An audit released today by the Department of Homeland Security's Inspector General's Office finds FEMA should recover nearly $10 million in Sandy funds from the town of North Hempstead.

The report states that the town doled out $4.8 million in contracts that did not meet federal standards because they were not put out for competitive bid. It also says the town issued the same $3.2 million claim twice, spent more than $500,000 without providing proper documentation, and sought more than $400,000 for costs that should have been covered by insurance, among other errors.

The town supervisor at the time of Sandy was Jon Kaiman, who later left the post when Gov. Andrew Cuomo tapped him to serve as an advisor on Sandy recovery efforts. Current North Hempstead Supervisor Judi Bosworth says she doesn't believe the town did anything wrong.

"We trust that FEMA will find that no money should be recovered based on this deeply flawed report," says a statement released by Bosworth. "We believe that FEMA will recognize that we followed procedures and were careful custodians of the federal disaster relief funds."

Kaiman says the town worked hand in hand with FEMA, saying the town "did it the way they told us to do it."

FEMA now has 90 days to issue its plan for corrective action to the Department of Homeland Security, but has already rectified some of the issues with the town.