State auditor faults Gig Harbor for its use of federal money

The State Auditors Office has found fault with how the city of Gig Harbor reported the use of federal money and how it awarded a contract.

An audit released Monday found the city didn’t provide quarterly progress reports to the federal agencies and didn’t follow federal requirements for awarding an engineering contract for its Donkey Creek Restoration Project in 2013.

The city received $1.2 million from the federal Department of Housing and Urban Development for intersection improvements and used $662,611 for its Donkey Creek project from the federal Department of the Interior’s Fish and Wildlife Service.

The city has made changes to prevent this from happening in the future, according to its response in the auditor’s report.