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Examination Report: OAS-RA-13-23

June 18, 2013

Area Community Services Employment and Training Council – 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 $3.58 million was allocated to the Area Community Services Employment and Training Council (ACSET).  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 ACSET. 

The Office of Inspector General contracted with an independent certified public accounting firm, Lani Eko & Company, CPAs, PLLC (Lani Eko), to examine ACSET's compliance with laws, regulations and program guidelines applicable to the Weatherization Program. 

The examination found that ACSET had not properly verified applicant and unit eligibility.  Additionally, ACSET had not ensured initial weatherization services provided, and subsequent re-work performed, met the quality of work standards of the Weatherization Program.  Further, ACSET had not maintained proper documentation sufficient to ensure compliance with Weatherization Program requirements as they specifically apply to final inspections.  The Department concurred with our recommendation will continue to monitor billing, eligibility determinations, and trend analysis as part of its grant oversight responsibility.

TOPIC: Energy