October 9, 2012

California Energy Commission – Energy Efficiency and Conservation Block Grant Program Funds Provided by the American Recovery and Reinvestment Act of 2009 

As part of the American Recovery and Reinvestment Act of 2009 (Recovery Act), the Energy Efficiency and Conservation Block Grant (EECBG) Program received $3.2 billion to develop, promote, implement and manage energy efficiency and conservation projects and programs designed to reduce fossil fuel emissions, reduce total energy use of the eligible entities, and improve energy efficiency in the transportation, building and other appropriate sectors.  The California Energy Commission received a $49.6 million grant award from the Department of Energy's Recovery Act EECBG Program funding for the State of California that was to be expended over a 3-year period.  The Department of Energy's Office of Inspector General contracted with Lopez and Company, LLP, an independent public accounting firm, to conduct an examination of EECBG Program activities of the Commission.  The examination found that the Commission failed to prevent or detect two duplicate drawdowns of reimbursements from the U.S. Department of the Treasury totaling $678,000.  Commission officials were not aware of the problem until Lopez and Company, LLP, brought the improper drawdowns to their attention.  In response to the finding, Department management concurred with the recommendations, and proposed and initiated corrective actions to ensure Commission establishment of policies and procedures for, and the review of, all drawdowns, and to resolve questioned costs identified

Topic: Financial Assistance