California City Misused Disaster Relief Funds, Audit Finds

A federal audit has found the city of San Diego, Calif. did not properly use $1. 2 million in disaster relief funds of the $6 million it received for damage from flooding and mudslides five years ago.

The Jan. 25 report by the General Accounting Office recommends the Federal Emergency Management Agency declare the funds as ineligible.

The report blames the state of California in part for not adequately informing the city of the FEMA guidelines on how the money can be used.

City officials have vowed to rectify the problem so it does not happen again. FEMA has 90 days to respond to the findings.

According to the report, the city spent $654,348 on excessive landfill costs and $393,704 in fees unrelated to the disaster, among other things.