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Examination Report: OAS-RA-13-24

June 18, 2013

Southwest Michigan Community Action Agency – Weatherization Assistance Program Funds Provided by the American Recovery and Reinvestment Act of 2009

The American Recovery and Reinvestment Act of 2009 (Recovery Act) was enacted to promote economic prosperity through job creation and encourage investment in the Nation's energy future.  As part of the Recovery Act, the Weatherization Assistance Program (Weatherization Program) received $5 billion to reduce energy consumption for low-income households through energy efficient upgrades. 

The State of Michigan received over $250 million in Weatherization Program Recovery Act grant funding, of which $6.69 million was allocated to the Southwest Michigan Community Action Agency (Southwest).  The State of Michigan's Bureau of Community Action and Economic Opportunity under the Department of Human Services was responsible for administering Weatherization Program grants, including funds provided to  Southwest.

The Office of Inspector General contracted with Lani Eko & Company, CPAs, PLLC (Lani Eko), to examine Southwest's compliance with laws, regulations and program guidelines applicable to the Weatherization Program.  The examination found that Southwest had inaccurately stated "Jobs Created and Retained" hours in its quarterly reporting and had not provided evidence that findings noted by the inspector in the Final Inspection Report had been addressed.  The Department concurred with the recommendation will continue to monitor billing processes, eligibility determinations, and trend analysis as part of its grant oversight responsibilities.

TOPIC: Energy