Report 2009-119.2 Recommendation 2 Responses

Report 2009-119.2: Department of Community Services and Development: Delays by Federal and State Agencies Have Stalled the Weatherization Program and Improvements Are Needed to Properly Administer Recovery Act Funds (Release Date: February 2010)

Recommendation #2 To: Community Services and Development, Department of

To ensure it receives the remaining 50 percent of its $186 million award for the Weatherization program, Community Services should seek federal approval to amend its plan for implementing the Weatherization program and seek an extension from Energy for fulfilling the progress milestones. In addition, it should promptly develop and implement the necessary standards for performing weatherization activities under the program and develop a plan for monitoring subrecipients that includes all requirements called for by the Recovery Act.

Annual Follow-Up Agency Response From January 2012

The recommendation suggested that the department seek federal approval to amend its plan for implementing the Weatherization program and seek an extension from the Department of Energy (DOE) for fulfilling the progress milestone outlined in the Weatherization Program Notice, 10-5, and necessary to receiving the remaining 50 percent of the $186 million DOE ARRA grant funds. The recommendation offered by the BSA, centered on concerns with program implementation delays and CSD's ability to achieve the progress milestones by the self-imposed target date of September 30, 2010. Because the September 30th date was a CSD determination, and failure to accomplish the progress milestones by this date did not pose any risk to California receiving the funding balance of DOE ARRA grant funds (i.e. only delayed the release of funds to CSD), the Department did not see any benefit in seeking any federal approved adjustment to internal plans for achieving the progress milestones. On November 16, 2010, CSD issued an email communication (see attached November 17th email to DOE) to DOE confirming the achievement of all the performance requirements and progress achievements tied to the overarching program milestone objectives. On November 30th, DOE (see email dated November 30th from DOE) lifted the administrative hold on the remaining 50% grant funds, thus affording CSD the ability to access funds and distribute to local subgrantees. Additionally, CSD has implemented a comprehensive monitoring plan for monitoring subrecipients to verify compliance with Davis-Bacon Act, weatherization installation standards, energy audit protocols, program requirements, and whistleblower complaints. CSD plans to amend the DOE ARRA state plan to reflect changes in all facets of the program, to include an updated description of CSD's monitoring program.(2011-041, pp. 87-88)

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


All Recommendations in 2009-119.2

Agency responses received after June 2013 are posted verbatim.