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EXAMINATION REPORT: OAS-RA-13-27

July 15, 2013

Commonwealth of Puerto Rico Energy Affairs Administration – 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.  Commonwealth of Puerto Rico Energy Affairs Administration's (Puerto Rico) received a $9.6 million formula EECBG grant award that was to be expended over a 3-year period from September 21, 2009 through September 20, 2012.  Puerto Rico requested and received an extension of its grant to March 31, 2013.

The Office of Inspector General contracted with an independent certified public accounting firm to express an opinion on Puerto Rico's compliance with Federal and Commonwealth of Puerto Rico laws, regulations and program guidelines applicable to the EECBG Program. 

The examination found that except for the significant deficiencies described in its report, Puerto Rico complied in all material respects with the aforementioned requirements and guidelines relative to the EECBG Program for the period September 21, 2009 through December 31, 2011.  For instance, Puerto Rico did not know the status of and had not maintained supporting documentation for four cash advances totaling $449,000 to ensure funds were used for allowable costs.  The Department's comments were responsive to our recommendation.

TOPIC: Financial Assistance