Additional Actions Needed to Help Ensure Wisconsin Implements the Weatherization Assistance Program in Accordance With Requirements
May 5, 2026
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April 30, 2026
Additional Actions Needed to Help Ensure Wisconsin Implements the Weatherization Assistance Program in Accordance With Requirements
The Department of Energy’s Weatherization Assistance Program (WAP) assists low-income families in reducing energy costs by increasing the energy efficiency of dwelling units while ensuring health and safety. WAP provides billions of dollars in grants to all 50 states, the District of Columbia, Native American tribes, and U.S. territories. These entities then contract with local weatherization providers to offer WAP services to their communities. The Infrastructure Investment and Jobs Act added $3.5 billion to WAP program appropriations.
Due to the importance of WAP and the risk areas we previously identified, we selected one state for review. We performed this audit to determine the extent to which Wisconsin’s Division of Energy, Housing and Community Resources (DEHCR) officials managed WAP in accordance with applicable requirements.
Wisconsin’s DEHCR officials did not always manage WAP in accordance with applicable requirements. We found that DEHCR officials did not: (1) maintain all supporting documentation necessary to support costs claimed by their subgrantees and lower-tier subcontractors, and (2) identify a potential conflict of interest. Lastly, we identified two areas for improvement related to DEHCR’s internal control system that, if addressed, should help its officials administer WAP in accordance with applicable requirements.
These issues occurred because DEHCR officials did not have a policy to maintain all supporting documentation, including copies of invoices, from their subgrantees. In addition, DEHCR’s conflict of interest policy lacked the rigor to identify potential conflicts of interest. Further, DEHCR officials did not have a formal documented procedure for their Performance Evaluation tool or their process for receipt and resolution of complaints. The Department is responsible for overseeing activities performed under the award. However, its oversight did not ensure compliance with the terms and conditions of the award or identify the issues in our report.
An effective internal control system is necessary to help ensure the overall effectiveness of WAP funding and to demonstrate costs are allowable, allocable, and reasonable.
To address the issues identified in this report, we have made two recommendations and one suggested action that, if fully implemented, should help DEHCR officials improve their administration of WAP and ensure compliance with applicable requirements.