1 | Weatherization Assistance Program: The Federal Perspective (Part 1)eere.energy.gov NASCSP 2011 Mid-Winter Training Conference March 4, 2011 Weatherization Assistance Program: IG/GAO – Monitoring – QA Holly Ravesloot, Christine Platt-Patrick & Erica Burrin

2 | Weatherization Assistance Program: The Federal Perspective (Part 1)eere.energy.gov Inspector General and General Accountability Office IG/GAO Reports: A Review of Findings and Next Steps Presenter: Christine Platt Patrick, DOE Policy Advisor

3 | Weatherization Assistance Program: The Federal Perspective (Part 1)eere.energy.gov Overview  Introduction  The IG/GAO  Findings and Trends  Next Steps

4 | Weatherization Assistance Program: The Federal Perspective (Part 1)eere.energy.gov IG/GAO – The Process  The Inspector General (IG) Mission - To help the Department and the American taxpayer by identifying opportunities for cost savings and operational efficiencies in Department programs; and returning hard dollars to the Department and the U.S. Treasury as a result of Office of Inspector General civil and criminal investigations.  The General Accountability Office (GAO) - GAO exists to support the Congress in meeting its constitutional responsibilities and to help improve the performance and ensure the accountability of the Federal government for the benefit of the American people.

5 | Weatherization Assistance Program: The Federal Perspective (Part 1)eere.energy.gov IG/GAO – The Process  The audit process commences upon receipt of the incoming notification letter from IG or GAO of their intent to conduct a review with EERE. Information contained in the notification letter includes:  Job title, job code and a brief description of the assignment;  Indication of whether the audit is the result of a Congressional request or a IG/GAO initiative;  Proposed entrance conference dates;  Locations and specific program offices where work will be performed, and  Identification of the performing division, and the name and telephone number of the appropriate IG/GAO contact for the audit.

6 | Weatherization Assistance Program: The Federal Perspective (Part 1)eere.energy.gov IG/GAO – The Process  Attend entrance conference  Respond to requests for information and documentation  Statement of Facts/Coordination Copy  Draft Report  Respond with management decision letter with corrective actions and estimated completion dates  Exit Conference  Final Report

7 | Weatherization Assistance Program: The Federal Perspective (Part 1)eere.energy.gov IG/GAO – Findings and Trends  General IG/GAO Findings: –Substandard performance in weatherization workmanship –Substandard performance in initial home assessments  Assessments that called for inappropriate weatherization measures  Assessments overlooked key measures to make homes more energy efficient –Inadequate oversight of contractors –Inaccurate documentation for contractor billing –Homes failing final inspection –Inadequate recordkeeping –Inadequate payroll systems to track employee’s time on projects –Incomplete client files –Fraud, waste and abuse of funds

8 | Weatherization Assistance Program: The Federal Perspective (Part 1)eere.energy.gov IG/GAO – Next Steps  Investigations Are Changing Focus –Prior Focus: Department level –New Focus: CAA level

9 | Weatherization Assistance Program: The Federal Perspective (Part 1)eere.energy.gov IG/GAO – Next Steps What CAAs Can Do

10 | Weatherization Assistance Program: The Federal Perspective (Part 1)eere.energy.gov IG/GAO – Next Steps  Procure contractor weatherization services through a competitive process as required by Federal regulations and perform cost analyses in the selection of contractors to ensure price competiveness.  Obtain and/or review supporting documentation for contractors' invoices to ensure that materials and labor costs incurred on projects are associated with allowable weatherization services and materials.  Ensure that employees charging payroll costs to the Weatherization Program Recovery Act grants are actually providing such services to the Program.

11 | Weatherization Assistance Program: The Federal Perspective (Part 1)eere.energy.gov IG/GAO – Next Steps  Develop written policies and/or procedures for ensuring cost reasonableness and supportability.  Develop/ensure payroll systems are structured to track employee's time incurred on projects.  Ensure payments for expenditures are appropriately documented and accounted for.  Ensure contractors are billed for labor charges that have been incurred and for materials that have been installed.

12 | Weatherization Assistance Program: The Federal Perspective (Part 1)eere.energy.gov IG/GAO – Next Steps  Initial assessments that called for inappropriate weatherization measures or the assessments overlooked key measures needed to make the homes more energy efficient.  Ensure that income eligibility source documentation be a part of every client’s file.  Ensure the eligibility documentation, whether stored electronically or hard copy (off site is ok), be readily available at the request of an outside reviewer.

13 | Weatherization Assistance Program: The Federal Perspective (Part 1)eere.energy.gov IG Hotline Complaints Inspector General

14 | Weatherization Assistance Program: The Federal Perspective (Part 1)eere.energy.gov Questions?

15 | Weatherization Assistance Program: The Federal Perspective (Part 1)eere.energy.gov Inspector General and General Accountability Office Monitoring: DOE’s Monitoring Approach Presenter: Holly Ravesloot

16 | Weatherization Assistance Program: The Federal Perspective (Part 1)eere.energy.gov  Minimum Frequency of On-Site Monitoring visits per Year (more visits may be required based on specific situations or needs): –Grants over $90 Million (Quarterly) – Grants between $90 Million - $40 Million (Three visits) – Grants under $40 Million (Semi-Annual) Frequency

17 | Weatherization Assistance Program: The Federal Perspective (Part 1)eere.energy.gov Monitoring Revamp What were the goal and objectives? The main goal is to transform the current “one size fits all” monitoring process into a more efficient, comprehensive, and streamlined process. Make sure areas of interest from the IG and GAO are reviewed and any issues documented. The main objectives are: 1)Create on-site monitoring checklist questions to provide more specific answers and a system to appropriately weight and quantify the results. Baseline score, # of findings, concerns, recommendations, etc. 2)Simplify and create a consistent reporting process. Checklist + narrative answers becomes the report. 3)Have an online system to track and archive information. Need a tracking system to confirm corrective and action items were issued and closed out/completed.

18 | Weatherization Assistance Program: The Federal Perspective (Part 1)eere.energy.gov Monitoring Revamp What is the result? A refined process to allow the Project Officers to focus monitoring efforts on specific areas to better identify existing and potential problems or concerns. The checklist was divided into 3 sections: Programmatic & Management Awards Administration Field/Subgrantee Review

19 | Weatherization Assistance Program: The Federal Perspective (Part 1)eere.energy.gov Monitoring Instruments Programmatic & Management Awards Administration Field/ Subgrantee

20 | Weatherization Assistance Program: The Federal Perspective (Part 1)eere.energy.gov  Grantee/Subgrantee Preparation: Monitoring Preparation

21 | Weatherization Assistance Program: The Federal Perspective (Part 1)eere.energy.gov Explain how the Grantee assures Subgrantees comply with income eligibility requirements and identify what procedures the Subgrantees must follow. Source Documentation: 10 CFR : Minimum Program Requirements 10 CFR : Eligible Dwelling Units Application Package, III.1 WPN 10-15: Eligibility of Multi-Family WPN 10-15a: Accrual of Benefits WPN 10-18: Income Guidelines WPN 11-1, 5.2: Multi-family Eligibility WPN : Eligibility Levels Material Review: Policies on income documentation and eligibility. Completed monitoring files to determine if eligibility is part of Grantee oversight. P&M: Question 14 ELIGIBILITY

22 | Weatherization Assistance Program: The Federal Perspective (Part 1)eere.energy.gov How does the Grantee verify the DOE approved energy audit or priority list (on file at DOE) is consistent with what the Grantee monitors the Subgrantee against: a. Single Family Units? b. Mobile Homes? c. Multi-Family Units? P&M: Question 28 Source Documentation: 10CFR440.14: State Plan 10CFR440.21: Energy Audits 10CFR440.23: Oversight, Training & Technical Assistance 10CFR440.24: Recordkeeping WPN : Energy Audit Criteria WPN 01-4 WPN 05-5 WPN 09-4 WPN 09-8 Material Review: State Plan Review Audit System Review Sample Audit Report (from client files) Priority List Approval Information ENERGY AUDITS

23 | Weatherization Assistance Program: The Federal Perspective (Part 1)eere.energy.gov  Finalize Checklist  Issue Guidance Document with checklist as attachments  Any questions? Next Steps

24 | Weatherization Assistance Program: The Federal Perspective (Part 1)eere.energy.gov Inspector General and General Accountability Office Quality Assurance Presenter: Erica Burrin

25 | Weatherization Assistance Program: The Federal Perspective (Part 1)eere.energy.gov  Oakridge National Laboratory is the responsible party that oversees the QA contractor, Institute for Building Technology and Safety (IBTS)  IBTS will conduct both file reviews and quality assurance visits at homes completed using ARRA funds Quality Assurance (QA) Contractor Process

26 | Weatherization Assistance Program: The Federal Perspective (Part 1)eere.energy.gov  QA visits will include the following activities at the subgrantee’s office and various work sites: 1. Examining of a representative sample of client work files based on weatherized homes reported or planned to be reported by the subgrantee during the ARRA period 2. Scheduling of site visits to a representative sample of completed homes 3. Visiting a representative sample of homes reported as completed by the subgrantee. Quality Assurance (QA) Contractor Process

27 | Weatherization Assistance Program: The Federal Perspective (Part 1)eere.energy.gov  Observations made and recorded by IBTS may include: 1. Completeness of client files 2. Measures called for on a work order as compared to measures installed 3. Documentation of a completed final inspection by the subgrantee 4. Measures billed to the WAP program for labor and material costs versus measures installed on units 5. Quality of workmanship/adherence to state field guides Quality Assurance (QA) Contractor Process

28 | Weatherization Assistance Program: The Federal Perspective (Part 1)eere.energy.gov  Communication Process  File Collection  Scheduling Site Visits Quality Assurance (QA) Contractor Protocols

29 | Weatherization Assistance Program: The Federal Perspective (Part 1)eere.energy.gov  How will DOE use the information from the QA contractor? 1. Database Creation 2. Project Officer Review 3. National Data Trends Quality Assurance (QA) Contractor