Finding Text
2023-006: Level of Effort - Supplement, Not Supplant (Significant Deficiency)
Criteria: 10 CFR 420.13(b)(7) requires that a state provide reasonable assurance to the U.S. Department of Energy that it has established policies and procedures designed to assure that Federal financial assistance under this subpart will be used to supplement, and not to supplant, State and local funds and, to the extent practicable, increase the amount of such funds that otherwise would be available, in the absence of such Federal financial assistance, for those activities set forth in the State Energy Program plan approved pursuant to this subpart.
Condition/context: The Authority does not have an internal control system in place to evaluate and monitor the level of effort as it pertains to supplement, not supplant.
Cause: The Authority was unaware of the compliance requirement.
Effect: If the Authority does not monitor this requirement, it is possible that the Authority could utilize Federal funds to supplant its activities.
Questioned costs: $0
Identification as a repeat finding: No.
Recommendation: We recommend implementing a control system to ensure regular monitoring and evaluation of level of effort as it pertains to supplement, not supplant.
Views of responsible officials and planned corrective actions: Management concurs with the finding. See Exhibit I.