ANCHORAGE -

Ketchikan officials have agreed to continue grant funding for a shellfish seed producer amid questions about OceansAlaska's financial situation.

The Ketchikan Gateway Borough Assembly last year approved a $338,000 grant to be split over two years for operational costs and $50,000 for a business plan and design for the facility's future operations.

OceansAlaska's new facility manager says only $6,000 of that $50,000 grant was spent on its stated purpose. KRBD reports a bookkeeper brought in to help called the filing system inadequate and said finding all the receipts has been a challenge.

Money still remains in this year's grant, and the Assembly voted to continue that. But members said they would want answers, a plan for the future and checks and balances in place before considering additional funds.