DUNKIRK, N.Y. — The City of Dunkirk's Finance Committee continues to work on a response to an audit by the state comptroller's office that found mismanagement of federal Community Development Block Grant funding.
The audit found that the Dunkirk Local Development Corporation may have wasted or misused more than $1.1 million on activities such as travel, bonuses, and unsecured loans. The audit outlines a number of policy changes the city needs to make.
"Whether we will be responsible for paying this money back or whether we will no longer be receiving funds going forward, that hasn't been made clear; and that might be just pending on our response to the audit which we're working on right now," said Michael Michalski, finance committee chairman.
The city has until February 12th to formally respond with a Corrective Action Plan.
Dunkirk State Audit