Auditor General Jack Wagner this week said a special performance audit found that the Commonwealth's deficient administration of the federally funded Weatherization Assistance Program that reduces home energy costs failed to prioritize the needs of low-income Pennsylvanians, placing some of Pennsylvania's most vulnerable citizens at greater risk.

General Wagner said, because of poor administration, inadequate funding and insufficient manpower, it could take up to nine years to clear the statewide backlog of 9,249 applicants that were seeking weatherization assistance as of June 30, 2006, according to records supplied by the Department of Community and Economic Development, which oversees the program.

"The Weatherization Assistance Program is a vital link in the safety net that helps keep thousands of vulnerable Pennsylvanians warm during the winter," General Wagner said. "As auditor general, I want to make sure that the program is administered professionally and efficiently, so that Pennsylvanians who truly need assistance receive all of the protection to which they are entitled."

General Wagner's weatherization audit covered the period July 1, 2001, through June 30, 2006. It contained 10 findings and made 24 recommendations to DCED. These include:

· Monitor local agencies and develop prioritizing procedures to ensure that at-risk and needy Pennsylvanians are first in line to receive weatherization services. DCED should consider waiting lists when allocating grant monies to local agencies and consider requesting additional LIHEAP funds from the Department of Public Welfare;

· Minimize potential for fraud and abuse by creating a system to ensure re-weatherization services are not provided to ineligible dwellings;

· Strengthen oversight and verification by developing written policies and procedures for local agencies; and

· Ensure the program's effectiveness by calculating energy and monetary savings. Develop a statewide database to assess local agencies and improve performance of the program.

The Weatherization Assistance Program helps low-income families increase the energy efficiency of their homes. DCED provides funds to local public and private non-profit agencies, which, in turn hire subcontractors to repair homes. DCED disbursed $35 million during the 2005-06 heating season, with about $20 million of the funds coming from the Department of Public Welfare's LIHEAP grant from the federal government.

While the weatherization program helped 25,099 Pennsylvanians living in 10,368 homes during the 2005-06 heating season, auditors found that, based on existing repair rates, applicant backlogs ranged from an estimated two months to as long as nine years in Fayette County.

In addition to the weatherization program, DCED coordinates with the DPW's LIHEAP personnel to help low-income citizens in crisis situations, such as having a broken furnace. DCED's grant agreement with local agencies requires them to take action to remedy a crisis situation within 48 hours of notification.

Local agencies must set aside 30 percent of their LIHEAP funding for crisis services, but may use a greater percentage if it is economically feasible. Crisis funds remaining at the end of March are to be used for standard weatherization services. More than $9 million of LIHEAP funding was used to provide crisis services at 4,773 homes statewide for 11,519 residents as of June 30, 2006.

The audit found that DCED was not adequately monitoring the Weatherization Assistance Program. Among the control weaknesses Wagner cited was the failure to develop a priority list of the neediest applicants; failure to make sure local agencies responded to crises within the federally mandated period of 48 hours; and failure to conduct follow-up inspections to make sure that repairs were delivering their promised energy savings.

"DCED has been very responsive in addressing our findings and recommendations," General Wagner said. "I would hope that these corrective measures are in place prior to the start of the home heating season."

A complete copy of the audit is available online.

For more information, visit the Pennsylvania Weatherization Assistance Programs webpage.

8/3/2007