Feds recommend FEMA recover $1.5M in Duluth 2012 flood money

Flooding in Fond du Lac neighborhood
Hundreds of homes in Duluth's Fond du Lac neighborhood, including this one, were seriously damaged by flooding in June 2012.
Conrad Wilson | MPR News file 2012

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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