Laserfiche WebLink
6.1 B <br /> City of Redwood City AT ���i� <br /> Single Audit Reports <br /> Schedule of Findings and Questioned Costs <br /> For the Year Ended June 30, 2010 <br /> C. FINDINGS AND QUESTIONED COSTS - MAJOR FEDERAL AWARD PROGRAM AUDIT <br /> Finding 10-1 U.S. DEPARTMENT OF ENERGY <br /> Energy Efficiency Conservation Block Grant (CFDA Number 81.128)- <br /> Cash Management- Drawdown of all funds before expenses incurred <br /> Criteria: Federal funds should be drawdown on the basis that the expenditures have <br /> been incurred, or will be incurred shortly. <br /> Condition: The Program drawdown all funds prior to incurring the expenditures related <br /> to the grant. <br /> Cause: The Program staff was unaware of this requirement. <br /> Questioned Costs: None. The Program is required to return the unexpended funds back to the <br /> Departrnent of Energy <br /> Context and Effect: Funds should be drawdown on the basis that the expenditure was incurred <br /> or will be incurred within short amount of time. <br /> Recommendation: The City should implement controls to ensure its compliance with federal <br /> fund drawdown requirements. <br /> Management Response: The Energy Efficiency and Conservation Block (EECBG), was part of the <br /> federal stimulus program started in the spring of 2009. Given this was a new <br /> program, the Department of Energy (DOE) had not yet developed all of the <br /> policies and procedures related to administration of the program/funding. <br /> Therefore, the information and technical assistance provided by the DOE was <br /> less than clear and sometimes inconsistent. <br /> After receiving notification that the City's application and budget for EECBG <br /> funds had been approved, City staff established an account in the ASAP <br /> (Automated Standard Application for Payment) system. Following the <br /> instructions provided, City staff was allowed to draw down the entire <br /> allocaiion, through the ASAP system. <br /> Staff was later advised that only the portion that had been spent was to be <br /> drawn down, and City Staff contacted DOE staff to determine how best to <br /> return the funds. Bryce Robinson, Contract Specialist for the Department of <br /> Energy, sent City Staff an email clearly indicating that City Staff was not to <br /> return the funds that had been drawn down. He indicated that other grantees <br /> had also drawn down their entire allocation. He indicated that the <br /> Departrnent of Energy was working out the details on how to handle this <br /> situation, and would advise City staff how to handle once DOE developed the <br /> proper process and procedure. <br /> 11 <br />