Federal prosecutors have reportedly launched an investigation into Donald Trump’s inauguration spending to determine whether funds were misspent and major donors were offered access to the new administration in exchange for money.

The president’s inaugural spending was shrouded in controversy when millions of dollars allegedly were not properly accounted for, potentially violating federal laws as the organisation behind the inauguration festivities was a registered nonprofit.

According to the Wall Street Journal, “The investigation partly arises out of materials seized in the federal probe of former Trump lawyer Michael Cohen’s business dealings, according to people familiar with the matter.”

However, an attorney close to the matter told the paper, “We are not aware of any evidence the investigation the Journal is reporting actually exists.”

The president's inaugural committee pushed back hard last summer on questions about whether the unprecedented $107 million budget for the event was fraught with cost overruns and misspending. A top inauguration official assured media outlets at the time that spending had been restrained and monitored.

That official — Rick Gates — acknowledged in court earlier this year he personally may have pocketed some of the inaugural committee’s money, however.

Gates, the government’s star witness in former Trump campaign chairman Paul Manafort’s financial fraud trial, admitted to Manafort’s lawyers that he “possibly” wrongfully submitted personal expenses to the inaugural committee for reimbursement.

Though only a footnote to Gates’ disclosure of tax fraud, extramarital affairs and embezzlement from Manafort, the admission raised new questions about how well the inaugural committee tracked its own spending and why Gates was chosen for a top inauguration job in the first place.

Who could be running against Trump in 2020? Show all 23 1 /23 Who could be running against Trump in 2020? Who could be running against Trump in 2020? Joe Biden The former vice president - poised to be a frontrunner - has announced his run. He recently faced scrutiny for inappropriate touching of women, but was thought to deal with the criticism well AFP/Getty Who could be running against Trump in 2020? Bernie Sanders The 2016 runner-up has announced that he will be running again in 2020 Getty Who could be running against Trump in 2020? Hillary Clinton The 2016 Democratic presidential candidate and former Secretary of State says she is “still considering” whether she will run again. Getty Who could be running against Trump in 2020? Pete Buttigieg The Indiana mayor and war veteran will be running for president. If elected, he would be the first openly LGBT+ president in American history. Getty Who could be running against Trump in 2020? Kamala Harris The former California attorney general will be running for president in 2020. Introduced to the national stage during Jeff Sessions’ testimony, she has endorsed Medicare-for-all and proposed a major tax-credit for the middle class. AP Who could be running against Trump in 2020? Elizabeth Warren The Massachusetts Senator has formally launched her bid for president in 2020. A progressive Democrat, she is a major supporter of regulating Wall Street. AP Who could be running against Trump in 2020? Beto O’Rourke The former Texas congressman told Oprah Winfrey that he “has been thinking about running for presidency”, but stopped short of formally announcing his bid to run in 2020. AFP/Getty Who could be running against Trump in 2020? Wayne Messam Mayor of the city of Miramar in the Miami metropolitan area, Wayne Messam has announced his bid. He intends to run on a progressive platform against the "broken" federal government. He favours gun regulations and was a signatory to a letter from some 400 mayors condemning President Trump's withdrawal from the Paris Climate Accord. Vice News Who could be running against Trump in 2020? Kirsten Gillibrand The New York Senator formally announced her presidential bid in January, saying that “healthcare should be a right, not a privilege.” Getty Who could be running against Trump in 2020? Cory Booker The New Jersey Senator has announced that he will be running for the presidency in 2020. If he secures the nomination he said finding a female vice president would be a priority. Getty Who could be running against Trump in 2020? John Delaney The Maryland congressman was the first to launch his bid for presidency, making the announcement in 2017. AP Who could be running against Trump in 2020? Julian Castro The former San Antonio mayor announced his candidacy in January and said that his running has a “special meaning” for the Latino community in the US. Getty Who could be running against Trump in 2020? Tulsi Gabbard The Hawaii congresswoman announced her candidacy in January, but is likely to face tough questions on her past comments on LGBT+ rights and her stance on Syrian President Bashar al-Assad. Getty Who could be running against Trump in 2020? Andrew Yang The entrepreneur has announced his presidential candidacy, and has pledged that he would introduce a universal basic income of $1,000 a month to every American over the age of 18. AFP/Getty Who could be running against Trump in 2020? Marianne Williamson The author and spiritual advisor has announced her intention to run for president. She had previously run for congress as an independent in 2014 but was unsuccessful. Getty Who could be running against Trump in 2020? John Kerry The former secretary of state has said he is still thinking about whether to run. Getty Who could be running against Trump in 2020? Michael Bloomberg The entrepreneur and former New York mayor– with a net worth of around $50bn – has said he will decide by the end of February whether to seek the presidency. AFP Who could be running against Trump in 2020? Howard Schultz Former Starbucks CEO Howard Schultz has not yet ruled out running for president in 2020, despite criticism that his bid could help re-elect Mr Trump by dividing the Democrat vote. AP Who could be running against Trump in 2020? Eric Holder The former attorney general has said he will decide in “the next month or so” whether to run as a 2020 presidential candidate. AP Who could be running against Trump in 2020? Eric Swalwell The California congressman said he is “ready to do this” and will decide before April whether to run. MSNBC Who could be running against Trump in 2020? Terry McAuliffe The former Virginia governor, who worked to elect Democratic governors during 2018 midterms, said there was a “50 per cent” chance he would run. AP Who could be running against Trump in 2020? Sherrod Brown The Ohio senator is still undecided about whether to run for president in 2020. Who could be running against Trump in 2020? Mitch Landrieu The former New Orleans mayor said he doesn’t think he will run for president, but “never say never”. AP Photo/Jacquelyn Martin

The Journal reported federal agents seized a recorded conversation Cohen had with a former adviser to Melania Trump named Stephanie Winston Wolkoff, who also worked to plan the inaugural event. Ms Wolkoff suggested she was concerned about the inaugural committee’s spending habits, the paper reported Thursday. It wasn’t immediately clear when the conversation took place.

The committee only identified what vendors received $61m of its $103 total cost to pout on the inaugural event — an unusually large figure for a smaller inauguration like Mr Trump’s 2016 event. The remaining $42m has not been publicly accounted for.

Support free-thinking journalism and attend Independent events

According to a committee source and a vendor who had access to the inaugural committee’s early planning documents, the committee’s initial plans were modeled on President Barack Obama’s 2013 inauguration — an event that cost just over $40 million.

How Mr Trump’s inaugural committee’s costs rose to $100 million — despite throwing fewer events than Mr Obama’s team, and hosting them in largely the same venues — is difficult to explain, even taking into account the $700,000 organisers spent on entertainment and the $1 million lawn coverings that Mr Trump later blamed for making his crowd look small.