ALBANY, N.Y. (AP) — 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.
