Cuomo Contesting Audit That Faults NY Tourism Promotion After Sandy, Irene

NEW YORK (CBSNewYork/AP) -- Gov. Andrew Cuomo is contesting a federal audit accusing his administration of mishandling $22 million in federal funding meant to promote tourism in areas affected by Superstorm Sandy and Hurricane Irene.

The report released by the Office of Inspector General at the U.S. housing department says New York state officials failed to comply with federal rules on contract procurement and did not ensure the money was spent effectively.

Cuomo said his administration is disputing the report.

"We believe they misread the law and misread the regulations about how the funding should be spent," he told WCBS 880's Kelly Waldron. "So we're contesting their opinion."

The audit says the failures amount to a "significant deficiency." The funds were earmarked for efforts to promote tourism in areas recovering from Sandy, Irene and Tropical Storm Lee.

The governor said he's very proud of how the state handled affairs after Sandy and Irene.

"We expended billions and billions of dollars literally in the handling of the emergency and then the construction in the aftermath," he said.

Cuomo's Office of Storm Recovery also disputed the audit's findings in a formal response that is included in the full report.

The audit is the third this summer to fault economic development programs overseen by Cuomo's administration.

To see the full report, click here.

(TM and © Copyright 2016 CBS Radio Inc. and its relevant subsidiaries. CBS RADIO and EYE Logo TM and Copyright 2016 CBS Broadcasting Inc. Used under license. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed. The Associated Press contributed to this report.)

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