Audit: Detroit demolition program had $1M improperly billed

Posted at 11:32 AM, Oct 27, 2016
and last updated 2016-10-27 18:25:42-04

An internal audit of Detroit's demolition program as part of its efforts to deal with blighted buildings found about $1 million in expenditures improperly billed to the state.

The report released Thursday says costs that were ineligible for federal reimbursement should have been billed to the city. The Detroit Land Bank Authority says contractors didn't receive any extra money from the mistakes. The audit also found inadequate records and bid tabulation errors.

The audit's release comes after the U.S. Treasury Department recently released $42 million in federal funding to allow Detroit to continue demolishing thousands of vacant houses. The city said funding was suspended in August while Treasury officials reviewed a state audit.

Federal authorities have been investigating the bidding process and costs associated with the demolitions.