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Cit 6.1. B. - Page 223 �ity <br /> J <br /> Single Audit Reports <br /> Schedule of Findings and Questioned Costs, Continued <br /> For the Year Ended June 30, 2011 <br /> D. PRIOR YEAR FINDINGS AND QUESTIONED COSTS <br /> Finding 10-1 U.S. DEPAPTMENT OF ENEPGY <br /> Energy Efficiency Conservation Block Grant (CFDA Nunlber 81.128)- <br /> Cash Management- Drawdown of all funds before expenses incurred <br /> Criteria: Federal funds sllould be drawdown oi1 tlle basis that fl1e expenditures 11ave <br /> l�een incurred, or will be incurred shortly. <br /> Condition: T11e Progranl drawdown all funds prior to incurring the expenditures related <br /> to the grant. <br /> Cause: T11e Progranl staff was unaware of this requirenlent. <br /> Questioned Costs: None. T11e Progranl is required to retunz the unexpended funds back to fl1e <br /> Department of Energy <br /> Context and Effect: Funds should be drawdo�nm on the basis that t11e expenditure was ulcurred <br /> or will be incurred within short anlount of tiine. <br /> Peconunendation: The City sllould inlplenlent controls to ensure its conlpliailce with federal <br /> fund drawdown requirenlents. <br /> Management Response: The Energy Efficiency and Conservation Block (EECBG), was part of the <br /> federal stinlulus 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 �zd procedures related to administration of the program/fiinding. <br /> Therefore, the information and technical assistance provided by the DOE was <br /> less than clear and sometimes uzconsistent. <br /> After receiving notification that the City's application and budget for EECBG <br /> funds had been approved, City staff establislled an account in the ASAP <br /> (Atrtomated Standard Application for Payment) system. Following the <br /> ulstructions provided, City staff was allowed to draw down the entire <br /> allocation, through the ASAP system. <br /> Staff was later advised t11at only the portion t11at had been spent was to be <br /> drawn down, and City Staff contacted DOE staff to deternune how best to <br /> return the funds. Bryce Robinson, Contract Specialist for the Departnlent of <br /> Energy, sent City Staff an enlail clearly indicating that City Staff was not to <br /> return fl1e funds that had been drawn down. He indicated t11at other grantees <br /> had also drawn down tlleir entire allocation. He indicated fllat the <br /> Departnlent of Energy was working out the details on how to handle fllis <br /> situation, and would advise City staff how to handle once DOE developed the <br /> proper process and procedure. <br /> 12 <br />