The Energy Department’s inspector general has called attention to major challenges in ensuring the effectiveness of energy efficiency grants funded through the Recovery Act.
The department’s Energy Efficiency and Conservation Block Grant program received $3.2 billion in Recovery Act funding for competitive and formula grants, with about $284 million designated by EECBG recipients for financial incentive programs, according to the IG.
It found that Energy had taken a number of positive steps to implement and administer EECBG financial incentive programs to ensure accountability including through the use of best practices, templates, online trainings and webcasts.
However, the department has faced challenges ensuring grant recipients were on track to meet expenditure goals for their financial incentive programs prior to the end of their grant periods, as well as finalizing grant recipient guidance on their responsibilities for long-term monitoring and reporting of financial incentive programs funding, the IG said.
It concluded that the department has taken action to address those challenges, and that Energy managers have also taken action to address a problem where one recipient failed to segregate Recovery Act funds from other funding sources in its accounting system.
