The Latest: Audit faults NY spending on tourism promotion

AP News
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Posted: Aug 16, 2016 3:59 PM

ALBANY, N.Y. (AP) — The Latest on a federal audit criticizing New York state's oversight of $22 million in tourism promotions funding (all times eastern):

3:50 p.m.

A spokesman for New York's economic development agency says federal auditors who faulted the state's oversight of $22 million in tourism promotions funding are off-base.

Jason Conwall, a spokesman for Empire State Development, said Tuesday that the critical report from the Department of Housing and Urban Development's Office of Inspector General relied on an incorrect interpretation of federal regulations.

The audit says New York officials failed to comply with procurement rules and did not ensure money was spent effectively. The audit says the failures amount to a "significant deficiency."

The audit is the third this summer to fault economic development programs run by the Democratic governor's administration.

The funds were spent promoting tourism in areas recovering from Hurricane Irene and Tropical Storm Lee in 2011 and Superstorm Sandy in 2012.

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2:30 p.m.

A federal audit says New York Gov. Andrew Cuomo's administration mismanaged $22 million spent to promote tourism in areas affected by three damaging storms.

The report from the Department of Housing and Urban Development's Office of Inspector General says New York officials failed to comply with procurement rules and did not ensure money was spent effectively. The audit says the failures amount to a "significant deficiency."

The audit is the third this summer to fault economic development programs run by the Democratic governor's administration.

Cuomo's Office of Storm Recovery disputed the audit's findings in a formal response. Messages left with state officials Tuesday were not immediately returned.

The funds were spent promoting tourism in areas recovering from Hurricane Irene and Tropical Storm Lee in 2011 and Superstorm Sandy in 2012.