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Examination Report: OAS-RA-13-14

February 28, 2013

Connecticut Department of Energy and Environmental Protection 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 Department of Energy's (Department) Office of Inspector General contracted with an independent certified public accounting firm, Lopez and Company, LLP, to conduct an examination of the Connecticut Department of Energy and Environmental Protection's (Agency) EECBG Program.  The examination found that the Agency did not receive certified payrolls on a weekly basis, as required, to ensure timely review of sub-grantee contractors' compliance with Davis-Bacon Act wage requirements.  Additionally, the Agency reported inaccurate and unsupported information on jobs created and retained for one quarter reviewed.  Further, the Agency failed to ensure sub-grantees were compliant with Federal requirements for recording and controlling fixed assets.  The issues identified occurred, in part, because the Agency delegated its responsibility for Davis-Bacon Act compliance for the collection, review, and initial retention of certified payrolls to sub-grantees, and Federal requirements related to fixed assets were not cited in sub-grantee contracts.  In response to the findings, the Department concurred with the recommendation, and proposed and initiated corrective actions to improve administration of the EECBG Program.

Topic: Financial Assistance