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Examination Report: OAS-RA-13-02

October 9, 2012 

County of Los Angeles – 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 County of Los Angeles (County) received a $15.4 million formula grant award and a $30 million competitive grant award, both awards were to be expended over a 3-year period.  The Department of Energy's (Department) 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 County.  The examination found that the County failed to record the grant funding source and corresponding percentage of Federal participation for $800,000 in computer purchases in its fixed asset records; and, overstated total labor hours for a contractor included in the County's Recovery Act report for June 2011, due to a calculation error and a lack of review.  In response to the findings, Department management concurred with the recommendations and proposed and initiated corrective actions to verify that the County establishes policies and procedures to ensure fixed asset records contain all Department-required data fields, and to ensure accurate compilation and submission of Recovery Act reporting and retention of appropriate supporting documentation.

Topic: Financial Assistance