A Department of Housing and Urban Development inspector general report said the city didn't follow federal regulations.
WASHINGTON -- A U.S. government watchdog has raised questions about whether Camden city officials properly spent more than $3 million in federal funds.
The money represented almost 50 percent of the $6.6 million in federal community development block grants given to the city from 2013 to 2015.
The inspector general for the U.S. Department of Housing and Urban Development said in a report that $317,803 was spent improperly and $2.8 million more was spent without proper cost analyses and environmental reviews.
The IG said HUD should demand repayment of the $317,803 and proper documentation of the other $2.8 million.
Seven of 10 projects did not follow federal rules, the report said in its first audit of the city's block grant program since 1996. The projects included property improvements, emergency sewer construction, and the purchase of fire equipment.
The inspector general said the city began correcting the problems as the audit ended, including providing documentation.
Camden Mayor Dana L. Redd did not immediately respond to an email to her office seeking comment.
City officials told the auditors that the programs in question were exempt from federal environmental review requirements. The inspector general said HUD needed to determine whether the evidence provided was sufficient.
President Barack Obama visited Camden in May 2015, calling the city "a symbol of promise for the nation" as he talked about local officials' efforts to improve police-community relations. He visited Camden County Police Department headquarters and a community center on the trip.
"This city is on to something," Obama said.
Camden, which had one of the nation's highest crime rates, was one of eight municipalities designated in April 2015 as a promise zone, which brought the ability to use grants and other federal help to address issues such as crime, health and jobs.
Jonathan D. Salant may be reached at jsalant@njadvancemedia.com. Follow him on Twitter @JDSalant. Find NJ.com Politics on Facebook.