Purpose

The objective of our examination was to determine whether payments made to the Local Development Corporation of Laurelton, Rosedale and Springfield Gardens (LDC) under contract M050231 were for appropriate expenses.

Background

On April 28, 2014, the Department made a $16,250.00 advance payment to the LDC. On June 9, 2014, the LDC claimed the remaining $48,750.00 of the contract amount. To receive the second claim, the LDC needed to demonstrate that the entire $65,000.00 in expenses was incurred during the contract period for work relevant to the contract objectives, and was for expenses not previously paid from another funding source.

Key Findings

The LDC was able to substantiate only $4,284.09 in expenses under the contract. As a result, we rejected a LDC’s claim for $48,750.00. Consequently, the LDC has retained $11,965.91 in advance funds for unsubstantiated expenses ($16,250.00 advance less $4,284.09 in supported expenses).

Key Recommendations

• Recover from the LDC $11,965.91 in advances as appropriate.
• Ensure future requests for payment under contract M050231 are supported by sufficient, appropriate evidence.