Federal disaster audit recommends Texas repay $9M

AUSTIN, TX. (AP) - A federal audit has recommended that Texas repay $9 million in alleged overcharges related to administration of hurricane recovery funds.

Hurricanes Dolly and Ike hit Texas in 2008. The U.S. Department of Housing and Urban Development has made $1.4 billion in grants available.

Gary Hagood with the Texas General Land Office says the state is negotiating with federal authorities over potential repayment.

The Austin American-Statesman reported Sunday that the review determined the state improperly contracted with engineering firm HNTB to manage the grants. The newspaper reports overcharges were billed by Missouri-based HNTB and paid in federal dollars.

HNTB, in a statement Friday, said the company cooperated with the audit, has complied with terms of its state contract and that concerns identified in the review have been addressed.

(Information in the following story is from: Austin American-Statesman, http://www.statesman.com)

(Copyright 2012 The Associated Press. All rights reserved.)

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