Report 2009-119.1 All Recommendation Responses

Report 2009-119.1: California Energy Resources Conservation and Development Commission: It Is Not Fully Prepared to Award and Monitor Millions in Recovery Act Funds and Lacks Controls to Prevent Their Misuse (Release Date: December 2009)

Recommendation #1 To: Energy Commission, California

As expediently as possible, the Energy Commission should take the necessary steps to implement a system of internal controls adequate to provide assurance that Recovery Act funds will be used to meet the purposes of the Recovery Act. These controls should include those necessary to collect and verify the data needed to measure and report on the results of the programs funded by the Recovery Act and to mitigate potential fraud, waste, and abuse. Such steps should include quickly performing the actions already planned, such as assessing the Energy Commission's existing controls and the capacity of its resources and systems, and promptly implementing all needed improvements.

Annual Follow-Up Agency Response From January 2012

The Energy Commission addressed this recommendation through two contracting efforts: 1) an Audit Support Services contract with Perry-Smith LLP to provide a Commission-wide review of controls, processes, and procedures, provide recommendations on areas where controls can be improved/strengthened, and to conduct risk assessments and audits on funding recipients, and 2) a Monitoring, Evaluation, Verification and Reporting contract with KEMA, Inc. to provide programmatic/performance reviews and validation of data collected/reported by funding recipients. (Please see attached letter for specifics of contract milestones achieved to date). (See 2011-041 p. 149)

California State Auditor's Assessment of Annual Follow-Up Status: Fully Implemented

Recommendation #2 To: Energy Commission, California

The Energy Commission should promptly solicit proposals from entities that could provide the allowable services and should execute contracts, grants, or loan agreements with these entities so that California can realize the benefit of the Recovery Act funds.

Annual Follow-Up Agency Response From January 2012

The Energy Commission has allocated all ARRA SEP funds through contracts, grants and loans. Energy Commission project managers are closely monitoring project progress to ensure successful completion. Project oversight has identified recipients at risk of not fully spending their funds, and the Energy Commission has reallocated those at risk funds to other high performing recipients. The Energy Commission contracted with Department of Finance, Office of State Audits and Evaluations to perform an assessment of our ARRA recipients' ability to spend down remaining ARRA SEP funds by the April 30, 2012 deadline. As a result, the Energy Commission worked with recipients to develop viable work plans to successfully complete their projects and/or confirm the amount of fallout available for reallocation. Energy Commission project managers continue to closely monitor all projects to ensure work plans are progressing, providing anticipated energy savings and economic stimulus to California businesses and citizens. (See 2011-041 p. 150)

California State Auditor's Assessment of Annual Follow-Up Status: Fully Implemented

All Recommendations in 2009-119.1

Agency responses received after June 2013 are posted verbatim.