A state department, with the assistance of a community action agency (CAA), administers a federally funded Weatherization Assistance Program (WAP) to reduce energy costs for low-income households across the state.
The state’s WAP must adhere to the Department of Health and Human Services (HHS) and Department of Energy (DOE) program requirements. As such, the state engaged Baker Tilly to perform an independent review of the CAA's statewide WAP administration.
Baker Tilly's state and local government specialists conducted a compliance audit of the state’s WAP documentation developed by the CAA. To complete the audit, sample-based testing was administered for three program years. (A sample size of 50 program files was selected and analyzed.) In addition to reviewing required program documentation, the audit also evaluated the compliance of data entered in the state's program management system. Baker Tilly's dedicated industry professionals developed a file review report that outlined 183 findings and identified upwards of $300,000 in potentially ineligible costs related to program compliance and labor.
Using the file review report Baker Tilly produced, the state department is updating its program manuals to clearly communicate WAP requirements, strengthen compliance and address identified gaps.
As the state department experienced some compliance concerns with the CAA they worked with, they also utilized the audit report as a resource to further investigate the CAA’s non-compliance and as a basis to resolve future issues.
For more information, or to learn how Baker Tilly's public sector specialists can help your organization with WAP compliance, contact our team.