Flint Water Service Line Replacement Expenditures - 761-3017-19

Description of Agency

On January 5, 2016, Governor Rick Snyder declared a state of emergency for Genesee County (referred to as the Flint declaration of emergency) due to the ongoing health and safety issues caused by elevated lead levels in the City of Flint’s drinking water. On March 28, 2017, a U.S. district judge approved a settlement agreement that required the State to allocate $87 million and set aside an additional $10 million in reserves to pay for the replacement of residential lead and galvanized water service lines in the City of Flint. Public Act 340 of 2016 requires the Auditor General to conduct a preliminary audit of the City of Flint’s use of the initial $10 million of the $25 million appropriated for service line removal based on a signed grant agreement between the State and the City of Flint. The settlement agreement required the State to request the Auditor General to conduct annual financial and performance audits of the Department of Environmental Quality’s (DEQ’s) administration of the payments or reimbursements described in paragraph 23 of the agreement. This audit addresses both requirements and is our second report on the expenditures of these funds.

Audit Objectives

  1. To determine the appropriateness of DEQ’s administrative process to issue payments or reimbursements for the Flint water service line replacements.
  2. To determine the appropriateness of DEQ’s expenditure of the Flint water service line replacement appropriations as of March 31, 2019.
  3. To report DEQ’s expenditures of the Flint water service line replacement appropriations.

Timing

Estimated Release Date: Mid 2019


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