Report 2007-108 Highlights - November 2007
Department of Water Resources:
Its Administration of Grants Under the Flood Protection Corridor Program Needs Improvement
Our review of the Department of Water Resources' (Water Resources) administration of the Flood Protection Corridor Program revealed that:
- When Water Resources awarded $28 million for grants in 2001, it based the decisions on a weak selection process with poorly defined selection criteria.
- It is unclear whether the highest priced grant, the acquisition of Staten Island, will result in a tangible flood protection project in return for the $17.6 million in funds awarded.
- Water Resources awarded an additional $29.1 million for grants in 2003 without the aid of key information called for in its regulations to evaluate potential projects' flood protection benefits.
- Water Resources has not enforced many of the monitoring procedures it established.
- Water Resources has not contacted the city of Santee since March 2004, when it disbursed the final $3.65 million remaining on a $4.75 million project, despite the city's failure to submit required reports.
- Water Resources neither resolved its appraisal staff's concerns nor those of the Department of General Services that the appraised value of Staten Island was too high, and as a result, the State potentially paid more than fair market value for the property.