years ago. Federal auditors have said the sewer system was in bad shape long before Katrina hit and the federal government shouldn’t have had to pay out the money as if Katrina caused the damage.
That comes a year after the Federal Emergency Management Agency forced the state and New Orleans to return another $4 million for repairs to the New Orleans Superdome after Katrina. FEMA officials argued that the funding was duplicated because Louisiana sued the Superdome’s roof contractor to pay for those same repairs.
Kidd said Texas has been doing the right things to prevent such clawbacks of disaster funds. He said the Legislature two years ago committed funding to help his agency to hold classes for state and local officials on how to fill out paper work and properly document their spending.
In addition, the Texas Department of Emergency Management has four major auditing firms watching spending as well. And the state has trained 40 other auditors to span outand help local governments manage the paperwork issues.
“We have to make sure we are doing the right things in the right ways,” Kidd said.
Galveston officials don’t have to be told twice. County Judge Mark Henry told Texas Senate’s State Affairs Committee on Wednesday that federal officials are demanding they give back $1.3 million spend after Hurricane Ike hit in 2008.
Henry said his staff is scrambling to find paperwork and even people who might have been around then to see why the money was sent to them in the first place and how it was used.
The hearing Wednesday follows another that happened Tuesday in which state officials were warned that the state is months — and maybe even years — away from getting its share of $7.4 billion of disaster funding from the U.S. Department of Housing and Urban Development. That funding is critical to helping people with damaged homes and apartments get permanent fixes to their living situation.
Two months after Hurricane Harvey came ashore Aug. 25 near Rockport, the Texas Senate has been increasing its review of how the state, federal and local governments have responded. Last week, the Senate held a committee hearing in New Caney to hear testimony from people who suffered severe flooding.
The Texas House also has been holding hearings. On Oct. 2, the House Appropriations Committee held a hearing at the University of Houston to take testimony for Mayor Sylvester Turner, Harris County Judge Ed Emmett and other officials.