Audit: 95 percent of state's weatherization money unspent

Saturday, November 13, 2010

TRENTON - Nearly 95 percent of $119 million in federal stimulus money sent to New Jersey last year to help low-income residents make their homes more energy efficient remains unspent, according to an audit that shows that the program has been plagued by mismanagement since it started.

The weatherization program is designed to help residents save on energy costs through the installation of insulation, sealing ducts and stopping heat loss through leaky windows and doors.

It is overseen by the Department of Community Affairs but uses government and nonprofit agencies to do the work. At the outset, DCA planned to complete 13,000 units. To date, just more than 1,000 have been completed.

According to a report released this week by State Auditor Stephen Eells, the program's cost controls weren't being effectively implemented.

The audit determined that $2.7 of the $8.7 million in expenditures reported so far were considered fraudulent and the payments were stopped. Weatherization agencies are provided advance funds but must submit reports on the expenditures.

Of the $119 million, New Jersey was awarded half, or $64 million, upfront. The state was promised the other half once it could demonstrate progress, or that 30 percent of the units the state promised to weatherize were completed.

The report noted that the lack of oversight resulted in varying construction costs, underpaid workers and "unreasonable spending."

Eells said that the spending problems were the result of "inadequate review of financial reports and a lack of guidance from the state and federal agencies."

Auditors visited four weatherization agencies and found that of the reported $614,000 in expenditures, $54,000 were "unreasonable."

For example, one weatherization agency spent $1,499 for in-dash GPS systems when a cheaper $200 portable model would have worked.

Another weatherization agency charged $10 for a dryer vent, while a similar installation cost $126, according to the report.