TRENTON — After a sluggish start and months of intense scrutiny, management of the state’s troubled weatherization program is again under fire. A state audit released this week found that more than $300,000 in federal funds are unaccounted for or have been improperly spent by a nonprofit organization under the supervision of the state’s Department of Community Affairs. The...
TRENTON — After a sluggish start and months of intense scrutiny, management of the state’s troubled weatherization program is again under fire.
A state audit released this week found that more than $300,000 in federal funds are unaccounted for or have been improperly spent by a nonprofit organization under the supervision of the state’s Department of Community Affairs.
The audit found several other problems, including poor bookkeeping, a lack of oversight and a violation of state procurement policy.
The Trenton-based organization, the New Jersey Community Action Association, received a $2.1 million grant for training, outreach, marketing and advertising of the state’s weatherization program.
The U.S. Department of Energy allocated $118.8 million for the state to weatherize almost 13,400 homes by March 2012 as part of the federal stimulus package. The aim is to reduce greenhouse emissions, create green jobs and help low-income households cut their energy bills.
So far the state has weatherized 5,200 homes, according to a Community Affairs spokeswoman, and 80 percent of the grant has been awarded.
The department works with 24 nonprofit local organizations to administer the funding, including the New Jersey Community Action Association.
"We found that DCA’s inadequate budgetary and spending controls over the grant enabled the NJCAA to improperly spend Weatherization grant funds," the state auditor, Stephen Eels, said, adding that the association does not have an "adequate financial management system."
When reached Wednesday, an administrator at the association said it was unaware of the audit until Wednesday and declined to comment until it was reviewed. Albert Kelly, chairman of the board, could not be reached for comment.
The audit found that of the $2.1 million grant, $1.5 million had been spent and $270,000 was in the bank accounts, leaving nearly $330,000 unaccounted for.
"The weatherization monies obviously were spent somewhere else along the line," Eells said.
The audit also highlighted what it called the association’s poor record-keeping, including mixing the federal grant with other funds, inaccurate transactions and unexamined invoices.
Community Affairs Commissioner Lori Grifa said the state has cut off nearly all funds to the association and ordered a forensic audit of all transactions.
Implementation of the grant has faced previous criticisms,including two audits that highlighted mismanagement
State Sen. Barbara Buono (D-Middlesex), who held hearings on the program in the winter, said Wednesday the audit renewed her concerns.
"There’s a plethora of issues that we really need to be getting to the bottom of," Buono said. "We may have the funds but the important question is whether or not the funds are being spent appropriately."
Chris Megerian contributed to this report.