The federal government says more than $4 million in Superstorm Sandy aid promised to a New Jersey shore town should be reallocated or repaid because it was not needed.

A boat on a side street in Beach Haven West (Chris Swendeman, Townsquare Media NJ)

The Homeland Security Department's Inspector General's Office released a report Tuesday on money granted to Beach Haven.

It's the first such report completed on aid to a New Jersey town after Sandy.

The report says the town did not need $3.7 million of federal funding that was initially granted but never transferred for debris cleanup.

Beach Haven is to return $652,000 that was advanced.

The government also says the town did not adequately document $321,000 of costs.

Borough administrator Richard Crane tells The Record that the discrepancies came in the "chaotic" days after the October 2012 storm.

The borough has 90 days to respond to the audit.

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